[01] Eleazer Fianko Ofei, Department of Business Administration, Accra Institute of Technology, Accra, Ghana. [02] Evelyn Biriwaa Ofei, Department of Graduate Studies, Nobel International Business School, Accra, Ghana.

Governments develop policies that are expected to help raise revenue and streamline the financial base of the government, but these policies affect the operations of institutions, which sometimes affect their financial performance, calling for necessary action to be taken. The goal of this study was to look at the role of government policy in moderating the link between control actions and financial performance in Ghanaian banks. The primary objective of the study was to evaluate the interaction effect of government policy on the link between control activities and the financial performance of Ghanaian banks. In the study, a survey research design was employed. The population of the research comprised 20 banks. The sample size for the study included 676 people from the board and management committees, as well as operational personnel. The research was based on actual data obtained through surveys. The collected data was analyzed via hierarchical linear regression. After controlling for the influence of government policy, the study's findings indicated that control activities, as an internal audit activity, were a strong predictor of bank performance. It also reveals that government policy is highly significant when developing control activities for banks. This implies that control activities improve when moderated by government policy, and this also improves bank performance. As a result, it is suggested that bank management continually examine their policies on control operations. They should consider government policies when designing control activities to ensure that they do not affect the performance of their operations, as most government policies are revenue-based policies.

Internal Audit, Government Policies, Control Activities, Bank of Ghana, Financial Performance

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