EFFECT OF INTERNAL CONTROL SYSTEM ON THE FINANCIAL PERFORMANCE OF DEPOSIT MONEY BANK A STUDY OF FIRST BANK PLC, ABAKILIKI BRANCH

ABSTRACT This study examines the effect of the internal control system on the financial performance of First Bank Plc, Abakaliki Branch. Internal control is a critical management tool designed to safeguard assets, ensure accuracy of financial records, and promote operational efficiency. The research employed a descriptive survey design, using structured questionnaires distributed to key staff in accounting, audit, and operations departments. Data collected were analyzed using both descriptive and inferential statistics. The findings reveal that effective internal control components—such as control environment, risk assessment, control activities, information and communication, and monitoring—have a significant positive relationship with the branch’s financial performance, evidenced by improved profitability, reduced fraud, and enhanced compliance with regulatory standards. The study concludes that a robust internal control framework strengthens financial reporting quality and boosts stakeholder confidence. It recommends continuous training of staff, regular internal audits, and adoption of technology-driven control mechanisms to sustain and improve financial performance.