Journal Press India^®

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The study sought to evaluate the impact of the internal control system on the financial performance of Community-based Credit Unions in Ghana. The main variables were internal control and financial performance. A sample of 81 out of 97 Community-based Credit Unions were chosen and person correlation and descriptive methods were employed. Secondary data were obtained from the annual financial statement (2018-2022). A well-structured questionnaire was used to gather primary data from Community-based Credit Union managers. The study revealed that internal controls have a significant, slightly positive association with net and total assets. In contrast, organizational environment, and risk assessment had a significantly positive impact, and control activities, control monitoring and evaluation, showed a modest positive significant effect. In contrast, control of communication and information has inversely significantly impacted on net wealth. Recommendation: Integrated Approach focusing on areas with strong and moderate relationships, do not neglect components with no direct relationship.

Keywords

Internal control, Community-based Credit Unions, Net assets, Total Assets

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