Internal Control System and Operational Efficiency of Supermarkets in Anambra State, Nigeria

Abstract

This study focuses on the internal control system and operational efficiency of supermarkets in Anambra State, Nigeria. The internal control system plays a crucial role in achieving profitability objectives, reducing risks, and improving operational efficiency. By implementing an effective internal control system, supermarkets can identify and address inefficiencies in their operations, such as inventory management, cash handling, and customer service. The study aims at evaluating the impact of internal control systems on the operational efficiency of supermarkets by examining factors such as periodic job description updates, documentation and record retention, time and leave reporting, division of labor, physical restrictions to unauthorized units, and firewall security. The research design employed in this study is a quantitative approach, and data was collected through survey questionnaires. The total population used for this study is 192 staff in the main Supermarkets in Awka, Anambra state. The sample size of the study was determined using Krejcie and Morgan (1970) formula. Multi-Linear regression technique was employed in analyzing the data in order to determine the extent of relationship that exists between the dependent and independent variables. Descriptive statistics was also used in conducting exploratory data analysis on the respondents and responses. The study discovered that various components of internal control systems significantly influence operational efficiency. Based on the finding, the research recommends that supermarkets should establish a regular schedule for updating job descriptions and communicating changes to employees. This practice enhances role clarity, reduces role ambiguities, and ensures that employees understand their responsibilities, ultimately contributing to operational efficiency.