MJAMR

Effect Of Internal Control On The Performance Of Organizations In Centenary Bank Limited Kiboga Branch

Kimala Eddie, Zikusooka Enock


Abstract

The study examined the effect of internal control on organizational performance at Centenary Bank Limited, Kiboga Branch. The research employed a cross-sectional survey design with mixed methods to collect data from 98 respondents comprising bank management, operational staff, internal auditors, and supervisory personnel. Primary data were gathered through structured questionnaires and semi-structured interviews, while secondary data were obtained from bank performance reports, audit reports, and operational records covering the period 2021-2023. The study utilized correlation and regression analysis to determine the strength and nature of relationships between internal control components (control environment, risk assessment, control activities, and monitoring systems) and organizational performance indicators (operational efficiency, financial performance, compliance levels, and service quality). The findings revealed a significant positive relationship between internal control and organizational performance (r = 0.784, p < 0.01). Control environment demonstrated the strongest correlation with performance (r = 0.792, p < 0.01), followed by control activities (r = 0.758, p < 0.01), monitoring systems (r = 0.731, p < 0.01), and risk assessment (r = 0.706, p < 0.01). The regression model indicated that internal control variables explained 61.5% of variance in organizational performance (R² = 0.615, F = 37.24, p < 0.001). Organizations with stronger internal control systems demonstrated 48% better operational efficiency, 42% improved financial performance, 56% higher compliance levels, and 39% enhanced service quality compared to baseline measurements. The study concluded that internal control significantly influenced organizational performance at Centenary Bank Limited, Kiboga Branch. Effective control environments, systematic risk assessment processes, robust control activities, and continuous monitoring mechanisms enhanced operational efficiency, improved financial outcomes, ensured regulatory compliance, and elevated service quality, ultimately contributing to sustainable competitive advantage and stakeholder confidence. The study recommended that Centenary Bank Limited should strengthen the control environment through

Keywords

Internal Control Organizational Performance Banking Operations Control Environment Risk
Metropolitan Journal of Academic Multidisciplinary Research

Cite This Article

Kimala Eddie & Zikusooka Enock (2025). Effect Of Internal Control On The Performance Of Organizations In Centenary Bank Limited Kiboga Branch. Metropolitan Journal of Academic Multidisciplinary Research, 4(12). https://journals.miu.ac.ug/pages/article.php?article_id=540

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