THE IMPACT OF INTERNAL CONTROL SYSTEM ON REVENUE GENERATION: (A CASE STUDY OF POWER HOLDING COMPANY OF NIGERIA (P.H.C.N) OKPARA AVENUE ENUGU)
ABSTRACT
The objective of this study was to evaluate the internal control system in operation at power holding company of Nigeria Plc in Enugu State with a view to knowing its impact on revenue generation in the state. A sample of 40 was selected for the study randomly. The questionnaires were used in gathering the primary data while secondary data were collected from the work of others in the form of literature review. The data collected were analyzed using the chisquare (x2) as the statistical tool to determine the valuation of the hypothesis. The findings concluded that weak internal control system encourages collusion fraud loss of revenue, embezzlement and computation. This have always impeded the company’s ability to effectively supply electricity to customers and
there from generate revenue. Internal audit system ensures operations compliance with set policies, promoting accuracy and reliability of transactions recording. In addition, effective internal control system ensure eective
recommends the remodeling of the company’s internal control system and strengthening of the investigating unit. The components sectors of the present corporate Power Holding Company of Nigeria PLC should be unbundled into separate distinct independent entities that handle generation, transmission, distribution and marketing. It further recommends that prepaid meters should be seen as an alternative to further accumulate debts.
TABLE OF CONTENTS
Title page i
Certification ii
Dedication iii
Acknowledgement iv
List of figures v
Abstract vi
Table of contents vii
CHAPTER ONE: INTRODUCTION
1.0 Background Of The Study 1
1.1 Statement Of Problem 6
1.2 Objective Of The Study 8
1.3 Significance Of The Study 8
1.4 Scope and Limitation Of The Study 9
1.5 Research Hypothesis 10
1.6 Research Questions 11
1.7 Historical Background of Power Holding Company of
1.8 Definition of Terms 14
CHAPTER TWO: REVIEW OF RELATED LITERATURE
2.1 What is Revenue? 17
2.2 What is Internal Control System 18
2.3 Objectives of Internal Control System 20
2.4 Types of Internal Control System 21
2.5 Components of Internal Control System 23
2.6 Functions of Internal Control System 56
2.7 Roles and Responsibilities. 58
2.8 Internal Control System And The Auditors 62
2.9 Operation Of Internal Control System At Power Holding Company Of Nigeria 64
2.10 Limitation Of Internal Control System 71
CHAPTER THREE
RESEARCH METHODOLOGY
1.1 Research Design 73
1.2 Sources Of Data 74
1.3 Population Of The Study 75
1.4 Sample Size 75
1.5 Description Of Questionnaire 76
1.6 Method of Data Analysis 76
1.7 Statistical Test For Hypothesis 77
CHAPTER FOUR DATA PRESENTATION, ANALYSIS AND INTERPRTATION
4.1 Data Analysis and Interpretation 78
4.2 Test Of Hypothesis 84
4.2.1Hypothesis One 84
4.2.2Hypothesis Two 86
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION
5.1 Summary Of Findings 88
5.2 Conclusion 89
5.3 Recommendation 90
5.4 Suggestions For Further Investigation 91
Bibliography 92
Appendices 96
