INTERNAL CONTROL SYSTEM AS A TOOL IN MANAGEMENT SYSTEM
Sold By: Joe Project Store | Item Type: Project Material | Report this? | Attributes: 50 pages | 1-5 chapters | Amount: ₦5,000 | Marked useful: 4,983 times
Delivery: Within 24 hoursCHAPTER ONE
1.0INTRODUCTION
1.1BACKGROUND OF STUDY
In modern business organization, internal control system is required in one form or the other, not only in public institution which this research work is concerned about the even in some private establishment which exercise control over their activities without being conscious of it.
Since there controls are not specified or spelt out properly, it is therefore not surprising that many organizations, particularly large ones are showing more interest in control system as an aid or instruments to efficient management.
Internal control is necessary because it will guide against fraud and error in order to safe assets. It will also help in making sure workers comply the management’s policy.
In time past, emphasis has been placed in the area of financial control which is also a type of internal control and only putting their mind on benefit that can be derived from the financial aspect ands forgetting that benefits that can be derived from the financial aspect and forgetting that benefits can also be derived from other kinds of internal control like; organizational controls, authorization and approval controls, supervision controls might be very important because it deals with ensuring accuracy and reliability of accounting record and so is essentials as far as management and auditing are concerned.
1.2STATEMENT OF PROBLEMS
It is a well known fact that most of the public institutions and also other kinds of institutions have been grossly involved in financial mismanagement, frauds, deviation from prescribed management policies and principles as well as presentation of unreliable accounting records and financial statement which is due to inadequate internal control system in an organization. It is therefore necessary to examined and analyse internal control system in institutions with problems, noted solutions and suggestion would be offered which will guide against them.
1.3THE SIGNIFICANCE OF THE STUDY
There is need for the evaluation of internal control because of the fact that internal control system involves judicious use of resources to yield efficient result, so there is a need for people to know how to use their resources judiciously.
This research work will give a clear picture of the nature of internal control system in government institution and what steps to be taken whenever deficiency exist, it will lead to identification of weakness and suggestions to strengthen such weakness. This will serve a long way in improving the accountability of government revenue and expenditure as well as reducing financial waste. The significance of the study is as follows:
a. It goes a long way to reducing financial mismanagement in an organisation.
b. It helps to use our available resources in an efficient and effective manner.
c. It also helps in safeguarding the assets of the organisation.
d. Also it reduces drastically, the rate of fraudulent practice in an organisation.
1.4OBJECTIVE OF THE STUDY
A well designed, adequate and properly implemented internal control system is very important for the longevity and growth of every organisation. It is on this, that the researcher find it necessary that there is a need to examine on appraise the quality of internal controls system in operation in government establishment form time-to-time.
The objectives of the study will be:
i. To examine the effectiveness of internal control system institutions.
ii. To identify important internal control measures necessary in any standard accounting system.
iii. To outline the internal control system in named institutions and also the standard internal control system and compare both.
iv. To identify their weakness and offer suggestions for improvement.
v. To determine whether managerial or human control are sufficiently strong to compensate for the limitations in the present system of internal control.
The research is to give more understanding on internal control, which is an indispensable aspect of any organisation. It should also throw more light on the meaningless, necessity, features an types of internal control and also make any persons going through it to know the type of internal control for a particular organisation.
1.5SCOPE AND LIMITATION OF STUDY
This research work will look into how internal control is being used ass an instrument for achieving management control in the public institutions.
This study will be limited to work in the Unilag Consult. It will be limited to the degree and extent of data availability, time constraints and extent to which questionnaires given out are completed and returned by the staff. Also worthy of mentioning, is the financial and time constraints on the part of the research in carrying out the study.
1.6RESEARCH QUESTIONS
Looking at all there, it is therefore necessary to examine and analyse their problems with the following questions in our minds with a view of suggesting solutions to their problems in our public institutions (Unilag Consult).
i. What are the existing accounting internal control weakness of the organisation?
ii. Are there adequate implementation of the system?
iii. What are the calibers of person(s) involved in the control system?
iv. Are there proper accounting systems in place that can effectively aid the control system?
v. Are the control properly monitored and periodically reviewed and evaluated?
1.7HYPOTHESIS FORMULATION
Hypothesis and periodically into:
i. Null-hypothesis (Ho)
ii. Alternative hypothesis (Ha)
Ho: There is no relationship between the internal control and management control system.
Ha: There is a relationship between the internal control and management control system.
1.8DEFINITION OF TERMS
Audit: This is an independent examination of the expression or opinion on the financial statement of an enterprise by an appointed auditor in pursuance of that appointment and in compliance with any relevant statutory obligation.
Auditors: He is an individual or firm carrying out the audit of an enterprise and the partner of such firm who is appropriate.
Internal Control: They are the whole system of control financially and otherwise established by management.
- To carry on business is an orderly and efficient manner
- To ensure adherence to management policy
- To secure as far as possible the accuracy and reliability of records.
- To safeguard the assets of the business
Internal Audit: This is defined as continuous review of operation and record undertaken within a business by specially assigned staff.
Supervisory Control: This is the type of control that rests with the managers themselves. The system deserves surveillance to see that the control is working as prescribed and see if changes are needed. S
Documentary Control: This is immediate complete and hamper proof recording which includes; cash register, sales invoice, purchase order, subsidiary ledgers, formal and bank reconciliation.
Segregation of Duties: This is the involvement of several people responsible for recording and processing of a complete transaction so as to reduce the risk of international manipulation or accidental error and also increasing the elements of checking at work.
Physical Control: This is to ensure that only the proper person is given access to the custody of an asset.
Arithmetic and Accounting: This type of control ensures that the records of the organisation are accurate and reliable.
INTERNAL CONTROL QUESTIONNAIRE (ICQ)
Internal control questionnaire is the list of control questions that are carefully produced to test the existence of internal control system in an organisation.
INTERNAL CONTROL EVALUATION QUESTIONNAIRE (ICEQ)
Some audit firms use internal control questionnaires exclusively, while other firms prefer to ascertain the clients system by questioning staff and record the system by means of other methods like flowcharts or written note. The (ICEQ) internal control questionnaire, and which ensures that all the right questions are asked to bring out the strengthen and weakness of a system.
Intern Check: These are those inte
Tags: Internal control system Impact of internal control system Importance of internal control system Management system Impact of management system
This material content is developed to serve as a GUIDE for students to conduct academic research
Delivery: Within 24 hours
Advertise Here
Not what you were looking for? Perform a search
What's your project topic?
Comment on Facebook:
Related Project Materials
- 1.
INVESTIGATING FORENSIC AUDIT AS A PANACEA FOR PREVENTING CORPORATE FRAUD IN CAMEROON'S PUBLIC SECTOR
CHAPTER ONE INTRODUCTION 1.1 Background of the study The proliferation of financial crimes in these developing economies is concerning and catastrophi...More »
Item Type: Project Material | 54 pages | 792 engagements |
- 2.
INTERNAL AUDIT: EXAMINING ITS ROLE IN ENSURING ETHICAL CONDUCT IN CHENWI-ASSOCIATES, CAMEROON
INTERNAL AUDIT: EXAMINING ITS ROLE IN ENSURING ETHICAL CONDUCT IN CHENWI ASSOCIATES, CAMEROON CHAPTER ONE INTRODUCTION Background of the Study Auditin...More »
Item Type: Project Material | 54 pages | 680 engagements |
- 3.
EXTERNAL AUDIT AND QUALITY OF ACCOUNTING AND FINANCIAL INFORMATION IN THE CAMEROONIAN PUBLIC SECTOR
CHAPTER ONE INTRODUCTION 1.1 Background of the study The main purpose of external audit as a governance mechanism is to enhance the accuracy and trust...More »
Item Type: Project Material | 54 pages | 759 engagements |
- 4.
EXAMINING THE ROLE OF FORENSIC AUDIT IN DETECTING FINANCIAL FRAUDS IN THE CAMEROONIAN PUBLIC SECTOR:...
CHAPTER ONE INTRODUCTION 1.1 Background of the study Forensic auditing and forensic accounting are often used interchangeably. It has been officially ...More »
Item Type: Project Material | 54 pages | 690 engagements |
- 5.
EXAMINING THE IMPACT OF THE AUDIT REPORT ON INVESTMENT IN FINANCIAL INSTITUTIONS IN CAMEROON
CHAPTER ONE INTRODUCTION 1.1 Background of the study According to the Companies Act, all registered companies must present audited accounts to their s...More »
Item Type: Project Material | 54 pages | 667 engagements |
- 6.
EXAMINATION OF CHALLENGES ENCOUNTERED BY INTERNAL AUDITORS IN PUBLIC SECTOR AUDIT OF CAMEROON
CHAPTER ONE INTRODUCTION 1.1 Background of the study The demand for internal auditing mostly arises from the necessity for an independent verification...More »
Item Type: Project Material | 54 pages | 715 engagements |