Please use this identifier to cite or link to this item: http://hdl.handle.net/20.500.12306/14041
Title: Internal audit and financial performance of selected commercial Banks in Mogadishu Somalia
Authors: Ahmed, Abdullahi Salad
Keywords: Internal audit
Financial performance
Commercial Banks
Somalia
Issue Date: Aug-2019
Publisher: Kampala International University, College of Economics and Management
Abstract: This study was set to find out the effect of internal audit system on Financial performance of commercial banks in Mogadishu, Somalia, three specific objectives guided this study and these were i) determining the effect of internal audit standard on the financial performance in commercial banks Mogadishu Somalia; ii) to establish the effect of professional competency on the financial performance in commercial banks Mogadishu Somalia and (iii) to identify the effect of internal control on Financial performance of commercial banks in Mogadishu Somalia. The study based on a cross sectional research design. Quantitative approaches were employed to conduct this study. The target population was 150. The sample size of the study consisted of 109 respondents from the target population. Secondary data was obtained from recorded documents, earlier studies and some publications on internal audit and financial performance of commercial banks in Mogadishu, Somalia, whereas some of the information was obtained from the internet. The coded data was entered into the Computer, checked and statistically analyzed using the statistical package for social scientists (SPSS) software package to generate descriptive and inferential statistics. Descriptive analysis was applied to describe the primary variable and associated indicator items related to the study objectives. The findings indicated that internal audit standard significantly affects financial performance of commercial banks in Mogadishu Somalia; there is a significant effect professional competency has on financial performance of commercial banks in Mogadishu Somalia; findings of this study proved a positive significant effect internal control has on financial performance of commercial banks in Mogadishu Somalia. The researcher concluded that; applying of internal audit standards as an internal auditing can lead to the improvement in the financial performance of commercial banks since it increases on the quality and efficiency during internal auditing, the financial performance of commercial banks can be improved once professional competency is effectively worked on because it helps to increase the customer responsiveness by reducing the demand gap thus giving satisfaction to the end customer by availing the desired financial services when needed, internal control should base on customer orders, sales forecasts and manufacturing policy in order to stimulate customer demand which leads to the improvement in the financial performance of commercial banks. It was recommended that; the commercial banks’ owners should develop a good system to monitor, record and track all the business transactions so that there is effectiveness in internal auditing and ensure to cover loopholes in the system to enhance financial performance of commercial banks. The study contributed to knowledge by; providing evidence to support the fact that internal auditing can improve the state of financial performance of commercial banks in Mogadishu. The research gap that has been filled by this study, it is the fact that the study covered both the content and geographical gap of internal auditing and financial performance of commercial banks. Another important revelation that can be attributed to this study is that it is now clear that internal auditing is somehow lacking among commercial banks in Mogadishu Somalia, little is done through to improve financial performance of these banks in Mogadishu Somalia.
Description: A dissertation submitted to the college of economics and management in partial fulfillment of the requirements for the award of Master Degree in Business administration of Kampala International University
URI: http://hdl.handle.net/20.500.12306/14041
Appears in Collections:Master of Business Administration - Main and Ishaka Campus

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