Browsing by Author "Seble, Worku"
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Item Perceptions on Internal Control System and Financial Performance; Evidence from Commercial Banks in Ethiopia(Addis Ababa University, 2018-06) Seble, Worku; Wollela, Abehodie (PhD)Internal Control Systems play an important role in every organization as they assist in realization of their performance goals. The main objective of the study was to assess the Perception of internal control systems on financial performanceof commercial banks in Ethiopia. The study adopted a mixed research approach. The quantitative component used survey of employees working in 8 commercial banks in Ethiopia. A random sampling of 240employees in internal audit, finance and internal control departments were covered by the survey; the response rate was 90%. Survey data was collected by use of a structured questionnaire. Multiple regression models were used to test whether internal control activities, risk management, monitoring, corporate governance have any relation withfinancial performance. As part of the qualitative component interviews with internal audit and internal control manager were held. It was found that internal control systems had a significant relationship withfinancial performance. The findings of the study suggested that internal control systems especially corporate governance and control activity are important areas that management of commercial banks should give attention to improve financialperformance of commercial banks in Ethiopia.