ABSTRACT
Analysis of the concept of
internal control system is an important subject that involves the analysis of
the latest scientific results, and on its basis to perform an updated analysis
of the concept of internal control system which meets the modern business
conditions and tendencies. Such an assumption has been made upon exploring
famous scientists’ concepts of internal control system, in which the basic
values needed for internal control system: (honesty, trust, respect, openness,
skills, courage, economy, initiative, etc.) were not included. Only a modern
concept of internal control might ensure an effective internal control system.
Data collected with designed questionnaire distributed to one hundred and
twenty-six (126) respondents were analysed using regression analysis.
CHAPTER ONE
INTRODUCTION
1.1 Background
of the Study
Internal control
is the set of accounting and administrative control and practices that helps
managers in operating their organization more effectively and efficiently
Alderman and Deitrick, (2001). It ensures that both the accounting and
administrative activities are in order with the laid down procedures,
standards, and statutory requirements. It also detects deviation if any and
calls for immediate corrective measure. In any profit oriented organization,
the objective of management is to maximize profit, and internal control is a
technique that can be of assistance in attaining such maximizations Lamperti
and Thurston, (2003). The internal audit is one of such unit established by the
management to ensure compliance to policy instructions and to correct deviation
from the management set guideline. It objectively examines, evaluates and
reports on the adequacy of the internal control, thereby ensuring efficient and
effective application of limited resources (Meigs et al., 2001).
Internal check
is also another internal control tool employed by the management to ensure that
the objective of the organization is attained. Internal control has different
definitions but most widely accepted is that of the statement of accounting
standard (SAS) which defined internal control as “not only internal check and
internal audit, but the whole system of controls, financial and otherwise
established by management in order to carry on business of the company in an
orderly manner, safeguard its assets and secure as far as possible the accuracy
and reliability of its records”. The internal control system should be an open
one and should be cheap, conveniently manipulated by management to ensure
completeness and accuracy of records and also prevent or uncover errors and
fraud. It should be based on the overall view of the organization and should
provide information for all users of the system (Stettler, 2007).
1.2 Statement
of Problem
This study
intends to evaluate internal control system as an aid to management efficiency
in Fisheries department of Federal College of Agriculture Ishiagu, Ebonyi
State. The effectiveness of internal management controls can then be measured
by how good objectives are achieved and how effectively the risks are
addressed. Be that as it may, in spite of the current proof thinking about the
significance of internal management controls in the associations, the
efficiency of delivery of services is still poor. The department of study
encounters some challenges as it pertains to (all aspects of internal control
due to porous existing system.
1.3 Objectives
of the Study
This main
objective of this study will be to evaluate internal control system as an aid
to management efficiency in organizations with FCAI Fishery Department as a
study. The specific objectives will include;
1.
To ascertain or
find out the existence of internal control systems in the department of Fishery
Department of FCAI.
2.
To ascertain
whether the internal control systems in use are appropriate and will lead to
efficient management
3.
To identify the
principal problems associated with workers’ dissatisfaction.
4.
To seek purpose
oriented solutions and make recommendations that will go a long way in solving
the identified problems
1.4 Research
Questions
In other that
the research provides the results, the following research problems, which
revolve around the basic elements of an effective and efficient internal
control, system would be utilized in testing the research hypothesis
1.
Is there any
existence of internal control system in Fishery department of FCAI?
2.
To what extent is
the internal control systems in use appropriate in the management?
3.
To what extent
has the existence of internal control system help in the promotion of operational
efficiency in Fishery department?
4.
Has the
existence of internal control system helped in encouraging of adherence to the
managerial policies in Fishery department?
1.5 Significance
of the Study
The significance
of the study will specify the benefit of the research, the beneficiaries and
what, who ad how they would benefit.
This study will
help decision makers to propose decisions that will help the organization in
internal control system in order to enhance the efficiency of the management.
The study will serve as literature for further studies especially for business
administration and other related studies. It helps to get data collection which
may lead to achieve a specific goal. The study also intends to add to the body
of knowledge by highlighting different decision making techniques which can
improve internal control system in any organization.
1.6 Limitations
of the Study
In every human
undertaking, there has to be a limitation, in the course of this research work finance
and time has been the most constraining factor. Another limitation was the fear
of respondents to divulge enough information adequate to carry out the
research.
1.7 Definitions
of Terms
Internal Control:
This is defined as “not only internal check and internal audit, but the whole
system of controls, financial and otherwise, established by management in order
to carry on the business of the company in an orderly manner, safeguard the
assets and secure as far as possible the accuracy and reliability of its
records.
System:
This is defined is an organized or a complex whole. It is a set of a complex
related or arranged set of essential principles or facts arranged in a rational
dependence or collection forming a coherent whole.
Efficiency: The
comparison of what is actually produced or performed with what can be achieved
with the same consumption of resources (money, time, labor, etc.).
Management: Management
is the process of reaching organizational goals by working with and through
people and other organizational resources.
Organization: an
organized group of people with a particular purpose, such as a business or
government department.
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