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Effect of the Internal Control System (ICS) on Fraud Prevention and the Financial Performance of Selected Retail Supermarkets in Ibadan

Author

Listed:
  • Muyiwa Opaleye

    (Precious Cornerstone University)

  • Iyabode Adelugba

    (Bamidele Olumilua University of Education, Science and Technology)

Abstract

In recent times, an increase in fraudulent practices leading to poor financial performance among firms has raised concerns about putting in place a system within an organization capable of preventing fraud. Therefore, the study investigates the effect of the internal control system (ICS) on fraud prevention and the financial performance of selected retail supermarkets in Ibadan. Adopting a descriptive research design, 30 retail supermarkets in Ibadan were selected for the study using convenience sampling techniques. Furthermore, 5 employees were drawn from each selected supermarket through a purposive sampling technique, resulting in a sample size of 150 respondents. The data for the study was sourced using a self-structured questionnaire. Of the 150 copies of the questionnaire administered, 148 copies were returned, out of which 8 copies were discarded due to some irregularities found, leaving the total number of questionnaires used for analysis at 140. Using multiple regression analysis, the two hypotheses formulated for the study were tested. The results of the regression analysis showed that ICS has a significant effect on fraud prevention (F = 31.467, p

Suggested Citation

  • Muyiwa Opaleye & Iyabode Adelugba, 2024. "Effect of the Internal Control System (ICS) on Fraud Prevention and the Financial Performance of Selected Retail Supermarkets in Ibadan," International Journal of Business and Management (IJBM), International Emerging Scholars Society (IESS), New Zealand, vol. 3(1), pages 22-40, May.
    • Handle: RePEc:cwd:ijbmnz:v:3:y:2024:i:1:p:22-40
    DOI: 10.56879/ijbm.v3i1.29
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    References listed on IDEAS

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    1. repec:bdu:oejbsm:v:2:y:2017:i:1:p:52-68:id:250 is not listed on IDEAS
    2. Frank Kabuye & Joachim Kato & Irene Akugizibwe & Nicholas Bugambiro, 2019. "Internal control systems, working capital management and financial performance of supermarkets," Cogent Business & Management, Taylor & Francis Journals, vol. 6(1), pages 1573524-157, January.
    Full references (including those not matched with items on IDEAS)

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