Browsing by Author "Daniella K Mutesi"

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    Internal Control Systems and Financial Performance of Manufacturing Firms . A Case of Uganda Clays
    (Uganda Christian University, 2023-07-27) Daniella K Mutesi
    The study investigated the effect of internal control systems on the financial performance of the manufacturing firms in Uganda: A case of Uganda Clays Limited. It specifically focused on; examining the relationship between risk Assessment procedures and financial performance, reviewing the relationship between ICT systems and financial performance and assessing the relationship between control environment and financial performance. The study was carried out using an explanatory research design where both quantitative and qualitative research approaches were also used. The data was collected using questionnaires and interviews during the data collection, both purposive and simple random sampling methods were used. A sample size of 92 respondents who are management and employees from the study context was also used in the study although 44 responded to the study. From the findings, it was revealed that the organization has demonstrated a commitment to managing financial risks effectively through clear guidelines, historical data utilization, and strategic decision-making based on both internal and external factors. Their ICT systems are robust, facilitating integrated financial processes, enhancing data security, and promoting collaboration among financial teams. Moreover, a strong control environment emphasizing ethical behavior, compliance, accountability, and transparency exists, supplemented by regular audits and open communication channels. Importantly, these individual components are found to significantly and positively influence the company’s financial performance, underscoring their collective importance in driving the company’s success in the market. Finally, the study recommends that manufacturing firms in Uganda should prioritize several key actions. Firstly, they should enhance their risk assessment procedures, including clear guidelines for identifying financial risks, historical data analysis, and consideration of both internal and external factors. Secondly, investments in robust ICT systems, with regular updates and maintenance, are crucial. Additionally, firms should foster ethical cultures emphasizing compliance, accountability, and transparency.