Internal Control Mechanism: The Wings of Auditor’s Due Care in Medium and Large- scale Businesses in Nigeria

Abstract

This paper investigated internal audit mechanism: The wings of medium and large-scale business success in Nigeria. Imo state is a state in Nigeria therefore, Imo state is used to represent other states in Nigeria. One research question and one hypothesis were used for this study. Descriptive survey research design was used for this study. Population of this study is 1,000 which comprised 500 accounting workers from medium scale and 500 workers from large- scale businesses in Imo state. Stratified random sampling techniques was used to select a sample size of 260, which comprized 65 female and 65 male accounting staff from four medium and large- scale businesses in Imo state. Instrument for data collection is a researcher developed questionnaire titled “internal audit mechanism: The wings of medium and large business success in Nigeria” was used. The instrument was validated by two experts from Imo state University Owerri. Crobach alpha statistical technique was used to ascertain the reliability coefficients. The reliability coefficients were 0.78 and 0.98 which shows that the instrument is reliable to be used for this study. Mean and standard deviation were used to analyze the data generated, while Chi- square test of independent was used to test the hypothesis.  It was recommended from this study that business owners should establish efficient and effective internal checks and control systems in medium and large- scale business organizations. This would reduce fraud and pave way for medium and large- scale business success in developing and developed countries of the world in this digital era. It was recommended from this study that owners of large- scale and medium scale businesses in their businesses, should establish efficient and effective internal checks and control this would help to reduce sudden collapse of businesses in the developing and developed countries of the world among others.