Journal
Metropolitan Journal of Academic Multidisciplinary Research
MJAMR
Relationship Between Internal Control Systems And The Financial Performance Of Selected SMEs In Wakiso District.
Magezi Allan, Dr. Moses Ntirandekura, PhD
| Journal | Metropolitan Journal of Academic Multidisciplinary Research (MJAMR) |
| Volume / Issue | Vol. 5, No. 2 |
| Published | 28 February 2026 |
| ISSN | 3006-4384 |
Abstract
The study examined the relationship between internal control systems and financial performance of small and medium enterprises (SMEs) in Wakiso District, Uganda. A cross-sectional survey design was employed with a sample of 170 SMEs selected through stratified random sampling. Data were collected using structured questionnaires and analyzed using descriptive statistics, Pearson correlation, and regression analysis. Results revealed that internal control systems had a significant positive relationship with financial performance (r = 0.741, p < 0.01), explaining 54.9% of variance. Specifically, control environment (r = 0.692, p < 0.01), risk assessment (r = 0.658, p < 0.01), control activities (r = 0.671, p < 0.01), and monitoring (r = 0.649, p < 0.01) all demonstrated strong positive relationships with financial performance. The study concluded that effective internal control systems significantly enhanced SME profitability, operational efficiency, and asset protection. Recommendations included strengthening control environments through segregation of duties, implementing systematic risk assessment procedures, enhancing control activities documentation, and establishing continuous monitoring mechanisms to improve SME financial sustainability and competitiveness.
Keywords
Internal control systems
financial performance
small and medium enterprises
control environment
Wakiso District
Cite This Article
Magezi Allan, Dr. Moses Ntirandekura & PhD (2026). Relationship Between Internal Control Systems And The Financial Performance Of Selected SMEs In Wakiso District. Metropolitan Journal of Academic Multidisciplinary Research, 5(2). https://journals.miu.ac.ug/pages/article.php?article_id=206
More in This Issue
View full issue →
1
Administrative Decentralization And Social Development: A Case Of Local Governments In Wakiso District, Uganda
Administrative decentralization
social development
service delivery
local governance
2
Administrative Support And Teacher Retention In Selected Private Secondary Schools Of Wakiso District, Uganda
Administrative support
instruction materials
teacher retention
working condition.
3
Adoption Of Artificial Intelligence And Internet Of Things For Sustainable Profitability In Nigeria’s Automobile Sector
Artificial Intelligence (AI)
IoT-Enabled
Sustainable Profitability
Environmental Sustainability
4
Assessing the Influence of Waste Disposal Regulation Awareness on Waste Management Practices in Kapchorwa Municipality, Uganda
Waste disposal
regulation awareness
management practices
traders
5
Community as Classroom: Vicarious Reinforcement in Traditional Male Circumcision and School Disengagement in Buyinja, Uganda
: Vicarious reinforcement
traditional male circumcision
school disengagement
observational learning