INTERNAL CONTROL SYSTEM AND REVENUE GENERATION: EVIDENCE FROM AN EMERGING ECONOMY’S RESEARCH INSTITUTE
DOI:
https://doi.org/10.52417/ojms.v5i1.553Abstract
Revenue accruing to the government to finance its expenditure has been dwindling while the cost of managing the government keeps increasing. Even with the introduction of various reforms towards enhancing revenue generation in the public sector, revenue from government-owned agencies keeps declining. As a result, the study was carried out to examine the impact of the control environment, risk assessment, control activities, information and technology, and monitoring on revenue generation in the Cocoa Research Institute of Nigeria (CRIN). The study adopted the descriptive survey research design and a sample of fifty-four (54) staff of the departments charged with the issues of compliance with the internal control system were selected, using purposive sampling techniques. A well-structured questionnaire was used to collect primary data. The data obtained were analysed using correlation and the ordinary least square method. The regression results showed that the internal control system contributed 62.2% changes to revenue generation. Furthermore, results revealed that risk assessment (RA) had a substantial constructive effect on revenue generation while control environment, control activity and information and communication (IC), and monitoring and evaluation (ME) had insignificant positive impact on revenue generation in CRIN. The study recommends that enforcement of internal control measures, especially control environment, control activity and information and communication, and monitoring, should be taken seriously by the appropriate authorities.
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