TABLE OF CONTENTS
Table of content
- Background of the study
- Pbjectives of the study
- Statement of the problem
- Justification of the study
- Resarch mothodology
- Significance of the study
- Scope of the study
- Pan of the study
- Definatio of Term
2.1 Introduction Literature Review
2.2 Efficient Internal Control
3.4 Effect of Internal Control on profitability
2.5 Internal Control as an Instrument of Accountability
3.2 Research Design
3.3 Source of Data
3.4 Population of study
3.5 Sample size and sample method
3.6 Prosedure for scoring instrument
3.7 Method of Data collection
- BACKGROUND OF THE STUDY
The question of distressed private and public firms, misappropriation of funds, fraud (both employee fraud and fraudulent finance reporting) and embezzlement e.t.c in the private and public enterprises in the country are prevalent and one at high alarming rate.
In fact, are would be justified to believe that, there was something terribly wrong be internal control system in the various organization. It is obvious and statement and even output of result desired or expected by the public from the organization are being prepared by professional accountants, but by and large the financial statement are approached or certified by the internal control management of the organization.
According to carmi Micheal (1996) the importance of the understanding the internal control structure has been recognized in the program for preparing, verifying and disturbing to various level of management these current reports and analyses that enable executives and function that are used be a large organization.
The importance of establishing and maintaining effective internal control system is also illustrate by the passage of the ‘foreign practices Act of 1997’’ in united state of America the act was introduced because in the mid-1970s, hundred of American corporation acknowledged having made payment (bribes and kickback) to official in foreign countries to obtain business. In essence, frauds and bribes had destroyed the internal control system of organization (Whittington pany, 2003)
Cormichad, 1996, says that internal control system of any organization cannot be over-emphasized; it is key to determine the success and failure of any business organization and is indeed the background of an accounting system in any organization professional standards, least since 1947 ans was expressed in the second standard of field work, as revised in 1988, as follows.
“As sufficient understanding of internal control structure is to be obtained, to plan the audit and to determine the nature, timing and extent to test to be performed”.
Internal control system is defined by millichamp, (2002) as the whole system of controls, financial and otherwise, established by the management in order to carry on the business of the enterprises in an orderly an efficient manner, ensure adherence to management policies safeguard the assets and secure as far as possible the completeness of accuracy of the records.
The definition of internal control is comprehensive in that it addresses the achievement of objectives in the areas of operations financial reporting and compliance with laws and selling, purchasing, accounting and production.
1.2 The main objectives of this resarch work is to examine the management, set goals in relation internal control system of the organization other objectives of the resarch include
- To examine how the business is carried an in orderly and efficient manner.
- To examine how its assets are safeguard it is very important for all assets to be secured and maintained.
- To examine the accuracy of records and determine whether or not they are reliable.
- To recommended on the corrective measure to be taken in order to enhance efficient and internal control in organization
- STATEMENT OF THE PROBLEM
Efficiency and efficient internal control system is needed in all forms or kinds of organization because when an internal control is efficient, it bring about the profit or gain desired by the management and especially by the owners also know as the shame holders. His the management responsibility of any organization to ensure that the internal control and other control measures established by it are properly adhered to as minimize their wealth and survival of the organization, but the prevailing situation now is that business atmosphere in the country.
All theses situation can be traced to internal control system of any organization and it consist of people called the board of directors, management and even the directors of any operating department in the organization. There for, the question is why is business or companies folding up or winding up. How efficients the internal control system of organization in the business world in this country.
Viewing from the efficient internal control system and it’s effect on the profitability of organization.