Open AccessInternal Control System and Performance of Financial Institutions in Rwanda: A Case of Bank of Kigali in Nyarugenge District
Author(s) -
Annie Mukandoli,
Claude Rusibana
Publication year - 2022
Publication title -
journal of finance and accounting
Language(s) - English
Resource type - Journals
ISSN - 2616-4965
DOI - 10.53819/81018102t2058
Subject(s) - return on equity , risk–return spectrum , internal rate of return , return on assets , actuarial science , control (management) , equity (law) , asset (computer security) , investment performance , business , return on investment , finance , economics , computer science , management , portfolio , computer security , production (economics) , profitability index , stock exchange , political science , law , macroeconomics
The general objective of the study was to analyze the effects of internal control system on financial performance in Bank of Kigali. In methodology, descriptive research design was used to accumulate quantitative and qualitative information. The target populations of 398 BK personnel of headquarter where 191 respondents were selected by the formula of Krejcie and Morgan (1970). The data collection instrument such as questionnaires was used to accumulate information from the field. After processing the data, the last closing end result summarized in the structure of statistical tables such as descriptive statistical tables, regression tables and correlation analyzes for the use of the SPSS version 21.0 and the researcher gave an interpretation of the results. The study findings have proved a positive and significant relationship internal control system and financial performance because all calculated p-values are less than 0.01 significance level for instance the relationship between risk assessment and return on asset with p=.962 and sig=.000, between risk assessment and return on investment with p=.872 and sig=.000, between control activities and monitoring of operation with p=.917 and sig=.000, between control activities and return on equity with p=.937 and sig=.000, between control activities and return on asset with p=900 and sig=.000, between monitoring of operations and return on investment with p= 877 and sig=.000, between return on asset and return on investment with p=.889 and sig=.000, between return on asset and return on equity with p=.922 and sig=.000. Thus, implies that internal control system has an impact on financial performance in Bank of Kigali. Basing on the findings the research recommends BK to tackle all factors of internal control system in order to gather the information to enhance financial performance of Bank of Kigali. Keywords: Internal control system, Performance, financial institutions, Bank of Kigali, Rwanda