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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