ABSTRACT
The research work borders on the assessment of internal control as a means of prevention and early detection of fraud in manufacturing firms in Nigeria. Data used for the work were collected from both primary and secondary sources. The relevant data collected were analyzed using simple regression analysis. The result of the analysis revealed that the presence of the external auditors detect fraud and errors; the existence of internal control ensures safety of assets; the existence of internal control guarantees orderly and efficient conduct of business; management is the major factor responsible for weak and poor internal control system in a manufacturing firm; the existence of internal control guarantees reliability of accounting records. The study concluded that effective internal control system in manufacturing firms has significantly influenced the profitability of manufacturing firms, prevention and early detection of fraud and safety of assets has improved; finally the study recommends that: management of manufacturing firms should ensure they have an effective internal audit department, management of manufacturing firms should encourage rotation of duties and encouraging annual leave, management of manufacturing firms should ensure immediate and complete recording of all transactions, management of manufacturing firms should ensure preparation of periodic and interim statements, management of manufacturing firms should ensure provision of physical safeguards like safes, watchmen and other security systems.
INTRODUCTION
........... Increasing attention has been paid to the methods of internal control in recent years. Not only the complexity of modern business techniques but also the increased size of business units has encouraged the adoption of methods which helps to bring about increased efficiency of the business as well as safeguarding against irregularities of all kinds. Furthermore, the regulation of business activities under an efficient internal control system may remove the difficulty in the necessity of protracted detailed work by external auditors, with resultant benefit to all parties.
One of such methods adopted by almost all business organizations today to ensure an efficient and effective internal control system is the creation and establishment of an internal audit department or the employment of an internal auditor. This is one of the methods used by management to ensure adequate controls with a view to constantly reviewing the system and give due consideration to the financial procedures and position within the organization.
The recognition of the concept of internal control has gradually grown over the years but the greatest period of its development occurred during the decade beginning the year 1940. And ever since then it has been gaining importance day by day. The impetus for its development came both from management as well as from auditors. The management found it to be a vital tool to effectively discharge its responsibilities and for the auditor, it became a boon, because it facilitated his work by enhancing credibility to accounting records. It is an admitted fact that most information needed by the management for planning, decision-making, controlling and evaluation of performance comes from accounting records and this information must reliable, complete, and timely to be of maximum use.
Internal control to a great extent contributes to the attainment of these objectives. Further, had there not been the development and recognition of internal control as a useful management tool, the effective auditing of accounting records of modern day corporate bodies would have become simply unattainable. By studying and examining the internal control system and its contours, the auditor is in a position to drastically cut down the routine work involved in auditing without compromising on the quality of the audit and keeping the cost to conduct the audit at a reasonable level, provided he was satisfied about the system and its effective operation.
Internal control is not only essential to maintaining the accounting and financial records of an organization, it is essential to managing the entity. Everyone from the external auditors to management to the board of directors to the stakeholders of large public companies to government, have interest in internal controls. In many parts of the world, regulators have emphasized the importance of internal control by requiring management to make annual public statements about the effectiveness of internal controls. ...............
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CHAPTER ONE: INTRODUCTION
1.1 BACKGROUND TO THE STUDY
1.2 STATEMENT OF THE RESEARCH PROBLEM
1.3 PURPOSE OF THE STUDY
1.4 RESEARCH QUESTION
1.5 RESEARCH HYPOTHESIS
1.6 SIGNIFICANCE OF STUDY
1.7 SCOPE AND LIMITATIONS OF THE STUDY
1.8 ORGANIZATION OF STUDY
1.9 DEFINITION OF TERMS
REFERENCES
CHAPTER TWO: LITERATURE REVIEW
2.1 INTRODUCTION
2.2 DEFINITIONS OF INTERNAL CONTROL
2.3.1 SCOPE OF INTERNAL CONTROL SYSTEM
2.3.2 CONCEPT OF INTERNAL CONTROL
2.4.1 FEATURES OF INTERNAL CONTROL
2.4.2 COMPONENTS OF INTERNAL CONTROL
2.5 OBJECTIVES OF INTERNAL CONTROL
2.6 CLASSIFICATION OF CONTROLS
2.7 CONCEPT OF INTERNAL AUDIT
2.8 CONCEPT OF FRAUD
2.9 LIMITATIONS OF INTERNAL CONTROL
REFERENCE
CHAPTER THREE: RESEARCH METHODOLOGY
3.0 INTRODUCTION
3.1 RESEARCH DESIGN
3.2 POPULATION DESCRIPTION
3.3 SAMPLING TECHNIQUES
3.4 SAMPLE SIZE DETERMINATION
3.5 SOURCES OF DATA
3.6 INSTRUMENTS OF DATA COLLECTION
3.7 METHODS OF DATA PRESENTATION AND ANALYSIS
3.8 VALIDITY AND RELIABILITY OF RESEARCH INSTRUMENT
REFERENCES
CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS
4.0 INTRODUCTION
4.1 DATA PRESENTATION, ANALYSIS AND INTERPRETATION
4.2 TEST OF HYPOTHESIS
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.0. INTRODUCTION
5.1. SUMMARY OF FINDINGS
5.2. CONCLUSION
5.3. RECOMMENDATIONS
BIBLIOGRAPHY
APPENDIX I
Reference code: c029
Reference code: c029
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107 Pages
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