IMPACT Of INTERNAL CONTROL SYSTEM ON ORGANIZATION'S PROFITABILITY. CASE STUDY OF NILE COMMERCIAL BANK. JUBA SOUTHERN SUDAN.

TABLE OF CONTENTS

TABLE OF CONTENTS ................................................................................................... i

APPROVAL ................................................................................................................... iv

DECLARATION ·············································································································· V

ACKNOWLEDGMENTS ................................................................................................ vi

CHAPTER ONE .............................................................................................................. 1

INTRODUCTION ............................................................................................................. 1

1.0 Background of the study: ........................................................................................... 1

1.1 Statement of the problem: ......................................................................................... 2

1.2 Purpose of the study: ................................................................................................ 2

1.3 Objectives of the study: ............................................................................................. 3

1.4 Research questions: .................................................................................................. 3

1.5 Geographic Scope of study: ...................................................................................... 3

1.6 Subject matter scope of study: .................................................................................. 3

1. 7 Significance of the study: .......................................................................................... 3

1.8 Justification of the study ............................................................................................ 4

1.9 Conceptual Framework: ............................................................................................ 5

CHAPTER TWO .............................................................................................................. 6-

LITERATURE REVIEW .................................................................................................. 6

2.0 lntroduction: ............................................................................................................... 6

2.1 Definition of concepts: ............................................................................................... 6

Internal Control Systems ................................................................................................. 6

2.2 Relationship between Internal Control Systems and Profitability: .............................. 8

2.3 Components of an internal control system: ............................................................... 8

2.4 Structure of internal control: ...................................................................................... 9

2.5 Objective of an Internal Control System: ................................................................. 11

2.6 The major elements of an effective Internal Control System: .................................. 11

2.7 Evaluation of Internal Control Systems and validity ................................................. 21

CHAPTER THREE ........................................................................................................ 22

METHODOLOGY .......................................................................................................... 22

3.0 Introduction: ............................................................................................................. 22

3.1 Research design: .................................................................................................... 22

3.2 Population of the study: ........................................................................................... 22

3.3 Sampling size: ......................................................................................................... 22

3.4 Methods of data collection: ...................................................................................... 23

3-4-1 Questionnaire ....................................................................................................... 23

3-4-2 Observation: ......................................................................................................... 23

3-4-3 Interviews: ............................................................................................................ 24

3.5 Data processing: ..................................................................................................... 24

3.6 Data analysis: .......................................................................................................... 25

3. 7 Methodology conclusions: ....................................................................................... 25

CHAPTER FOUR .......................................................................................................... 26

INTERPRETATION, ANALYSIS AND DISCUSSION OF FINDINGS ........................... 26

4.0 Introduction .............................................................................................................. 26

4.1 Background information of the respondents ............................................................ 26

4. 1.1 Respondents gender .......................................................................................... 26

4.1.2 Respondents Level of Education Qualification ................................................... 27

4.1.3 Period worked at Nile Commercial Bank, Juba Southern Sudan .......................... 28

4.2 To find out whether internal control systems have been put in place by the

management of Nile Commercial Bank ......................................................................... 28

4.3 To find out whether the existing internal system affects the profitability of the

organization ................................................................................................................... 29

4.4 To find out how long does the organization review its internal control system ........ 30

4.5 To find out the Impact of ICS on profitability between 2005-2009 ........................... 30

4.6 Analysis of the profitability trends in the years 2005-2009 ...................................... 31

4.7 To investigate the impact of ICS on employees performance ................................. 31

4.8 To find out the hindrances faced in the implementation of ICS ............................... 32

4.9 To investigate the extent to which !CS has been hindered in its implementation .... 32