Assessing the Effects of Internal Control Environment and Control Activities on Financial Performance of Banks in Ghana

Abstract:

The purpose of this study was to examine the effects of internal control environment and control activities on bank performance in Ghana. A sample of 154 respondents selected from 5 banks, the study adopted the quantitative research approach, data collected was analyzed using inferential statistical methods such as correlations and regression analysis. The study found that that there was a fairly strong significant correlation between internal control environment and control activities. It was further observed that there was no significant effect of internal control environment and control activities on the financial performance of banks in Ghana. The study recommends that the management of banks should strengthen the control environment and control activities, by reviewing the existing policies and procedures adopted by the banks in safeguarding assets and properties, there is also the need to continuously review the existing control policies, procedures and activities performed to ensure that they have not outlived their usefulness.