The Impact Of Internal Control System On Performance Of Banks. A Case Of Nile Commercial Bank Of Southern Sudan

ABSTRACT

The study was aimed on the internal conh·ol and the organization's effectiveness in the accounts. A sound internal control system is important as it enables it to carry on the business of the enterprise in an orderly manner, safeguards the organization's assets and ensures completeness and accuracy in their records to achieve high performance. The study aimed at documenting and evaluating the adequacy of internal control and its performance of Nile Commercial Bank Limited by comparing them with a sound theoretical framework and thereafter offering recommendation for its improvement. Both primary and secondary techniques of data collection were used. During analysis of data, quantitative, qualitative and descriptive techniques such as graphs, pie charts were used. Controls in the areas of cash, wages and salaries, debtors were examined. The data was eventually analyzed by comparing with an ideal system which exhibited that some controls were weak and other strong. For effective and sound internal control system which will ensure an organizational good performance, the research recommended that the company should review its existing control measures and come up with a workable plan to reinforce them. According to my findings it shows that internal control systems play an important role in the, Banks performance though. According to the researcher there is a probability of cash controls been weak while there is a reasonable strong measures being taken to control wages and salaries as well as debtors. However more needs to be done to reduce the risk of fraud and any malpractices which can lead to losses. Hence an internal control plays a major role in measuring and evaluating Banks performance.