Effect of internal controls on the financial performance of commercial banks listed in the NSE and licensed by the CBK
Date
2022
Authors
Odhiambo, Camila Adhiambo
Journal Title
Journal ISSN
Volume Title
Publisher
Strathmore University
Abstract
The effectiveness of internal controls should be of major importance to every firm due to the fact that the duty of internal controls involves prevention, detection of fraud and lastly, in a firm internal control can help in improving operational efficiency by improving the accuracy and timeliness of financial reporting. For the purpose of this study, the researcher looked to establish the effect of internal controls on the financial performance of commercial banks listed in the NSE and licensed by the CBK. Internal control was considered from the perspective of risk management, control environment, control activities, information and communication and monitoring. This study used primary data. The primary data was collected through administration of a five-point Likert questionnaire by the researcher. Descriptive statistics was used for data analysis in terms of mean and standard deviation Data was then presented by use of tables for easier understanding and interpretation. In addition, data was analyzed by the use of SPSS. From the findings of this study, it was concluded that risk management, control environment, control activities, information and communication and monitoring have a positive relationship with financial performance. This outcome aided the researcher to attain his objectives which were; to examine the effect of risk management on the financial performance of commercial banks listed in the NSE and licensed by the CBK, to establish the effect of control activities on the financial performance of commercial banks listed in the NSE and licensed by the CBK, to assess the effect of monitoring on the financial performance of commercial banks listed in the NSE and licensed by the CBK, to determine the effect of information and communication on the financial performance of commercial banks listed in the NSE and licensed by the CBK and lastly, to establish the effect of control environment on the financial performance of commercial banks listed in the NSE and licensed by the CBK.
Description
A Research Project Submitted in partial fulfillment of the requirements for the Degree of Bachelor of Commerce at Strathmore University