IDEAS home Printed from https://ideas.repec.org/a/ahd/journl/v6y2025i3p73-82.html
   My bibliography  Save this article

Internal Controls and Financial Performance of Small and Medium Enterprises in Mbale City, Uganda

Author

Listed:
  • Isaac Peter OTAI

    (Department of Accounting, Finance and Microfinance, School of Management and Entrepreneurship, Kyambogo University, Kampala, Uganda)

  • Barbra Deborah Erima BIRUNGI

    (Department of Accounting, Finance and Microfinance, School of Management and Entrepreneurship, Kyambogo University, Kampala, Uganda)

Abstract

The objective of the research was to examine the impact of small and medium enterprises’ internal controls on their financial performance in Mbale city, Uganda. In this study, internal control was proxied using two of the five components of internal control as set out by the Committee of Sponsoring Organizations, control environment and control activities, while financial performance was measured using profitability. Descriptive research design was endorsed due to its potential to describe the connection between components of internal controls and SMEs financial performance. The study randomly sampled 87 SMEs in Mbale city. Primary data was gathered using structured questionnaire. Inferential statistics involving nonparametric correlations and ordinal regression were used to analyze the data. The study findings revealed that internal controls have no significant association with the financial performance of SMEs.

Suggested Citation

  • Isaac Peter OTAI & Barbra Deborah Erima BIRUNGI, 2025. "Internal Controls and Financial Performance of Small and Medium Enterprises in Mbale City, Uganda," CECCAR Business Review, Body of Expert and Licensed Accountants of Romania (CECCAR), vol. 6(3), pages 73-82, March.
    • Handle: RePEc:ahd:journl:v:6:y:2025:i:3:p:73-82
    DOI: 10.37945/cbr.2025.03.07
    as

    Download full text from publisher

    File URL: https://www.ceccarbusinessreview.ro/internal-controls-and-financial-performance-of-small-and-medium-enterprises-in-mbale-city-uganda-a464d/download-PDF/
    Download Restriction: no
    File URL: https://www.ceccarbusinessreview.ro/internal-controls-and-financial-performance-of-small-and-medium-enterprises-in-mbale-city-uganda-a464a/abstract/
    Download Restriction: no
    File URL: https://libkey.io/10.37945/cbr.2025.03.07?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    internal control; control environment; control activities; financial performance; small and medium enterprises;
    All these keywords.

    JEL classification:

    • M00 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General - - - General
    • M19 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Other
    • M49 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Other

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ahd:journl:v:6:y:2025:i:3:p:73-82. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Radu CIOBANU (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.