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Download the complete Accounting project topic and material (chapter 1-5) titled INTERNAL CONTROL AS AN AID TO ACCOUNTABILITY IN THE PUBLIC SECTOR. (A STUDY OF BIASE LOCAL GOVERNMENT AREA, CROSS RIVER STATE)  here on PROJECTS.ng. See below for the abstract, table of contents, list of figures, list of tables, list of appendices, list of abbreviations and chapter one. Click the DOWNLOAD NOW button to get the complete project work instantly.

 

PROJECT TOPIC AND MATERIAL ON INTERNAL CONTROL AS AN AID TO ACCOUNTABILITY IN THE PUBLIC SECTOR. (A STUDY OF BIASE LOCAL GOVERNMENT AREA, CROSS RIVER STATE)

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  • Name: INTERNAL CONTROL AS AN AID TO ACCOUNTABILITY IN THE PUBLIC SECTOR. (A STUDY OF BIASE LOCAL GOVERNMENT AREA, CROSS RIVER STATE)
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  • Length: [86] Pages

 

ABSTRACT

In this study internal control as an aid to accountability in the public sector was researched on using Biase local government area, cross river state as the case study. The major objective of the study was to find out and understand how internal control aids accountability in the public sector and to explain those relevant topics, which will enable any reader to understand and appreciate the important of how internal control aids accountability. Questionnaires were constructed for the purpose of data collection. The constructed questionnaires were administered to the various departments of Biase local government area. A field study was used to test and establish the validity of the hypotheses. Hence data was carefully analyzed with the aid of simple percentages. The hypotheses were then tested by using chi-square and decision rule which was used in the conclusions. The major findings revealed that, internal control provides desired results in the public sectors; internal control provides for preventing and detecting embezzlement, fraud and errors, for reasonable accounting of liabilities, expenses, revenue and assets. In conclusion, the researcher observed that internal control system has a significant positive impact on every establishment’s profitability and survival. No organization, regardless of the nature and size can operate successfully without an adequate and effective system of internal control and accountability. For effective application of internal control these recommendations were made. That good, complete and integrated system of accounting should be established. Written manual of accounts operational procedures should be set out. There should be adequate forms and documents with some control features. Accounting system should emphasis employee competence and duties assigned should be commensurate capabilities. Finally, public sectors should effectively utilize the information or reports given to it by internal audit department in handling its financial affairs.

TABLE OF CONTENTS

Title page ………………………………………………………………………………………. i Approval page …………………………………………………………………………………. ii Certification …………………………………………………………………………………. iii Dedication …………………………………………………………………………………… iv Acknowledgement …………………………………………………………………………. v Abstract …………………………………………………………………………………………. vi Table of contents ……………………………………………………………………………. vii List of tables ………………………………………………………………………………………. x List of figures ………………………………………………………………………………….. xi CHAPTER ONE: INTRODUCTION 1.1 Background of the study ……………………………………………………………. 1 1.2 Statement of the problem ………………………………………………………….. 3 1.3 Statement of the objectives ………………………………………………………… 4 1.4 Research questions ………………………………………………………………….. 5 1.5 Research hypotheses …………………………………………………………………. 5 1.6 Significance of the study …………………………………………………………… 6 1.7 Scope of the study ……………………………………………………………………. 7 1.8 Limitations of the study …………………………………………………………….. 8 1.9 Definition of terms ………………………………………………………………….. 8

CHAPTER TWO: REVIEW OF RELATED LITERATURE 2.1 Concept of internal control ……………………………………………………….. 10
2.2 Factors that characterize effective internal control ……………………….. 11
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2.3 Classes of internal control …………………………………………………………. 15
2.4 Limitations of internal control ……………………………………………………. 18
2.5 Evaluations of internal control ……………………………………………………. 19
2.6 Internal control and the auditor …………………………………………………… 20
2.7 Public accountability …………………………………………………………………. 23
2.8 Historical overview of the case study ………………………………………….. 28
2.9 Internal control and accountability ……………………………………………… 28
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Research design …………………………………………………………………………. 30
3.2 Sources of data ………………………………………………………………………….. 30
3.3 Area of study …………………………………………………………………………… 31
3.4 Population of the study ……………………………………………………………… 32
3.5 Determination of sample size …………………………………………………….. 32
3.6 Reliability of the instrument ……………………………………………………… 33
3.7 Validity of the instrument ………………………………………………………….. 34
3.8 Method of data analysis …………………………………………………………….. 34
CHAPTER FOUR: PRESENTATION OF DATA
4.1 Presentation of data …………………………………………………………………… 37
4.2 Test of hypotheses …………………………………………………………………….. 48
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CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS.
5.1 Summary of findings ………………………………………………………………… 58
5.2 Conclusions …………………………………………………………………………….. 59
5.3 Recommendations ……………………………………………………………………. 60
BIBLIOGRAPH
APPENDICES

CHAPTER ONE

INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Internal control according to Okezie (1999:43) could be likened to the heart”,
which regulates the business blood”. No business could succeed without an
effective control system. Internal control can also be likened to the brake and
steering in a vehicle, which, if there are not there, the business “train” will cash. It
can be likened to the laboratory or quality control machinery, which controls the
quality of products produced by an organization. It is the centre hob of all financial
activities of an establishment.
Internal control is one of the essential means of establishing and maintaining
management control of a business. It involves the entire basic element of
management control and is itself the main element of the appraisal, measurement
and evaluation control.
Effective system of control is a prerequisite for the attainment of
organizational goals, but it has remained one of the biggest problems facing
modern day business. It is an extremely broad topic and of course is not restricted
to the accounting field but embraces all activities of the organization.
Generally, all aspect of humans endeavor need control. For instance, the
business is controlled by the manger or director, the church by the pastor, the
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school by the head teacher or vice chancellor as the case may be. All these are
aimed at satisfaction, maximizing gains, ethical requirement, minimizing cost or
losses. But these requirements cannot be met if there is no efficient and organized
internal control.
The consultative committee of accounting bodies in the United Kingdom
(auditing guidelines {1985:5} defined internal control as “the whole system of
controls, financial or otherwise, established by the management in other to carry on
the business of the enterprise in an orderly and efficient manner, ensure adherence
to management policies, safeguard the assets and secure as far as possible the
completeness and accuracy of the records”.
Internal control system is divided into two main aspects – Accounting controls
and Administrative controls. However, for the purpose of this research project,
effort is concentrated mainly on the accounting control aspect.
In government accounting system, internal control is important because the
essence of representative government is the existence of a system of checks and
balances to safeguard the interest of taxpayers and other citizens. It may be
described briefly as a disposition of operations and procedure whereby the
accomplishment and recording of every transaction requires the participation of
two or more persons. Supplementary of those conditions for constituting internal
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control is the additional requirement of an interrelationship of records so designed
that the occurrence of another or others.
In recognition of the essential features of a good system of internal control, this
research project will try to evaluate the basic element of an organized system of
internal control as it applies to Biase local government area, cross river state. In
view of this, the researcher will look at the various facet so the local government,
and administrative policies of the local government, with special attention on how
the local government records her transactions, system of authorization and
approvals, segregation of duties as well as safeguarding of properties.
The management of the public sector affairs is totally responsible for the
establishment of the system it implores and internal control measures with that
system. The concept takes into consideration the fact that human beings are not
perfect. There is always the tendency for:
Honest and genuine mistakes.
Dishonest manipulation and deliberate distortion.
Biased judgment and reporting.
All these portray the overall weakness inherent in an organization. This
therefore calls for a strong system of internal control, which is capable of
producing the desired effects i.e. being accountable to the public.

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1.2 STATEMENT OF THE PROBLEM
Internal control in the recent years has being singled out for special
emphasis. Most of the writers have written about the evaluation of the efficacy of
internal control measures in public sectors and most often it has been treated as a
problem. Some concentrate on the recording pattern, inventory control system,
segregation of duties, authorization and approval procedures while some concern
themselves with problems of physical checks.
Internal control is often cited as the root of most problems in public sectors.
Problems of internal control are given as the explanation for failures and miss
management in public sectors.
Since internal control is the factor for the survival of public sectors, the
researcher wants to evaluate the efficacy of internal control measures in public
sectors. The researcher also wants to find the factors that contribute to achieving an
effective system of internal control and the problems facing this. Some of these
problems are duplication of functions and duties, embezzlement of funds, errors of
omission and commission, over staffing, pilferage and stealing as well as wrong
reporting of data. Why do these problems exist? And what is the extent of this
problem on the overall performance of the establishment. More so, the researcher
wants to identify the various criteria for measuring the efficiency and effectiveness
of an internal control system. All these require investigations, and it is the aim of
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this researcher to find out solutions to the above mentioned problems with regards
to public sectors.

1.3 STATEMENT OF THE OBJECTIVES
The local government has evolved into gigantic size and scope, including a
great variety of specialized facilities and technical operations and numbering
villages in tenth has made it impossible for the chief executive to exercise personal
first-hand supervision of operations. He is no longer able to rely on personal
observation as a means of appraising operational results, the chief executive has of
necessity come to depend upon the units’ heads, head of departments, and a stream
of accounting and statistical reports to control and direct the sector.
The information made available keeps management informed as to whether the
sectors policy is being executed. It enables the management to know whether the
governmental regulations are being observed and whether financial position is
sound for accountability.
Therefore the objectives of this study include:
1. To find out the rate of the application of a system of internal control in Biase
local government area, cross river state.
2. To advice the public sectors on the findings for improvement.
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3. To add to the existing knowledge of internal control as an aid to
accountability as well as to make necessary suggestions, for the interest of
the government that finances the sector.
4. To make reasonable suggestions on the best way of achieving a good
internal control as a way of controlling cost and safeguarding assets, aimed
at proper accountability of public funds.
5. To identify the likely factors that impedes efficient internal control
measures.
6. To make general and specific recommendations, this in the researchers view
will make internal control to aid accountability in the public sector.
1.4 RESEARCH QUESTIONS
The following questions were used among other primary data for proper
completion of the study;
1. Does internal control provide desired effect or result in public sectors?
2. Does internal control provide appropriate segregation of functional
responsibilities?
3. Does internal control provide a system of authorization and record
procedures adequate for reasonable accounting control over assets,
liabilities, revenue and expenses?
4. Does internal control provides a sound accountability of records in the sector
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5. Does internal control provide sound practices to be in performance of duties
and functions of each organizational department?
6. Does internal control provide for preventing and detecting embezzlement,
fraud and errors?
1.5 RESEARCH HYPOTHSES
A number of variables must have to be put into consideration in trying to
evaluate the efficacy of internal control measures by Biase local government area,
cross river state. It is these variables that the researcher wishes to uncover in order
to understand the role played by the application of internal control measures to the
survival of the public sectors.
Based on the statement of the problem and the purpose of the study, the
researcher formulates the following hypotheses:
1. Ho: Internal control does not provide desired effects or results in the
public sector.
2. Ho: Internal control does not provide appropriate segregation of
functional responsibility.
3. Ho: Internal control does not provide a system of authorization and record
procedure adequate for reasonable accounting control over assets,
liabilities, revenue and expenses.
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4. Ho: Internal control does not provide a sound accountability of records
in the sector.
5. Ho: Internal control does not provide a sound practice to be in
performance of duties and functions of each organizational department.
6. Ho: Internal control does not provide for preventing and detecting
embezzlement, fraud and errors.
1.6 SIGNIFICANCE OF THE STUDY
The research work of this nature will be significant to the government,
business organizations, academic as well as the researcher.
Often government establishment are accused of dishonest manipulation and
deliberate distortion and thereby not being accountable to the public. In this view
of this, the significance of the study includes the following:
1. GOVERNMENT: It is hoped that findings in this research work and
subsequent recommendations will go a long way in helping the state and
federal governments achieve their aims and objectives through their
establishment and find out how true the accusation is.
2. BUSINESS ORGANISATIONS: Every establishment should maintain a
cordial relationship with business organizations. The revealing of this
relationship and what the government does will go a long way to put the
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general public on the knowing of what the government is up to in terms of
proper amenities and good infrastructure.
3. ACADEMIC: By unveiling the distortions in the local government and
unearthing some of their crimes, this study will add to the knowledge of
dynamics of Biase local government area, cross river state and to the entire
academic world.
4. RESEARCHER: The researcher will gain a lot by involving himself in
identifying some of the contradictions of policies and giving
recommendations that will endeavor to reduce the shortcoming from local
governments in the country.
1.7 SCOPE OF THE STUDY
During research work, students are often faced with many constraints. To
evade some of these constraints, students are now required to carry out a research,
in a small area selected for study or to be used as a reference point for large area.
This study is based on internal control as an aid to accountability in the public
sector using Biase local government area as a case study. The study is also to
examine accountability in public sectors and how internal control aids to it.
Therefore the scope of this study covers a spectrum of Biase local
government area.
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1.8 LIMITATION OF THE STUDY
Research of this nature is always beset with series of difficulties, ranging
from the problem of data collection, time, low literature and problem of getting the
desired attention from the respondents. The major constraints of this study are as
follows:
I. TIME: This is one of the major constraints of this study to get the true
research it requires. Interview periods are frequently shortened and
sometimes rescheduled because of other engagements of the management
personnel being interviewed. Also the academic work and other domestic
problems of the researcher leave him with limited time for work.
II. ATTITUDE OF THE RESPONDENTS: Some of the respondents were
unwilling to disclose certain information for security purposes as well as
distorted or biased report from the worker is another constraint. Therefore,
the outcome of the study depends on the data collected from the state
councils and local government chairman.
III. LOW LITERATURE: Another limiting factor is the non-availability of
adequate information involved in the study due to the fact that the local
government was in the remote area.

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1.9 DEFINITION OF OPERATIONAL TERMS
Some terms that are used in the research are defined as the apply to this
study. They are as follows:
ORGANISATIONAL CONTROLS: According to Ifurueze {1995:111}
“organizational controls are rules and regulations and essential procedure
which identifies the organizational structure, define roles, allocate
responsibilities and identify lines of reporting for all the establishment
operations”.
ACCOUNTING CONTROL: Accounting control according to Ifurueze
{1995:111} “comprises the methods and procedures that are mainly
concerned with the authorization of transactions, the safeguarding of asset,
and the accuracy of the financial records. Good accounting controls help
maximize efficiency, they help minimize waste, unintentional errors and
frauds”.
PUBLIC SECTOR: This is simply defined as, all organization which is not
privately owned or as organization which lie in the hands of the public.
INTERNAL CONTROL: This may be defined as the whole system of
controls, financial or otherwise, established by the management to assist in
carrying out functions in an orderly manner, safeguard its assets, secure as
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far as possible the accuracy and reliability of its records, promote
operational efficiency and encourage adherence to policies.
ACCOUNTABILITY: According to Dan Oku {2001}” as setting correct
goals, evaluating the effective achievement of the major objective and at
what price, presenting and interpreting this information to the public and
accepting responsibility of failure.
FRAUD: This means irregularities involving the use of criminal deception
to obtain an unjust or illegal advantage.

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