CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
The establishment of company requires technical and management expatriates. For it to be sustained and continue to be in business as a going concern require a sound accounting and administrative policies procedures to be adopted. This is to guide against inefficiencies, misappropriation, fraud, waste and possible loss.
Internal control system is a popular administrative and accounting procedure use by various organizations to safe guard it’s assets. Thus the proper functioning of the internal control system of any organization depends largely on the extent to which the internal audit department of that organization discharged it’s responsibilities and the size of such business.
Internal control system is defined by the institute of chartered
Accountant as “the whole system of control, financial otherwise, establish by the management in order to carry on the business of the enterprise in an orderly and efficient manner, to ensure adherence to management policies., safeguard the asset and secure as far as possible the completeness and accuracy of the records”.
The concept of the whole system of control in areas of authorization and approvals appraisals and review of performance and budgetary control.
In normal business situation, these controls must be spelt out and seen to be in existence and implemented by staff concern and designed, while the reports and output the emanating from the implementation of the control are sent to the management from the various department heads and supervisors. The responsibility of the internal audit department (staff) is to investigate and appraise the whole system of internal control and the efficiency with which the various department of business are performing that assigned functions.
Accordingly, Alkison (2013) opined that, internal audit involves all in causes taken by management through the internal audit department to ensure that internal control system is placed functions efficiency and effectively.
Supporting this view, Eketere (2014) states that internal audit act as a managerial control system in area of
- Social and financial policy implementation
- Checking of fraud and preventing errors through regular investigations of possible suspected areas of weakness for the control system.
- Acting as a consultant to management in matter.
- Monitoring external responses to the internal control system to minimize waste, losses and abuses.
- Assisting to educate staff of the organization on the needs to adhere to manage internal control system.
- Making sure that financial information production are authentic and reliable for policy and decision making.
It is suffice to say at this point that internal control provides directions to all activities and monitor the working of all the section and branches of the organization control techniques. It is against this background seeks to explore and evaluate the effectiveness of an organization with reference to UBA pLC, Uyo.
Considering the fiduciary roles banks plays on the economy and the faced that bank dears with money and the need to present a true and fair view of the financial statement by the auditor, it became necessary to analyzed and measured the extent of bank control as a cost reduction technique and controls over its assets.
1.2 STATEMENT OF THE PROBLEM
Inefficient utilization and management to assist of an organization could be as a result of ineffective control system which can create lapses and loopholes for various fraudulent practices to thrive. This problem may be caused partly by management and or law middle staff due to weak designed internal control system. This can lead to non achievement of organization objectives.
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