Effect of Internal Control Systems on Operational Performance of Bralirwa Manufacturing Industry, Rwanda

The general aim of this study was to establish the effect of internal control systems on the operational performance of Bralirwa. Specific research objectives are to analyse the effect of control environment on the operational performance of Bralirwa; to determine the effect of control risk assessment on the performance of Bralirwa; to assess the effect of control activities on the performance of Bralirwa; to evaluate the effect of control information and communication on performance of Bralirwa and to determine the effect of monitoring and evaluation on the performance of Bralirwa. The researcher states the problems that the insufficient reliable and relevant internal control reports have caused institutions to collapse they fall into failure because of their liabilities far outweigh the general assets they even fail to satisfy their internal controllers. The lack of effective policy meant that most of the company’s performance was unplanned but has been practiced mostly as informal sector operations beyond the government framework. The researcher consulted related theories including agency, company control, institutional practices, and the decomposed theory of planned behavior. Data analysis used both descriptive and inferential statistics. The adopted statistical regression was designed in formal linear function (linear regression model) which was used for the analysis of data collected using a questionnaire. The study sample size was 145 respondents as employees of Bralirwa, the sample of respondents were chosen through a simple random sampling technique. The results revealed that there is a positive correlation between Control environments, Control risk assessment, Control activities, Control information and communication, Control information and communication, and Monitoring and evaluation of financial performance, objectives achievement, and customer satisfaction.