Kampala International University Internal Control Systems And Performance Of Financial Institutions, A Case Study Of Equity Bank Kabalagala Branch

ABSTRACT

The topic was based on the Internal Control systems and performance of financial institutions and the case study was Equity Bank Kabalagala branch. The objectives of the study were to find out the relationship between internal control systems and performance of financial institutions to investigate the different guidelines that given to use of internal systems that are in place in equity Bank. The research design descriptive in nature because the study was aimed at describing the performance of internal control systems that are in place in equity Bank. The Research design descriptive in nature because the study was aimed at describing the performance of internal control systems on financial institutions. Both quantitative and quantitative research were used. The research was carried out using different methods through instruments such as interviews, direct observation, questionnaire. A sample size 40 respondents was selected by the researcher from different departments out of the 40 respondents 14 respondents shall be non staff of Equity bank and these are the customers & respondents, 5 were the cashiers, 4 were accountants, 2 were custom agents, 2 were clearing agents, manager, 2 were security guards and 2 cleaners. The findings of the study showed the presence of internal control systems and performance in Equity Bank Kabalagala branch. There was evidence of internal control system promising on maximization of fraud. The research recommends continuous monitoring of employees, well qualified staff, carrying out internal and external audits, encouraging meetings so as to increase awareness and appreciation of the need to have internal control system in place. In conclusion, it was evident that internal control system had a lot of effects on the performance of financial institutions especially in Equity Bank Kabalagala branch as reported by over 80% of the respondents.

 TABLE OF CONTENT DECLARATION

APPROVAL

DEDICATION

ACKNOWLEDGEMENT

TABLE OF CONTENT

LIST OF TABLES

LIST OF FIGURES

ABSTRACT

CHAPTER ONE

INTRODUCTION

1.1 Back ground

1.2 Statement of the problem

1.3 Objectives of the study

1.3.1 General Objectives

1.3.2 Specific Objectives

1.4 Research questions

1.5 Hypothesis

1. 6 Scope of the study

1. 7 Significance of the study

1. 7 Conceptual Framework

CHAPTER TWO

LITERATURE REVIEW

2.0 Introduction

2.1 Definition of Concepts

2.2 Relationship between Internal Control systems and performance

2.3 Principles of internal control systems Control procedures

2.3.1 Various types of internal control system

2.4 Limitations of internal central systems

CHAPTER THREE

METHODOLOGY

3.0 Introduction

3.1 Research design

3.2 Area and study population

3.3 Sample frame work

3.3.1 The sample size

3.3.2 Sample techniques

3.3.3 Sample procedure

3 .4 Methods of data collection

3.4.1 Instruments

3.4.2 Source of data

3.5 Data analysis

3.6 Data processing

3.7 Ethical consideration

3.8 Limitations of the study

CHAPTER FOUR

PRESENTATION OF SUMMARIES OF FINDING, INTERPRETATION AND DISCUSSION OF RESEARCH FINDING

4.1 Introduction

4.2 Characteristics of Respondents

4.3 Relationship of Internal Control System and Performance of financial institutions

4.4 Whether internal control system were used in Equity bank

4.5 Different types of internal control system used in Equity bank Kabalagala branch

4.6 Management of Equity bank in addressing the problems facing their institution

CHAPTER FIVE

SUMMARY OF FINDINGS, RECOMMENDATIONS AND CONCLUSIONS

5.0 Introduction

5.1 Summary of findings

5.2 Recommendations

5.3 General recommendations

5.4 Area for future researchers

REFERENCES

APPENDIX A: QUESTIONAIRES

APENDIX B