Effective internal control system can play a very crucial role in every organization tornrealize organizational goals, one of which is achieving financial performance objectives.rnThe main purpose of this study was to determine the impact of internal control systems onrnfinancial performance on Ethiopian shipping and Logistics Services Enterprises as arncase study. Specific objectives include evaluating the existing internal control system inrnthe organization and investigating the relationship between the five internal controlrnelements and financial performance. The study used explanatory research designrnresearch design by using both descriptive and quantitative methods where primary datarnis collected using Likert-scale questionnaires distributed and interviews made withrnemployees in the finance department. Secondary data was gathered from company'srnfinancial statements and publications. The dependent variable was financial performancernmeasured in-terms of profitability and ROA. The predictors or independent variablesrnwere the five elements of internal control system, control environment, control activities,rnrisk assessment, monitoring and information and communication. The target populationrnwas 40 employees in the finance department and census design was adopted. The studyrnperiod covers 9 years 2005-2013. Effectiveness of the elements of internal control systemrnwas analyzed from the descriptive statistics result. Multiple regression analysis was donernto determine the relationship and the significance level of elements of internal controlrnsystem towards financial performance. The result revealed that internal control systemrncontributed only31% variation on financial performance. The descriptive result showsrnthere is weak internal control system in the organization. The study recommend morerncommitment by the management in monitoring internal control system and continuernworking on improving for the effectiveness of the internal control system so, the companyrnwill achieve better performance