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CHAPTER ONE

INTRODUCTION

1.1    BACKGROUND OF THE STUDY:

One problem of management is planning but planning is useless if it is not implemented.  The success of any plan is based on adequate control and monitoring of the resources of the disposal in order to achieve the required objective.

However, this is a research on the implication of accounting as an internal control machanism in Enugu State Ministries.

Accounting is defined as art of  recording and giving result of business transaction to the client.  There is a need for the establishment of internal control mechanism to ensure the safety and  enthencity of accounting records from the point of collection of cash or material in final uses.

Internal control therefore means the whole system of controls, financial and otherwise established by the management in order to carry on the efficient manner, ensure adherence to management policies safeguard its assets and secure as far as possible the accuracy and retaliation of its records.

1.2    STATEMENT OF THE PROBLEM

There is a lot of lapses in cash and payroll sectors of many government ministries.  Cases of fraud and pressing of files containing important document and so on.  Recording of materials that were not supplied and issuing store received voucher to contractor, not complying with state financial instructions in accounting system and other cases.

Due to all these mentioned above, the topic of this research was chosen not only to look at the causes and effects but also to give appropriate recommendation which will help to reduce it.

1.3    PURPOSE OF THE STUDY

THE PURPOSE OF THIS STUDY ARE AS FOLLOWS:-

To ascertain the effectiveness of accounting as an internal control mechanism in Enugu State government ministries.

To review the function of internal audit departments of many government departments with the view of finding out the extent to which they have been able to restore their duties.

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