ATTENTION:
BEFORE YOU READ THE ABSTRACT OR
CHAPTER ONE OF THE PROJECT TOPIC BELOW, PLEASE READ THE INFORMATION BELOW.THANK
YOU!
INFORMATION:
YOU CAN GET THE COMPLETE
PROJECT OF THE TOPIC BELOW. THE FULL PROJECT COSTS N5,000 ONLY. THE FULL
INFORMATION ON HOW TO PAY AND GET THE COMPLETE PROJECT IS AT THE BOTTOM OF THIS
PAGE. OR YOU CAN CALL: 08068231953, 08168759420
INTERNAL
CONTROL SYSTEM AS A NECCESSITY TO SURVIVAL AND GROWTH IN PUBLIC ORGANISATION
CHAPTER ONE
INTRODUCTION
1.1
BACKGROUND OF STUDY
According to
Oxford Learners Dictionary, Organization can be said to be a group of people
who form a business, club etc. together in order to achieve a particular aim.
It can also mean two or more people getting together for a purpose. In getting
together, they decide to interact with one another to achieve the objectives of
the organization (Unamka & Ewurum, 1995:1)
When we
discuss organization, we have variclasses among which are service organization and
social organization etc. All these organizations have in mind the aim of
continuing if not for eternity, a given period of time. (Unamka & Ewurum,
1995 1, 2, 3)
For an
organization to carry on its business there must be some factors put in place
for the smooth running of the organization management, man-power, materials,
money and machines. These need to be well coordinated in order for the success
of the organization to be achieved. They are used by a group of persons known
as management; neither can management exist without organization- the two are
inseparable twin. (Unamka &Ewurum, 1995:65)
Good
management weaves together the various parts of organization so that all
factors function as a united body. Management refers to the group of executives
or officials of a company who directs efforts towards common objectives by
using available resources (Unamka & Ewurum, 1995:66) management can also be
said to be a process of planning, organization to have an intergrated system
that will aid the achievement of organization objectives (Musselman &
Hughes, 1981)
Effective
management leads to purposeful, well coordinated, goal oriented and goal
directed activities. As earlier social organizations have in mind “CONTINUITY”
and “SURVIVAL” as they are being run for an organization to survive and
continue existing without going bankrupt, or said to be illiquid, i.e. being
its inability to meet up with its responsibilities as and when due, it must
ensure the safty of its assets, cash and also the accuracy and reliability of
its records, it should ensure that it institutes a system of control, strong
enough to ensure such. This system is what is known as INTERNAL CONTROL SYSTEM.
According to
WIKIPEDIA, the free encyclopedia, in accounting and organization theory,
INTERNAL CONTROL is defined as a process effected by an organization’s people
and information technology (I.T) system, designed to help the organization
accomplish specific goals or objectives. It is a means by which an
organization’s resources are directed, monitored and measured. It plays an
important role in preventing and detecting fraud and protecting the
organization’s resources both physical (e.g. machinery and property) and
intangible (e.g. Reputation and intellectual property such as trade marks) the
organizational level, internal co9ntrol objectives relate to the reliability of
financial reporting; timely feedback on the achievements of operational or
strategic goals and compliance with laws and regulations. At the specific
transaction level, internal control refers to the actions taken to achieve a specific
objective (e.g. how to ensure the organization payments to third parties are
for valid services rendered)
There are
also a variety of definitions of internal control as it affects a variety of
constituencies (stakeholders) of an organization in various ways.
Under the
committee of sponsoring organization (COSO) internal control- integrated
framework, a widely-used frame work in the United States, internal control is
broadly defined as a process effected by an entity’s board of directors,
management and other personnel, designed to provide reasonable assurance
regarding the achievement of objectives in the following categories:
Effectiveness and Efficiency of operations; Reliability of financial reporting;
and compliance with laws and regulations.
According to
Millichamp(2002:85), internal control system is defined as the whole system of
controls, financial and otherwise, established by the management in order to
carry on the business of the enterprise in an orderly and efficient manner,
ensure adherence and management policies, safeguard the assets and secure as
far as possible the completeness and accuracy of the records. Internal controls
are to be an integral part of an organization’s financial business policies and
procedures. Internal control consists of all the measures taken by the
organization for the purpose of protecting its resources against waste, fraud
and inefficiency, ensuring accuracy and reliability in accounting and operating
data, securing compliance with the policies of the organization and evaluating
the level of performance in all organizational units of the organization.
Internal controls are simply good business practices.
Internal
control according to Osita(2002:106) is the whole system of controls, financial
or otherwise, established by management in order to secure as far as possible,
the accuracy and reliability of the records, run the business in an orderly
manner and safeguard the company’s assets, its objectives being the prevention
or early detection of fraud and errors. It may include internal auditing.
Everyone
within the organization has some roles in internal controls. The roles vary
depending upon the level of responsibility and the nature of involvement by the
individual. The Kansas Board of regents, president and senior executives
established the presence of integrity, ethics, competence and a positive
control environment. The director and department heads have oversight
responsibility for internal controls within their units. Managers and
supervisory personnel are responsible for executing control policies and
procedures at the detail level within their specific unit. Each individual
within a unit is to be cognizant of proper internal control procedures
associated with their job responsibilities.
The internal
audit role is to examine the adequacy and effectiveness of the organization
internal controls and make recommendations where control improvements are
needed. Since internal auditing is to remain independent and objective, the
internal audit office does not have the primary responsibility for establishing
or maintaining internal controls. However, the effectiveness of the internal
controls are enhanced through the reviews performed and recommendations made by
internal auditing.
The
institution of internal control system is an organization is not without a
purpose; these purposes will be discussed later in this sturdy. One of such is
to ensure that the organization survives, continue to exist, grows, become
vibrant in whatever environment it might be existing or located. It is against
this background that this sturdy seeks to unveil and look at the place,
importance and inevitable nature of internal control system on the survival and
growth of an organization.
1.2
STATEMENT OF PROBLEMS
When we
refer to internal control system, we talk of a system which will enable an
organization achieve its objectives, we talk of a system which is very
important to the existence of an organization, we talk of a system which will
forestall the perpetration of acts that can act as a clog in the wheel to the
success of an organization. This system is an all round system, that is to say,
it encompasses both financial and non-financial control in realizing the goals
and objectives of running the organization in an orderly manner, safeguarding
the assets of the organization and also ensuring the accuracy and reliability
of the organization’s records.
We might not
really understand the impact of internal control system on an organization’s
performance until probably, we run an organization void of internal control
system. The non-institution of internal control system in an organization is
detrimental to the continual growth and survival of that organization. Non
institution of internal control system in an organization result in improper
keeping of records which could lead to the late preparation of accounts,
doctoring of books of accounts, misappropriation of funds which are meant to be
used for planning, decision making etc. illegal transactions being transacted,
pilferage, misuse of fixed assets etc. improper keeping of records can also
lead to inability to ascertain the organization’s actual assets; goods in
stock, which could breed pilfering.
Lack of
proper record keeping, controlling of proceedings or actions in an organization
could lead to concealing of errors and fraud that might crop-up to bring down
an organization.
The
non-institution of internal control system could lead to inability of the
organization to make proper decisions and plan ahead effectively. When an
organization fails to plan, definitely it will forestall the growth of the
organization; make the organization to start dwindling and struggling for
survival, which will then bring the organization to an end.
1.3
OBJECTIVES OF STUDY
As earlier
said that this sturdy of internal control is not without objectives and as such
we shall see some of the objectives for the institution of internal control
system in an organization. The objectives of this sturdy are:
1. To
ascertain the extent to which fraud and errors can be prevented or detected
early.
2. Highlight
areas of under performance, weakness and specific failures connected to
internal control system in order that corrections may be effected for
performance to improve.
3.
HYPOTHESIS
AND RESEARCH QUESTIONS
1.4 RESEARCH
QUESTIONS
a. Does
record keeping aid the proper running of business?
b. Does
segregation of duties aid averting errors and fraud?
c. Does your
organization carry out internal check or vouching?
d. Are your
fixed assets used for other business outside your normal business?
e. In what
ways does internal control affect the survival and growth of an organization?
1.5 RESEARCH
HYPOTHESIS
There are no
significant relationships between internal controls and the orderly and
efficient running of an organization.
There exist
significant relationship between internal controls and the orderly and
efficient of an organization.
HOW TO RECEIVE PROJECT
MATERIAL(S)
After paying the appropriate
amount (#5,000) into our bank Account below, send the following information to
08068231953 or 08168759420
(1)
Your project topics
(2)
Email Address
(3)
Payment Name
(4)
Teller Number
We
will send your material(s) after we receive bank alert
BANK ACCOUNTS
Account
Name: AMUTAH DANIEL CHUKWUDI
Account
Number: 0046579864
Bank:
GTBank.
OR
Account
Name: AMUTAH DANIEL CHUKWUDI
Account
Number: 3139283609
Bank:
FIRST BANK
FOR MORE INFORMATION, CALL:
08068231953 or 08168759420
https://projectmaterialsng.blogspot.com.ng/
https://foreasyprojectmaterials.blogspot.com.ng/
https://mypostumes.blogspot.com.ng/
https://myeasymaterials.blogspot.com.ng/
https://eazyprojectsmaterial.blogspot.com.ng/
https://easzprojectmaterial.blogspot.com.ng/
Comments
Post a Comment