Contribution of internal control system to the Financial performance of financial institution A case of people’s bank of Zanzibar ltd
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Mzumbe University
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A Dissertation Submitted in Partial Fulfillment of the Requirement for the
Award of Degree of Master of Science in Accounting and Finance (MSC A&F)
of Mzumbe University
The study sought to establish a relationship between internal control and organizational financial performance of People’s Bank of Zanzibar Limited. The study objectives were; to examine the effectiveness of internal controls used in PBZ, to establish the level of performance in PBZ and to establish a relationship between internal control and financial performance in PBZ. A cross sectional survey was used in the course of the study. Qualitative data was gathered in order to establish the relationship between the independent and dependent variables, so as to examine how internal controls are used in PBZ and therefore account for the performance levels. The study comprised of 60 employees. Simple random approach was used during the study. Purposive sampling was also used to select only respondents for the researcher to attain the purpose of the study. Data was collected using both primary and secondary sources. After collecting data, the researcher organized well-answered questionnaire, data was edited and sorted for the next stage. The data was presented in tabular form, pie charts and bar graphs with frequencies and percentages. The researcher used Statistical Package for Social Sciences (SPSS) to analyze the relationship between the variables under study. It was concluded; the study findings indicated that the internal controls used in PBZ were effective and satisfactory, the level of organizational performance was found to be adequate and a significant positive relationship between internal controls and organizational financial performance to some extent. It was recommended that; management of PBZ should design more effective internal control systems in all aspects.
The study sought to establish a relationship between internal control and organizational financial performance of People’s Bank of Zanzibar Limited. The study objectives were; to examine the effectiveness of internal controls used in PBZ, to establish the level of performance in PBZ and to establish a relationship between internal control and financial performance in PBZ. A cross sectional survey was used in the course of the study. Qualitative data was gathered in order to establish the relationship between the independent and dependent variables, so as to examine how internal controls are used in PBZ and therefore account for the performance levels. The study comprised of 60 employees. Simple random approach was used during the study. Purposive sampling was also used to select only respondents for the researcher to attain the purpose of the study. Data was collected using both primary and secondary sources. After collecting data, the researcher organized well-answered questionnaire, data was edited and sorted for the next stage. The data was presented in tabular form, pie charts and bar graphs with frequencies and percentages. The researcher used Statistical Package for Social Sciences (SPSS) to analyze the relationship between the variables under study. It was concluded; the study findings indicated that the internal controls used in PBZ were effective and satisfactory, the level of organizational performance was found to be adequate and a significant positive relationship between internal controls and organizational financial performance to some extent. It was recommended that; management of PBZ should design more effective internal control systems in all aspects.
Keywords
internal control system, Financial performance