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ACCOUNTING SYSTEM AND PERFORMANCE OF SMALL SCALE ENTERPRISES (A STUDY OF SELECTED ENTERPRISES IN THREE SENATORIAL DISTRICTS IN AKWA IBOM STATE)

ACCOUNTING SYSTEM AND PERFORMANCE OF SMALL SCALE ENTERPRISES (A STUDY OF SELECTED ENTERPRISES IN THREE SENATORIAL DISTRICTS IN AKWA IBOM STATE)


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ACCOUNTING SYSTEM AND PERFORMANCE OF SMALL SCALE ENTERPRISES (A STUDY OF SELECTED ENTERPRISES IN THREE SENATORIAL DISTRICTS IN AKWA IBOM STATE)

PROJECT TOPICS AND MATERIALS ON ACCOUNTING SYSTEM AND PERFORMANCE OF SMALL SCALE ENTERPRISES (A STUDY OF SELECTED ENTERPRISES IN THREE SENATORIAL DISTRICTS IN AKWA IBOM STATE)


CHAPTER ONE

INTRODUCTION

  • Background of the study

Finance play a vital role in planning the affairs of an organization it is obvious that organization cannot survive without financial planning. Be it private or public enterprise. Both enterprise need fund for the day-to-day operations to meet their organization goals and objectives, financial resources then become very important. The essential note of private and it’s scarcity in relation to demand requires prudent financial management of resources. Onoula (2007) noted that prudent financial management and control requires making decision on the financial needs. Sources and use of funds, therefore, organization must adopt policies and procedures that are considered prudent through the use of efficient and effective system of internal control. Control is necessary to ensure that management policies and directives are properly adheres to, as matter of fact management must rely on the various control and techniques put in place to implement it decision and policies. One principles of internal control is the segregation of duties and responsibilities among employees. As Meigs (2002) put it when business operation are so organized such that two or more employees are required to handle a particular transaction the possibility of funds is reduce and the work of one employee gives assurances of accuracy of t he work of another.

In the opinion of Ekwere (2001) put it “Internal control is a means by which management can best discharge its primary responsibility by reporting adequate and accurate financial and operating information to stakeholders. According to Barr. And Grinakar (2005) accounting and financial audit comprises the plan or organization and all the methods and procedures that are concerned with and relate directly to safeguarding of assets and the reliability of financial records. They are generally includes such control as the system of authorization and approval, separation of duties concerned with record operation or asset custody, physical control  over assets, and internal auditing. The operational auditing the operational auditing concentrates on seeking aspect to operation in which waste, inefficiency and excessive  cost would be subject to reduction by the introduction or improvement of operating control, lack of adequate information of work with, create loopholes in most control system in government owned establishment.

It is against this background that research was conducted to evaluate the impact of internal control system in enhancing effective management control in Uyo Local Government Area.

  • Statement of the problem

Government ministries and parastatal are required to carry out their operations in accordance with internal control measures to facilitate goals attainment. Promote good stewardship and ensure security of assets against waste and fraud. However, lack of effective and efficient internal control measures given room to embezzlement. Loss of cash assets, and inflated liabilities which is determined to the achievement of government direction. It is worthy to note that without a well designed and effective management control procedures in a treasury department the Local Government control procedures in a treasury department the local government Administration in Uyo is bound to Experience a number of problem such as

  1. Fraud and mismanagement of resources
  2. Misappropriation and embezzlement of funds
  • Gross mismanagement of the administration resources.

The above factors undermine the adequately of the internal control system in the government. Thus, the accounting system in the administration cannot provide reliable accounting information for decision making.

  • Objectives of the study

The study is aim at enhancing internal control procedures adopted for proper accountability in Uyo Local Government Area. It is internal to achieve the following specific objectives.

  1. To determine the extent to which the internal control system enhance management effectiveness and efficiency
  2. To evaluate internal control measures adopted for the administration of cash.

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Finance play a vital role in planning the affairs of an organization it is obvious that organization cannot survive without financial planning. Be it private or public enterprise. Both enterprise need fund for the day-to-day operations to meet their organization goals and objectives, financial resources then become very important. The essential note of private and it’s scarcity in relation to demand requires prudent financial management of resources. Onoula (2007) noted that prudent financial management and control requires making decision on the financial needs. Sources and use of funds, therefore, organization must adopt policies and procedures that are considered prudent through the use of efficient and effective system of internal control. Control is necessary to ensure that management policies and directives are properly adheres to, as matter of fact management must rely on the various control and techniques put in place to implement it decision and policies. One principles of internal control is the segregation of duties and responsibilities among employees. As Meigs (2002) put it when business operation are so organized such that two or more employees are required to handle a particular transaction the possibility of funds is reduce and the work of one employee gives assurances of accuracy of t he work of another... accounting project topics

ACCOUNTING SYSTEM AND PERFORMANCE OF SMALL SCALE ENTERPRISES (A STUDY OF SELECTED ENTERPRISES IN THREE SENATORIAL DISTRICTS IN AKWA IBOM STATE)

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