Thesis Abstract

Abstract
Internal control systems are integral to the operations of financial institutions, particularly banks, as they play a crucial role in safeguarding assets, ensuring reliability of financial information, and compliance with regulations. This study aims to investigate the effects of internal control systems on the performance of Nigerian banks. The research will adopt a mixed-methods approach, combining both quantitative and qualitative data collection methods. The quantitative aspect of the study will involve the collection of financial data from selected Nigerian banks over a specified period. Key financial performance indicators such as return on assets, return on equity, and cost-to-income ratio will be analyzed to assess the performance of the banks. In addition, data on the internal control systems in place, including risk management practices, internal audit functions, and compliance procedures, will be gathered and evaluated. The qualitative component of the research will involve interviews and surveys with bank employees, internal auditors, and regulatory authorities to gather insights into the effectiveness of internal control systems in Nigerian banks. The perceptions and experiences of key stakeholders will be analyzed to provide a comprehensive understanding of how internal control systems impact bank performance. The findings of this study are expected to contribute to the existing body of knowledge on the relationship between internal control systems and bank performance, particularly in the Nigerian context. The results will have practical implications for bank management, regulators, and policymakers in enhancing the effectiveness of internal control systems to improve overall bank performance and stability. Overall, this research aims to shed light on the importance of robust internal control systems in the banking sector and their impact on financial performance. By identifying key areas for improvement and best practices, the study seeks to provide valuable insights that can help Nigerian banks enhance their internal control mechanisms and ultimately drive better performance and sustainability in the industry.

Thesis Overview

As a result of persistent poor performance in most organizations, the study investigated the effect of internal control systems on the performance of banks in Nigeria. Internal controls were looked at from the perspective of control environment, internal audit and control activities whereas bank performance focused on liquidity, accountability and reporting as the measures for improvement. The study also went further to establish that effective and efficient internal control system is the best control measure for preventing and detecting fraud in organizations, especially in the banking sector. Data were collected using questionnaire and interview guide as well as review of available documents and records. The data gathered for this study, were analyzed through descriptive and inferential statistical methods. The descriptive analysis involved the use of percentages and tabulation while the inferential statistical method involved the use of the chi-square. The study therefore discovered that management of the bank is committed to the control systems as well as actively participates in monitoring and implementing the system. It also noted that all the strategic decisions of the banks are initiated by the top level management while the internal audit department conducts regular audit activities and produces audit reports on how to improve the system. The study concludes that there is a significant positive relationship between internal control systems and organizational performance. It therefore recommends that banks should ensure there is adequate and functional internal control system; establish competent internal audit department, train staff regularly and pay staff attractive salaries.