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Internal Control as an Aid to Accountability in the Public Sector

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Description

– Internal Control as an Aid to Accountability in the Public Sector –

Download Internal Control as an Aid to Accountability in the Public Sector. Students who are writing their projects can get this material to aid their research work.

Abstract

In this study internal control as an aid to accountability in the public sector was researched on using Biase local government area, cross river state as the case study.

The major objective of the study was to find out and understand how internal control aids accountability in the public sector and to explain those relevant topics, which will enable any reader to understand and appreciate the important of how internal control aids accountability.

Questionnaires were constructed for the purpose of data collection. The constructed questionnaires were administered to the various departments of Biase local government area. A field study was used to test and establish the validity of the hypotheses. Hence data was carefully analyzed with the aid of simple percentages.

The hypotheses were then tested by using chi-square and decision rule which was used in the conclusions.

The major findings revealed that, internal control provides desired results in the public sectors; internal control provides for preventing and detecting embezzlement, fraud and errors, for reasonable accounting of liabilities, expenses, revenue and assets.

In conclusion, the researcher observed that internal control system has a significant positive impact on every establishment’s profitability and survival. No organization, regardless of the nature and size can operate successfully without an adequate and effective system of internal control and accountability.

For effective application of internal control these recommendations were made. That good, complete and integrated system of accounting should be established. Written manual of accounts operational procedures should be set out. There should be adequate forms and documents with some control features.

Accounting system should emphasis employee competence and duties assigned should be commensurate capabilities. Finally, public sectors should effectively utilize the information or reports given to it by internal audit department in handling its financial affairs.

Introduction

1.1 Background of the Study

Internal control according to Okezie (1999:43) could be likened to the heart”, which regulates the business blood”. No business could succeed without an effective control system.

Internal control can also be likened to the brake and steering in a vehicle, which, if there are not there, the business “train” will cash. It can be likened to the laboratory or quality control machinery, which controls the quality of products produced by an organization.

It is the centre hob of all financial activities of an establishment. Internal control is one of the essential means of establishing and maintaining management control of a business.

It involves the entire basic element of management control and is itself the main element of the appraisal, measurement and evaluation control.

Effective system of control is a prerequisite for the attainment of organizational goals, but it has remained one of the biggest problems facing modern day business.

It is an extremely broad topic and of course is not restricted to the accounting field but embraces all activities of the organization.

Generally, all aspect of humans endeavor need control. For instance, the business is controlled by the manger or director, the church by the pastor, the 13 school by the head teacher or vice chancellor as the case may be.

All these are aimed at satisfaction, maximizing gains, ethical requirement, minimizing cost or losses.

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