Abstract:
The study sought to establish a relationship between internal control and
organizational financial performance of People’s Bank of Zanzibar Limited. The
study objectives were; to examine the effectiveness of internal controls used in PBZ,
to establish the level of performance in PBZ and to establish a relationship between
internal control and financial performance in PBZ.
A cross sectional survey was used in the course of the study. Qualitative data was
gathered in order to establish the relationship between the independent and
dependent variables, so as to examine how internal controls are used in PBZ and
therefore account for the performance levels. The study comprised of 60 employees.
Simple random approach was used during the study. Purposive sampling was also
used to select only respondents for the researcher to attain the purpose of the study.
Data was collected using both primary and secondary sources. After collecting data,
the researcher organized well-answered questionnaire, data was edited and sorted for
the next stage. The data was presented in tabular form, pie charts and bar graphs with
frequencies and percentages. The researcher used Statistical Package for Social
Sciences (SPSS) to analyze the relationship between the variables under study.
It was concluded; the study findings indicated that the internal controls used in PBZ
were effective and satisfactory, the level of organizational performance was found to
be adequate and a significant positive relationship between internal controls and
organizational financial performance to some extent. It was recommended that;
management of PBZ should design more effective internal control systems in all
aspects.
