MD Report

THE EFFECT OF ACCOUNTING CONTROL ON THE PROFOTABILTY OF A BANK
CERTIFICATION
This to certify that the report title THE EFFECTS OF ACCOUNTING CONTROL ON THE
PROFITABILITY OF THE BANK, CASE STUDY OF CCA BANK BERTOUA, was
written and defended by ZOUBI TANEKO MAIVA DEROL under the supervision of Mr
WIRKON STANLEY. It is approved for its contributions toward the growth of social
sciences.
ACADEMIC SUPERVISOR
NAME:
DATE:
Signature:
PROFESSIONAL SUPERVISOR
NAME:
DATE:
Signature:
PRESIDENT OF JURY
Signature:
MEMBER OF JURY
Signature:
MEMBER OF JURY
Signature:
MEMBER OF JURY
Signature:
Written and presented by zoubi taneko maiva derol I

DEDICATION
SI dedicate this piece of work to my parents Mr/Mme TANEKO
Written and presented by zoubi taneko maiva derol II

AKNOWLEDGMENTS
First of all, I wish to say thanks to my academic supervisor Mr WIRKOM STANLEY, who
helped me from the preliminary to the concluding level of this work, he was always there to
help me and put me back on the right track. To always encourage me to work harder and
contributed greatly to the success of this work.
Secondly, special thanks goes to my professional Supervisor Mr FIRMIN who guide me

throughout my internship. Enable to develop an understanding of subject matter and contributed
greatly to the success of this work.
My appreciations also goes to the Director Mme KAMKANG NANA PHILOMENE

and all the staff of AZIMUT HIGHER INSTITUTE, whose great job, heart work and
professionalism helped me to accomplished this piece of work.
My sincere respect and gratefulness goes to my lovely mothers, Mme DJUINE

PHELINE THERESE, Mme MOAFFO HELENE, Mrs MAKENE FOPA JOSIAN, whom I
love and who participated in so many ways in the development of this piece of work.
Finally, my thanks goes to my brother FOPA FRANKY, my friends and all the rest not
stated who where present for me when I needed and contributed directly or indirectly for the
success of this work.
Written and presented by zoubi taneko maiva derol III

ABSTRACTS
The purpose of the study was to access the EFFECT OF ACCOUNTING CONTROL
ON THE PROFITABILITY OF A BANK in the case of CCA BANK, precisely of Bertoua.
Accounting is the process of recording financial transactions pertaining to a business,
accounting control function in an institution regard the achievement of the objectives while
carrying out operation, reliability of reporting, and compliance with applicable laws and
regulations. This study has as main objective, assessing how accounting control affects
profitability in CCA BANK Bertoua. This made the researcher to fine answers to the questions,
what effects does Accounting control have on the profitability of CCA? This originate from a
main problem discovered in the organization during the control of loan files and requirements,
it was discovered that many errors were made, thereby reducing the level of profitability.
Hence, the question of the effect of accounting control on the profitability of a bank. During
the internship, or research work we used as primary method of data collection; Questionnaires,
interviews, observations and random sampling method. Data was analysed using statistical
packages for social science (SPSS). Thus, the study through pearson correlation analysis found
out there is the existence of an internal control system in CCA Bertoua and that it has positive
moderate relationship between internal control and profit. In conclusion accounting control
effects profitability of CCA Bertoua and as such should be taken into consideration.
Written and presented by zoubi taneko maiva derol IV

TABLE OF CONTENTS
CERTIFICATION ....................................................................................................................I
DEDICATION ......................................................................................................................... II
AKNOWLEDGMENTS ....................................................................................................... III
ABSTRACTS .......................................................................................................................... IV
TABLE OF CONTENTS ........................................................................................................ V
LIST OF TABLES ..............................................................................................................VIII
LIST OF FIGURES ............................................................................................................... IX
LIST OF ABBREVIATION ................................................................................................... X
CHAPTER ONE GENERAL INTRODUCTION ................................................................. 1
1.1 BACKGROUND TO THE STUDY ................................................................................. 1
1.1.1 HISTORICAL BACKGROUND OF BANK ............................................................ 1
1.1.2 THE CONCEPTUAL BACKGROUND OF ACCOUNTING ................................ 2
1.1.2.1 THE CONCEPTS OF ACCOUNTING .................................................................. 3
1.1.2.2 THE CONCEPT OF ACCOUNTING SYSTEM.................................................... 4
1.2 PROBLEM STATEMENT ............................................................................................ 4
1.3 RESEARCH QUESTIONS ............................................................................................ 5
1.7 Scope and delimitation of the study .............................................................................. 7
1.8 Definition of key concept .............................................................................................. 7
1.9 Organization of work ........................................................................................................ 9
2.1 CONCEPTUAL FRAMEWORK ................................................................................ 10
2.1.2 The Notion of Accounting Control .............................................................................. 10
2.1.2.1 The concept of internal accounting control ........................................................... 11
2.1.2.2 Internal checks ....................................................................................................... 12
2.1.2.3 Accounting internal control examples ................................................................... 13
Written and presented by zoubi taneko maiva derol V

2.1.2.4 The concept of external accounting control .......................................................... 13

2.1.2.5 External control institutions .................................................................................. 14
2.2 Th Notion of profitability ............................................................................................ 14
2.2.1 Definition of cost and profit ..................................................................................... 15
2.2.2 Measurement of profitability .................................................................................... 15
2.3 Theoretical framework ................................................................................................. 17
2.3.1 Profitability............................................................................................................... 17
2.3.2 Profit and profitability .............................................................................................. 17
2.3.3 Market power theory ................................................................................................ 18
2.3.4Efficient structure theory ........................................................................................... 18
2.3.5Portfolio Theory ........................................................................................................ 19
2.3.5 The agency theory (Arrow, 1985) ............................................................................ 19
2.3.6 Contingency theory .................................................................................................. 20
2.3.7 Theory of a firm ....................................................................................................... 21
2.4 Market concentration ................................................................................................... 21
3.1 PRESENTATION OF LE CREDIT COMMUNAUTAIRE AFRIQUE-BANK
(CCA-BANK) AND PRESENTATION OF INTERNSHIP ACTIVITIES ................... 23
3.1.1 Historical background of CCA-BANK ................................................................ 23
3.1.3 Product and Services ................................................................................................ 25
3.1.4 Missions of CCA-BANK ......................................................................................... 27
3.1.5 Presentation of internship activities ......................................................................... 27
3.1.6 Structure of CCA-BANK branch of bertoua ............................................................ 28
3.2 Research methodology .................................................................................................... 29
4.1 DEMOGRAPHIC INFORMATION .............................................................................. 32
3 Educational back ground of the respondent? ..................................................................... 34
4.Religious back ground? ..................................................................................................... 35
5.Longevity of services ......................................................................................................... 36
6.Occupation of the respondent? .......................................................................................... 37
7.PROFITABILITY LEVEL BASED ON ACCOUNTS .................................................... 38
8.PROFITABILITY LEVEL BASED ON AUTOMATED TELLER MACHINE (ATM)
SERVICES............................................................................................................................ 42
9) Responses of candidates for internal control component Questions ................................ 52
10) Benefits and challenges of internal control to CCA BANK........................................... 53
11) Profitability as function of internal control .................................................................... 54
Written and presented by zoubi taneko maiva derol VI

4.2 TESTING OF ASSUMPTIONS .................................................................................. 55

CHAPTER FIVE .................................................................................................................... 57
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION ................. 57
5.1 SUMMARY OF THE STUDY....................................................................................... 57
5.2 FINDINGS OF THE STUDY......................................................................................... 57
5.3 CONCLUSION ............................................................................................................... 58
5.4 RECOMMENDATIONS ................................................................................................ 58
5.5 PROBLEMS ENCOUNTERED ..................................................................................... 58
APPENDICES ...................................................................................................................... 61
Written and presented by zoubi taneko maiva derol VII

LIST OF TABLES
Table 1: Merit and Demerit of internal control ........................................................................ 13

Table 2: Presentation of CCA-BANK S.A............................................................................... 24
Table 3: Gender distribution ................................................................................................... 32
Table 4: age distribution ......................................................................................................... 33
Table 5: educational background ............................................................................................ 34
Table 6 : Religion ................................................................................................................... 35
Table 7 : Longevity at service ................................................................................................. 36
Table 8: occupation ................................................................................................................ 37
Table 9: transactions of CCA BANK ..................................................................................... 38
Table 10: Customer’s satisfaction based on interest rate ids given as follows ...................... 40
Table 11: AWARENESS ON ATM DATA .......................................................................... 42
Table 12: ATM USAGE DATA ............................................................................................ 42
Table 13: PURPOSE OF USING ATM SERVICES ............................................................. 44
Table 14: PURPOSE OF USING ATM SERVICES ............................................................. 45
Table 15: Rate of ATM services at CCA BANK Bertoua. .................................................... 46
Table 16: Analysis of internal control component .................................................................. 52
Table 17: Analysis of benefits and challenges of internal control ......................................... 53
Table 18 : Analysis of internal control in relation to profitability .......................................... 54
Table 19 : Correlation between internal control and profit correlation ................................... 56
Written and presented by zoubi taneko maiva derol VIII

LIST OF FIGURES
Figure 1: gender distribution .................................................................................................... 33

Figure 2: age distribution ......................................................................................................... 34
Figure 3: educational background .......................................................................................... 35
Figure 4: Religion..................................................................................................................... 36
Figure 5: Longevity of service ................................................................................................ 37
Figure 6: occupation ................................................................................................................ 38
Figure 7: transaction at CCA BANK ....................................................................................... 39
Figure 8: reliability and accountability of software ................................................................ 40
Figure 9: customer’s satisfaction based on interest rates ......................................................... 41
Figure 10: awareness on ATM usage ...................................................................................... 43
Figure 11: types of carts used at…………………………………………………………… 43
Figure 12: reasons for preferring an ATM service .................................................................. 44
Figure 13: Purpose of using an ATM service ......................................................................... 45
Figure 14: customer frequency uses of ATM .......................................................................... 46
Figure 15: rate of ATM service at CCA BANK Bertoua ........................................................ 47
Figure 16: personality attribute ............................................................................................... 49
Figure 17: benefits from use of ATMs ..................................................................................... 50
Figure 18: customers’ relationship .......................................................................................... 51
Written and presented by zoubi taneko maiva derol IX

LIST OF ABBREVIATION
AEMFI: American Development Bank
ARP: Accounting Rate of Return
BCCA: Banking Commission of Central Africa
CEMAC: Central African Economic and Monetary community
CGAP: Consultative Group to Assist the Poorest
EIG: Economic Interest Group
ERR: Economic Rate of Return
SSFSS: Financial Self-Sufficient
IG: Inspector of Government
IRR: Internal Rate of Return
NSIF: National Social Insurance Fund
OAG: Office of the Auditor General
PAC: Public Accounting Committee
PAR: Portofolio At Risk
ROA: Return on Asset
ROE: Return on Earnings
SAS: Statement of Accounting Standard s
CCA: Credit Communautaire Afrique
Written and presented by zoubi taneko maiva derol X

CHAPTER ONE
GENERAL INTRODUCTION
The primary objectives of accounting in an organisation is to identify, analyse,

classify, and interpret financial information that would further be used to prepare financial
statements at the end of the financial year. It is known that accounting is the backbone of every
business and organization. For this reason, it is important for us to outline the traceability of
every transaction in an organization to be accountable for the business profitability or
performance.
In order for us to properly identify the Accounting control in a banking institution, it

will be important for us to observe the following items which gave room to the study ; the
background of the studies, objectives of the studies, problem statement, research, question,
research hypothesis, significance of the study, scope, and delimitation of the study and the
definition of key terms.
1.1 BACKGROUND TO THE STUDY
This part will be divided in to the Historical (It consist of BANK and CCA that is Crédit
Communautaire Afrique-Bank) and conceptual background (it consists of the accounting
control and profitability) of the studies as shown below;
1.1.1 HISTORICAL BACKGROUND OF BANK
The origin and spread of commercial worldwide can be seen around the following year;
The commercial bank was founded in 1924 by local businessmen in Oglethorpe country
with the mission of saving the financial needs of the citizens and businesses of the area. Much
has changed since 1924, but the commercial Bank’s commitment to the communities that we
serve remain the same. As one of the few remaining locally owned and operated community
banks in the Athens area, the commercial Bank has the unique ability to customize common
sense solutions for each of our customers. This approach allows us to differentiate ourselves
from the regional and national bank that often use an impersonal “one-size fits all” approach.
Written and presented by zoubi taneko maiva derol 1

Through the years, the commercial Bank has made many positive changes. We have
focused on making investments in both people and technology, ensuring our customers have
access to both unparalleled service and great products. We never want our customers to feel
they have to choose between technology and service; we continually strive to provide the best
of both.
Commercial bank in Cameroon play a vital role in the economic and financial
development of the country. The bank accumulates the idle savings of the people and make
them available for investment. Due to capital market and weaknesses and limitation, and a lack
of sufficient sources of financing, bank is the main source of credit in the domestic market in
developing countries (Zidan, 2014). A bank is like any business, but for bank, profitability is
going to depend on the risk management.
1.1.2 THE CONCEPTUAL BACKGROUND OF ACCOUNTING
• The Concept of Accounting: This is not only the oldest but also the most stable of the
managerial discipline, which was design to help in proceeding of financial information.
Not limiting to that, it is subjected to many changes as time goes on so it is liable to
changes and innovations.
• The Concept of Accounting System: Since accounting is an indispensable tool in the
business functioning, every company makes use of it because there is the general point
of view that companies have to reveal certain financial and managerial information to
users.
• The Concept of Accounting Software: Due to problems face d by manual accounting
system, accounting software which proves an increase in technology was created.
Hence, the system was created to solve the problems faced by manual accounting.
• The Concept of Accounting Firm: Due to the advancement of accounting tendencies
the domain turns to developed new skills which consequently led to accounting firms
created purposely for treatment of financial information
• The Concept of Book-Keeping: It’s often confused with accounting. It’s a mechanical
process that records the routine economic activities of the business. It’s the art of
recording business transaction in a set of books.
• The Concept of Accounting Control: This is mostly applied for compliance and as a
safeguard for the company and not to comply with the law and regulation. They are

procedures and the methods which are applied by entity for the assurance, validity and
the accuracy of the financial statements
• The Concept of Accounting Profitability: It is a measurement of efficiency and
ultimately its success or failure. It is a business ability to produce a return on an
investment based on its resources in comparison with an alternative investment.
1.1.2.1 THE CONCEPTS OF ACCOUNTING
Rules of accounting should be followed in preparation of all account and financial statement.
These fundamental concepts are;
Accruals concept: revenue and expenses are recorded when they occur and not when
the cash is received or paid out;
Consistency concept: once and accounting method has been chosen, the method should
be used unless there is a sound reason to do otherwise;
Going concern: the business entity for which accounts are being prepared is in good
condition and will continue to be in the business in the foreseeable future;
Prudence concept: revenue and profit are included in the balance sheet only when they
are realized (or there is a reasonable ‘certainty’ of realizing them) but liabilities are
included when there is reasonable ‘possibility’ of incurring them;
Accounting equation: total asset equal total liabilities plus owner’s equity;
Accounting period: financial record pertaining only to a specific period are to be
considered in preparing accounting for the period;
Cost basis: value recorded in the accounting book should be the actual cost paid and
not the asset’s current market value;
Entity: accounting record reflect the financial activities of a specific business or
organisation not of its owner or employees;
Full disclosure: financial statement and their notes should contain all relevant data.
Lower of cost or market value: inventory is valid either at cost or the market value
(whichever is lower);
Maintenance of capital: profit can be realized only after capital of the firm has been
restored to its original level of is maintained at a predetermined level;
Matching transitions: affecting both revenue and expenses should be recognised in the
same accounting period;

Money measurement: the accounting process record only activities that can be
expressed in monetary terms.
Objectives: financial statement should be based only on verifiable evidence including
an audit trial.
Realization: any changes in market value of an asset or liability is not recognized as a
profit or loss until the asset is sold or the liability is paid off;
Unit of measurement: financial data should be recorded with a common unit of
measure (dollar, pound, sterling, yen, etc….)
1.1.2.2 THE CONCEPT OF ACCOUNTING SYSTEM
An accounting system is a set of accounting processes with integrated procedures and controls.
The intent of accounting system is to record business transactions, summarise those
transaction into an aggregate form, and create report that can be used by decision operations.
Though an accounting system can be entirely paper-based, this situation is usually only
found in quite small businesses. In most cases, accounting system are largely based upon off-
the-shelf accounting software, supplemented by any procedures needed to input information
into the software
❖ Contents of accounting system
An accounting system typically includes coverage of the major functional areas of an

organization, including the purchase of goods and services, sales of goods and services,
payment to employees for wages earned, and financing activities, such as obtaining debts,
selling shares, and paying interest to lenders the specific component of an accounting system
include accounts payable, billings, and accounts receivables, fixed assets, inventory and
payroll. Depending on the volume of transactions being processed, there may be specialised
accounting staff assigned to each of the preceding modules.
1.2 PROBLEM STATEMENT
It’s of prime importance for a BANK to take all measures possible to process and file
their documents so as to meet up with the taxation requirements and accounting formalities for
the end of year in order to show the financial position of the enterprise. A permanent control is
needed in order to analyse and classify accounting documents which play a big role on the
profitability of a bank. Moreover, accounting software provide facilities for the recording and
analysis of accounting documents so as to come out with requirement needed. This is because

of accounting software is an advance or computerise way of dealing with accounting recording

which eventually save time. It’s known for its accuracy and it is faster than the manual
accounting method. Thus, for bank to gain in profitability, they must turn on to accounting
software such as “DELTA BANK”, “AMPLITUDE up”, “gestion commercial”, “Excel”, and
others.
Most bank face challenges with instability of data connection or networking. During
internship at CCA bank, was discovered that the accounting software used in carrying
transaction (AMPLITUDE up) was useful only when network is available. In other words, when
data connection is available the different transactions (which include deposits and withdrawal
of money) can take place but when it lacks, transaction can’t be going on effectively. Hence it
reduces the chances of the bank to attain his target of profitability.
Also, the uncertainty on the state of optical fibre used by the ATM render payment
extremely difficult especially days of intense work. The optical fibre (GIMAC) use by nearly
all the banks might be disrupted for some reasons which can be visible and invisible. When
such disrupted are faced, nearly all institutes might get affected especially on days with
intensive work and can therefore reduce the profitability of the bank. Some other problems
include;
➢ The use of fake documents by client in order to obtain a loan, withdraw money, open
saving account, and so on
➢ The lack of signatures of either the cashier or the clients and at time both makes the
operation loss its validity and can affect the profitability of the bank negatively
➢ The absence of the stamp by the cashier render the operation invalid
This is the reason why the researcher decider to write on the effect of accounting control
on the profitability of a bank. It will lead us to look and put more emphasis on the effects of
accounting control. Thus, how to limit fraudulent risks and how does LE CCA proceed when
an accounting control is in relation to its profitability.
1.3 RESEARCH QUESTIONS
This section would be divided in to two; the main question and the specific question
1.3.1 The Main Research question
What is the effect of accounting control on the profitability of a BANK?

1.3.2 The Specific Research question
➢ Does adequate internal accounting control influence the profitability of a BANK

➢ What can cause the occurrence of profit in a BANK
1.4 Objectives of the study
This part will be subdivided in to two; the main objective and the specific objective(s)
1.4.1 The main research objective
The main objective of the study is to establish the effect of accounting control on the
profitability of a BANK
1.4.2 The Specific research objectives
➢ To know how internal control is an influence to Banking institution

➢ To know what can hinder the profitability of a Bank
1.5 Research assumption
The assumption here are as follows
• H0: Internal control has no influence on the profitability of a Bank

• H1: Internal control has a direct and significant influence on the profitability of a Bank
1.6 Significance of the study
This piece of work might be of great importance to all shareholders: The General manager the
employees, client, investors and students.
• To the General manager (GM): This work might be of great importance to the GM in
guiding him to better manage the activities of the agencies.
• To Employees: A better knowledge in accounting control and software will be acquired
through formations which consequently lead to a rapid and careful accomplishment of
work to satisfy their customer’s need and increase employee’s portfolio which might
also be great significance to them
• To Clients: On the side of the clients, they will derive more satisfaction in the
improvement of some treatment of their financial documents and remain faithful based
on the quality offered by CCA-BANK. Hence it will make the institution increase on
their profitability.

• To investors: This work might also be of great importance to investors of CCA- BANK
in such a way that their interest would be maximize if there is an increase in the working
skill as a whole.
• To Students: This will equally permit students aspiring to professionalism in the field
of business to enrich with the notion of accounting and computerized accounting system
management.
1.7 Scope and delimitation of the study
This will be separated for better assimilation as seen below;
1.7.1 Scope of study
The research was carried out at CCA BANK due to the availability of data about the topic. The
study was about the effect of accounting control on the profitability of a bank, case study of
CCA BANK. Due to the existence of many branches of this BANK, my study was carried out
at CCA BANK located at Bertoua. The study lasted for one month that is from the 06/06/2022
to the 01/O7/2022. Upon the fact that was us, I saw how accounting control is essential in
enterprises. Work started from 8AM to 5PM from Monday to Saturday
1.7.2 Delimitations of the study
The challenges faced at CCA BANK were;
Lack of a competent manager making it difficult for we the interns to acquire more knowledge
on activities usually carried out by that post in particular
Comprehension wasn’t easy task. This is because majority were from the French background
and didn’t understand English language, which didn’t ease the work since some accounting
terms were use in French and wasn’t easy to found its translation
1.8 Definition of key concept
Difference terms are used to provide different meaning depending on the context in
which they used. It is therefore necessary to clarify the terms used in the study. The most
prominent two notion used in the study and constituting the research topic are accounting and
control. Other terms to be clarified are;
Accounting: Accounting is the classification, analyses and interpretation pf business

records

Accounting control: These are policies and procedures used to ensure accuracy and
reliability across accounting reports
Profitability: It’s the ability of a company to use its resources in order to generate
revenues which will be more than its expenses
Accounting software: Accounting software is a computer base system which combines
accounting principles and concepts as well as concepts of information system to record,
process, analyse, and produce financial helpful in making economic decisions.
Book keeping: Book keeping is the recording of business transaction in a systematic
and orderly manner.
A Bank: Is and financial institution which accepts deposits from public for the purpose
of lending or investing and provide various utility services to the customer as well as to
the public
Cash register: It’s the combination of accounting documents which provide the total
number of deposits, and withdrawal
Cash journal: It’s a document that retrace all transactions carried during a particular
period of time by the cash
Movement log: This is a document which contains all the different operation carried out
at the agency as a whole
Dispatch slip for documents of an accounting journey: It acts like a brief summary of
transactions carried within the day
Checkout adjustment: This is the act of introducing in the compute r the cash in hand
Income statement: A financial statement shows the company’s income and
expenditures. It also shows the profitability level of enterprises
Invoice: It’s a document send by the drawer or the supplier when someone owes him
payment
Balance sheet: It’s a statement of the assets, liabilities and capital of a business at a
particular point in time, detailing the balance of income and expenditures
Agency: In the context of this thesis, the word agency and private institution are used
interchangeable to refer to any individualistic department or authority that provides a
particular service
Economy: It is concern with the acquiring of necessary resources to carry out an activity
at the least cost. It requires minimizing the cost of resources used for an activity with

regard to the appropriated quality. Hence economy is simply the principle of being cost-
sensitive, requiring that the cost of input compares favourably with the alternative.
External cost control system: These are organisational arrangement set out under the
framework of executive control, but operate from outside the boundaries of particular
government department, with the aim of ensuring effective and efficient performance in
public sector agencies.
Internal control: It relates to plan or measures adopted within an institution to
safeguard the agency’s asset, check the accuracy and reliability of it’s accounting
system, promote operational efficiency, and ensure adherence to prescribed managerial
policy.
1.9 Organization of work
This piece of work shall be divided in five (5) chapters:
Chapter one: It introduces the work by looking at the historical background, objectives,
significant of the study and its limitations
Chapter two: It focuses on the academic existing literatures on the different concepts.
Chapter three: This chapter look at the presentation of the internship activities and
methodology of research under study that is the method used in collection of data.
Chapter four: It deals with the presentation of findings and analysis of data collected.
Chapter five: It deals with the summary, conclusion and recommendations about findings.

CHAPTER TWO
LITERATURE REVIEW
The aim of this study is to examine the effect of accounting control in the profitability of a bank.
So, in this chapter, we will be focus on the conceptual background of accounting and
profitability.
2.1 CONCEPTUAL FRAMEWORK
Elements of the theory of accounting can be found as far as the ancient civilisation of
Mesopotamia and Egypt. By the time of the Roman Empire, financial data was widely used and
the government kept detailed financial records. The accounting theory definition is fairly
simple. It is a set of assumption, framework and methodology that are used in the study and
application of financial reporting principles. Since businesses and economist are often
fluctuating, the theories of accounting along with the government regulation that apply to
financial institution have had to adapt to a certain extent with time.
Although element of accounting can be found much earlier, in 1494, Luca Pacioli
created a system of accounting much like the one we know and use today. This Italian
mathematician started what is commonly known as the double entry accounting system. He also
introduced the use of ledgers, journals and bookkeeping, key elements of modern accounting.
Pacioli is known as the first person to have used a balance sheet and income statement.
2.1.2 The Notion of Accounting Control
Accounting control are the procedures and the methods which are applied by an entity
for the assurance, validity and accuracy of the financial statement but these accounting controls
are applied for compliance and not comply with the law, rules and regulations.
Accounting control are the various types of control applied which an organization.
Also, there is no straight forward control policy that applied to every organization. The
application of controls for each organization is designed and implemented to suit its needs, type
of business, aspirations, goals and other guidelines.
Here we will be interested in both the internal and external accounting control

2.1.2.1 The concept of internal accounting control
IFAC (2012) assets that one of the best defences against business failure, as well as
an important driver of business performance, is having an effective accounting control which
aids at level of the profitability of a financial institution. Successful Knowhow to take advantage
of opportunities, counter threats, in much insurance through effective application of controls,
and therefore improve their performances.
The united Kingdom auditing practices committee (1979) defined internal control as
“the whole system of control, financial and otherwise established by management in order to
carry on the business of the enterprise in an orderly manner to ensure adherence to managerial
policies and directives, safeguard assets and ensure as far as possible the completeness and
accuracy of records; the prevention and detection of errors and fraud and timely preparation of
financial information”.
According to statement of accounting standard (SAS) internal control is the

combined plan, method and procedures which can safeguard to the firm’s assets, promote
operational efficiency and encourage adherence to prescribed policies.
The SAS further explain the internal control may be categorized as either accounting
or administrative controls. Accounting control is concerned with the plan of the organization
and all the coordinates method and procedures which are implemented with a view of
safeguarding assets and enhancing reliability of financial records. On the other hand,
administrative control comprises of the plan of the organization and all coordinates methods
and procedures that are concerned with operational efficiency and adherence to management
policies and directives. This is also known as operational controls
The definition of internal control is divided into financial internal control and non-
financial (administrative) internal control. Financial internal control pertains to financial
activities and may be exemplified by control over company’s cash receipts and payments. Non-
financial internal control on the other hand deals with activities that are indirectly financial in
nature that is control over company’s personnel section and its operations, fixed assets control
and even control over laid down procedures (Reid and Ashelby, 2002). A sound internal control
system helps an organization to prevent fraud, error and minimize wastage. Custody of assets
is strengthened; it provides assurance to management on the dependability of accounting data
eliminates unnecessary suspicion and help in maintenance of adequate and reliability records.

2.1.2.2 Internal checks
Internal checks involve employees outside the immediate work area conducting checks
on transaction to ensure that are being with the proper authority, are being recorded properly,
and are accurate this is referred to as peer audit. They should be organized and conducted in
any way that they do not disrupt the business operations to a big extent. Employees conducting
peer should be influenced by the people being checked. This means they should be of high
integrity or not known on personal levels. This role should be carried on rotational basis to
reduce the chances of collusion that might develop between the fraudster and person checking
the transaction.
Nevertheless, there are three major categories of accounting internal controls. They include;
Detective controls
As the name suggests, these controls are put in place to detect any discrepancy and
deviation from the policies in place. It also serves the purpose of integrity check. These
controls are applied irregularly and are more of audit nature to identity errors or
discrepancies;
Preventive controls
The controls are applied daily within the organization to stop the errors or
discrepancies for happening in the first place. We can say these are the rules everyone
within the organization has to abide by in their day today job. Job rotation is very good
classic example of preventive control. In a big organization or at a critical place, the
personnel are transferred on a regular interval to ensure that any person does not have
any data or asset for an extended period, which ensure that person does not get involved
in theft or illegal activities. In an environment, backing up data daily on the cloud is also
a preventive control to avoid any data loss.
Corrective controls
These are the controls that come to rescue when preventive and detective
controls have both failed to avoid and error. In an accounting environment posting an
adjustment or rectification entry is an example of corrective controls. Once the books
are closed after the financial year and auditors find an issue that needs to be addressed.
Reopening financial yearbooks and making the adjustments asked by an auditor is also
part of a corrective control.

2.1.2.3 Accounting internal control examples
Below are given examples of accounting control
i. Segregation of duties-processor and approver should be two different people.

ii. An independent user ID and passwords should be provided to all the employees.
iii. Physical verification of inventory and assets should be done.
iv. Bank Reconciliation and other Trial balance reconciliation should be done.
v. Standard operation procedures documents should be made regarding process
flow.
vi. Surprise check of cash book balances.
Table 1: Merit and Demerit of internal control
1 The action log identified the person It is sometimes irritating and time
responsible for any error consuming for employees
2 Accuracy of financial statement and The high cost of maintaining controls and
funds application standards
3 Efficient use of the resources for the Over dependent for financial statement and
intended purpose audit
4 It saves cost and resources Duplication of work
Source: fieldwork 2022
2.1.2.4 The concept of external accounting control
External control systems are organizational arrangement opportunity under the

framework of parliamentary control, but are set out from outside the boundaries of the local
government sphere, with the cardinal aim of ensuring accountability, effective and efficient
performance in public sector agencies. There are both internal and external organizational
arrangements. External organizational arrangement include the office of the Auditor-General
(OAG) and the inspectorate of the Government (IG) (these two agencies from the domain of
this study), which are mandated institutions of the legislation, charged with the duty of
enhancing accountability performance in the local government, in view of the constitution of
Uganda, 1995 (Art. 163 and Art. 225), respectively. Thus, public accountability can be
examined through a prism of institutions established to serve as check on the executive arm of

government and through such agencies established to monitor the efficiency, probity and
fidelity of the public sector (Muthien, 2000: 70).
2.1.2.5 External control institutions
From the central government, the external control institution with relevance to
accountability in local government include the parliamentary public Account Committee(PAC),
Office of the Auditor-General (OGA), the inspectorate of the Government (IG), and the various
line ministries of central government responsible of local government, finance and economic
planning, public service, agriculture, health, education and works. These combine to determine
the socio-economic and political ‘heartbeat’ of intergovernmental relations between the two
sphere of government and ultimately, affect
the ‘rhythm’ of accountability in local government.
(a) The public Accounts Committee (PAC) the PAC is a constitutional parliamentary
standing committee established under the provisions of the constitution of Uganda,
1995 (Art. 90). It is charged with the responsibility of monitoring and supervising the
resource utilization of all government department. The PAC scrutinizes annual
submitted the Auditor-General and in the exercise of its functions it is empowered to
enforce the attendance of witnesses and examining them on oath, affirmation or
otherwise; and compel the production of document to justify the utilisation of public
resources. On many occasions, the districts CAOs, who are the accounting officers of
their respective districts, before the PAC to answer queries reflected in the Auditor-
General’s reports. Public officials give several reasons.
2.2 Th Notion of profitability
At first sight profit appears to be a simple concept that is define as the residual of
revenues from the cost of production; the related concept of profitability is defined as the ratio
of profits to some basis, with the most commonly employed basis being invested capital. The
simple concept of profitability is a great significance for understanding the notion of the
capitalist system because the desire for and promise of profit motivate entrepreneur to initiate
productive activity and because the level of profitability is measure of the success or failure of
an endeavour. Consequently, measuring current and past profitability as well as projecting

future profitability is crucial for enterprise decision with regard to the expansion or contraction
of investment in the current activity or alternative activities and the possibility of takeovers.
2.2.1 Definition of cost and profit
In spite of the fact the profit appears to be easy to define, a closer examination reveals
that in reality costs, which are crucial for the determination of profits, are difficult to define in
a generally accepted way. The usual textbook discussion of costs refers to the definitions of
costs by accountants and economists. Definition by accountants record only explicit costs, that
is, all monetary expenses incurred in the production and sales of goods and services, whereas
those economists include additional costs called the implicit or opportunity cost: the
compensation for not exploiting the best alternative opportunity. Clearly, the nation of profits
of the economist includes that of the accountant, and this implies that profits in the economist’s
sense exist if the revenue from sales exceed both the explicit and the implicit costs. Economic
profit sometimes if referred to as supernormal or excess profit and the normal profit (rate) is
the part of the cost that usually is identified with the interest(rate).
In light of these distinctions, it is clear that there is no single definition of profitability

even for accountant because costs and therefore profit depend on various accounting practices
and the purposes they serve. For example, accountant usually convey different pictures of a
firm’s profitability to the government and to the stockholders. Similarly, economists use
different measures of profitability, such as profit over invested capital and profits over equity,
among a host of others. However, the Cambridge capital controversies show that it is difficult
to deal with profitability because it involves the evaluation of capital goods, which requires the
prior knowledge of equilibrium prices. That estimation, however, requires the evaluation of
invested capital, other things, creating a various cycle from which there seems to be no exit.
2.2.2 Measurement of profitability
Thus, economists have further difficulties in the estimation of the proper notion of
profitability, which usually is identified with the internal rate of return(IRR): the discount rate
that equalizes the value of the investment project with the present value of the future stream of
expected profit that will result from the lifetime of the investment project. The IRR concept has
certain limitation that, among other things, have to do with the idea that only the short-term
horizon is relevant for investment decisions. This is why economists make use of the economic
rate or return (ERR), which is the (IRR) over a specific, shorter period of the firm’s life. Even
this notion of profitability, however, is hard to measure with actual data, and so economists

revert to the accounting rate of profit (ARP): the ratio of the value of a flow of profit in a specific
period to the value of the stock of capital.
It is true that in any particular instance the ARP for firm and industries will be different
from the respective ERR. More specifically, in 1983 Fisher and Mc Gowan showed that as a
result of depreciation method, the projected cash profiles over time and the growth rate of a
firm make ARPs fall short of a good approximation to the ERP. The problem with these
experiments is that they were performed with numerical examples, not with actual data. By
contrast, in 1990 Duménil and lévy, using actual data from the U.S economy over a long period,
contended that for all practical purposes and under certain conditions and for certain types of
economic problems the ARP can serve as a reliable approximation of the ERR.
In spite of criticisms economists use the notion of the ARP in many applications, such
as industrial organisation studies; if a particular industry makes an ARP above the economy’s
averages ARP for a considerable period, economists say that this may be evidence of economic
(sometimes called excess or event supernormal) profit that accrues to a firm or industry. This
may be due to exercise of monopoly power or the presence of barriers to entry, which prevent
new firms from seizing such profit opportunities. Economic profit is viewed as a departure from
the ideal of perfect competition, and the government must take action to correct the situation in
its effort to make economic life look more like the perfectly competitive model, in which
economic profit in the long run is zero. Furthermore, the ARP has been used, along with other
variable, in econometric specification as a determinant of investment behaviour and capital
accumulation. The idea is that excess profits attract investment, and therefore capital
accumulation accelerates to the point where excess profit and competed away; the opposite is
true in cases of losses.
ARP also has been used in historical studies as an indicator of the expansion or
contraction of ab economy. In fact, it has been shown that the contraction phase of an economy
is associated with a protracted falling ARP that leads to stagnant or even falling total real profits,
giving rise to pessimistic expectation and thus discouraging aggregates investment and
increasing the rate of unemployment. The opposite true with a rising rate of profit, which creates
an atmosphere of optimism, encouraging investment spending, lowering unemployment, and
setting the stage of prosperity.

2.3 Theoretical framework
2.3.1 Profitability
Profitability means the ability to make profit from all the business activities of an organization,
company, firm, or an enterprise. It shows how efficiently the management can make profit by
using all the resources available in the market. According to Harward and Upon (1961), they
define profitability as the ability of a given investment to earn a return from its use. The term
profitability however is not synonymous to the term “Efficiency”. Profitability is a measure of
efficiency; and is regarded as a measure of efficiency and management guide to greater
efficiency.
Though, profitability is an important yardstick for measuring the efficiency, the degree of
profitability cannot be taken as a final proof or indicator of efficiency. Sometimes satisfactory
profit can make inefficiency and conversely, a proper degree of efficiency can be accompanied
by an absence of profit. The net profit figure simply indicates a satisfactory balance between
the values received and given. The change in operational efficiency is merely one of the factors
on which profitability of an enterprise largely depends. Moreover, there are many other factors
besides efficiency, which affect profitability (Harward & Upton, 1961)
2.3.2 Profit and profitability
Sometimes, people used the term “profit” and “profitability interchangeably. But in real
sense, there is a difference between the two. Profit is an absolute term, whereas, profitability is
a relative concept. However, they are closely related and manually interdependent, having
distinct roles in business. Profit refers to the total income earned by firm during the specified
period of time, while profitability refers to the operating efficiency of the firm. It is the ability
of the firm to make profit on sales and get sufficient return on capital. Weston and
Brigham(1972), noted rightly that for financial management, profit is the test of efficiency and
a measure of control, to the owner, it is a measure of the worth of their investment, to the
creditor is the margin of safety, to the government it is a measure of taxability capacity and a
basis of a legislative action and to the country, profit is an index of economic progress, national
income generated and the rise in the standard of living, whereas profitability is an outcome of
profit”. In other words, no profit drives towards profitability (Ibid). According to A1-Shami
(2008), there are different ways to measure profitability such as: return on asset (ROA), and
return on equity (ROE). Return on asset indicates how profitable a company is relative to its
total assets. It gives an idea as to how efficient management is in using its assets to generate

earnings. While, return on equity measures a company’s profitability which shows how much
profit companies generate with the money shareholders have invested. This measure gives a
sense of how well a company is in using its money to generate returns.
2.3.3 Market power theory
Applied in banking, the market power hypothesis posits that performance of bank is
influenced by the market structure-conduct-performance (SCP) and the relative market power
hypothesis (RMP). According to the structure -conduct-power approach, the level of
concentration in banking market give rise to potential market power by banks, which may raise
their profitability (Njerl, 2012). Banks in more concentrated market are most likely to make
abnormal profit by their ability to lower deposit rates and to charge Hight loans rates as a result
of collusive (explicit or tacit) or monopolistic reasons, then firm operating in less concentrated
markets, irrespective of their efficiency. Unlike the structure-conduct-power, the relative
market power hypothesis states that bank profitability is influence by market share. It supposes
that only large bank with differentiated products can influence prices and increase profits. They
are able to exercise market power and earn non-competitive profits. The above theoretical
analysis shows that market power theory supposes bank profitability is a function of external
markets factors.
2.3.4 Efficient structure theory
The efficient structure hypothesis, on the hand states that banks earn high profit because
they are more efficient than others. There are also two district approaches within the efficient
structure (ES): The X-efficiency and scale-efficiency hypothesis. According to the X-efficiency
approach, more efficient firms are profitable because of their lower costs such firms inclined to
gain larger market shares, which in higher levels on market concentration, but without any
causal relationship from concentration to profitability (Athanasogloutal. 2006). The scale
approach emphasizes economies of scale rather than difference in management or production
technology. Larger firms can gain lower unit cost and higher profit through economies of scale.
This makes it possible for large firm to acquire market shares, which may manifest in higher
concentration and then profitability. The efficiency structure on the other hand like the portfolio
theory assumes that banks perform its influence by internal efficiency and managerial decisions
(Njerl,2012).

2.3.5 Portfolio Theory
The portfolio theory approach is the most important and plays a great role in bank
performance studies. As per the portfolio balance model of asset diversification, the best
possible holding of each asset in a wealth holder’s portfolio which is a function of policy
decision determined by a number of factors such as the vector of rates of return on all assets
held in a portfolio, a vector of risks associates with the ownership of each financial asset and
the size of the portfolio (Ibid). the portfolio theory further explains as portfolio diversification
and the desired portfolio composition of commercial bank results and of decisions taken by the
bank management. Further, the ability to obtain maximum profit depends on the feasible set of
assets and liabilities determined by management and the unit cost incurred by the bank for
producing each component of asset. Portfolio theory largely supposes that bank performance is
influenced by internal efficiency and managerial decisions (Ibid).
2.3.5 The agency theory (Arrow, 1985)
The agency theory is the study of agency relationships and the issues that arise from
this, particularly the dilemma that the principal and the agent, while nominally working towards
the same goal may not always share the same interest (Arrow, 1985). The literature on agency
theory largely focuses on methods and systems and their consequences that arise to try to align
the interest of the principal and agent. (Delves & Patrick, 2000).
The theory explains the relationship between principal (Shareholder) and agent
(employees) Of a company that is aimed at achieving objectives of business. Agency theory
describes firms’ necessary structure to maintain contracts through firms, it is possible to
exercise control which minimises opportunistic behavioured agents. Accordingly, another
posits that in order to harmonise the interest of both the agent and the principal. This theory
further explains that, the relationship is straightened by the principal employing an expert to
monitor the activity of the agents. This point of view supported by Adams M.B (1994) who
maintains that the contract provides for conflict resolution between the agent and the principal,
the principal determines the work and the agent undertakes the work. He however, proposes
that the principal suffers skirting which deprives him/her from benefiting from the work of the
agent. Nevertheless, the theory recognises the incomplete Information about the relationship,
interest or work performance of agents described as adverse selection affects output of the
agents in two ways; not doing exactly what the agent is appointed to do; and note possessing

the requisite knowledge about what should be done. This therefore affects the overall
performance of the relationships as well as benefits of the principal in form of cash residual.
This theory was applicable to this study simply because internal control is one of the many
mechanisms used in business to address the agency’s problems by reducing the agency costs
that affects the overall performance of the relationship as well as the benefit of the principal.
2.3.6 Contingency theory
This is an approach to the study of organisational behaviour in which explanations are

given on how contingent factors such as; technology, culture and external environment
influences the design and function of an organisation. The assumption underlying contingency
theory is that no single type of organisational structure is equally applicable to all organisations.
Rather, organizational effectiveness depends on a fit or match between the type of technology,
environmental volatility, the size of the organisation, the features of the organisational structure
and its information system. Contingency theories were developed from the sociological
functionalist theories of organisational structures such as the structural approach to
organisational studies by (Woods, 2009).
Contingency theory is used to describe the relationship between the context and
structure on the effectiveness and organisational performance of both internal and external
control, especially reliability of financial reporting
The contingency theory states that “The design and use of control system is
contingent upon the context on the organisational setting on which these controls
operate”, (Fischer, 1998). Therefore, the idea of contingency theory is the selection and use of
external factors. It is therefore clear that factors such as external environment, technology,
structure and size, strategy and national culture impacts management control systems. The
theory suggests that the demands imposed by technical tasks in the organisation encourage the
development of internal strategies to coordinate and control internal activities.
According to Daft (2012) book, contingency theory means, “One thing depends on
another thing”. Audit functions are tasked, oriented and can be loosely structured. The
functions also can be considerably, depending on the area of a company under audit and the
type of business model, so auditors must carefully manage their inspections to take variables
into account to get the job done.

2.3.7 Theory of a firm
In simple terms, the theory of the firm aims at answering these questions: Existence,
boundaries, organisation, while a firm structured in such a specific way, for example as to
hierarchy or decentralization? Heterogeneity of firm’s actions and performance, what drives
different actions and performance of firms, and lastly, the evidence, what tests are there for the
respective theories of the firm (Thomas, 2008). The theory of the firm consists of a number of
economic theories that describe, explain and predict the number of firms, companies or
corporations, including its existence, behaviour, structure and relationship to the market. This
theory affirms that the firm is a “Blackbox” operated so as to meet the relevant marginal
conditions which respect input and output, thereby maximising profits, or more accurately,
present value. The theory helps to explain why entrepreneurs or managers in a firm which has
mixed financial structure containing both debts and outside equity claims will choose a set of
activities for the firm is less than it would be if he were the sole owner and why this result is
independent or whether the firm operates in monopolistic or competitive products or factor
markets (Kantarelis, 2007) . This study will thus be guided by three theories namely; agency
theory, contingency theory and theory of the firm. The agency theory shows the relationship
between the principal agent and the agent’s responsibilities which include financial reporting,
budgeting and providing any other additional information to the principal. The contingency
theory on the other hand explain the organizations behaviour and functions are dependent on
factors such as technology, culture and external environment that the organization operates in.
The theory of a firm asset that a firm is operated so as meet the relevant marginal conditions
with respect to input and output, thereby maximizing profit, or more accurately present value.
2.4 Market concentration
Birhanu (2012) define market concentration as the number, size and distribution of bank
in particular market or county. As indicated in other empirical studies, market concentration is
captured by the Herfindahl-Hirschman(H-H) index, which is the sum of the square of market
share of the sample bank included in particular study. That market share of each bank is
measured by ratio of the bank’s total asset to total asset of the bank (Gajure & Pradhan, 2O12).
Since highly concentrated market lacks proper competition as to setting the price of
banking services, it makes the exiting bank more profitable. However, when the concentration
of the market is reduced and the size and distribution on bank become more dispersed, the

banking sector profitability is expected to reduce. Flamini (2009) studying the determinants of
profitability of commercial bank in the sub-Saharan Africa, concluded that market
concentration has no direct effect on bank profitability.
Athanasoglouetal. (2005) also examined and concluded that market concentration

affects bank profitability negatively, in an insignificant manner. Similarly, Molyneux and
Thornton (1992) in their study carried out on the determinants of European bank profitability
showed that market concentration has a positive, statistical correlation with pre-tax return on
asset which are consistent with the traditional structure-conduct-performance paradigm.

CHAPTER THREE
INTERNSHIP ACTIVITIES AND METHODOLOGICAL APPRAOCH
This chapter will be aimed at viewing the population of the studies, the activities carryout during
internship, the sample size and the sample method.
3.1 PRESENTATION OF LE CREDIT COMMUNAUTAIRE AFRIQUE-BANK (CCA-

BANK) AND PRESENTATION OF INTERNSHIP ACTIVITIES
3.1.1 Historical background of CCA-BANK
Created in Bafoussam in July 1997 following law N° 92/2006 of 14 August 1992 related to
cooperative and common initiative groups and the Decree n° 90/445/PM of 23/11/1992, credit
Communautaire d’ Afrique -Bank S.A abbreviated CCA S.A effectively kicked off its activities
in 1998 in the form of a savings and loan cooperative.
It conformed to all reforms of the microfinance sector institute by the regulatory

authority and on July 27, 2001, through Decree N° 00347 of the ministry of the economy and
finance (now the ministry of finance), obtained the approval as a 2nd category microfinance
institution (MFI) after the central Africa Banking commission’s (COBAC) Approval N° 19044
of January 11, 2001.
In 2006, CCA became a limited company and its capital equity increased from 1000
000 000 FCFA to 2 000 000 000FCFA (two billion) to withstand the growth of its activities,
therefore making its way as the leader of the microfinance landscape in Cameroon.
In 2009, the Executive Broad undertook a profound restructuring by appointing a

General Manager and two Deputy General Managers, therefore dissociating the functions of
the board chairman and the General Manager.
In March 2010 CCA at the close of an Extraordinary General Assembly meeting, decided
to enlarge its social capital to 5 000 000 000 FCFA. This support of the shareholder Equity
allowed the restructuring of its network both on the quantitative and qualitative spheres with

the proliferation of 42 agencies scattered over the 10 regions of Cameroon to contain the
exponential growth of the ever-increasing customers portfolio. In vein, in 2012, the enterprise
witnessed technological change with the launch of e-banking, offering three types of
withdrawal cards operational on its network of 49 Automatic Teller Machines.
In its perspective towards migrating into a bank, CCA in November 2015 decided to
increase its capital form 5 000 000 000FCFA to 15 000 000 000 FCFA. This partial release
augmenting its capital to 10 000 000 000 FCFA in December 2016 allowed them to get the
concern of the central African Banking Commission in march 2017 for its approval as a
financial institution.
On May 30 2018, the institution obtained its approval as a Bank under Decree N°
000405MINFI about its transformation from a 2nd category microfinance into a universal
Bank.
Table 2Presentation of CCA-BANK S.A
DENOMINATION Crédit Communautaire d’Afrique
SINGLE CCA- Bank S. A
DATE OF CREATION 1st July 1997
HEADQUATER OR HEAD OFFICE Yaoundé, boulevard Rudolph MANGA

BELL mokolo
P.O. BOX 30388 Yaoundé-Cameroun
PHONE N° (+237)222 22 84 77/ 222 23 89 08
FAX (+237) 222 23 34 36
WEBSITE WWW.cca-microfinance.com
cca@afrigroup.com
E-mail Adresse
BRANCH MANAGER Mr AUBIN TOKAM

THE GENERAL MANAGER OF CCA Alexis MEGUIJOU

BANK
CAPITAL 10 000 000 000
LEGAL STATUS Société Anonyme (S.A)
ACTIVITIES Saving and loan giving
REGISTRATION N°
CATEGORY
NETWORK 42 Agencies
Source: interns report (2022)
3.1.3 Product and Services
CCA-BANK offer many types of goods and services. Such product and services include;
➢ The Saving Account: is an account that encourage profitable savings. It offers the
advantage of being available at all-times. It can also serve as a start off capital or initial
boost at the creation of an enterprise or the realization of a project.
➢ The Fixed Term Deposit (DAT)
It’s a form of savings through which a company or and individual asks its financial
institution to block a certain sum of money for a certain period of time. Here, the deposit
is remunerated at a rate agreed by the customer and the financial institution. Interest
generated by the money blocked are paid to an agreed interval.
➢ Current Account: is a bank account for individual used as a means of investment
withdrawal, subtraction, online management, and consultation, payment and cheque
deposits. The operation of fund can be done by the holder or an intermediary other than
the holder. It can function well with a credit than a debit balance.
➢ Sole proprietor Account: It is a type of account for sole proprietor within the
framework of commercial and financial relation.

➢ Salary Account: It is an account where salary earner of public and private sector can
be domiciliated.
➢ The Retirement Account: The account to transfer retirement benefits and reserved for
pensioner allows them to better manage their revenue and benefits from financial
assistance.
➢ Over Draft: It is permitted for public sector workers to have 50% automatic overdraft
of your net pay.
➢ Moving together Savings: The daily collection is a service that consists generally in
collecting funds in market from people with low income rate and return to them at the
end of the month.
➢ CCA-Etude: It is an insurance contract that mainly aim to guarantee the university
studies of your children. The duration of this contract should be (greater or equal) to 5
years and shall be define by the subscriber while respecting the 65years age limit.
Moreover, apart from collecting and saving CCA-Bank can offer other services such as:
➢ Stand-by letter of credit: Still called SBLC (stand-by letter of credit), this is a bank
guarantee with which the importer guarantees to his supplier that CCA-BANK will
replace him if he is in default, provided that the exporter presents the document
requested as proof of the existence of the claim.
➢ Documentary credit: CCA BANK provide protection convenience and security to
importers and exporter through the documentary credit service.
➢ Fundraising: Fundraising is a service that allow you secure your transaction and reduce
your cash handing. By calling on CCA BANK to pick up the funds on the company site
according to a frequency agreed between you and us.
➢ C-Sécur: It is a flexible contract attached to CCA’s individual accounts. It covers the
insurer with an interest from 1 300 000 to 2 000 000 FCFA in the event of death or
absolute or indefinite invalidity. The contract duration is 1 year and renewable by tacit
agreement.
➢ C-Sante: It is an insurance contract that aim at remeying the difficulties CCA client
face in the payment of their medical fees.
➢ SLong term loan: to realize your major projects. Repayable over 60 months.
➢ International money transfer: At the international level, CCA offers the possibility to
carry out money transfer operation thanks to its partner. Sending operation:

WESTERN UNION, Receiving operation: WESTERN UNION, MONEY

EXCHANGE and MONEY TRANS.
➢ Short term loan: (credit scholaire) this refers to loan granted to public sector workers
to be repaid within 9 months.
➢ CCA-BANK Islamic finance: Access the bank to day in strict compliance with the
sharia standard and principles thanks to the CCA-BANK ISLAMIC GATE WAY.
With the evolution of digital in the world or in the banking system CCA BANK have but in
place some online services such as;
➢ C-mobile
➢ C-online
3.1.4 Missions of CCA-BANK
CCA-BANK in its capacity as universal Bank observe a follow up of its mission of its
financial inclusion through financing than is adapted to the Cameroonian economy.
3.1.5 Presentation of internship activities
My internship started on the 06/06/2022 to the 01/07/2022 base on the different

department, I did one week in the accounting department and the and three weeks in the other
managing department.
▪ Management department:
In this department I was taught how to constitute document to open an account in CCA BANK.
▪ Accounting Department:
The procedure and the different step to find the eligibility of a customer in order to obtain a
loan; the identification of a depreciated fixed asset and how it is important to use a precise
method of depreciation. Also carried out bank reconciliation; draw the various document
needed to constitute a cash register; how to come out with a personalized bank cheque; how to
supply money in the ATM and to the cashier.

▪ Sales department:
In this department, I was taught how to propose a given service to customers. In addition to that
I also carried effective work at the reception. At the post of reception, I was taught who to get
acquainted with customer’s behaviour.
3.1.6 Structure of CCA-BANK branch of bertoua
CCA is a Bank very well-structured starting from the managing staff to the branches so as to
assure the best services in term of quality to his customer. At the level of bertoua , it is structured
as follows.
A branch manager
An accountant
Two account managers
Three cashiers
Two service agents
➢ The branch manager
The functions of the branch manager are as follows;
- Coordinate the different department and watch over the respect of the enterprise values
to attain its common mission.
- Make sure credit granting procedures are respected by validation or not of loan files
- Carry out commercial policy of the enterprise
- Gives account to the board of directors or executive manager about the commercial
activities and operation of the branch according to occurs events
➢ The accountant:
The functions of the accountant are as follows;
- Updates
- Unlocking of loan files
- Cash flow monitoring
- Stock management
- Budget management
- Monthly reporting

- Mounting cash receipts

- Continuous provision of financial position of the enterprise
➢ The account manager
Commonly called “GESCOMPTE”, this function is ensured by an account manager who is

responsible for the reception and orientation of customers. Other task to be done by the account
manager include;
▪ Opening of different type of account (deposit, current, Islamic, saving ….)

▪ Replenishment of saving
▪ Issuing certificates of bank domiciliation
▪ Verification of client account balance and account numbers.
▪ Replenishment and endorsement of cheques for withdrawals or for un locking credits
▪ Cheque discount registration
▪ Printing and filling of transfer order
▪ Printing of account statement, history, and “hand-raised” of customers
▪ Ordering visa cards and chequebooks of customers
➢ The cashier
The cashier is in charge for collection and disbursement. Collections enter on the credit side of
CCA BANK customer’s account. It can be done by any individual and of any amount with the
use of a deposit/payment slip duly completed. The payment carries the following information:
▪ The customer’s account number

▪ Customer’s company name
▪ Money ticketing
▪ Signature
3.2 Research methodology
Research is a process or step used to collect and analysed information to increase our
understanding for a topic or issue whereas methodology on the hand is the art of conveying the
knowledge obtained via research in a procedural presentation with coherence and chronological
standard to meet human understanding and ameliorate decision making in the field. This part

will then focus on the carefully planned investigation, inquiry or through search for new fact in
any branch of knowledge.
The study followed a descriptive and analysis research design method. Descriptive
design is to portray profile of persons, events or situation (saunders, lewis , and Thorn hill,
2007). This quantitative and qualitative approaches were both used to obtain information. The
reason for this method is to obtain measurable information and as such, questionnaire,
observation and interview were needed. The quantitative approach was used to examine written
ideas from the past works.
3.2.1 Sources of data collection
During the internship, the researcher made used of the two main source of data collection
primary and secondary source of data collection
3.2.1.1 Primary sources of data collection
It is an original research conducted for the first time with the aim to obtain primary data of first-
hand information. This method consists of questionnaires, interviews, and observations.
• Questionnaires: the intern established and administrative questionnaires to the staff of

the branch. Majority of the questionnaires were answered immediately and handed to
the intern, while others answered at their free period or took it along and handed them
later. The researcher had to explain question which could not be understood in the
questionnaire. This questionnaire was made up of close ended questions, meaning they
had to choose answers from the option presented to them.
• Interviews: the researcher effectively used questionnaires as method of collection of
data. This done in the form of face to face conversation with the staff in their fewer
working hours and breaks and with customer before or after their various
• transactions. The staff was interview on how they carry out their various activities and
customers how satisfactory they are on the various transaction carried out. The interview
was done in a lapse of time of 5mins and per department.
• Observations: the researcher started observing since the first day of the internship at
CCA BANK. The advantage of observation is it generates permanent record situations.

3.2.1.2 Secondary source of data collection
This is data collected from textbooks, organisation, documents, internet and past reports
➢ Documents from CCA-BANK: The intern gathered information from documents

presented by the staff of the BANK more especially the accountant, the cashier and the
procedural manual.
➢ Internet: More of the data gathered by the researcher was gotten from the internet with
use of many internet network and websites.
➢ Organizational documents: the research also abstained information from the
organization pass records, invoices and cash books.
3.2.2 Data analysis
Data collection will be analyse using statistical packages for social science (SPSS)
3.2.3 Reliability of data
The researcher ensures reliability in both primary and secondary data by probing providers’
purpose of data collected, ensuring that the data was completed and accurate. The research also
ensure that was abstained from its original source and not from a source where data might have
been manipulated and altered.

CHAPTER FOUR
PRESENTATION, ANALYSIS AND INTERPRITATION OF DATA
This chapter presents discussion and analysis of results following the researcher objectives.
The general objective of the study was to examine the effect of an accounting control on the
profitability of a BANK at CCA-BANK Bertoua. The study made use of respond from 4 staff
of CCA-BANK Bertoua,the branch manager, the accountant, the cashier and sales
representative. In addition to the staff members 6 faithful customers were included for the
responses. The research made use of the questionnaire as one of the main research documents.
This was responded by the staff
4.1 DEMOGRAPHIC INFORMATION
• Questions to staff and customer

1. Gender of the respondent?
Table 3 Gender distribution
Respondent Frequency Percentages %

Male 4 44.44
Female 5 55.6
total 9 100
Source: fieldwork, 2022

Figure 1 Gender distribution
GENDER
44% Male
56% Female
Source: fieldwork
From the analysis below the table above, it is seen that 55.6% are female while 44.44% are
male, making a total of 100% representing the staff and customers of CCA BANK branch of
bertoua. This therefore implies that most of the study will be based o the ideas given by women.
In addition, with regard to accounting control on the profitability of a BANK, it will enable us
to have a mixed view as both men and women are represented.
2. Age of the respondent?
Table 4 age distribution
AGE FREQUENCY PERCENTAGES
20-35 5 55.55%
36-50 3 33.33%
Above 50 1 11.11%
TOYTAL 9 100

Figure 2 Age distribution
AGE OF THE RESPONDENT
11%
20-35years
36-50years
33% 56%
Above 50 years
Statistics from the table above reveals that those of age ranging between 20-35 years account
for 55%, 36-50 years account for 44.44% of both staff and customers of CCA BANK base on
the researchers sampling method. These statistics does not only show the maturity of those of
the age groups, but also promote the youthful age group. That is, it fights against
unemployment, it also has an energetic labour force on the field. Equally, it will enable us to
have Information as they are mature enough to tell us only but the truth.
3. Educational back ground of the respondent?
Table 5 educational background
DIPLOMA FREQUENCY PERCENTAGE

HND 1 11
BACHELORS 3 33
MASTERS 5 55
TOTAL 9 100

Figure 3 educational background
EDUCATIONAL BACKGROUND
11%
HND
BACHELORS
56% 33% MASTERS
The table above shows that 33% are Bachelor’s degree holder,56% is master’s degree holder,
and 11% or them are HND holders. With respect to their level of education, it implies that they
must have come across accounting control system and profitability, thus the ideas on the respect
of policies and procedures. This idea will enable them to give us better responses.
4. Religious back ground?
Table 6 Religion
RELIGION RESPONDENT PERCENTAGE

CHRISTIAN 7 77.8
MUSLIM 2 22.22
TOTAL 9 100

Figure 4 Religion
RELIGION
22%
CHRISTIAN
MUSLIM
78%
Most of CCA BANK workers are Christians. At least they were all GOD fearing and as such
they all work with conscience and fear of somebody watching them.
5. Longevity of services
Table 7 Longevity at service
LONGEVITY REPONDENT PERCENTAGE

1-2 years 2 22
3-4 years 3 33
>4 4 44
TOTAL 9 100

Figure 5 Longevity of service
LONGEVITY AT CCA BANK
22%
1-2years
45%
3-4 years
>4
33%
It reveals that table above that 22% of both the customer and staff have been member of CCA
BANK for 1-2 years, 33% for 3-4years and finally, 45% where member above 4 years, which
implies majority of both worker and staff have been at CCA BANK for 4 years and above,
hence implying they already got the notion control and profitability management. It therefore
means that their responses are accredited to their longevity at CCA BANK.
6. Occupation of the respondent?
Table 8 occupation
OCCUPATION REPONDENT PERCENTAGE

CIVIL SERVANT 1 11
PRIVATE SECTOR 4 44
WORKERS
STUDENTS 3 33
RETIRED 1 11
TOTALS 9 100
Source: fieldwork2022

Figure 6 occupation
OCCUPATION
11% 11%
CIVIL SERVANT
PRIVATE SECTOR WORKERS
33% STUDENTS
45% RETIRED
7. PROFITABILITY LEVEL BASED ON ACCOUNTS
At CCA BANK, different sort of accounts is being opened for the satisfaction of customers and
to increase profitability as well. Hence, we will get more interest on the current saving accounts.
We have 4 different transaction to take into consideration with the various accounts, which
are deposits, withdrawal, Wester union transfer and WAFACASH transfer with the most
profitable one being deposits as shown in the table below
Table 9 transactions of CCA BANK
TRANSACTION RESPONDENT PERCENTAGE
DEPOSITS 6 66
WITHDRAWAL 1 11
WESTERN UNION 1 11
TRANSFER
WAFACASH TRANSFER 1 11
TOTAL 9 100

Figure 7 transaction at CCA BANK
TRANSACTIONS
11%
11% DEPOSITS
WITHDRAWAL
11% WESTER UNION TRNSFER
67% WAFACASH TRANSFER
The charts above show that with 4 transactions on which we are laying emphasis, the most
profitable one comes from deposit with 67% of preferences, followed by 11% given to
WAFACASH transfer and finally withdrawals and WESTERN UNION transfer with both 11%.
This means in order to attain the goal of profitability; the institution will encourage more of
deposits than the other transactions.
Moreover, to evaluate the profitability level of the institution, CCA BANK also makes used of
software are reliable and accountable with respect to profitability because it gathers and save
data for a long-term period, giving information on the various transactions done and the profit
length per month. This institution makes use of the following software; DELTA BANK,
AMPLITUD UP, EXCEL, and others. The most reliable and accountable software is
represented on the graph below;

Figure 8 reliability and accountability of software
RELIABLE SOFTWARE
100%
90%
80%
70%
60%
35% 35% 25% 5%
50%
40%
30%
20%
10%
0%
DELTA BANK AMPLITUD UP MS EXCEL OTHERS
RELIABLE SOFTWARE
The storage of data for a long period of time followed by excel. For an effective accounting
control, such software are needed into trace the profitability level of a fiscal year no matter of
the durability of the data.
For profitability to occur based on accounts, the satisfaction of account holder at CCA
BANK can hinder the situation. This simply means that, a satisfied customer will increase his
level of consuming (can carry out regular transactions) which not only attract others customers
to do same but also promote a positive financial performance. The satisfaction of account holder
can come from so many aspects, one of them being the interest rate generated by their different
accounts.
Table 10 Customer’s satisfaction based on interest rate ids given as follows
APPAISAL/ACCOUNT CURRENT SAVING PERCENTAGE

ACCOUNT ACCOUNT
STRONGLY 00 00 00
DISAGREE

DISAGREE 00 00 00
NEUTRAL 00 00 00
AGREE 9 9 100
STRONGLY AGREE 00 00 00
TOTAL 9 9 100
Figure 9 customer’s satisfaction based on interest rates

120%
100%
80%
60%
40%
20%
0%
STRONGLY AGREE DISAGREE NEUTRAL AGREE STRONLY AGREE
Current account Saving account
It reveals that from the table above, 100% of the customers agreed and are satisfied with the
interest rate generated by their various accounts.

8. PROFITABILITY LEVEL BASED ON AUTOMATED TELLER MACHINE

(ATM) SERVICES
Table 11 AWARENESS ON ATM DATA
Response Frequency Percent

Yes 10 100
No 00 00
Total 10 100
Table 12 ATM USAGE DATA
VARIABLES OPTIONS FREQUENCY (%)
What type of cart Carte cauris 44 44.00

do you use in ATM
mostly? Carte Equilibre 36 36.00
Carte prestige 20 20.00

Reason for preferring your ATM Time saving 27 27.00
services Faster transaction 20 20.00
Easy to use 18 18.00
Easy Banking 13 13.00
Anytime/ anywhere 22 22.00
All of the above

Figure 10 awareness on ATM usage
Awareness on ATM usage
40%
60% Yes
No
From the figure above, it is visible that the customer were fully aware of the existence and
operational status of the ATM service at CCA BANK Bertoua
Figure 11 types of carts used at CCA BANK
ATM UASGE CARD'S
17%
33%
Carte cauris
Carte Equlibre
50% Carte Prestige

From the above table 1, it is inferred that majority of the respondents are using carte
Equilibre(50%) followed by carte Prestige (33%)and scarte cauris(17%)
Figure 12 reasons for preferring an ATM service
reasons for preferring an ATM service
17% 0%
34%
Time saving
Faster transaction
23%
Easy to use
Easy banking
26%
All of the above
Time saving (34%) is the top most reason for preferring ATM services followed by ‘Faster
transaction (26%), ‘Easy to use’ (23%), Easy Banking any time/anywhere’ (17%).
Table 13 PURPOSE OF USING ATM SERVICES
S. PURPOSE OF USING ATM PERCENTAGE RANK

No.
1. Cash withdrawal 80 FIRST

2. Balance Enquiry 20 Second
3. Cash deposit /
4. Transfer of funds /
5. Utility bills payment /
6. Others services /
TOTAL 100 /

Figure 13 Purpose of using an ATM service
ACTIVITIES CARRIED OUT BY ATM
CASH
OTHERS
DEPOSIT
BALANCE ENQUIRY
0%
20%
CASH WITHDRAWAL
BALANCE ENQUIRY
CASH CASH DEPOSIT
WITHDRAWAL
80% OTHERS
From the above table, it is inferred that cash withdrawal (p=80%), Balance Enquiry (p=20%).
It is also showing that, ATM service offered by CCA BANK does not include cash deposits,
transfer of funds, bill payment and some other services like pin change and others.
Customers frequency use of ATM
This was cantered on establishing the customers “frequency use of ATM.
Table 14 PURPOSE OF USING ATM SERVICES
Frequencies Frequency Percentages

Daily 1 11
Weekly 3 33
Monthly 5 55
Total 9 100
Source fieldwork2022

Figure 14 customer frequency uses of ATM
USE OF ATM
55%
33%
11%
DAILY WEEKLY MONTHLY
USE OF ATM
The table above revealed that 55% use ATM service monthly, 33% use in weekly while the last
at 11% use it daily. Majority of the customers use ATM service monthly and it seems that they
are salary earners who wait for salary to be paid and withdraw money. However, a small
percentage of daily users who are business entrepreneur participated in the study. Thus,
guaranteed reliability and validity of data.
Rating of ATM service at CCA BANK
This was concern on establishing the rating of ATM service at CCA BANK
Table 15 Rate of ATM services at CCA BANK Bertoua.
Rate of satisfaction Frequency Percentage

Very satisfactory 3 33
Satisfactory 4 44
Not satisfactory 2 22
Total 9 100

Figure 15 rate of ATM service at CCA BANK Bertoua
RATE OF SATISFACTION
50%
44%
45%
40%
35% 33%
30%
25% 22%
20%
15%
10%
5%
0%
Very satisfactoty Satisfactory Not satisfactory
RATE OF SATISFACTION
It reveals that ATM services are very satisfactory at 44%, 33% agreed satisfactory and 22%
where not satisfied. Majority of the customers at 80% rated ATM services as satisfactory. This
implies ATM user appreciate the service since it is better than traditional mechanism of lining
up in queue within the banking hall. Thus, guaranteed reliability and validity of the data.
Evaluation of customers
Increasing trend in use of AM at CCA BANK in the past years motivated this researcher to
investigated the behavioural attributes of customers that needed to be considered for
investigating more money in the ATMs by banks. The evaluation of customers was based on
information regarding services quality of ATM, and included following sections;
a) Personality
b) Benefit
c) Behaviour
d) Relationship.
Convenient sampling technique was employed for collection of data which was subsequently
analysed by using SPSS version 15 for windows.

a) Personality attribute
Personality of the customers was considered as primary attribute that could influence the
individuals use of technology especially ATM or modern baking services. It was established
from past research that different factors of customers’ personality (Self-esteem, extraversion,
agreeableness, emotional stability, conscientiousness, and openness to experience) could
influence his/her behaviour towards use of technology. Conscientiousness, motivation and
extraversions were also some additional doctors imbedded in one’s personality that could add
to their ability for using technology or technologically oriented services.
Therefore, the parameters of impatience, social risk and self-esteem were evaluated through the
questionnaires from the respondent. Mean value of these three parameters were analysed
against the following questions on a 5-point Likert scale for values as strongly disagree=1,
disagree=2, neutral=3, agree=4, strongly agree=5 for use of ATM;
a) I always seem to be in a hurry and feel difficulties to wait in Bank lines (impatience).
b) If something goes wrong when I am withdrawing money, I feel I am being though
dishonest or unfair (social risk).
c) I feel that I am keeping up with technological development when I use technologies like
ATMs(self-esteem)
d) I consider there to be a degree of value/respect associated with self-service options like
ATM (self-esteem)
The data collected on these parameters showed result of means responses to be different values
for different factors as shown below

Figure 16 personality attribute
Average of parameter in personality
4.287
4.007
3.075
IMPATIENCE SOCIAL RISK SELF ESTEEM
Average of parameter in personality
b) Benefit from use of ATMs
Customers satisfaction, preference and retention are due to the benefits of improving customers
services quality. Service quality is measured in different branches of bank to evaluate
organisational effectiveness, efficiency, control and satisfaction, but failed to relate satisfaction
with performance. Speed is one of the benefits which technology provides to the customers,
based on this background research, following question were formulated to assess the benefits
parameters gained by the customers:
a) To withdraw money using ATMs fast as compared banking (speed).

b) Opening ATMs services is enjoyable as compared to personal services of banks.
(Enjoyment)
c) Using ATM is not complicated. (Ease of use).
d) It is easy to understand how to use to use ATM. (Ease of use).
e) ATM seems to be properly serviced and well maintained. (Physical experience)
f) I always get prompt services while withdrawing money from ATM. (control)
The results of these question were compiled and mans value of the responses was

Figure 17 benefits from use of ATMs
AVERAGE IN PARAMETER BENEFITS

4.212 4.121 4.159
3.818
3.439
SPEED ENJOYMENT EASY OF USE PHYSICAL EXPERIENCE CONTROL
AVERAGE OF PARAMRTER IN BENEFITS
a) An average value of response for speed of using ATM may ne seen as 4.212 which is
close to strongly agree by majority of customers are benefitted by this parameter of
banking transactions
b) The other two parameters of benefit which have agree rating were ease of use of control
over use of ATMs by the customers. The customers appeared to be considering these
parameters as of higher importance.
c) The average response values from these two parameters were 3.818 for enjoyment and
3.439 for physical experience. Which means that the customers were fairly enjoying the
use of ATM services and they could feel a sufficient degree of control over their
transaction through use of ATMs
d) Customer relationship:
The front-line employee who serves as a bridge between the customers and organisation are
responsible of buildings relationship with the customers in services organisation. The
employees of an organisation and their reliability towards the customers normally measures
services quality in term of commitment. These pasts finding motivated present researchers to
establish the influence of commitment and reliability in customer relationship through the

questionnaire while the used ATMs. The questions included to investigate these parameters
measured on 5 points lickers scale were as follows.
a) I am loyal towards ATM (organisational commitment)

b) I trust the ATM banking service (organisational commitment)
c) ATM is often broken or out of order (reliability)
d) ATM is reliable(reliability)
Figure 18 customers’ relationship
CUSTOMER RELATIONSHIP
8.962
8.681
COMMITMENT RELIABILITY
CUSTOMER RELATIONSHIP
The above figure shows that the customers felt more committed towards use of ATMs based
on the technology advantage and convenience being provide through these. However, the
technical fault and breakdown in ATMs has created some doubts in the mind of the customers
regarding its reliability of use.

9) Responses of candidates for internal control component Questions
The researcher in table presents the reaction of respondent’s question regarding

components of internal control
Table 16 Analysis of internal control component
Internal control component responds category distribution
Respondent Sub questions answered so far

count
Strongly Agree Strongly Disagree total

agree disagree
Staff count 2 51 47 1 1 100
Percentage% 20.00 52.00 47.00 1.00 1.00 100.00
Customers count 8 40 57 2 1 100
Percentages% 80.00 40.00 57.00 2.00 1.00 100.00
Total Count 100 91 104 3 2 200
Percentages% 100.00 45.5 52 1.5 1 100.00
In this table and subsequent two others, respondents remaining at 120% and 80% of staff and
customers respectively. In reaction to 14 questions set to address component of internal control
employed by CCA BANK, staff has 51% strongly agree on internal control components
suggested by the researcher, 47% Agree on, 1% strongly disagreed and 1% disagreed on.
Customers have 40% strongly agreed on proposition, 57% agreed, 2% strongly agreed while
1% disagreed. In aggregates though, 45.5% has strong agreement on proposed components with
special emphasis on computer based internal control, 52% agreed while 1.5% and 1% do
strongly disagreed and disagree respectively.

10) Benefits and challenges of internal control to CCA BANK
In this table, the researcher, is trying to outline how the respondent perceived the effect of
accounting control on profitability of CCA BANK.
Table 17 Analysis of benefits and challenges of internal control
Internal control component responds category distribution
Respondent Sub questions answered so far

count
SA A SDA DA total
Mgt count 2 110 51 4 4 169
Percentage% 20 65.09 30.18 2.37 2.37 100.00
Taller count 8 194 329 13 15 546
Percentages% 80 35.53 59.34 2.38 2.75 100.00
Total Count 10 304 375 17 19 715
Percentages% 100.00 42.54 52.45 2.38 2.66 100.00
In the above table, the correspondents remained at constant representation of 20% and 80% to
staff and customers respectively. However, with regard to the above subject of internal control
benefit to CCA BANK Bertoua, (13) question was offer for both manager and teller to
expressed their strong agreement, agreement, disagreement, strong disagreement over them.
Manager has 65.09% strong agreement that internal control has immense benefit on CCA
profitability and 30.18% do also agree while 2.37% and other same portion of 2.37% do

strongly disagree that, internal control alone without other factors could not drive CCA BANK
to here bottom-line. The groups strongly agree by 35.53% to the notion of internal control being
so much beneficial to CCA BANK profit making, 59.34% agree while 2.38% and 2.75%
strongly disagree and disagree respectively.45.52% strongly agreed to vitality of internal
control to profit making by CCA ,52.45% agrees.
11) Profitability as function of internal control
In this table, the researcher tries to find out how much CCA BANK is profitable the factors
Table 18 Analysis of internal control in relation to profitability
Internal control relation to profitability respondent category

distribution
Respondent Sub question answered so far

count
SA A SDA DA TOTAL
Staff Count 2 57 8 0 0 65
Percentage 20 87.69 12.31 0.00 0.00 100.00
(%)
Customer Count 8 101 82 10 17 210

Percentage 80 40.10 39.05 4.76 8.10 100.00
(%)
Total Count 100 158 90 10 17 274

Percentage 100.00 57.45 32.73 3.64 6.18 100.00
(%)
In this section the percentages for respondent remains constant. However, 87.69% of managers
and 48.10% teller strongly agreed that internal control was instrument in CCA BANK profit
surge, and CCA may suffer lost if such control fail, they concur that CCA BANK needs to
enhance its current level of control to increase profitability and that CCA sole objective is profit
maximization. 12.13% manager and 39.05% teller agreed on the same but there is strong

disagreement of 4.76% and disagreement of 6.18% from teller that CCA is less concern about
its corporate social responsibility.
In aggregation, 57% strongly agree that internal control was instrument in CCA profit surge,
and CCA may suffer lost if such control fails, they conclude that CCA needs to enhance its
current level of control to increase profitability and that CCA sole objective is profit
maximization 32.73% agreed on the same. However, 3.64% do strongly disagree and 6.18%
disagree that CCA is less concern about its corporate social responsibility.
4.2 TESTING OF ASSUMPTIONS
A hypothesis is a tentative answer to research question or problem. There are two types of
hypothesis, that is Null hypothesis denoted as H0 which state that there is no effect of the
independent variable on the dependent variable and the Alternative hypothesis denoted as H1
which state that there is an effect of the independent variable to the dependent variable, or at
the two variable are related. The data were analysed using pearson correlation coefficient, using
SPSS version 2.0 since the variable are categorical, it is suitable for Chi Square but these
variables were transformed to composite variable thus making them continuous and suitable for
correlation analysis.
When the correlation is positive, this means r is close to +1, this shows a strong positive
correlation thus showing that there is a relationship between X and Y, thus if X increase, Y also
increases. Also, if r is close to -1, it indicates that a perfect negative correlation exit
Between the variable showing that as X increases, Y decreases. The correlation is said to be
weak when r is closer to 0, it means there is no relationship between X and Y
Secondly, in order to determine the strength of the relationship whether it is strong, moderate
or weak, we need to come out with the correlation coefficient. In order for us to decide whether
to accept or to reject the null or alternative hypothesis, we need to come out with the decision
rule. The decision rule states that if the calculated value is greater than the table value, we fail
to reject the null. Bases on this explanation. We shall be testing the following assumptions:

H0: internal control of CCA BANK BERTOUA does not exist and has no effect on profit
H1: Internal control of CCA BANK BERTOUA does exist and has an effect on
profitability.
The decision rule states that ‘reject H0 when the calculated value id greater than the table or
critical value (accept H1) and do not reject H0 when the calculated value is less than the table
value.
Table 19 Correlation between internal control and profit correlation
Internal control profit
Internal control Pearson correlation 1 0.682**
Sig. (2-tailed) 000

N 10 10
Profit Pearson correlation 0.682** 1
Sig. (2-tailed) 000

N 10 10
Coefficient of 0.465
determination(r*r)
** Correlation is significant at the 0.01 level (2-tailed) source: fieldwork 2022
A pearson product moment correlation coefficient was computed to assess the effect of internal
control on the profitability of CCA BANK. There was a positive strong correlation between the
two variables, r=.682, n=10, p=.000. The decision rule here is to reject H0 and accept H1. Since
the calculated value (0.465) is greater than the table value (000).
It is of significant importance for an institution like CCA BANK to have an internal control. As
we have seen above, internal control systems have a fairly strong correlation which implies that,
its presence has an effect over profit. The lack of an internal control system as CCA BANK
will lead to a reduction, since it is that, its presence at CCA BANK affect profit positively.

CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION
In this chapter, we shall present a summary of finding, conclusion and recommendations of the
study and suggestion for further research.
5.1 SUMMARY OF THE STUDY
The study is organised into five (5) chapters. Chapter one deals with introduction constituting
of the background of the study, problem statement, research questions, and objectives of the
study, the scope of the study and the significance. Chapter two deals with the literature review
consisting of theoretical review and conceptual review. Chapter three deals with research
methodology, constituting of definition of research, research design, target group, sampling
technique and data source or data collection, the profile of CCA BANK and activities carried
out while on the internship. Chapter four deals with data representation, analysis and
interpretation of data. Finally, we have chapter five that deals with summary of the study,
conclusion and recommendation.
5.2 FINDINGS OF THE STUDY
A pearson product moment correlation coefficient was computed to assess the existence of
internal control, and its effect on the profit of CCA BANK branch of Bertoua. There was
positive fairly strong correlation between the two variables, with r=0.682. According to Martin
E. Amin(2007), foundation of statistical inference for social science research, there is a strong
relationship when the asymptotic significance is above 0.7 but less than 1, moderate when it is
around 0.4 to 0.6 and very weak when it is below 0.4 and since on the table above, the calculated
value is 0.465 which lies in between 0.4 and 0.6, showing moderate effect of internal control
on the profit. This means that internal control contributes to the rise of the profit of CCA BANK.
Thus, CCA BANK needs to take care on its internal control measures.
The following are other findings of the research.
❖ The non-respect of loan policy by customers, where we need the vigilance of the staff
❖ Lack of good network which can delay many transactions which could generate profit.

5.3 CONCLUSION
This study was based on the effect of accounting control on the profitability of a BANK. The
researcher’s primary objective was to find how accounting control can affect profitability of
CCA BANK. Seeing that all specific objectives are attain, and both the dependent and
independent variables have a strong relationship, meaning accounting control has an effect on
profitability.
5.4 RECOMMENDATIONS
Through my training at CCA BANK, many problems where mentioned and solutions have to
be given to those. Some recommendations could be done so that the accounting control should
be more effective. The objective of every institution is to maximize profit and minimize cost.
To CCA BANK, granting of loan is the most profitable activity and if it is not well managed,
the credit portofolio will go down leading to bankruptcy and consequence an increase to the
level of unemployment since some employment might lose their jobs.
The researcher brought out suggestion to the problems found out in the institution;
• The internal control of CCA BANK needs to take measures to implement management
policy to attain its goals.
• The internal control needs to increase accuracy and reliability of financial work among
the books of accounts promoting easy auditing control
• A review of objective should be done on a fixed period based such as quarterly or yearly
• The implementation of English by translating documents like manuals is very
necessary.
5.5 PROBLEMS ENCOUNTERED
• The main problem encountered by the researcher was to gather information. Using all
different source mention above to collect data were used but yet was not easy
• Some books title where rarely available
• Some limitation to access some important financial report of the company
• The procedures given where mostly in French and there was need to translate first.

REFERENCES
Adepoju,E. & Alhassan, B. (2010). Relationship between customers satisfaction and ATM use
outcome: A study of private customers in Germany. The international journal of Bank
marketing, 4(5) 44-47.
Adhallah, T (2010). Evaluation of the relationship between ATM services and customer
satisfaction in south Africa. Journal of Business management, 7(8) 19-22.
Anderson, R.E (2001), customer dissatisfaction. The effect of disconfirmed expectancy on

perceived product performance. Journal of marketing research, vol. 10.
Ayo, L. (2010). Customer awareness and ATM use upon customer satisfaction. Journal of
customer research. 7(8) 49-54.
Balunywa, K. (2003); Balunywa, L. (2014). ATM service and customer satisfaction: A new
concept. Journal of finance, 40, April, pp. 25-33.
Balunywa. W.J. (2003). A handbook of business management (4th edition) kampala. The
business-publishing group.
Cacioppo, A. (2000). User acceptance of information technology: system characteristics, user

perceptions and behavioural impacts.
Cardazza, R. (1965) & Yi, R. (1990). The dissonance theory about perceived outcome from
consumption of product.
Chalete, p. (2011). Customer perception about the use of ATM service in banking industry
journal banking, 4(5)12-14.
Cheltel, E. (1998). Theory and magic bullet philosophy: 3D video games in education. 66
Churchill, G.& surprenant, R. (2007). Changes in banking sector-the case of internet banking
in the UK. Internet research: Electronic network application and policy, 10(1), 19-30.
Dapo, V. (2008). Davies and curry (2014). The key determinant of intetnet banking service
quality: a content analysis. International journal of banking marketing, 19(7), 276-291.

Donell, N. (2003). A comparative study of banking service and customer satisfaction in public.
Esether, L. (2012). Influence of ATM service on performance of commercial bank in developing

countries. Journal of banking,7(8) 15-16.
Feronicah, A. (2009). ATM use and behavioural consequences of service quality. Journal of
business, 60(2), 11-16.
Howcroft, T.(2012). An examination of the republic between ATM service Quality, customer
satisfaction, and store loyalty. International journal of banking & Distribution Management,
8(2), 7-8.
S Jaji, H. (2010). Why satisfaction customer defect about ATM use. Harvard Business review
November-December, Vol.2, Pp88-99.
Jole, N (2011) Information Technology in the banking industry and ATM performance banking
4(10)49-52.
Josaphat, T. (2003). Effectiveness of ATM use and growth of banking sectors.

QUESTIONNAIRE
I am a student of Azimut in the department of accountancy. This questionnaire is meant to assist

me complete my research work titled “THE EFFECTS OF ACCOUNTING CONTROL ON
THE PROFITABILITY OF A BANK. Case of study CCA BANK” in partial fulfilment fir the
award of a national diploma in accounting, I will appreciate if you respond to the questions
honestly and I promised you that your responds will be treated confidentially and will be used
only for the purpose of this research.
APPENDICES
ORGANIZATIONAL DATA
Name of institution
Address
Representation name and title
Phone n° Fax Email
INSTRUCTION: TICK ON THE BEST ALTERNATIVE BASED ON YOUR PERSONAL

OPINIONS AND FILL THE BLANK SPACES WHERE NECESSARY
A. Gender of the respondent?
o MALE
o FEMALE
B. Age bracket?
o 20_35 years
o 36_50 years
o Above 50 years
C. Level of education?
o GCE A’LEVEL
o HND
o BACHELOR
o LICENCE

o MASTERS
o PHD
D. For how long have you been at CCA-BANK?
o 1-2years
o 3-4years
o More than 5years
E. Religious back ground?
o Catholic
o Muslim
o Protestant
o Others
F. What is your occupation?
o Civil servant
o Self employed
o Retired
o Public worker
PART 2
1. Do you have a current saving account?

o Yes
o No
2. In which branch of CCA bank is your account found?
…………………………………………………………………………………………
………………………………
3. What is the interest rate of paid by your account?
…………………………………………………………………………………………
………………………………
4. What is your appraisal base on the interest rate?
APRAISAL/ACCOUNT CURRENT SAVING
ACCOUNT ACCOUNT

Strongly disagree
Disagree
Neutral
Agree
Strongly agree
5. Do you often collect loans?

o Yes
o No
6. Which of the loans proposed by your branch you benefitted from? (NB: appraisal
should be from of, bad, good, fairly good, excellent)
LOAN Yes No Number of times Appraisal
School fee loan
Easy loan
Comfort loan
Fidelity loan
Construction loan
Mortgage loan
Long term loan
Special overdraft
7. How satisfied are you with the following?

ELEMENT/APPRAISAL BAD GOOD FAIRLY EXCELLENT
GOOD
Lending process
Interest rate
Application rate
Disbursement rate
8. Do you have a bank card?

o Yes
o No
9. Do you often use an ATM service?

o Yes
o No
10. What are the different transactions you can carry with an ATM?
TRANSACTIONS YES NO
Cash withdrawal
Cash deposits
Balance information
PIN change
Payment of bills
11. Base on the following parameters, rate the essence of ATM

- PERSONALITY ATTRIBUTES
PARAMETE STRONGL DISAGRE NEUTRA AGRE STRONGL
R Y E L E Y AGREE
DISAGREE
Impatience
Social risk
Self esteem
Security
Others
- BENEFITTING ATTRIBUTES
PARAMETER BAD GOOD FAIRLY EXCELLENT
GOOD
Speed
Enjoyment
(compare to
manual service)
Easy to use
Physical
experience
Security
purpose

Others
- USER’S BEHAVIOR
PARAMETER BAD NEUTRAL GOOD EXCELLENT

Consumption
rate
Technological
experience
Self-motivation
Need for
independence
Attitude
ORGANIZATIONAL DATA
Name of institution
Address
Representation name and title
Phone n° Fax Email

OPINIONS AND FILL THE BLANK SPACES WHERE NECESSARY
A. What is your gender?
o MALE
o FEMALE
B. How old are you?
o 20_35 years
o 36_50 years
o Above 50 years
C. What is your level of education

o GCE A’LEVEL
o HND
o BACHELOR
o LICENCE
o MASTERS
o PHD
D. For how long have you been at CCA-BANK?
o 1-2years
o 3-4years
o More than 5years
E. What is your religion?
o Catholic
o Muslim
o Protestant
o Other
QUESTION TO STAFF

OPINIONS AND FILL THE LANK SPACES WHERE NECESSARY
1) Including yourself, how many people are currently employed at CCA bank?
o 2
o 3
o 4
o More than 4
2) In the next 42 months, do you expect the number of employees in the institution to
increase, decrease or stay the same?
o Increase
o Decrease
o Remain constant
3) Will the variation in terms of manual labor affect the profitability of the bank positively
or negatively?

o Positively
o Negatively
4) Explain your answer above
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
………………………………
5) What was your business turnover during the fiscal year 2022 as per the following data
bands?
o Up to 300000000
o 300000001_500000000
o 500000001 and above
6) Please, fill in the values in the following table about your business in the fiscal year
2022
7) Does CCA bank make use of accounting software?

o Yes
o No
8) Which accounting software is been used in CCA bank
o DELTA BANK
o AMPLITUDE UP
o EXCEL
o OTHERS
9) Is/are accounting software used requesting any update?
o YES
o NO

10) How reliable and accountable are this software with respect to profitability?
…………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………
………………………..…………………………………………………………………………
………………………………………………………………………………………....
11) Does CCA bank employs ATM services?
o YES
o NO
12) Are these ATM services available 24/7 days?
o YES
o NO
13) How effective is cash inquiry in ATM often done?
o DAILY
o WEEKLY
o MONTHLY
14) What are the activities often carried out using an ATM,
15) What is the maximum amount the ATM is allowed to hold?
o LESS THAN 5000000

o 5000000_10000000
o ABOVE 10000000
16) How can you evaluate the records of transactions over the past five years?

17) How profitable can ATM be to the bank?
…………………………………………………………………………………………………
……………………………………………………………………………………………….......
.......................................................................................................................................................
................................................................................................................................................
18) What is the relationship existing between an ATM customer’s satisfaction and profitability
Sof the bank?
…………………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………
………………………………………………………….
19) How many checkouts are there in CCA bank?
o 1
o 2
o 3
o More than 3
20) How can you rate the work done by the checkout holder (cashier)?
o BAD
o GOOD
o PERFECT

21) What is the maximum amount the cashier is authorise to hold in her checkout?
o 1000000
o 2000000_3000000
o Above 3000000
22) What are the various transactions carried out at CCA bank?
…………………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………
……………………………………………………………………………………………
23) Which of the above transactions the most profitable to the institution?
o Deposits
o Withdrawal
o Western union transfer
o WAFACASH transfer
24) How many accounts are been open at CCA BANK?
o 1
o 2
o More than 3
25) Base on savings account, how many of them exists in the institution?
o 1
o 2
o 3
o Above 3
26) What are the annual interest rate of the various types of savings account cited below
SAVINGS ACCOUNT INTEREST RATE

SIMPLE SAVINGS
JUNIOR SAVINGS
SAVINGS BOND

27) How can these different accounts be profitable to the company?
…………………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………
………………………………………………………….
28) How is the granting of loans done in your establishment?
o WEEKLY
o MONTHLY
o PERIODICALY
29) is there any relationship between the loans and the profitability of the institute?
…………………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………
………………………………………………………….
30) In the fiscal year 2022, did the establishment purchase any fixed assets such as machinery
or equipment?
o Yes
o No
31) In the fiscal year 2022, how much did the establishment spend on purchase of
o Machinery
o Equipment’s
32) Did the above expenditure affect the profitability of the company in one way or the other?

o Yes
o No

MD Report

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

MD Report

Uploaded by

Copyright:

Available Formats

THE EFFECT OF ACCOUNTING CONTROL ON THE PROFOTABILTY OF A BANK

Written and presented by zoubi taneko maiva derol I

SI dedicate this piece of work to my parents Mr/Mme TANEKO

Written and presented by zoubi taneko maiva derol II

Secondly, special thanks goes to my professional Supervisor Mr FIRMIN who guide me

My appreciations also goes to the Director Mme KAMKANG NANA PHILOMENE

My sincere respect and gratefulness goes to my lovely mothers, Mme DJUINE

Written and presented by zoubi taneko maiva derol III

Written and presented by zoubi taneko maiva derol IV

Written and presented by zoubi taneko maiva derol V

2.1.2.4 The concept of external accounting control .......................................................... 13

Written and presented by zoubi taneko maiva derol VI

4.2 TESTING OF ASSUMPTIONS .................................................................................. 55

Written and presented by zoubi taneko maiva derol VII

Table 1: Merit and Demerit of internal control ........................................................................ 13

Written and presented by zoubi taneko maiva derol VIII

Figure 1: gender distribution .................................................................................................... 33

Written and presented by zoubi taneko maiva derol IX

AEMFI: American Development Bank

ARP: Accounting Rate of Return

BCCA: Banking Commission of Central Africa

CEMAC: Central African Economic and Monetary community

CGAP: Consultative Group to Assist the Poorest

EIG: Economic Interest Group

ERR: Economic Rate of Return

SSFSS: Financial Self-Sufficient

IG: Inspector of Government

IRR: Internal Rate of Return

NSIF: National Social Insurance Fund

OAG: Office of the Auditor General

PAC: Public Accounting Committee

PAR: Portofolio At Risk

ROA: Return on Asset

ROE: Return on Earnings

SAS: Statement of Accounting Standard s

CCA: Credit Communautaire Afrique

Written and presented by zoubi taneko maiva derol X

The primary objectives of accounting in an organisation is to identify, analyse,

In order for us to properly identify the Accounting control in a banking institution, it

1.1 BACKGROUND TO THE STUDY

1.1.1 HISTORICAL BACKGROUND OF BANK

Written and presented by zoubi taneko maiva derol 1

1.1.2 THE CONCEPTUAL BACKGROUND OF ACCOUNTING

Written and presented by zoubi taneko maiva derol 2

1.1.2.1 THE CONCEPTS OF ACCOUNTING

Written and presented by zoubi taneko maiva derol 3

1.1.2.2 THE CONCEPT OF ACCOUNTING SYSTEM

❖ Contents of accounting system

An accounting system typically includes coverage of the major functional areas of an

1.2 PROBLEM STATEMENT

Written and presented by zoubi taneko maiva derol 4

of accounting software is an advance or computerise way of dealing with accounting recording

1.3 RESEARCH QUESTIONS

1.3.1 The Main Research question

What is the effect of accounting control on the profitability of a BANK?

Written and presented by zoubi taneko maiva derol 5

1.3.2 The Specific Research question

➢ Does adequate internal accounting control influence the profitability of a BANK

1.4 Objectives of the study

1.4.1 The main research objective

1.4.2 The Specific research objectives

➢ To know how internal control is an influence to Banking institution