Project work being part of the requirement for the
successful completion of the course is a commendable and much value integral
part of the structure syllables. This have given me the opportunity to level
into area of interest which internal control is applicable to civil services
financial, and store controls this project work into the internal control
system and with particular reference to ministry of finance, Asaba Delta State
the sample was made up respondents elected from three departments, the office
of the accountant general, audit department and store in Asaba. The instruments
used for collecting data were analyzed. All data gathered were analyzed using
simple percentages formula in addition, the proposed study was given historical
and analyzed consideration and sub-sequent findings a conclusion was arrive at
and recommendation for the researchers.
TABLE OF CONTENTS
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 3
1.4 Research Question 4
1.5 Significance of the study 5
1.6 Scope of the Study 6
1.7 Limitation of the Study 6
1.8 Definition of Technical Terms 6
Chapter Two – Literature review
2.1 Introduction 8
2.2 Objectives of Internal Control 9
2.3 The Components of Internal Control 9
2.4 Quality of Internal Control 12
2.5 Organs of Control in Government 17
2.6 Limitation of Internal Control 19
2.7 Nature of Fraud 20
Chapter Three – Research methodology
3.1 Research design 22
3.2 Population of the Study 22
3.3 Sample Size 22
3.4 Sample Techniques 22
3.5 Research Instrument 22
3.6 Validation of Instrument 23
3.7 Reliability of the Instrument 23
3.8 Method of Data Collection 24
3.10 Method of Data Analysis 24
Chapter Four – Data Analysis and Presentation
4.1 Introduction 25
4.2 Presentation and Analysis of Research Question 25
4.3 Discussion of Findings 33
Chapter Five – Summary conclusion and recommendation
5.1 Summary 34
5.2 Conclusion 34
5.3 Recommendation 35
5.4 Suggestions for Further Studies 35
Background of the Study
The word control has been in use from time to time. Type of
organization, one from of control or the other is exercised to see to the
progress and smooth running of such organization. It can be in small sized or
the government. The oxford advanced learners. Dictionary define control as the
govern to make decision about how an area, an organization is run. It is an
authority to direct, order or restrain it also defines control as having
control authority over regular checks. Internal control is self suggest involve
various act or ways taken within an organization to ascertain checking,
regularity and direct the smooth flow activities of the organization.
The principle connected with internal control has evolved
gradually over the year with greater period of development occurring during the
last accede beginnings from 2000 such development come from management and
auditor, attention must be made of audit. Act although it is not part of
internal control system but the federal development overseas the work of all
ministries as internal auditors making sure that all reasonable precaution has
been taken to safeguard the collection of public finance and that the financial
control management act 1950 is fully complied with.
It is pertinent at this point or at this junction to define
the term internal control by its means not only internal checks, internal audit
but the whole system of control financial and otherwise establish by government
or management in order to carry on the business of the company in a well define
manner in order to safeguard it assets and secure as much as possible the
accuracy and reliability of its records. In the civil services internal control
can be truly categories into administrative control and accounting the
The government has ways of controlling the activities of
ministries in their respective financial commitment. These are done by
legislative budgetary control / policies and of the financial by legislative
budgetary control policies and other financial control for example, issuing of
warrant to the individuals, ministries by the ministry of finance before
expenditure can be made. This study is focused on the internal control system
with the ministry of finance as an ease study.
In the recent past there have been audit of impress amounts
and number of goods in due was house, in the financial Para status this would
continuing and the idea is to know how often the government check the treasury
inspectorate and also who approved order from the store purchase. In fact most
government organization if not all have suffered grate financial losses due to
manipulation and fail fictions of cash and goods quest have make a way for the
government to have stole organs or internal control system that will make sure
that financial regulation are restrict complied will and expenditure and
revenue property accounted for.
Internal control has been on invaluable tool for checking,
controlling, presenting and detecting fraud and irregularities.
Fraud can be seen as the use of criminal deception or method
to obtain organ an unjust or unmerited advantages the oxford advanced earners
dictionary defines someone, in order to make money and or obtain goods illegal.
Statement of the Problem
Most organization does not have proper or good internal
control system to check the number of fraudulent in their organization.
This project deals with the use of internal control system
in the civil services with the Ministry of Finance Asaba Delta State as a case study
these range from carelessness, dishonest staff interest and human bias, with
holding the cash receipt misuse of cash funds, and falsification of document at
higher level, falsification of records, diversion of securities / purchasing
kick back payrolls and removal of various products.
Objectives of the Study
Despite the system of internal control established by
government institution, cases of financial management and fraud are rampant.
Therefore the objectives of this study are to:
Enable the work performed by a person on a particular
transaction to be ascertaining any omission or mistakes can be traced to that
Enable the work of auditor easier to carry out where
reliance can be placed on the internal control.
Enable competent and well trained person to handle special
areas of job or functions.
Ensure that assets are safeguarded through restricting of
access to unauthorized persons.
Ensure that error fraud and irregularities are check and
To make up for easy and effective collections of required
data, the question below were formulated in order to re-assess and research the
problem of stores and treasury inspectorates unit accordingly.
Do organizations in the civil service usually have effective
internal control system?
Does the ministry of finance records liabilities before
payment from the interest given to them?
Does government establishment have internal audit units?
To what extent does proper segregation of deities prevent
fraud from accruing?
Should the internal auditor, be place at the highest level
of management so that he can have access to all parts of department of the
organization without hindrance?
Can the external auditor rely on co-operate with the
internal auditor in investigation and reporting of their findings?
Without the internal auditor can proper internal control