The Impact Of Internal Control System On The Financial Management Of An Organisation

ABSTRACT

Over the years, there have being a problem of incorrect and unreliable financial record which has lead to loss of organizational integrity. The research work aimed among others at determining the relationship between internal measures to proper accounting records. A survey research design was adopted for this research study and a sample size was selected using Yaro Yamane sampling technique as data used were obtained from both primary and secondary sources. Four research questions were formulated out of which three hypothesis were formulated using regression co-efficient analysis method at 5% level of significance and the Z table was also used for comparison between calculated value of significance B and tab le value. The finding from the analysis indicates that internal control measure management performance and is necessary for the growth and effectiveness of the organization. Financial management of any organization cannot do without internal control as true and fair presentation of financial statement may never be possible if the board and senior management are not committed to providing a well planned internal control system. It also recommends that a periodical review of the organization should be done by the management so as to cope with the model trends in organizational fraud prevention.

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TABLE OF CONTENTS

Cover page

Title Page                                                                                                             i

Dedication                                                                                                           ii

Acknowledgement                                                                                         iii

Approval Page                                                                                                   iv

Abstract                                                                                                                  v

Table of contents                                                                                             vi

CHAPTER ONE

INTRODUCTION

1.1

Background of the study

1

1.2

Statement of problem

3

1.3

Objective of the study

4

1.4

Research Questions

5

1.5

Statement of hypothesis

5

1.6

Significance of the study

7

1.7

Scope of the study

7

1.8

Limitation of the study

8

1.9

Definition of terms

8

8

1.10

References

10

CHAPTER TWO: LITERATURE REVIEW

2.1

Introduction

11

2.2

Internal control

11

2.3

Role and Purpose of internal control

13

2.4

Types of Internal control

15

2.5

Function of internal control

19

2.6

Internal control in financial institution

20

2.7

Element of a good internal control system

24

2.8      Relationships between internal auditing and internal control

system.

27

2.9

Management and internal control system

28

2.10

Defect and shortcoming of internal control

29

2.11

Possible solution to defects internal control system

31

2.12

Limitation of internal control

32

CHAPTER THREE

34

3.0      Research methodology

3.1

introduction

34

3.2

Research design

34

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3.3

Sources of data

34

3.4

Area of study

35

3.5

population of the study

35

3.6

sample size and sampling technique

35

3.7

Research instrument

36

3.8

Validation and Reliability of instrument

37

3.9

Method of data analysis

37

CHAPTER FOUR

4.0

Data Presentation and analysis

40

4.1

introduction

40

4.2

Data Presentation

40

4.3

Test of hypothesis

45

CHAPTER FIVE

Summary, Conclusion and Recommendation

54

5.1

Summary of findings

54

5.2

Conclusion

54

5.3

Recommendation

55

Bibliography

57

Appendix

59

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