THE EFFECT OF INTERNAL CONTROL SYSTEM ON PERFORMANCE OF SMALL AND MEDIUM SCALE BUSINESSES IN LAPAI LOCAL GOVERNMENT AREA NIGER STATE, NIGERIA

The study examined the impact of internal control system on the performance of small and medium scale businesses in Lapai Local Government Area, Niger State. The main objective of the study was to assess the impact of internal control system on the performance of small and medium scale businesses in Lapai Local Government Area, Niger State. The study adopted descriptive survey design and used a structured questionnaire as the primary instrument for data collection. The population of the study was 750, and a sample size of 261 was determined using Taro Yamane sample size formula. The study employed simple random sampling technique, which gave all members of the population equal opportunity to participate. Data collected for the study were analyzed using frequency tables and simple percentages, while the hypotheses were tested using Chi-Square statistical analysis. Findings revealed that the control environment, risk assessment practices, and information and communication systems significantly influence the performance of small and medium scale businesses in Lapai Local Government Area. The study recommended that business owners and managers strengthen their control environment, implement comprehensive risk assessment frameworks, and adopt reliable information and communication systems to enhance operational efficiency, accountability, and sustainable business growth. Keywords: Internal Control System, Control Environment, Risk Assessment, Information and Communication Systems, Small and Medium Scale Businesses.