The Impact Of Taxation On Project Investment (A Case Study Of Anchor Insurance Company Limited Uyo)
Chapter One
Introduction
Banks are widely seen to occupy a unique position in the economy and it is seen as an important link in the wheel of economic development of any country. In Nigerian banking industry constitute the Apex Bank i.e the central Bank of Nigeria (CBN) as the regulatory body. Commercial Banks, Micro Finance Bank the Merchants Bank and the Development Oriented Banks.
Traditionally, the role of Bank consist of financial intermediation, provision of an efficient payment system and savings and conduct for the implementation of monetary polices. It has been postulated that if these functions are efficiently carried out the economy would be able to mobilized meaningfully, level of saving channel these funds in an efficient and effective manner to ensure that in viable project is frustrated due to lack of funds. In order to ensure the economic growth and development of this important sector. Control is needed to a large extent to ensure that adequate performance takes place and strict is adherence to guideline to the core is required.
A system of strong control is a critical component of bank management and a foundation for the safe and sound operation of banking organization. A system of strong internal control can help to ensure that the goals and objective of banking organization will be met, that the bank will achieve long term profitability targets and maintain reliable finance and managerial report.
Eco-bank transnational incorporated (ETI) is a public limited liability company and was established as a bank holding company in 1985 under a private sector initiative, spearheaded by the federation of West African chambers of commerce and industry with the support of ECOWAS in the early 1980Os. Today Eco bank is the leading pan. African Bank with operations than any other bank in the world.
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Statement Of The Problems
As a matter of fact, the internal control system in the Nigerian Banking Industry has been viewed to be a problem surrounding it, in order to being weak to the banking sector and it has been seen not to be balance due to the problem of ineffective workers to the organization, lack of trust, inability to abide to the rules and regulation or ethics and miss management of the internal control system. This research set out to explore the inherent problem of weak internal control facing our banks which has led most banks into liquidation. This research also intends to probe or look into reasons for ineffective internal control system in banks with particular reference to Eco-bank Plc Uyo.
This necessitated the researcher to look into the problems of internal control system and how they affect the Nigerian banking industry.
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Objectives Of The Study
The main aim of this research work is geared towards achieving the following objective:-
To evaluate the internal control system of the bank in order to ascertain the system of internal control.
To assess the level to internal control system in the Banking sector.
To find out the measure put in place to prevent fraud.
To find out the level of internal control system in safeguarding the asset of Banking Industry.
Significance Of The Study
This study will be of tremendous benefit to the public at large, the banks and others co-operate bodies, as it will provide them with a standard of best practice to banks for the implementation of effective and sound internet control system. The study will also serves as a guide to management companies, banks, paratetal etc as will explain to them effectiveness of internal control system in banks in Nigeria.
It will also help banks to gear effort towards improving upon its internal control system which needs to be improved, and shall serve as a source of information or reference material to other students or researchers who may want to conduct a study of this nature.
Research Hypothesis
HO: internal control system does not safe guards the assets and non-assets of the Nigerian Banking sector.
HI: Internal control system safe guards the assets and non-assets of the Nigerian Banking sector.
HO: Internal control system does not enhance the level of profitability in Nigerian Banking industry.
HI: Internal control systems do not enhances the level of profitability in Nigerian Banking industry.
HO: Does internal control system does not help in fraud detection in Nigerian Banking Sector.
HI: Internal control system does not help in fraud detection in Nigerian Banking sector.
Definition Of Terms
BANK: Bank is the financial institution and a financial intermediary that accepts deposits and channels those deposits into lending activities either directly by loaning or indirectly through capital market.
BANKING BUSINESS: According to Bank Act of (Singapore) section II defined Banking businesses as the act of receiving from the general public money on current deposit, savings or other similar account repayable on demand.
CONTROL: this refers to the ways of ensuring that activities are produces at a desired result.
According to Akpakpan (2002 p. 118) defined as a measure put in place by management of an organization to ensure that result conforms with expectations. It is a system designed to safeguard and ensure the reliability of financial record.
ECONOMIC GROWTH: Ande (2005. p 292) defined as the process by which the productive capacity of an economy increases over a given period leading to a rise in the level of the national income.
Internal control system: This may be defined as the act of accounting and administrative control practices that help administrative control practices that help to ensure that approved and appropriate decision are made on an organization. Okezie (2004, p 74).
INTERNAL CONTROL SYSTEM: This may be defined as the act of accounting and administrative control practices that help to ensure that approved and appropriate decision are made on an organization. Okezie (2004,P74).
INTERNAL CHECK: These are part of internal control established by the management to secure segregation of duties among the staff in such a way that work of one can check by another to avoid mistake or fraud.
MONETARY POLICIES: This is the process by which the monetary authority of a country control the supply of money.
Assets: Any owned physical object (Tangible or in Tangible having a money value. Miegs (1996:108).
Scope/Limitation Of The Study
The study is based on the internal control system in the banking industry in Nigeria, restricting it scope to the Eco-bank Plc.
The researcher is limited by time constraints the time frame allowed for the submission of the project is quite short considering the process involving other constraints are in area of data collection insufficient research materials and Luke-warm attitude of some respondents. The importance of finance for the execution of the research work cannot be over emphasized as lack of adequate finance hindered many activities in the study. Being a requirement for national Diploma, the research work is limited to forty (40) to forty five (45) pages.
Organization Of The Study
This project work is organized into five chapters. These consist of the following:-
Chapter one focuses on the general introduction of the study and an over view of what the entire research is all about. It contain leading, such as back ground of the study, statement of the problem, objective of the study research hypothesis significance of the study, scope/limitation of the study. Also, include the organization of the study and definition of terms. Chapter two is the review of related literature.
Chapter three is concerned with the research methodology. It shows the procedure used in conducting the research and all the sources of information, the method of data collection used as well as the analysis technique employed.
Chapter four is based on data presentation analysis and interpretation. Lastly, chapter five present findings, conclusion and recommendations.
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