+234 813 0686 500
+234 809 3423 853
info@grossarchive.com

THE EFFECT OF ACCOUNTING AND INTERNAL CONTROL SYSTEM IN DEPOSIT MONEY BANKS OPERATION

  • Type:Project
  • Chapters:5
  • Pages:65
  • Format:Microsoft Word
(Banking and Finance Project Topics & Materials)

1.2    STATEMENT OF PROBLEM

In spite of the Commercial Banks importance in building economic growth and development, commercial banks are faced with problems ranging from lack of adequate and sound accounting system, procedures and for rendering returns and required information to Head Office, lack of experienced, qualified and well exposed staff to render bank accounting operations. Besides, some of the Bank appointees studies courses that are not related to banking and accounting. These staff that lack accounting skills are allowed to manage and handle accounting records without realizing that banking business is a professional and specialized business. No proper book keeping and records, inconsistency and divergence of accounting operations and reporting practices which create survival problems of troubled banks and resulted in bank failures, bank distress and or lost of public confidence in the banking sector. Disregard for existing banking policies and guidelines, thereby making customers to lose confidence occasioned by being, distressed among other things. These in view made Central Bank of Nigeria (CBN) introduced stringent control in 1994.
The fact that Banking is in the service industry, therefore the quality of services rendered by banks has direct relationship with its survival via its accounting system, procedures and internal control system.

1.3    OBJECTIVE OF THE STUDY
The main purpose of this study is to examined the effect of accounting and internal control system in Commercial banks. In other words to assess control measures that management of the Commercial banks can adopt within their organizations to ensure the effectiveness and efficiency of operations; reliability of financial and management reporting; compliance with applicable accounting laws and regulations; prevent fraud; intentional errors in accounting records and misappropriation embezzlement of the organization’s assets in order to achieve its goals effectively and efficiently.
Therefore the study intends to;
(i)      Examine the adequacy or otherwise of the relevance of internal control system in Commercial banks.
(ii)      Examine the contribution of internal control components (prevent controls’ and defect controls’) to the effectiveness and efficiency of Commercial Banks’ management.
(iii)     To determine the level of correlation between accounting internal control and the effectiveness and efficiency of operation in Commercial Banks.
(iv)    To determine whether accounting and internal control ensures compliance with applicable laws and regulations.
(v)     To determine the degree of reliance to be placed on the accounting system and internal control in commercial banks.
(vi)    To identify and analyze the prevailing problems associated with the accounting and internal control system and to examine the extent to which these problems affect the banks.
(vii)    To offer useful suggestions and recommendations on how to improve the accounting system, procedures and internal control system of commercial banks in order to be more effective in meeting future challenges.

1.4    RESEARCH QUESTIONS
The research work would seek answer and clarification to some of the research questions as stated below:
(a)     Does accounting and Internal Control System are sure that errors and frauds can be discovered with reasonable promptness, and whether the control procedures as prescribed and applied in practice are successful in preventing and defecting material errors and fraud in the accounting system.
(b)     Can reliance be placed on accounting and internal control system of commercial banks in Nigeria?
(c)     Is there any significance relationship between accounting, internal control, profitability and liquidity of the banks in Nigeria?
(d)     Is there a positive correlation between the commercial banks degree of compliance with accounting system, procedure, applicable laws, regulations and internal control.
(e)     Does accounting and internal control system aids management in decision making?
1.5    STATEMENT OF HYPOTHESIS 
The following hypothesis was formulated and empirically tested and make appropriate recommendation based on the findings:
1.           HO: Reliance cannot be placed on accounting and internal control system of commercial banks in Nigeria.
HI:          Reliance can be placed on Accounting of Commercial Bank in Nigeria.
2.           HO: There is no significance relationship between accounting, internal control, profitability and liquidity of the banks in Nigeria.
HI:       There is a significance relationship between accounting internal control, profitability and liquidity of the banks in Nigeria.
3.           HO:      Accounting and internal control system of banks does not ensure compliance with applicable laws and regulations.
              HI:       Accounting and Internal control system in Bank ensures compliances with applicable laws and regulations
4.           HO:      The accounting and Internal Control System does not aids management in decision making.
HI:       The accounting and Internal Control System aid management in decision making.

1.6    SCOPE OF THE STUDY
The research tolerated some degree of possible risk or error in testing the hypothesis formulated in the research study.
The level of significance of 5% or 95% confidence level is permitted at 1 degree of freedom. Also expected frequency is 50% of each option. The researcher makes decisions based on the decision rule stated below.
(i)      Decision Rule One: Reject the Null (Ho) hypothesis if the calculated value of the statistical test is greater than the tabulated critical value.
(ii)      Decision Rule Two: Accept the null (Ho) hypothesis if the calculated value of the statistical test is less than the tabulated critical value.

THE EFFECT OF ACCOUNTING AND INTERNAL CONTROL SYSTEM IN DEPOSIT MONEY BANKS OPERATION

Share This

Details

Type Project
Department Banking and Finance
Project ID BFN0559
Price ₦3,000 ($9)
Chapters 5 Chapters
No of Pages 65 Pages
Format Microsoft Word

500
Leave a comment...

    Details

    Type Project
    Department Banking and Finance
    Project ID BFN0559
    Price ₦3,000 ($9)
    Chapters 5 Chapters
    No of Pages 65 Pages
    Format Microsoft Word

    Related Works

    (A CASE STUDY OF ACCESS BANK PLC, KADUNA) CHAPTER ONE 1.0     INTRODUCTION 1.1     Background to the Study In a modern economic system, there is distinction between the surplus and deficit economic units and consequently a separation of the savings and investment... Continue Reading
    ABSTRACT The issue of corporate tax avoidance hasreceived vast empirical examination in Western academe. This vast examination has however not been echoed in respect of research interest ontax avoidance in corporate entities in Nigeria.This study therefore sought to provide empirical evidence on whether internal corporate governance mechanisms... Continue Reading
    (A CASE STUDY OF UNIVERSITY OF NIGERIA TEACHING HOSPITAL ENUGU STATE) ABSTRACT With the major focus of this project in mind which is ““THE EFFECTIVENESS OF COMPUTER OPERATION ON THE INTERNAL ACCOUNTING SYSTEM IN THE GOVERNMENT... Continue Reading
    AN APPRAISAL OF THE EFFICIENCY OF INTERNAL CONTROL SYSTEM OF ACCOUNTING RECORDS IN NIGERIA COMMERCIAL BANKS A CASE STUDY OF UNITED BANK FOR AFRICA (UBA) ABSTRACT This research work was geared towards findings how effective the present internal control system is in our commercial banks, using UNITED BANK FOR AFRICA (UBA) as a case study. This... Continue Reading
    CHAPTER ONE INTRODUCTION BACKGROUND TO THE STUDY The banking industry in any economy all over the world functions as a catalytic agent for growth as well as development. They are capableof accomplishing these crucial functions of financial... Continue Reading
    ABSTRACT In this research work titled the impact of internal auditing on the profitability of money deposit bank with particular reference to First Bank Nig Plc. The researcher evaluated the impact of internal auditor on the profitability of First Bank Nig Plc. Determined the types and causes of fraudulent practices in First Bank Nig Plc.... Continue Reading
    CHAPTER ONE INTRODUCTION 1.1 BACKGROUND TO THE STUDY The role of banks and other financial institutions in economic development has been richly articulated in the literature. Pioneer contribution of Schumpeter (1934) was of the view that financial institutions are necessary condition for economic... Continue Reading
    ABSTRACT The study empirically examines the relationship between commercial banks and export trade financing in Nigeria for the period 1985 to 2012. Using correlation coefficient and the ordinary least squared (OLS) econometric technique, the results from the empirical analysis indicate... Continue Reading
    CHAPTER ONE INTRODUCTION 1.1   BACKGROUND TO THE STUDY Money deposit banks are resident depository corporations and quasi-corporations which have any liabilities in the form of deposits payable on demand, transferable by cheque or otherwise usable for making payments. The banking sector in Nigeria in 2010 financial year was oligopolistic in... Continue Reading
    CHAPTER 1 INTRODUCTION 1.1       Background of the Study Nigerian banks in the face of increasing competition are currently facing enormous challenges which have made survival increasingly difficult. To survive and be successful providers of financial services, it is extremely important that the present environment should go with a new... Continue Reading