The Project File Details
TABLE OF CONTENT
2.1 LITERATURE REVIEW
2.2 Concept of internal control system
2.3 Classification of internal control system
2.4 Types of internal control
2.5 Reliance on internal control system
2.6 Axes on internal control system
2.7 Objectives of internal control system
2.8 Environment of internal control system
2.9 Requirements for effective internal control system
2.11 Application of internal control system
2.13 Limitation of internal control system
3.1 RESEARCH METHODOLOGY
3.2 Historical of the case study
3.3 types of Data
3.4 research design
3.5 sample procedure
3.6 Method of Data Collection
4.1 PRESENTATION ANALYSIS OF DATA
4.2 Data presentation
4.3 Data analysis
Banks are very important in nation; they are the backbone of the nation’s economy. Functions of the bank according to ezeuiji (1997), including money creation, acceptance of deposit from the customers, provision of facilities for domestic and foreign remittance, help government in implementing monetary policies etc.
According to Baner Jee (2001) define an internal control system in whole system of control, financial and otherwise established by the government in order to carry on business of the enterprises in an orderly manner, ensure adherence to management policies safeguarding the assets and ensure as far as possible the completeness and accuracy of accounting records.
The function of internal control system include, the detection or safeguarding of business asset but despite the fact a that all bank have internal control system, there have been a lot of problem in the banking sector. Ranging from bank liquidating to defrauding the banks, many bank have been liquidated example of such bank include savannah bank plc, national bank plc ( although it is now being resuscitated) merchant bank Nigeria limited Nigeria internal bank limited mention few
According to central bank of Nigeria (CBN) annual report over (N16 billion) sixteen billion naira was defrauded from the banking sector, also recently a bank was suspended from the clearing system by the central bank of Nigeria (CBN) because of mismanagement of banks resources expert have given reason as to what causes banks distress. According to ezeudiji (1997) one of the causes of bank distress is the internal control system problems include poor or lack of proper authorization of loan and contract, poor loan recovery, failure to collect proper collateral security, management override the control e.t.c.
1.2 STATEMENT OF PROBLEMS
Internal control system many organization, including bank is very important because it ensure orderliness, in the organization, advance to management polices, early detection of error and fraud, protection of assets e.t.c.
Internal control system problem have led to closure of many banks in Nigeria, ezudiji (1997) thereby making depositors customer to shareholder of such bank to loss his or her shares. It is inimical to nations economy because provide 90% of the capital employed in Nigeria. Due to the following problem it leads to the following question.
Does bank operation carried out in any orderly manner and follow the procedure laid down. Does transaction recorded accurately and correctly.
1.3 RESEARCH QUESTION
This project has been able to provide answers to the following research questions.
1.4 OBJECTIVES OF THE STUDY
The objectives of the study are:
1.5 RESEARCH HYPOTHESIS
Ho: The internal control system is not significantly effective on deposit money bank
H1: The internal control system is significantly effective on deposit money bank.
1.6 SIGNIFICANCE /JUSTIFICATION OF THE STUDY
The study is very importance nowadays were federal government have hard to invest of in Nigeria. Since foreign investor will not invest in any country where there is no good banking sector. The study will be of immense benefit to banks determine the extent to which internal control system is effective. In addition the study would determine the factor problem militating against the to it. The study will be of immense help because most of the founds requires by Nigerian are provided by bank also that affect banking sector also affect many others sectors such as agriculture and economy sector of the nations.
1.7 SCOPE AND LIMITATION OF THE STUDY
This study is limited to union bank plc Muritala Muhammed way branch Ilorin due to financial constraint and other problem. The study can only be generated to union bank plc branch all over the country.
1.9 ORGANISATION PLAN
This research work is divided into five (5) main chapters and each chapter has the following content:
Chapter one is the introduction consisting of the statement of problems, research question, objective of the study, research hypothesis, significance justification of the study, scope and limitation of the study, definition of key terms, and organization plan of the study.
Chapter two is the literature review consisting of the historical of the case study, concept of internal control system, classification of internal control system, reliance control, types of internal control system, objective of internal control system, environment of internal system, requirement for effective internal control system, application of internal control system.
Chapter three is research methodology consisting of the types of data, research design, sample procedure and method of data collection.
Chapter four is data presentation and data analysis and finding.
Chapter five is summary, conclusion, recommendation and references.