The practice of internal control systems in organizations has become an integral and very common element in organizations unlike in the past decades when simplest legal systems property ownership was widespread. This study assesses the effectiveness of internal control systems on performance in the Credit Union of Ghana. The study …
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The practice of internal control systems in organizations has become an integral and very common element in organizations unlike in the past decades when simplest legal systems property ownership was widespread. This study assesses the effectiveness of internal control systems on performance in the Credit Union of Ghana. The study adopts quantitative research methodology. Data was gathered from 250 employees of Credit Union located in the Western North region of Ghana through questionnaire of five-point Likert scale. The data was subjected to statistical analysis of regression and correlation approaches by using SPSS version 20. Analysis of the data reveals that within Ghanaian Credit Union context, the effectiveness on control environment has positive significant effect on performance. Again, the study also found that the effectiveness of risk assessment positively influence performance. The study has provided strong evidence that effective control activities have positive significant effect on performance. Generally, the study has shown that effective internal control systems improve performance in the Credit Unions of Ghana. The findings suggest that Credit Unions and other organizations that desire to have a better performance should build effective internal control systems. The study recommends that management involve employees in the development of systems to improve the existing internal control mechanisms. In doing so, the employees will feel involved and own the process which will trigger their interest to promote its enforcement to achieve resilient performance.
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