Abstract:
The research problem can be sown in a statement. The problem can be defined as
"lack of internal auditing system that affects profitability and service quality of the
Hatton National Bank". There are number of limitation in preparation of the research
report.
And find outs the cause for them, finding of this study could enable the management
of the Hatton National Bank to make suitable alternative of take corrective decision in
the audit control system. This will assist them in them researching their objective.
Finding of this research could also research question for further investigation in
future, on internal audit in Sri Lanka banking system.
This study will attempt to identify how far internal audit affects on the Hatton
National Bank performance.
The hypothesis has been constructed is that there is a liner relationship between the
Internal Audit System and its Performance. The statistical measures such as
correlation and regression techniques are used to analyze the data.
As far as internal auditing and accounting procedures in the Hatton national
concerned, 68% of the Hatton national bank has high level of internal auditing and
accounting procedures. As far as application of accounting and auditing laws of the
bank are concerned, only 42% of the Hatton national bank has high level. Because of
the laws were established by the management to monitor the internal environment.
So, comparatively HNB have lower level of application of accounting and internal
auditing laws. As far as efficient use of resources in internal audit in the HNB is
concerned, 68% of HNB has high degree of efficient use of resources in internal audit.
So, HNB are comparatively in a moderate level of efficient use of resources on
internal audit. Because of, the major financial activities are made by the computers.
