International Journal of Accounting and Taxation

Impact of Internal Control Components and Effectiveness of Internal Control System with the Moderating Effect of Corporate Governance of Peoples’ Bank in Sri Lanka
C.T. GamageLow, Lock Teng Keving

Abstract
Purpose of this study is to examine the impact of internal control components and effectiveness of internal control system with the moderating effect of corporate governance of Peoples’ Bank in Sri Lanka. There are five independent variables namely Control environment, Risk assessment, Control activities, Information & communication system and Monitoring taken in to account, Corporate governance taken as moderating variable and dependent variable of this study is Effectiveness of internal control system. Data was gathered using the questionnaire which was administrated to bank branch managers occupied in Peoples Bank. 173 middle level bank branch managers’ participated in the study. The collected data analyzed by descriptive statistics and inferential statistics. The results presented that there are significant and positive relationship between the internal control components (such as control environment, risk assessment, control activities, information and communication system and monitoring) and effectiveness of internal control system andmean time corporate governance moderates the relationship between internal control mechanisms and usefulness of internal control system. Itcan be concluded that Peoples Bank management has recognized and practiced the sound internal control system and existing corporate governance for strengthen the system too.

Full Text: PDF     DOI: 10.15640/ijat.v6n2a7