Internal Control System As An Aim To Effective Management In An Organization

Internal Control System As An Aim To Effective Management In An Organization

Chapter One

Preface

Background To The Study

The establishment of company requires specialized and operation deportees. For it to be sustained and continue to be in business as a going concern bear a sound account and executive programs procedures to be espoused. This is to guide against inefficiencies, misappropriation, fraud, waste and possible loss.

Internal control system is a popular executive and counting procedure use by colorful associations to safe guard it’s means. therefore the proper functioning of the internal control system of any association depends largely on the extent to which the internal inspection department of that association discharged it’s liabilities and the size of similar business.

Internal control system is defined by the institute of chartered

Accountant as “ the whole system of control, fiscal else, establish by the operation in order to carry on the business of the enterprise in an orderly and effective manner, to insure adherence to operationpolicies., guard the asset and secure as far as possible the absoluteness and delicacy of the records ”.

The conception of the whole system of control in areas of authorization and blessings appraisals and review of performance and popular control.

In normal business situation, these controls must be spelt out and seen to be in actuality and enforced by staff concern and designed, while the reports and affair the expiring from the perpetration of the control are transferred to the operation from the colorful department heads and administrators. The responsibility of the internal inspection department( staff) is to probe and estimate the whole system of internal control and the effectiveness with which the colorful department of business are performing that assigned functions.

Consequently, Alkison( 2013) editorialized that, internal inspection involves each in causes taken by operation through the internal inspection department to insure that internal control system is placed functions effectiveness and effectively.

Supporting this view, Eketere( 2014) states that internal inspection act as a directorial control system in area of

Social and fiscal policy perpetration

Checking of fraud and precluding crimes through regular examinations of possible suspected areas of weakness for the control system.

Amusement as a adviser to operation in matter.

Monitoring external responses to the internal control system to minimize waste, losses and abuses.

Assisting to educate staff of the association on the requirements to cleave to manage internal control system.

Making sure that fiscal information product are authentic and dependable for policy and decision timber.

It’s serve to say at this point that internal control provides directions to all conditioning and cover the working of all the section and branches of the association control ways. It’s against this background seeks to explore and estimate the effectiveness of an association with reference to UBA pLC, Uyo.

Considering the fiduciary places banks plays on the frugality and the faced that bank squeezes with plutocrat and the need to present a true and fair view of the fiscal statement by the adjudicator, it came necessary to anatomized and measured the extent of bank control as a cost reduction fashion and controls over its means.

Statement Of The Problem

Inefficient application and operation to help of an association could be as a result of ineffective control system which can produce setbacks and loopholes for colorful fraudulent practices to thrive. This problem may be caused incompletely by operation and or law middle staff due to weak designed internal control system. This can lead to non achievement of association objects.