Good Afternoon/ good evening panelists
We are the researchers from group 6
And here’s our research title
The Relationship of Internal Control Systems on the Financial Performance of Small and Medium
Enterprises (SMEs) in angeles city, pampanga
I will not present to you the members
Ma. Angeline Julie y. concina
Jullianna nicole m. Cunanan
Yours truly, Ester joy s. dela cruz
Reign nichole c. manansala
And carla francene t. sarmiento
Let’s now proceed to chapter1
Our research has two variables
The First one is internal control system
Internal control system
Internal control systems are essential frameworks that help organizations achieve reliable financial
reporting, operational effectiveness, and compliance with laws and regulations. Guided by the COSO
framework, they consist of five core components: control environment, risk assessment, control
activities, information and communication, and monitoring. These elements work together to
safeguard assets, reduce errors and fraud, and ensure accountability across all levels of the
organization. Effective internal controls are especially critical for SMEs, which are more vulnerable to
risks due to limited resources and less separation between ownership and management. Empirical
studies consistently show that robust internal controls improve financial performance and
organizational resilience. As business environments and technologies evolve, companies must
continuously assess and strengthen their controls to remain effective in mitigating emerging risks and
sustaining long-term performance.
Conceptual Framework
Internal control system Is the independent variable, it consist of 5 sub variables
control environment
risk assessment
Control activities
Infromation and communication
Monitoring
For our dependent variables it is financial performance that consist of 3 sub variables, which is
profitability, liquidity, and solvency ratios.
1.The researchers made sure that each respondent fulfilled the requirements.
- the researchers screened participants to ensure they met the inclusion criteria of the study (e.g.,
relevant experience, role, or organizational affiliation). This helped guarantee that the data collected
would be valid and appropriate for answering the research questions.
2. A survey questionnaire that asked about the demographic profile of the organization.
The first part of the questionnaire gathered background information about the organizations (such as
size, sector, and years in operation). These demographics help contextualize the findings and allow for
comparisons among different types of organizations.
3. The second section of the survey questionnaire was used to identify the issues.
This section focused on collecting data about the specific challenges, problems, or issues related to
the research topic. It provided insights into the key concerns or areas needing improvement.
4.The survey questionnaire was reviewed, interpreted, and evaluated by the researchers once the
respondents had completed it.
After collecting responses, the researchers carefully checked and analyzed the data to ensure
completeness, accuracy, and relevance. This step was necessary to interpret the findings correctly and
draw valid conclusions.
1. The instrument employed by the researcher was a 5-point Likert scale structured questionnaire.
-the researchers designed a questionnaire where respondents rated their level of agreement or
perception on a scale from 1 (e.g., strongly disagree) to 5 (strongly agree). This approach helps
measure attitudes or opinions in a standardized way.
2. The researcher used simple linear correlation as the statistical treatment and Statistical Package for
the Social Sciences (SPSS) in analyzing the data.
-Simple linear correlation was applied to measure the strength and direction of the relationship
between two variables. SPSS software was used to process and analyze the data efficiently and
accurately.
3. Descriptive statistics like frequency were used to determine the number of respondents who
belong to each category of the profile.
Frequencies were calculated to show how many respondents fell into each demographic category
(such as age group, type of organization, or years of experience). This provides a clear picture of the
sample characteristics.
The variables employed in simple linear correlation analysis were classified into two categories:
independent and dependent variables.
For the correlation analysis, variables were designated as independent (predictor) and dependent
(outcome) to examine how changes in one variable are associated with changes in the other.
