Financial Transactions and Internal Control in Selected Financial Institutions in Mogadishu, Somalia

ABSTRACT 

This study sought to establish the relationship between financial transactions and internal control in financial institutions in Mogadishu, Somalia. The study was guided by four research objectives; to determine the demographic profile of the respondents in terms of age, gender, educational qualification and number of years experience in financial institutions; to determine the extent of financial transactions; to determine the level of internal control and to establish whether there is significant relationship between the extent of financial transactions and the level of internal control in financial institutions , it utilized descriptive survey design using questionnaire as the research instruments. A target population was 134 the sample of the respondents 100 for Dahabshiil and Salama Somalia Bank equally, Simple random sampling method was used to identify the respondents. The data collected was analyzed using SPSS for means to determine the level of dependent and the extent of independent variables, using Person’s Linear Correlation Coefficient the correlation between two variables- was determined. The findings discovered that there is strongly positive relationship between financial transactions and internal control, while null hypothesis rejected. It recommended that financial institution improve financial transactions and internal control in order to increase firm’s productivity. The study concluded that the financial transactions significantly influence internal controls in Mogadishu’s financial institutions.

TABLE OF CONTENTS

TWe Page Page

Declaration A I

Declaration B II

Apjroval Sheet III

Dedication IV

Acknowledgement V

Abstract VI

Table of Contents VII

List of Tables IX

List of Acronyms x

Chapter

One THE PROBLEM AND ITS SCOPE 1

Background of the Study 1

Statement of the Problem 4

Purpose of the Study 5

Research Objectives 5

Research Questions 6

Hypothesis 6

Scope 6

Significance of the Study 7

Operational Definitions of Key Terms 8

Two REVIEW OF RELATED LITERATURE 10

Concepts, Ideas, Opinions From Authors/Experts 10

Theoretical Perspectives 23

Related Studies 24

Three METHODOLOGY 26

Research Design 26

Research Population 26

Sample Size 26

Sampling Procedure 27

Research Instrument 27

Validity and Reliability of the Instrument 28

Data Gathering Procedures 29

Data Analysis 30

Ethical Considerations 31

Limitations of the Study 31

Four PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA 33

Five FINDINGS, CONCLUSIONS, RECOMMENDATIONS 51

Findings 51

Conclusions 55

Recommendations 57

References 59

Appendices

Appendix I - Transmittal Letter 63

Appendix II - Clearance from Ethics Committee 65

Appendix III - Informed Consent 66

Appendix IV- Computation of Sloven’s Formula 67

Appendix V —Legal Authority letters from Financial institutions 68

Appendix VI - Research Instrument 71

Researcher's Curriculum Vitae 77