A sound internal control process is critical to an entity’s to reduce problems associated with lowering revenues and too able the entity to meet its established objective. The study designed to investigate the effect of internal control systems on revenue of hotels in Bahir Dar and Gondar Cities, Ethiopia.To do so, the study comprised 30 hotels from the two city to investigate the relationship and effect of control environment, risk assessment, controlling activity, information and communication systems, and monitoring activity on revenue of hotels via logistic regression model. The study found that not all internal control components have a positive significant effect for increasing of hotels revenue. However, the study foundthat control activity, information and communication and monitoring of internal control were predictors of hotels revenue.

A sound internal control process is critical to an entity’s to reduce problems associated with lowering revenues and too able the entity to meet its established objective. The study designed to investigate the effect of internal control systems on revenue of hotels in Bahir Dar and Gondar Cities,...