ABSTRACT
Over the
years, there have being a problem
of incorrect and unreliable financial record which has lead to loss of organizational integrity. The research work aimed
among others at
determining the relationship
between internal measures
to proper accounting records. A survey research design was adopted for this research
study and a sample size was selected using Yaro Yamane sampling technique as data used were obtained from both primary
and secondary sources.
Four research questions were formulated out of which three hypothesis were formulated using regression co-efficient analysis method at 5% level of significance and the Z table was also used for comparison between calculated value of significance B and tab le value.
The finding from the analysis
indicates that internal
control measure
management performance and is necessary for the growth and effectiveness of the organization. Financial management of any organization cannot do without internal
control as true and fair presentation of financial
statement may never be possible
if the board and senior
management are not committed
to providing a well planned internal
control system. It also recommends that a periodical review of the organization should
be done by the management so as to cope with the model trends in organizational
fraud prevention.
Continue
CHAPTER ONE
1.1
INTRODUCTION
1.2
BACKGROUND OF THE
STUDY
Every organization both profit or non-profit organization has its objectives and goals in mind to achieve. For the non-profit making organization, their goal is to satisfy the social need of the citizens and in the effort to achieve these purposes supervision more often than not play a vital
role.
The size and scope of these organizations have sometimes made it hard for the executors
to exercise personal and first hand supervision of operation. It is in this light that internal control established by management is initiated. For an organization to carryout its business there must be some factors put in place for the smooth running of the organization like materials, machines, money etc.
These need to be well co-ordinated in order for the success
of the organization to be achieved. These factors are used by a group of persons
known as management. Neither
can management exists without
an organization
both are
inseparable. The system
of
internal control provides assurance to management of the dependability of the accounting data used in the decision making of the organization
It has been discovered that due to lack of internal
control several banks have been discovered to have defrauded
its customers
mostly foreign investors, Having discovered this, banks now take extra precaution before clearing a cheque because
of rampant incidence of fraud and forgeries
which have placed
bank. Loss on average
of N1m each working day of the year in Nigeria.
Due to this challenges, CBN issued a directive
to banks to increase its capital base to N25 billion.
Management use internal control as a tool to check it staff due to the fact that managers
are not able to monitor the activities of the organization. It therefore adopts the internal control in such a way that the system checks itself and any irregularity within the system is
been detected and
corrected.
To ensure
that the system checks itself,
management could use devices such as segregations, supervision of work and acknowledgement of performance. The effective arrangement and implementation of this control
system would ensure proper management.
