IMPACT OF INTERNAL CONTROL SYSTEM ON PROFIT PERFORMANCE OF COMMERCIAL BANKS (A CASE STUDY OF UNITY BANK)

This study primarily aims at finding the impact of internal control system on profit performance of commercial banks in Nigeria with an empirical study of unity bank. Internal control systems impact on commercial banks might be a result of non-adherence on the system. These two extremes will invariably have adverse effect on the profit performance of the commercial banks and as such the management will always try to strike a balance or trade-off for their profit maximization. The paper therefore tends to evaluate the extent of adherence to internal control system. Its impact on the profit performance of Unity Bank and control strategies to be adopted to revitalize moderate the system. The study findings established a positive and significant relationship between information and communication system and the level of the bank’s performance. The study established a significant positive relationship between controls and financial performance of the commercial banks. The study therefore recommends that there is need for the banks to ensure suitable environment where internal controls are supported for the improved performance of the banks. There is need also for proper checks and balances in the financial transactions in the banks. The banks management should examine the level of employee integrity should examine the level of employee integrity in allocating those responsibility especially, employees are to deal with confidential information involving the banks final documents. He banks should regularly check on their operations and the policies to deal with threats and examine, whether these meet the entire banks requirement to safeguard commercial banks from losses. They should as well provide more training to the commercial banks management on the effective monitoring strategies and policies that should apply to ensure increased profitability of the banks