The Impact of Internal Control Systems on Organization’s Financial Performance in the Banking Sector
The management in the banking sector and other financial organizations is obliged to institute necessary controls, particularly in their internal system to bolster the efficacy of the financial control and reporting systems. The implementation of such internal control and policy are applied to secure the revenues and have a proper allocation on the expenses and resources. Having the internal control in the management is necessary to enable creation of a great change among the structure of operation in the banking business. Smooth operation in any business is a key requisite for strong financial standing of the business organization and strong internal control system is an imperative element in this mix (Brewer & List, 2004). With this background information, the main objective of this thesis is to explore the impact of the internal control systems on the financial performance of financial institutions; with a biased focus on the banking industry.