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the focus of this paper was to investigate the effects internal control system has on the performance of SMEs. Data used in the study was generated majorly from primary source using researchers’ designed five point likert scale questionnaire. The study adopted descriptive design and drew its sample from five selected small and medium scale enterprises from the major industrial hubs of Anambra State (Awka, Nnewi and Onitsha). Purposive sampling technique was used to select a sample of 83 members of staff from a combined population of 215 members of staff. The researchers used Mannwhitney Wilcoxon rank test statistical technique with the aid of 23.0 versions of statistical package for social sciences (SPSS) to test the two hypotheses in the study. It was concluded in the study that to generate optimality in resource application which is a sine quanon for enhanced performance, SMEs needs to adopt internal control mechanism that ensures that waste of all sorts (financial and non financial) are reduced to the barest minimum while striving to increase revenue inflow; by so doing they can achieve both operational efficiency and cost leadership which can be boosters to their financial capabilities. From the findings and conclusion above, the paper recommend as follows; SMEs should establish appropriate control environment that takes into cognizance the peculiarities in their industry and that Internal control should be fused into the overall strategies of SMEs, this will facilitate monitoring and prompt reporting of changes in their cost drivers for appropriate managerial decision and actions

Internal Control Systems and the Performance of Selected Small and Medium Scale Enterprises in Anambra State