Financial transactions and internal control in selected financial institutions in Mogadishu, Somalia

Abstract

This study sought to establish the relationship between financial transactions and internal control in financial institutions in Mogadishu, Somalia. The study was guided by four research objectives; to determine the demographic profile of the respondents in terms of age, gender, educational qualification and number of years experience in financial institutions; to determine the extent of financial transactions; to determine the level of internal control and to establish whether there is significant relationship between the extent of financial transactions and the level of internal control in financial institutions , it utilized descriptive survey design using questionnaire as the research instruments. A target population was 134 the sample of the respondents 100 for Dahabshiil and Salama Somalia Bank equally, Simple random sampling method was used to identify the respondents. The data collected was analyzed using SPSS for means to determine the level of dependent and the extent of independent variables, using Person’s Linear Correlation Coefficient the correlation between two variables was determined. The findings discovered~ chat there is strongly positive relationship between financial transactions and internal control, while null hypothesis rejected. It recommended that financial institution improve financial transactions and internal control in order to increase firm’s productivity. The study concluded that the financial transactions significantly influence internal controls in Mogadishu’s financial institutions.