ABSTRACT
Effective Internal Control as an aid to management efficiency is critical review of this research work.
From the analysis also, it was found that a number of managerial problems such as inadequate account records, inefficient accounting procedures, unqualified personnel fraud etc are faced due to lack of effective internal control. Over 80% do not have a well designed internal control system and these limits the success and growth of a business enterprise.
Most recommended to these problems is the need to be enlightened about the importance efficiency- check and internal audit but the whole system of control, financial and otherwise established by management in order to carry on the business on the business a company in an orderly manner, safeguard accuracy and reliability of its records. Awoyemi E. O (1990).
The study also sought to know the effect of not having internal control in the management decision and profit level that though the lasting of hypothesis with use of satisfied data.
TABLE OF CONTENTS
Title page
Approval page
Dedication
Acknowledgement
Abstract
Table of contents
CHAPTER ONE: Introduction
1.1 Background of the study
1.2 Statement of the problem
1.3 Purpose of the study
1.4 Research questions
1.5 Research Hypothesis
1.6 Significance of the study
1.7 Scope of the study
1.8 Limitation of the study
1.9 Operational definition of terms
CHAPTER TWO
Review of Related Literature
2.1 Brief history of Nigerian bottling company
2.2 Purpose of internal control
2.3 Meaning of internal control
2.4 Features of a good internal control system
2.5 Types of internal control
2.6 Internal control as an aid to management efficiency
CHAPTER THREE
3.1 Research design
3.2 Population and sample size
3.3 Sources of data
3.4 Techniques of data collection
3.5 Data collection procedure
3.6 Data Analysis techniques
CHAPTER FOUR
PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA
4.1 Data presentation
4.2 Data analysis
4.3 Hypothesis Testing
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Summary of findings
5.2 Conclusion
5.3 Recommendation
Bibliography
Appendix
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The need for study in this area comes from the fact that internal control is a very important management function, however not much has been done to view its impact on business. It has to be understood that without effective internal control, there can be no successful business. This may explain why some business enterprises are higher than those of a similar enterprise and to a larger extent, why many public enterprise and parastatals fail.
The purpose of internal control is to help to ensure that operations and performance conform to the plans. It follows therefore that effective control is not possible without planning and planning without a complementary control system is pointless. In organizational system, control is exercised by the use of information frequently of a financial nature.
Internal control is beginning to find more dept in the subject of management accounting, especially as part of the theory of control in Accounting. Since control system are established by management to assists in achieving the orderly and efficient conduct of business and improve the negative effects on the health of the business. It can then be argued that effective internal control is a key to organizational performance.
1.2. SCOPE OF THE STUDY
Accounting as far back as 4500 BC was practiced as stewardship accounting where land owners would appoint people known as stewards to manage their land for them. This form of recording remained primitive until in recent times when stewardship accounting gave way for financial accounting during the industrial revolutions.
Management Accounting is another aspect of accounting that got its impetus from Industrial Revolution and analysis to emphasizing detailed information for decision making. Today most enterprise is operating by limited companies which are owned by their shareholders and managed by directors appointed by the shareholders.
The entire purpose of internal control therefore is to establish a system where by though ownership is separated from management; owner will be left in no doubt that their resources are effectively managed.
1.3 STATEMENT OF THE PROBLEM
Having seen that there are currently an increase in the fraud were embezzlement, errors and other irregularities and that there are strong need for organizations to have a strong internal control system that can minimize the acts, it then becomes necessary to carry out this research.
1.4 PURPOSE OF THE STUDY
The purpose or goals of the study are outlined below:
2. Of what purpose is it to a company’s growth?
3. What are the features of a good internal control?
4. Is there any aids of internal control to management accounting?
1.6 HYPOTHESIS
HYPOTHESIS 1
HO: The internal control system in Nigeria Bottling
Company is not an aid to management efficiency.
H1: The internal control system in Nigeria Bottling Company is an aid to management efficiency.
1.7 OBJECTIVES OF THE STUDY
According to feral (1998) the major objective of the study are outlined below:
1.8 LIMITATION OF THE STUDY
This study focus on the effect of effective internal control on management efficiency, the company being Nigeria Bottling Company Ltd (N B C) Owerri. It is hope that this study would provide a useful link between the quality of internal control that exist the company and performance of the company with regard to profit making which for the purpose of the study is assumed to be the primary motive of an enterprise. Attempt should be made where possible to extend the analysis to other companies where this would result in a more balanced deduction.
It must be noted that certain factors, which could have an impact on company’s performance, may not in any where be linked with the quality of controls that exist such factors as political environment in which the company exist and the impact of some government actions and policies are of few examples. This study must as matter of fact exclude these factors.
1.9 SIGNIFICANT OF THE STUDY
In the era of rapid expansion of the number of companies in the economy, there is an increase pressure for companies to perform. These pressures in turn create room for such practices that could tremendously expose companies to risk of failure even as they provide profit incentives. Such practice would of course over-ride controls which have previously been instituted by managements desire to make profit through practice that may in the long run create adverse control problems.
The need for strong management commitment to strong control environment now cannot be over emphasized and will in fact, increase as more companies spring up.
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