The Indispensability Of Accounting System In The Control Of Public Expenditure

The Indispensability Of Accounting System In The Control Of Public Expenditure

Abstract

This design named “ the Indispensability of account system in the control of public expenditure( A case study of civil radio pot of Nigeria, Enugu National Station) is putatively an important study. this study is veritably essential especially in the present day where utmost establishment whether public or private are characterized by reports on adding cases of fraud and misappropriation of discoveries. This exploration work aims discovering whether indecorous account system to a large extent contribute to cases of fraud and misappropriation of finances. Other cases of fraud and irregularities among government officers, would also be looked into. The exploration result will help check these anomalies in the government parastatals and these would be continued in a chapters design write up.

Chapter One

Preface

Account is the language of business that can tell with reasonable delicacy the degree of success an association has achieved in approaching its fiscal thing of profit. Account system can be defined as records, procedures and outfit that routinely deal with the events affecting the fiscal performance and position of the association,( Horngren and Foster, 1975). The account system entails repetitious substantial sale which generally falls into cash disbursement, cash bills, purchases and deals, services including hand payroll. The purpose of account system is to give an orderly system of gathering and organizing information about the colorful business sale so that it may be used as an aid to operation in operating the business( manage land and Dascher, 1978). Small scale enterprises have been defined in colorful ways according to the capital of the enterprises, size, the number of people employed by the enterprises, the power and operation of the enterprises and trade volume. Small scale enterprise according to Omorodion( 1987) are veritably important to nations. They’re catalysts for industrialization. This is because they give raw accoutrements for medium and large scale enterprise. They also give employment openings for large parts of the population. For the small scale enterprise to efficiently play the mentioned places they should be an orderly system for gathering and organizing information about the colorful business sale. This can only be done by the use acceptable account system.

principally, they’re two types of account system generally in use, videlicet, single entry and double entry system. These could be operated manually or computerized( Baumback, 1983).

The single entry account system according to Osuala( 1995) is the easiest account system to operate. The system recorded the inflow of income and charges through the business on diurnal summary of cash bills, a yearly summary of cash disbursement. In single entry book- keeping there might be single aspects of certain deals and no record at all of some. Generally, there are rough records of cash entered and paid and of sundry debtors and creditors. Deals are exchange of values. For every value entered, there’s an equal value parted with. It’s egregious thus, that a sale has a double effect. entering of value and giving out value. This system is known as double entry book. Keeping system, double entry book keeping according to Passion( 1989) doesn’t mean recording doubly but rather, it means that every entry recording doubly but rather, it means that every entry or recording of sale has two corridor, a left side and a right side. The left side in the accountant’s language is a disbenefit and the right side, a credit when applied to a sale. The value entered is a disbenefit and the value parted with a credit. Whereas considerable quantum of studies have been conducted on fiscal and operation of small enterprises. Osuala( 1993) reported that generally numerous of these enterprises recorded their sale aimlessly without adherence to any established systems of account, hence, there’s inadequately in keeping tract of the cash inflow in the enterprises. Mitchel et al( 2000) argued that counting information could help the small scale enterprises manage short term problems in similar areas as going , expenditure and cash inflow by furnishing information to support monitoring and control knowledge cash inflow according to Pandy( 1991) is veritably important because cash overflows are inseperable corridor of the business operation of all enterprises. Paren and Grant( 2000) noted that decision timber processes in small scale enterprises are more sophisticated than anticipated but they demanded effective account information and control system to support their decision. likewise, the transnational confederation of Accountants( 2006) reported that there’s substantiation to suggest that small enterprises are apprehensive of the significance of counting information. Inspite of this mindfulness most possessors of small enterprises in Nigeria most times aren’t too keen to use standard account system to run the day to day conditioning of their enterprises.( Ofonagoro, 1983), the high rate of failure of small scale enterprises in developing countries like Nigeria, has generally been traced to poor operation and account system employed by these enterprises. The purpose for these study, thus was to identify the account system in use in small scale enterprise in Enugu, South East Nigeria with a view to determine acceptability of similar system( s) and recommend remedies demanded for improvement of counting information system in optimization of the operation of these enterprises.