ABSTRACT
This project was carried out with the sole
aim of studying and evaluating the internal control system in the hotel
industry
The project has three chapter: chapter one is
introduction , statement of problem, research objective, significant of study,
limitation study, definition of term
Chapter two: review of related literature
division of internal control, fundamental practical application. The internal
control process, behaviour consideration, non profit control
Chapter three: summary of finding, recommendation
and conclusion
the data collected were presented with the
use of procedure narrative.
The study covered the following areas of he
system: records, communication, organizational structural and control.
The finding were that: the internal control
system of some hotel like presidential
hotel limited were not adequate effective and efficient as a result of the
condition of the hotel. The researcher then made some necessary recommendation.
TABLE OF
CONTENT
Title page
Approval page
Dedication
Acknowledgment
Abstract
Table of content
CHAPTER ONE
Introduction
1.1
Statement of problem
1.2
Research objective
1.3
Significance of study
1.4
Limitation of study
1.5
Definition of terms
CHAPTER TWO
Review of related literature
2.1
Introduction
2.2
Division of internal control
2.3
Fundamental practical application
2.4
The internal control process
2.5
Behaviour consideration
2.6
Non profit control
CHAPTER THREE
3.1
Summary of the finding
3.2
Recommendation
3.3
Conclusion
References
CHAPTER ONE
INTRODUCTION
1.1 INTERNAL CONTROL
The Canadian institute of chartered
accountants. Exposure draft of proposal auditing recommendation describes
internal control as comprising of the plan of an organization by the management
of the emprise to achieve management objective of ensuring as far as is
practical the orderly and efficient conduct of its business including the safe
guarding of assets the reliability of accounting records and the timely
preparation of reliable financial information.
The chartered institute of public and finance
accountant (CIPFA) state that the internal control system comprise the whole
system of controls financial and otherwise, established by management in order
to carry on the business of the organization in an orderly and efficient
manner, ensure adherence to management policies, safeguard the assets and
secure as far as possible the completeness and accuracy of the record
individual component of internal control system are known as controls or
internal control.
Internal control system therefore could be
view as a firms organizational plan including all method and measure the firm
takes to
vSafeguard its assets
vEnsure the accuracy and reliability of its
accounting data
vPromote operational efficiency
vTo encourage compliance with company policy
Internal control can be divided into two main
categories:
Financial control which are primarily
concerned with legitimacy of expenditure
Security of assets and income and other
control mainly administrative which are created and maintained by management to
ensure that an activity is relevant to the needs of an organization and is
carried out in the most effective and efficient manner.
These categories are independent out should
not be regarded in isolation as both have an impact on the performance of
activities and their consequent cost and value to the organization
Accounting and financial control
These consist of all accounting, financial
and monetary techniques and system built into the internal control system to
promote and encourage the attainment of the objective of the internal control.
Generally, accounting and financial control consist of :
Budgetary control
The organization should plan and control its
expenditure and income to meet its predetermined objective
Legitimacy of income and expenditure
All
income and expenditure should be in accordance with the policies of the
organization properly authorized and within the law
Security of assets
Assets of the organization should be kept in
proper custody and not wrongly applied, either by error or intent
Accounting control
It include internal audit and internal checks
Management control
These consist of non accounting and non
financial system and method which are building into the system to promote the
attainment of the four major goal of internal control system.
These goal as enumerated before are:
vTo safeguard a firms assets
vTo ensure the accuracy and reliability a
firms accounting data
vTo promote operational efficiency of a firm
vTo encourage compliance with a firms policy
1.2
STATEMENT OF PROBLEM
Most government establishment in Nigeria of
which hotel industry is one are known for their inability to keep complete and
/ or accurate records and quite often
lose some of the assets under their control to fraudulent workers and other
enemies of progress who adopt any strategy possible to satisfy their selfish
interest at the expense of public interest. To this and, therefore, the
researcher has chosen as the main problem of this work, to identify the nature