CHAPTER ONE
INTRODUCTION
Background of The Study
There is currently considerable interest in the topic of internal control systems and its contribution to exact management of any business economic resources (Kantzos & Chondraki, 2006; Rittenberg, 2006). This developing role of the internal controls is also reflected in its current definition as posited by Cahill (2006) which states that internal control is the system of internal administrative and financial checks and balances designed by management, and supported by corrective actions, to ensure that the goals and responsibilities of the organization are achieved”. Meanwhile, the growth in international financial markets, the emergence of the universal banking policy amongst others has given banks the opportunity to design new products and to provide a wide range of services which has come with increases in associated risks (Palfi & Muresan, 2009). Consequently, there is growing management recognition of the importance of implementing a good internal control system as the activities of internal controls are now seen as critical elements in the assurance process. Internal control system is at present a very crucial area of interest for organizations globally.
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