The role of internal control in improving financial performance: an exploratory study at CPA-TLEMCEN Bank, Algeria

Abstract

The aim of this study is to assess the implementation of internal control at CPA-TLEMCEN Bank in Algeria and to identify effective internal control practices that enhance the bank's financial performance. A case study involving a questionnaire was conducted with 51 employees from diverse socio-professional backgrounds at the bank. To address these objectives, mixed methods analysis including descriptive statistics and data analysis using SPSS (V.28) software were employed. The results support the hypothesis that internal control significantly and positively influences the financial performance improvement of CPA-TLEMCEN Bank. Therefore, we conclude that all dimensions of internal control (control environment, control procedures, compliance with information system characteristics, and control methods) have a positive and significant impact on enhancing the bank's financial performance. Thus, as internal control effectiveness increases, the bank's financial performance improves.