CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
It is a known fact today that most companies functioning effectively as fail to do so has their glory ordeal tested on the management acumen (ability to understand and judge clearly). This mean s that the financing and management of any organization is the prerequisite for the success of such organization be it bottling company manufacturing or services organization.
In view of the above, the need for effective company or organization and operation of good internal control arises.
Internal systems are designed to ensure that the business concern is carried out in line with well-defined objectives and goals. The system of internal control is important in any organization which statutory responsibility is to ensure that proper accounting records are kept and annual accounts are presented to the members.
This responsibility can be effectively discharge by the management of this organization by installing a system of internal control to ensure that the Nigeria breweries plc, the employees of the company properly carry out operation. The management can then rely on this system for the
production of reliable management information, adequate financial reports, prevention of errors and detection of fraud and loss of company asset
1.2 STATEMENT OF THE STUDY
Companies and organization have taken a lot of measures to detect, prevent and to curb fraud, some level of success have been recorded, yet they have never attain the height that would have been reached if they have employed the internal control system methods. Without an internal control system it would be difficult to check and prevent fraud since fraud usually originated from within an organization. Therefore the need for internal control system in an organization to preventing fraud cannot be over emphasized.
1.3 AIMS AND OBJECTIVES OF THE STUDY.
Apart from satisfying the requirement for the award of Higher National Diploma in accountancy department, the study is carried out to show how internal control system can be adopted in preventing, detecting and to check fraud in an organization. Internal control system is triggered to tackle the following fraud related cases in an organization.
To ensure compliances with procedures i.e (the internal control policies and procedures) adopted by the management must be complied with.
To minimize, if not eliminate fraudulent act, the regular compliance with polices and procedure of the organization, which safeguard the assets, and accounting records of the organization must minimize.
To correct errors in the records. The aims of internal control in an organization to sort out many things while it is the guideline principle for the management and the correction of error in the accounting records.
To identify the important of internal control system of organization. The rate of internal system in the organization must be identified which means the effective and efficient of internal control system in the organization.
