Examination of the Internal Control System with The COSO Internal Control Model and Its Effect on Financial Performance: A Research on Participation Banks

This study aims to examine the effectiveness of the internal control system in participation banks operating in Turkey, to reveal the relationship between the internal control system and financial performance and whether the internal control system has an effect on financial performance. In this context, a survey was conducted on participation bank employees in order to measure the effectiveness of the internal control system. In addition, return on assets and return on equity were calculated from the financial statements of banks for 2022. The data obtained were analyzed with the SPSS 26.00 program. As a result of the research, it was determined that the level of implementation of the internal control system and each component in participation banks is at a medium level. On the other hand, a moderate and positive relationship was found between the return on assets and the internal control system and monitoring component, and a low and positive relationship between the other components. In addition, it has been observed that there is a moderate and positive relationship between the return on equity and the internal control system and all its components. Finally, it has been determined that the internal control system and each component have a positive effect on both the return on assets and the return on equity of participation banks.