Effects of Internal Control on Financial Performance of Saccos

Yahya, Fauzi (2024) Effects of Internal Control on Financial Performance of Saccos. Masters thesis, The Open University of Tanzania.

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Abstract

The study sought to examine the effects of internal controlsonthefinancialperformanceofSaccosinSelected Saccos in Dar essalaam Tanzania.Thisstudyevaluatedthe effect of the control on the financial performance of Saccos in Dar essalaam. The objectives ofthe study were to establish the effect of communication, the effect of risk assessment,the effect of control functions, and the effect of monitoringon the performance of Saccos in Dar essalaam. The theories underpinning the study were agency theory, attribution theory and contingency theory. Questionnaires with open and closed-ended questions were administered tocollectprimarydataamongcreditmanagers,financemanagersandanauditorin24in Dar essalaam. The research philosophyof the study was positivism. Thestudyadopted a cross-sectional mixed design method. The study targeted a sample size n=96 respondents. The data was analyzed both quantitatively and qualitatively .The output was presented descriptively by use of mean, standard deviation, frequencies and percentages. Inferential statistics such as correlation coefficient β, coefficients of determination R and P-values were used from a multiple regression equation.ANOVA was utilized to verifythe goodness of fit of the model. The results indicated that all the four independentvariables; communication,riskassessment,controlfunctions andmonitoring had a significant relationship with the dependent variable. Further, the results revealed that only communication and risk assessment had a significant relationship with the financial performance of Saccos. The study concluded that all the fourindependent variables needed to be emphasized since they influenced the financial performance of Saccos.The study recommended that Saccos should adopt internal control systems that best fit their kind of operations. Key words:Saccos, Internal control, Saccos performance, Tanzania

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