Factors Influencing the Effectiveness of Internal Control Systems: A Case Study of Commercial Banks in Ghana (Published)
Citation: Divine Vulley (2022) Factors Influencing the Effectiveness of Internal Control Systems: A Case Study of Commercial Banks in Ghana, European Journal of Accounting, Auditing and Finance Research, Vol.10, No. 4, pp.63-75
This study examines the factors influencing the effectiveness of internal control systems in the banking industry in Ghana. The study adopted the quantitative approach using the survey design to obtain data from 130 participants from selected Commercial banks in Ghana. For data analysis, Statistical Package for the Social Sciences (SPSS version 24) was utilized. A number of descriptive statistical tests and in a combination of Exploration Factor Analysis (EFA) and Confirmation Factor Analysis (CFA) was used. The statistical tools used include mean, standard deviation, frequency and Ordinary Least squares (OLS) regression. The study found critical factors driving Internal Control system (ICS) within the banking sector in Ghana to include the environment control, risk assessment, control activities, information communication technology (ICT), and monitoring activities. The study discovered that some of the ways required to improve ICS include consistent revision of policies and procedures as well as provision of adequate training and communication on ICS to staff. It is also recommended that employees should be involved in the development of control mechanisms to make them own the system which will promote its enforcement to influence operational efficiency.
Keywords: Commercial Banks, Effectiveness, Ghana, Internal Control System
Internal Control System for Financial Management in the Church: A Case of Protestant Churches in Eldoret Municipality, Kenya (Published)
The study aims at evaluating the Internal Control System (ICS) which can be used for effective financial management in the Church. The objectives were to determine if ICS is in place, its role, challenges faced during implementation and its relationship with financial management among Protestant Churches in Eldoret Municipality. Using the descriptive statistics, 76.5% of the respondents confirmed that ICS was in place. However, only one type of internal control (control activities) existed in the Churches sampled which also plays a minimal role. ICS related challenges faced include lack of ICS knowledge, resistance to adapt ICS, shortage of staff to implement and Church’s management reluctance. This was shown by 76.5%, 52.9%, 52.9% and 58.8% respectively. In regards to ICS and financial management, majority of the respondents (76.5%) indicated their relationship to be positive. The researchers recommends more scholarly works to be done to make roles of ICS seen to crucial, how to address the challenges faced during development and implementation of ICS as well as how to make ICS an effective financial management technique.
Keywords: Corruption, Internal Control System, financial management