Please use this identifier to cite or link to this item: http://hdl.handle.net/20.500.12306/14200
Title: Internal controls and financial performance of selected commercial banks in Bosaso, Somalia
Authors: Khalif, Abdulkadir Yasin
Keywords: Internal controls
Financial performance
Commercial banks
Somalia
Issue Date: Apr-2022
Publisher: Kampala International University, College of economics and managemeny
Abstract: The study was to determine the effect of internal controls on financial performance of selected commercial banks in Somalia. The study objectives were to (i) determine the relationship between control environment and financial performance (ii) to ascertain the relationship between internal audit and financial performance and (iii) to assess the relationship between control activities and financial performance of selected commercial banks in Somalia. The study used cross sectional case study design, employing both quantitative and qualitative research approaches. The data was collected from three selected commercial banks Bosaso were data was collected from 162 respondents quantitatively using questionnaires and 7 respondents qualitatively using interview guides. The data was analyzed using frequency and percentages for demography of respondents, descriptive statistics of mean and standard deviation for measuring the level of internal control dimensions and organization performance and finally correlations analysis was used to determine the relationship between internal controls and financial performance of the banks. The study findings reveal that control environment significantly affect financial performance of selected commercial banks in Bosaso Somalia (Sig=0.000, R=.819). second objective reveal that internal audit was significantly related to financial performance of selected commercial banks in Somalia (Sig=0.000, R=.774) and finally the study findings indicate that control activities have a significant relationship with the financial performance of selected commercial banks , Somalia, since the sig. value (0.000) was less than 0.05. The study conclude that the prevalence of the internal audit is sufficient in generating the increased financial situations and environment, its hence fundamental to argue that internal audit is key in generation of the financial excellence in the banks. Secondly the study concludes that the prevalence of a proper control environment has a key implication to the financial performance of the commercial banks. Thirdly, the study concludes that control activities significantly affect the financial performance of selected commercial banks in Bosaso Somalia. The study recommend for internal control systems to provide a conducive environment for efficient implementation to minimize fraud: efficient and effectiveness of performance including management integrity and ethics are emphasized. Internal Auditors must have sufficient proficiency and training to carry out the tasks assigned to them. Thirdly control activities need to be enhanced developed and provided through enhancement of that have a direct effect on the financial performance.
Description: A research report submitted to college of economics and management in partial fulfillment of the requirement for the award of the degree of master of Business Administration in Accounting and Finance of Kampala International University
URI: http://hdl.handle.net/20.500.12306/14200
Appears in Collections:Master of Accounting and Finance

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