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ACCOUNTING AS AN AID TO INTERNAL CONTROL SYSTEM

  • Type:Project
  • Chapters:3
  • Pages:36
  • Methodology:nil
  • Reference:YES
  • Format:Microsoft Word
(Accounting Project Topics & Materials)
ACCOUNTING AS AN AID TO INTERNAL CONTROL SYSTEM
ABSTRACT

This research project is on accounting as an aid to internal control system.   The problem study of this research is to find out whether Enugu State Government Accounting records are properly kept according to the provision of the state financial instruction as it concerns the state government. Again to know if there is any loophole in the accounting records as it concerns their internal control. Any organization wishing to conduct its business in any orderly and efficient manner and to produce a reliable financial accounting information both for himself or others use, needs some control to minimize the effect of endemic human facings. And such control is known as internal control.            Internal control can therefore be define as a system of control, financial and otherwise established by the management of an enterprises in order to carry out the business of such enterprise in an ordinary and efficient manner, to ensure as far as possible the completeness and accuracy of records.Finally the researcher is faced with problems of summary of all the findings, recommendation based on findings. From this findings accounting has been proved to be the best aid to internal control system. All this endemic human failings such as fraud, missing of files, misappropriation of funds, loop holes, distraction and so on and so forth will minimize where accounting as internal control is followed.The main objective of this research is to ascertain if the internal control is effective and to analyze ethically the soundness, adequate and application of various internal controls on accounting records. This will also educate the government staff, of various duties expected from them. And also determine the degree of reliance, completeness and accuracy of the accounting records as is contained in the accounting records.
TABLE OF CONTENTS
CHAPTER ONE: INTRODUCTION
1.1              General overview                                                                   
1.2              Statement of problem                                                
1.3              Objective of study                                                     
1.4              Significance of the study                                                       
1.5              Scope and limitation                                      
1.6              Definition of terms                                                    
References                                                                 
CHAPTER TWO: REVIEW OF RELATED LITERATURE
2.1 General approach to internal control system                    
2.2 Local related and foreign related literature                                 
2.3 Objective of internal control system                                
2.4 Principle and characteristic of internal control                
2.5 Types of control of internal control system                     
2.6 Internal control and management                                    
CHAPTER THREE: SUMMARY, RECOMMENDATION AND CONCLUSION
3.1 Summary                                                              
3.2 Recommendation                                                                         
3.3 Conclusion                                                                       
     Bibliography                                                                                 
CHAPTER ONE
INTRODUCTION
1.1       GENERAL OVERVIEW
One major problem of management is planning but planning is useless if it is not implemented. And the success of any plan is based on adequate control and monitoring in order to achieve the required objective.
            Therefore any organization wishing to conduct it business in an orderly and efficient manner and to produce reliable financial accounting information for its own and other use, needs some controls sot minimize the effect of the inherent limitation?
            The researcher is researching on accounting as an aid to internal control system. (Enugu State).
            Accounting can be defined as the art of recording and giving result of business transaction to the client. Accounting like any other filed has its origin. Accounting probably came into existence between 14th to 16th centuries. As development come in day-by-day the managements of who are not directly involved needed summarizes of transactions so as to enable them understand the positions of the business without the need of going through the books in details.
            On the early Greek and Roman account the principle was centered on the need to keep tracks of the assets and they exercise control over those entrusted with property. The primary purpose of accounting is for stewardship. It will be rightly said that the earliest form of accounting reveals the preoccupation with internal control. Internal control is an important tool by which management aim to achieve its objective.
            DE PAU L FRM, AND DE PAUL F.C. defined internal control as:
“Practically a continuous internal audit carried on by the staff itself through which individual is independently checked by other member of the staff”.
            Internal control system does not make fraud impossible but makes it more difficult thereby giving chance of direction, and act as a valuable moral check. The essence of internal control being therefore to show whereby true ownership is separated from the management, the owners will be in no doubt that their assets and resources are efficiently managed.
            Control has to be exercised over all the aspect of business without which the system is likely to be ineffective and too costly to operate in relation to benefit relieved.
1.2       STATEMENT OF PROBLEM
Government accounting system has a way of presenting an accounting for the fund. Foe example, income and expenditure or revenue and expenditure accounts and held by government establishment in government system, officers do not keep the account like profit making organization. There is a lots of lapses in cash office and pay roll section of many government ministries, cases of fraud and missing of office and files containing important documents like bills, IPO etc. where owners of such document refuses to oil the palms of clerks. Loopholes, misappropriation of fund, recording of materials/goods that are not yet supplied and issued to contractors not complying with the state financial instruction in accounting system.
            Burning down several prominent public owned institutions like the former Anambra Broadcasting Service (now ESBS) building.
            In all these problems one thing is that accusing fingers are always pointed at frauds.  Due to all this anomaly or problems the researcher chose this topic to look into the effect and also to recommend solutions to it.
1.3       OBJECTIVE OF THE STUDY
The purposes of this study are as follows:
1)      To ascertain accounting as an aid to internal control system in Enugu State.
2)      To know if the management complied with the established accounting system.
3)      The researcher intends to view the function of internal audit department of much government parastatal with a view of finding out the extent to which they have been able to perform the duties as the watchdogs of the internal control system.
4)      To determine the degree of reliance of the internal control.
5)      To identify possible loopholes (if any) and relevance of the present adopted controls in order to correct it.
6)      To analyze critically the 0soundness, adequacy and application of various internal control of accounting records.
7)      To recommend based on finding of the study.
1.4       SIGNIFICANCE OF THE STUDY
The research will be of significance to the entire government and other public. This research study also aids the management based on the recommendation, to ascertain if the government has been able to achieve its objectives as established.
            The beneficial effective ness accounting as an aid to internal control be over emphasized. Fraud and misappropriation of frauds are the bane of society.
            The study would also benefit the future researchers who would be interested in carrying out a further research work in the same field.
            And to recommend principles that will wipe away inefficiency laxity in the collection of revenue and misappropriation of fund.
Finally this study has also been a source of inspiration and this researcher found it very valuable to his academic advancement. It has exposed him to so many things.
1.6       DEFINITION OF TERMS
Internal Control System: This is the whole system of control, 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 to management policy, safeguard the assets and ensure as far as possible the completeness and accuracy of records. Payment Voucher: This is a document, which the payer fill before payment is made to the payee.
Receipt Voucher: This is a document that those who pays in money due to government fills that enables the revenue collector to issue official receipt to the paper.
Voucher Schedule: This a form used to save voucher to sub treasury.
Salary Advance: This is a special loan to staff and the amount will be deducted from the officer’s salary in three installment.
Cashbook: This is used to record all receipts and payment or revenue and expenditure.
Treasury Receipt Book: this is a receipt issued to people that makes payment to the government.
Store Receipt Voucher (SRV): This is the document acknowledging receipt of goods delivered to the stores.
Store Requisition: An official receipt for a certain quantity of goods to be issued from store.
Store Issue Voucher: A document on which goods issued are stated.
Local Purchases Order (LPO): This is the letter of authority to local dealer asking him to supply the specific quantity of goods at a given price.
   


ACCOUNTING AS AN AID TO INTERNAL CONTROL SYSTEM

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Details

Type Project
Department Accounting
Project ID ACC0289
Price ₦3,000 ($9)
Chapters 3 Chapters
No of Pages 36 Pages
Methodology nil
Reference YES
Format Microsoft Word

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    Details

    Type Project
    Department Accounting
    Project ID ACC0289
    Price ₦3,000 ($9)
    Chapters 3 Chapters
    No of Pages 36 Pages
    Methodology nil
    Reference YES
    Format Microsoft Word

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