- This research is based on Bahrain employees’ perception on the impact of internal control system in the financial institutions. In order to maximize the whole performance of the company, it is very important for the company to understand and implement the different types of internal controls for keeping high quality and good performance. A lot of financial institutions have implemented and adjusted the new procedures of internal control system. The purpose of the study was to investigate the status and effectiveness internal control system. Three types of internal control were discussed, preventive, detective and corrective controls. The research was conducted through a survey, using the questionnaire as the research instrument. The respondents of the study are the workers of different financial institutions like banks and insurance companies. The used research instrument uses the five-points Likert scale. The statistical tools used in the study are Multiple Regression Analyses and weighted mean. The study provides suggestions and recommendations from employee’s perception in evaluation the existed internal control in order to improve it

Keywords : Internal Control, Preventive Control, Detective Control and Corrective Control.