Application of Management Accounting Methods and Viability of Small and Medium Enterprises in Nigeria

Sani Alfred Ilemona — Sat, 20 Jan 2024 00:00:00 +0000

The viability of Small and Medium Enterprises (SMEs) is of interest to both government and operators of the enterprises in the Nigerian economy. The viable operation of the businesses is a function of both internal (endogenous) and external (exogenous) factors. In as much as enterprises depend on government intervention in the area of provision of critical infrastructure for their operation and viability, the application of internal management accounting methods is also sacrosanct for the viability of the enterprises. Unfortunately, the businesses, in the economy are facing viability challenges not only because of a lack of critical infrastructure but due to the failure of the operators of these enterprises to deploy internal managerial accounting methods for the viability of the businesses. Research/studies on the impact/influence of the methods on the viability of the enterprises could have been one of the ways of bringing enlightenment to SME operators in the country on the impact of managerial accounting methods on the viability of the businesses but none. Previous studies on SME operations are on the impact of external factors on the profitability of the businesses. Therefore, this study aims to examine the impact of the application of management accounting methods on the viability of SMEs in Nigeria. A survey research design approach was employed to achieve the stated objective. Data for the study were collected primarily from randomly selected 240 respondents made of up owners and managers of 240 SMEs across the six geopolitical zones of Nigeria. The analysis of the data was done using correlation Analysis of Variance (ANOVA) and multiple regressions. Results showed that all the explanatory variables of the study: Capital Budgeting (CB), Inventory Costing (IC), Total Quality Management (TQM), Trend Forecasting Analysis (TFA), Cash flow Analysis (CfA), and Constraints Analysis (CA) have a positive and significant impact on Business Viability (BV) as indicated by R²value at 0.4862. The study recommended that SME operators in Nigeria should in addition to government intervention for the provision of critical infrastructure deploy internal managerial accounting methods in their operation and viability.

Internal Audit Roles and its Challenges in Public Sector Governance

Lucky Ogbomo Osagioduwa, Atube Elizabeth N — Sat, 20 Jan 2024 13:35:28 +0000

The internal audit function plays a crucial role in public sector governance by providing independent assurance, risk management, and effective governance practices. However, this function faces various challenges that need to be addressed to ensure its effectiveness. This paper explores the challenges faced by the internal audit function in public sector governance, including issues such as independence, resource limitations, complex regulatory environments, political influence, and resistance to change. Additionally, challenges related to skills and expertise, data management, stakeholder expectations, and organizational culture are discussed. To overcome these challenges, several recommendations are provided, including enhancing independence, allocating sufficient resources, promoting continuous professional development, strengthening regulatory awareness, fostering a culture of accountability, enhancing collaboration, promoting awareness and understanding, embracing technology, strengthening communication, and monitoring the implementation of recommendations. By implementing these recommendations, public sector organizations can enhance the effectiveness of their internal audit function, leading to improved governance, risk management, and accountability in the public sector.

Global Journal of Accounting

Application of Management Accounting Methods and Viability of Small and Medium Enterprises in Nigeria

Internal Audit Roles and its Challenges in Public Sector Governance