EFFECT OF BUDGETING ON INTERNAL CONTROL SYSYTEMS IN A MANUFACTURING ORGANIZATION IN NIGERIA: A STUDY OF NORTHERN NIGERIAN FLOUR MILLS, PLC.

ABSTRACT This study investigates the effect of budgeting on internal control systems within manufacturing organizations, focusing on Northern Nigeria Flour Mills, PLC. The research design adopted for the study was a descriptive research design and the study utilized primary method of data collection, utilizing a structured questionnaire with a five-point Likert scale. Data were collected from 60 employees to assess their perceptions of budgeting practices and their impact on internal control systems. Descriptive statistics, correlation analysis, ANOVA, and regression analysis were employed to analyze the data. The findings reveal that Budget Planning significantly enhances internal control systems, while Budget Implementation and Budget Monitoring do not show substantial impacts. Based on these results, the study recommends enhancing Budget Planning processes, strengthening monitoring mechanisms, and integrating Budget Implementation with internal control practices to improve financial management and internal controls within manufacturing organizations.