The effect of internal control systems on financial performance of commercial banks in Uganda

Abstract

Internal Control Systems play an important role in every organization as it assist in realization of their financial performance goals. The study sought to determine the effect of internal control systems on financial performance of Barclays Bank. To achieve the objective of this study, the research specifically looked at the following objectives, control environment, internal audit, and control activities role of corporate governance controls on the financial performance of Barclays Bank. The study adopted a case study research design. The population chosen for this study was all 40. The study used a sample of 36respondents from Barclays Bank. The sample was drawn using stratified random and random sampling technique. The study relied on both primary and secondary data. Primary data was collected using structured questionnaires, while secondary data was extracted from audited annual reports, publications, and document analysis. Data analysis used both descriptive and inferential statistics. Frequency tables were prepared, and descriptive statistics and correlation analyses were done. The data was analyzed using the statistical package for social scientists (SPSS) computer software version 16. The results and findings concluded that there was a significant relationship between the internal control environment and financial performance and recommend that the internal control environment be enhanced to further improve the financial performance of Barclays Bank.