Mengistu Bogale (PhD)Bezawit Worku2026-03-032026-03-032025-09https://etd.aau.edu.et/handle/123456789/7778The main objective of the study is the effect of internal control system on financial performance in the selected Commercial Banks in Ethiopia. The researcher used a quantitative research approach and explanatory research design. The sample size of the study is 133 employees who are currently working in Selected Commercial Banks in Ethiopia. Responses of the subjects were collected through closed ended structured questionnaires. The study examined four factors that influence financial performance. The descriptive analysis of the mean and standard deviation result indicated that; it is high which is above the mean score of point 3.0 of the standard. The result of correlation coefficients indicated that there is a positive relationship between Control activities, internal control system, risk assessment and Internal Audit on financial performance. The researcher used Ordinary Least Square (OLS) multiple regression model to identify determinants of financial performance. According to this study, all the predictors (control activities, monitoring, and risk assessment, Information and Communication and Internal Audit ) have positive coefficient values indicating that positive influence on financial performance under the study. It is enormously essential that the management in the Selected Commercial Banks in Ethiopia conduct an assessment on these determinants factors which enables the Banks to collect valuable facts that makes available insights for financial performance in the study area. The study recommended by suggesting on further studies that need to be done that the work of employees should be performed with modern technology such as the use of computerized data tools and specific financial performance software and it had better to maintain current established databases management system and new competitive information technology that all employees are expected to perceive in the organization. The staffs need to collectively develop their knowledge or skills through appropriate professional training and development program.en-USinternal controls systemInternal Auditfinancial performanceControl activitiesrisk assessmentThesis