The Internal Control Systems of GN Bank- Ghana
Journal Title: Journal of Economics, Management and Trade - Year 2017, Vol 17, Issue 1
Abstract
GN Bank is one of the numerous universal banks in Ghana. A bank is considered a universal bank if it is licensed with a license ‘A’ by the Bank of Ghana. Some of the universal banks in Ghana are GCB Bank, HFC Bank, First Atlantic Bank, Cal Bank and others. A useful and well-organized internal control system is an essential element in managing a bank and a basis for banking institution’s operations to be secured. The main objective of this research was to identify the internal system of control used at GN Bank’s credit department. A census sampling technique was used by the researcher in getting a sample size of eighty five (85) who consisted primarily of managers and officers of GN Bank’s credit and risk departments in the south eastern zone through the administration of questionnaires. The data was analysed using the Scientific Package for Social Scientist (SPSS). The study found that there exists an internal system of control. GN Bank board of directors are ultimately responsible for ensuring that an adequate and effective system of internal controls are established and maintained. Together, both the board and senior management are responsible for promoting high ethical and integrity standards, and for establishing a culture within the organization. It was realised that GN Bank’s implementation of a strong internal control system was able to detect and prevent fraudulent acts and practices. Although respondents agreed to GN Bank providing adequate training for credit personnel on internal control procedures, some substantial disagreements were recorded for this particular question. It was recommended that the board of directors should have responsibility for approving and periodically reviewing the overall business strategies and significant policies of the bank; ensuring that senior management takes the steps necessary to identify, measure, monitor and control these risks; approving the organisational structure; and ensuring that senior management is monitoring the effectiveness of the internal control system.
Authors and Affiliations
William Owusu-Boateng, Richard Amofa, Isaac Osei Owusu
Keywords
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- EP ID EP319832
- DOI 10.9734/BJEMT/2017/32261
- Views 101
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