Does corporate governance moderate the relationship between internal control system effectiveness and SMEs financial performance in Ghana?

Evaluating the impact of internal control systems on organizational effectiveness

“…Control activities guarantee management controls and directions on financial reporting (Chalmers et al, 2019). Banks would have to (re)consider relevant control activities where policies and procedures are in place for easier recording and accounting for transaction in accordance with rules (Chang et al, 2019;Musah et al, 2022). The results further shows that risk assessment had a significant impact on organizational effectiveness.…”

“…Chen et al (2020) argue that risk assessment facilitates the identification of relevant risks that could affect the achievement of management objectives. Several authors contend that risk attitude and management are essential for organizational effectiveness (Chiu & Wang, 2019;Musah et al, 2022;Ngari, 2017). Similarly, several authors postulate that risk assessment help prioritize specific objectives that have a substantial impact on organizations control systems (Schroy, 2010;Hamdan, 2019;Taiwo et al, 2016).…”

“…Internal control mechanisms safeguard firm's assets, improve financial and operational performance and assure policy compliance (Hoai et al, 2022;Johnston & Zhang, 2018;Omar & Yussuf, 2021). Consequently, the banking industry should promote the enhancement of internal control systems since the efficacy and quality of the internal control system are key factors in an entity's ability to survive (Chalmers et al, 2019;Lawson et al, 2017;Musah et al, 2022). The banking industry would have to adopt, design and implement proactive internal control systems to enhance operational efficiency, effectiveness and competitive advantage.…”

“…(2020) argue that risk assessment facilitates the identification of relevant risks that could affect the achievement of management objectives. Several authors contend that risk attitude and management are essential for organizational effectiveness (Chiu & Wang, 2019; Musah et al. , 2022; Ngari, 2017).…”

“…The efficacy and quality of the internal control system implemented by organization's management are key factors in an entity's ability to survive (Chalmers, Hay, & Khlif, 2019; Lawson, Muriel, & Sanders, 2017; Musah, Padi, Okyere, Adenutsi, & Ayariga, 2022). The degree to which internal controls are appropriately implemented to ensure continuous growth in returns is obvious as a result of the changing competitive environment (Nanzala & Ingabo, 2021; Ndungu, 2014; Omar & Yussuf, 2021).…”