EFFECT OF CONTROL ENVIRONMENT, RISK ASSESSMENT AND CONTROL ACTIVITIES ON FINANCIAL PERFORMANCE OF SMALL AND MEDIUM SCALE ENTERPRISES IN KEBBI STATE

Abstract

This study examines the effect of Control environment, Risk assessment and Control Activities on financial performance of small and Medium Scale Enterprises in Kebbi State. Primary data was sourced through administration of a well-structured questionnaire using Simple Random Sampling of 30 Small and medium Enterprises in Kebbi State Nigeria. The data collected was quantified and analyzed statistically using Regression models (OLS). Data was analyzed with the aid of SPSS version 23. The result showed that control environment, risk assessment, and control activities have a positive and significant impact on the financial performance of small and medium-sized enterprises (SMEs) in Kebbi State, Nigeria. The study therefore recommended that SME's and other businesses or organizations should learn and adopt the importance of regular and timely financial audits to help them detect any gaps in their financial systems and financial performance. Frequent risk assessment should be conducted so that SME management may determine whether or not their goals will be reached.