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INTERNAL CONTROL AS A MEANS OF ENHANCING PROFITABILITY IN A
MANUFACTURING COMPANY.
INTERNAL CONTROL AS A MEANS OF ENHANCING PROFITABILITY IN A
MANUFACTURING COMPANY.
(A CASE STUDY OF APACO FOAM AND CHEMICAL INDUSTRIES LIMITED,
AGBOR, DELTA STATE).
ABSTRACT
Profitability is the hallmark or mainstay of any business
undertaking. It is the wish of any business entity to maximize profit and
maintain a resounding level of liquidity. There is no doubting the fact that
this objective of profit maximized if there is no strong and adequate system of
internal control.
Sequel to the above, this research work is designed to carry
out an empirical study on the internal control system of Apaco foam and
chemical industry limited, Agbor, Delta State and to suggest and or recommend
ways that a strong and adequate internal control system can assist the company
to maximize profit from its operations.
Chapter one deals with the general over-view of the research
work. It shows a brief history about the company under study. Also it discloses
the significance of the study, the aims and objetive and operational definition
of some technical terms.
In chapter two, the research dwells on the theoretical frame
work of the research topic. The chapter shows the history and development of
internal control, the meaning of internal control, various types of accounting
systems, the need for internal control, internal and external audit,
profitability versus liquidity internal control in a computer based accounting
system, among others.
Chapter three focuses on the research methodology which
includes methods of data collection, population of the study, sample size,
methods of data analysis etc.
In chapter four, the researcher concentrates on Data
presentation, analysis and interpretation, many tables are used for analysis of
data so as to validate the study and also test of hypothesis.
Finally chapter five dwells on summary of findings, recommendations
and conclusion.
PROPOSAL
Internal control as a means of enhancing profitability in a
manufacturing company.
The aim of this study is to examine the internal control
system in Apaco Foam and Chemical Industries Ltd Agbor Delta State with a view
to determining its efficacy in the process of profit maximization in the
company. The researcher intends to exray various internal checks or control
strategies applied in the company Apaco Foam and Chemical Industries Ltd Agbor Delta State and how it has
increased profitability in that company as well as promises a substantial
growth and development in its commercial operations and industrial relations
practice.
To successful carryout this study, the researcher intends to
embark on empirical approach or research, using mainly primary data source
through questionnaires (written & oral) personal observations etc.
Secondary source will be gathered through relevant
documentary materials which will be used for reviews explanations or analysis
of some technical terms.
The researcher intends to arrange data collected in tables
and also intends to analyze the state in simple percentages. The research
intends to make further explanation on the research findings and profers some
recommendation, solutions and suggestions. The research intends to
systematically present this work in a chapters and each step will help into
verification of all aspects of internal control strategy or strategies applied
into the company.
Chapter one will dwell on general over-view of the research
work. It will show a brief history about
the company and it will disclose the significance of the study, the aims and
objectives and operational definition of some technical terms.
Chapter two, the researcher will dwell on the theoretical
frame work of the research topic the chapter will show the history and
development of internal control, the meaning of internal control, various types
of accounting systems, the need for internal control, internal & external
audit, profitability versus liquidity internal control in a computer based
accounting system.
Chapter three will focus on the research methodology which
includes methods of data collection, population of the study, sample size
methods of data analysis, research design.
In chapter four the researcher will concentrate on data
presentation, analysis and interpretation, and test of hypothesis.
Finally chapter five will dwells on discussion of findings,
recommendations and conclusion.
TABLE OF CONTENT
Title page
Certification
Dedication
Acknowledgement
Proposal
Table of contents
CHAPTER ONE
1.0 Introduction
1.1 Background
of the study
1.2 Statement
of problems
1.3 Aims and
objectives of the study
1.4 Scope of
the study
1.5 Significance of the study
1.6 Hypotheses
1.7
Operational definition of terms
1.8 Limitation
of the study
CHAPTER TWO
2.0 Literature
review
2.1 History and
development
2.2 Various views /
definitions of internal control
2.3 The need for
internal control system
2.4 The major
objectives of internal control system
2.5 Managerial
supervision and review.
2.6 The various
types of accounting systems and accounting records.
2.7 The need for
internal control and proper accounting records.
2.8 Internal audit
2.9 Internal check
2.10The meaning and relevance of statutory audit.
2.11Profitability versus liquidity in a business undertaking.
2.12Assessment/procedure
of internal control system.
2.13Internal control in computer bases accounting system.
2.14The limitations of internal control system.
CHAPTER THREE
3.0 Research
methodology
3.1 Methods of
data collection
3.2 Population of
the study
3.3 Sample size
3.4 Sampling
method
3.5 Methods of
data analysis
3.6 Research
design
3.7 Limitations of
the methodology
CHAPTER FOUR
4.0 Data presentation,
analysis and interpretation
4.1 Analysis of
the respondents
4.2 Analysis of
data
4.3 Discussion of
finding
4.4 Test of
hypotheses
CHAPTER FIVE
5.0 Summary of
findings, recommendation and conclusion
5.1 Discussion of
findings
5.2 Conclusion
5.3 Recommendation
5.4 Suggestion for
further research
Appendix
Bibliography.
CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKROUND TO THE
STUDY
internal control is the whole system of controls, financial
and otherwise, established by the management, in order to carry on the business
f the enterprise in an orderly and efficient manner ensure adherence to
management policies, safeguard the assets and secure as far possible, the
completeness and accuracy of its records.
Consequent upon the above, this research is designed to carry
out an empirical study on the internal control system of Apaco Foam and
Chemical Industry Limited. Agbor Delta State and to recommend and or suggest
ways that a strong internal control system can assist the company to maximize
profit.
Apaco Foam and Chemical Industry Limited, Agbor Delta State,
was established in 1977 wish a staff strength of three (3) comprising of the
Director, Mr. G.O. Muobike, his wife and one other staff. It factory and office,
then was situated at Obiazikwo street, owu. Agbor in the then Bendel State
which was bifurcated into Edo and Delta states. Its major business is the
production of foam other by products are:
i.
Mattresses
ii. Rug
under-lays
iii. Sheetings
iv. Cuishons
v. Pillows
and
vi. Shoulder
pads
The factory and
office complex which is situated at No. 3 Muobike Crescent by Owa-Alero/Owa
Ekei Road Boji Boji Owa Agbor, was officially commissioned on May 13th1995 by
the then military administrator of Delta State, group captain Abraham Kefas..
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