Effects of internal control systems and financial performance in commercial banks: (a case study of equity bank Kabalagala branch)
Loading...
Date
2018-09
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Kampala International University, College of Economics and Management
Abstract
This study is a result of an academic research entitled •'internal control systems and financial performance in commercial banks case study equity bank." , the objectives of the study were to find out the effect of Segmentation of duties on financial performance of commercial equity bank, to establish the effect of authorization on financial performance of commercial bank and to find out the effect of budgeting on financial performance of commercial bank descriptive date collection techniques was used. The researcher used a sample size of 150 respondents. The researcher used Statistical Package for social scientists
(SPSS) to analyze data. From the study findings internal controls and performance of commercial banks are inseparable terms. The respondents and interviewees were quite aware on the influence of internal control systems on the performance of commercial banks such as equity Bank (U) Ltd. It was viewed that, internal control plays very important roles in the performance of equity Bank (U) Ltd were identified where 94% of the total respondents concurred with the fact and mentioned roles such as it ensured business or the entity was carried on in an efficient and orderly manner.
The conclusions were internal control systems which relied entirely on segmentation of duties, plans of organization, budgeting, authorization and approval, rotation or employees safeguarding of assets among others may be used to control frauds embezzlement and accounting errors that is, it ensured proper and satisfactory cash management and hence good performance of equity Bank (U) Ltd.
On the above basis the researcher recommended that segmentation of duties should be adopted to eliminate or minimize the chances or consequences which are likely to happen as the result of failure to segment the duties in equity Bank (U) Ltds to bring about good performance. On budgeting the researcher recommended that equity bank should establish authority and responsibility centres for every function to provide basis for the cost centre. An organization plan should indicate clearly the department or person responsible for such function as purchasing, receiving incoming shipments, maintaining accounting records approving financial matters and preparing the financial year budget.
Description
A Research Report Submitted To College Of Economics And Management For Partial Fulfillment Of The Requirements For The Award Of The Bachelor Degree In Business Administration Of Kampala International University
Keywords
Internal control systems, Financial performance, Commercial banks, Equity bank Kabalagala branch