Strengthening Financial Performance: The Role of Internal Control Systems in Micro and Small Enterprises

Justine Rose Taguinod
Additional contact information
Justine Rose Taguinod: Cagayan Valley Computer and Information Technology College

International Journal of Research and Innovation in Social Science, 2025, vol. 9, issue 2, 3138-3142

Abstract: Internal control is a key tool for addressing management challenges, improving organizational efficiency and effectiveness, preventing misconduct, and integrating management functions. To ensure its effectiveness, the internal control system must remain sufficient. Therefore, this study aimed to assess the internal control system and financial performance of service-based businesses in Santiago City, Philippines, focusing on the control environment, risk assessment, control activities, information and communication system, and monitoring. Using a simple random sample, 90 business owners were surveyed. The study adopted a quantitative approach with a descriptive correlation and comparative design to highlight significant differences. The data was collected through a structured questionnaire distributed via Google Forms and face-to-face surveys. Reliability and validity tests were also performed on the questionnaire. The results revealed that business owners assessed their internal control and financial performance, with significant differences observed in risk management based on business years and total net income but no significant differences based on other demographic factors,

Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.rsisinternational.org/journals/ijriss/ ... ssue-2/3138-3142.pdf (application/pdf)
https://rsisinternational.org/journals/ijriss/arti ... d-small-enterprises/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bcp:journl:v:9:y:2025:issue-2:p:3138-3142

Access Statistics for this article

International Journal of Research and Innovation in Social Science is currently edited by Dr. Nidhi Malhan

More articles in International Journal of Research and Innovation in Social Science from International Journal of Research and Innovation in Social Science (IJRISS)
Bibliographic data for series maintained by Dr. Pawan Verma ().