Effects Of Internal Control Systems On The Performance Nigerian Banks

Effects Of Internal Control Systems On The Performance Nigerian Banks

Preface

As a result of patient poor performance in utmost associations, the study delved the effect of internal control systems on the performance of banks in Nigeria. Internal controls were looked at from the perspective of control terrain, internal inspection and control conditioning whereas bank performance concentrated on liquidity, responsibility and reporting as the measures for enhancement. The study also went further to establish that effective and effective internal control system is the stylish control measure for precluding and detecting fraud in associations, especially in the banking sector. Data were collected using questionnaire and interview companion as well as review of available documents and records. The data gathered for this study, were anatomized through descriptive and deducible statistical styles. The descriptive analysis involved the use of probabilities and tabulation while the deducible statistical system involved the use of the ki- forecourt. The study thus discovered that operation of the bank is committed to the control systems as well as laboriously participates in monitoring and enforcing the system. It also noted that all the strategic opinions of the banks are initiated by the top position operation while the internal inspection department conducts regular inspection conditioning and produces inspection reports on how to ameliorate the system. The study concludes that there’s a significant positive relationship between internal control systems and organizational performance. It thus recommends that banks should insure there’s acceptable and functional internal control system; establish competent internal inspection department, train staff regularly and pay staff seductive hires.