Dublin Core
Title
Assessing the Effect of Internal Control Systems on Financial Performance of Rural Banks in Brong Ahafo Region in Ghana
Creator
Asante Effah
Description
For banks to be effective and efficient there is the need to put measures in place to strengthen the internal controls to avoid misappropriation of financial resources and also to protect the assets of the organization. The main purpose of the study is to assess the impact of the internal control systems on financial performance of rural banks in the
Brong Ahafo region of Ghana. The study utilized the COSO framework as variables to model a conceptual framework for the study. From the conceptual and theoretical framework, six hypotheses were stated and tested using structural equation model. Quantitative research methods with exploratory and descriptive designs were used in this study. Data were collected from all the 22 rural banks in the Brong Ahafo region.
The underlying paradigm for the study is pragmatism that facilitated the utilization of suitable methodologies to answer the research questions. There were 257 structured
questionnaires that were distributed out of which 211 were returned and 202 valid questionnaires were analysed using both descriptive and inferential statistics. The findings of the study indicate that the relationships between the variables stated were not significant in their ability to ensure financial performance of rural banks. This clearly suggests that control environment, risk assessment, control activities, information and communication, monitoring procedures in Ghana have lost touch with the activities on the controls. This means that most rural banks fail to perform due to the lack of attention given to its supervision. Finally, the study recommends that banks must put pragmatic measures in place to make sure the internal controls are strengthened within rural banks.
Brong Ahafo region of Ghana. The study utilized the COSO framework as variables to model a conceptual framework for the study. From the conceptual and theoretical framework, six hypotheses were stated and tested using structural equation model. Quantitative research methods with exploratory and descriptive designs were used in this study. Data were collected from all the 22 rural banks in the Brong Ahafo region.
The underlying paradigm for the study is pragmatism that facilitated the utilization of suitable methodologies to answer the research questions. There were 257 structured
questionnaires that were distributed out of which 211 were returned and 202 valid questionnaires were analysed using both descriptive and inferential statistics. The findings of the study indicate that the relationships between the variables stated were not significant in their ability to ensure financial performance of rural banks. This clearly suggests that control environment, risk assessment, control activities, information and communication, monitoring procedures in Ghana have lost touch with the activities on the controls. This means that most rural banks fail to perform due to the lack of attention given to its supervision. Finally, the study recommends that banks must put pragmatic measures in place to make sure the internal controls are strengthened within rural banks.
Subject
Doctor of Philosophy (PhD) in Business Administration.
Publisher
Ghana Technology University Library
Date
2018