TABLE OF
CONTENT
Cover page
Title page
Approval
Dedication Acknowledgement Abstract Table of
content
CHAPTER ONE:INTRODUCTION
1.1
Background of the study
1.2
Statement of problem
1.3
Purpose of the study
1.4
Significance of the study
1.5
Scope and limitations
1.6
Statement of Hypothesis
1.7
Definition of term
CHAPTER TWO: REVIEW OF RELATED LITERATURE
2.1 A
checklist of internal control
2.2
Qualities of a good internal control
2.3 Internal control and Accounting
profession in Nigeria
2.4 Internal control of real-time
installation
2.5
Consideration of an effective control system
2.6 Articles that enhance internal control
system
(magazines and journals)
CHAPTER THREE: RESEARCH DESIHN AND
METHODOLOGY
3.1
Source of Date
3.2
Survey instruments
CHAPTER FOUR:
DATA PRESENTATION, ANALYSIS AND
INTERPRETATION
4.1 Presentation and Analysis of data
4.2 Interpretation of data
CHAPTER FIVE;
FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.1 Findings
5.2 Conclusion
5.3 Recommendation
Bibliography
Appendices
CHAPTER ONE
INTRODUCTION
1.1
Background of the Study:
Internal control was defined by the Auditing
standards and guideline as a whole system of control both financial and
otherwise, established by management in order to carry on the business of on
enterprise in an orderly and efficient manner, ensure adherence to management
polices, safeguard the asset and secure as far as possible the completeness and
accuracy of records.
In reality, internal control form the bedrock
of auditing both from the point of view of management and the auditor, its
objectives being the prevention or early detection of fraud and errors. It may
include internal auditing which qualifies as part of the system of internal
control and it is designed for the following reasons:
(a) To enforce financial and other control:
(b)
Ensure adherence to management policy
(c)
Help to safeguard the assets (cash)
(d)
To ensure the accuracy and reliability of the records
(e)
Help to ensure orderliness in the business and
(f)
Help in the prevention and
early detection of fraud and errors.
An artificial review of the change in the
Accounting practice will depict the essence of internal control system in an
organization especially in an examining body.
The earliest known form of accounting, which
is stewardship, Accounting started as far back as 450 B.C. This form of accounting involves the orderly
recorded of business transaction by person appointed by the landlord to serve
as a stewards for them. This was later changed as the recording remained
primitive stewardship accounting pave may to financial accounting during the
nineteenth century which marketed the era of industrial revolution”. This
indeed led to the advent of joint stock companies- a situation where by group
of individuals contributed capital in exchange for shares in the asset and
profits of the company sea bubble of 1720, had earlier on instilled fear and
suspicion in the mind the public that they doubt the ability of the directors
to carry out this type of trade honestly.
Management accounting however, is not left
but for it is another aspect of accounting that got it authority and ground
from the historical recording and analyzing role of accounting to emphasizing
detailed information for internal planning, control and decision making.
Currently most business are operated by
limited liability companies which are owned by their share holders, but managed
by the directors appointed by them.
In the same vein, the public corporation and
establishment, and even examining bodies are owned by the public but under the
management of appointees.
The appraisal of the work of these appointees
are carried out by an independent person referred to as an auditor, who is
charge with the responsibility of evaluating and examining the accounts of the
management and report on his finding to the owners (share holder) of the
company or corporations. It is pertinent to note that one of the tools or
mechanism adopted by an auditor in appraising the work of the management is the
internal control system with this system of control, the share holder are
convinced or self assured on efficient and effective management of their assets
and resources.
1.2 STATEMENT OF PROBLEM:
In an attempt to overcome envisaged problem
in the presentation of accounting information and the system internal control,
the government made a leading statement and regulations which serve as a
yardsticks by which an accounting system could be measured. Also accounting and
Auditing professional bodies laid town some guidelines, which will guide their
member, and all practicing Accountants and Auditor in the performance of their
professional duties.
It is pertinent to note that several cases of
frauds, misappropriation of public funds, looting of public properties, and
other irregularities in connection with public funds have been reported in
different establishment in our country which West African Examination Council
is not exceptional.
Therefore, it is the aim of the research to
use this study entitled “internal control an examining body” to ascertain the
effectiveness of control system employed in government owned establishment by
using the laid down rules and regulations as parameters.
1.3 Purpose if the Study:
The mission statement of the study is to find
out the effort made by government institution including the bodies towards
ensuring compliance with the set out police, guidelines and procedures as laid
down by Auditing standards and guidelines and the financial Regulations.
Internal Audit function however, need to be
reviewed in order to find out the extent it is performing its duties as the
internal control system watchdog. Also there is need to ascertain the
objectives of internal control the basis for its development and factors militating
against it smooth running. Questions on whether the control measures employed
by the examining bodies are adequate relevant and reliable as to ensure the
safety of assets, completeness and accuracy of record should be ensured.
Finding, recommendations on how to improve on
the arrears of weaknesses (if any) will be given.
1.4 Scope and Limitations:
Due to the versatility of internal control,
it is not possible to deal with it exhaustively going by limitations in time
and resources.
In the first place, the time limit is
applicable in that the researcher has to handle this as well other courses that
will hardness the successful completion of the programme.
Another limiting factor boils down to
finance. This has made the research not be detailed because of the hard
economic situation in the country and its consequences.
Consequence to the above limitation, the
scope of thee research work has been reduced to a manageable level. The study
will be restricted to examining bodies with particular reference to the
Nationals Examination Council (WAEC) Enugu zonal office and will further be
narrowed to four (4) main divisions of internal control viz
1.
Fixed asset control
2.
Cash control
3.
Stock maintenance
4.
General financial
1.5 Significance of the Study:
Fraud of all kind and misappropriation of
funds and properties are invoked in most government establishment of which the
examining bodies are part of the posterity. In order to achieve the corporate
objective and the needed fulfillment of the individual employees, there is need
for the system of control to be adequate in design, effective and efficient in
operations.
Government who is the main provider of funds
and resources for these organizations will benefit from this study; as the
maternal control system is to conserve funds and resource.
Other who will benefit from this study are
the employees of these examining bodies who are dependent upon these
organizations for their livelihood. Also future researcher and students may find
the study very relevant and beneficial.
Finally, the attendant increase in the
examining bodies, this study entitled “internal control in an examining bodies
will be of immense interest to the prospective candidates.
1.6
Research Questions
The following research questions were
formulated by the researcher:
1.
What are the impacts of internal control system in West African
Examination Council?
2.
How effective is the internal control system in West African Examination
Council?
3.
What are the problems encountered by the internal control unit of the
organization?
4.
How adequate is the control measures employed by the examination body?
5.
How can the problems be solved?
1.7 Statement of Hypothesis:
Below was the hypothesis-formulated test the
effectiveness of internal control system in an examining bodies using West
African Examination (WAEC) as a paradigm:
The internal control system in the West
African Examination is ineffective.
1.8 Definition of Terms:
For clarity and common understanding
misinterpretations the following specialized terms are hereby defined:
Internal Audit
This is an independent appraisal function
with an organization for the review of system of control and the quality of
performance as a service to the organization. Their objective examines,
evaluates and reports adequacy of internal control as a contribution to the
proper economic, efficient use of resources.
Internal Check
Continuously as part of the routine system,
whereby the work of one person is proved independent or is complementary to the
work of another. The rationale behind this is for prevention or early detection
of errors and delegation and fraud. It includes matters. Such as delegation and
allocation of authority and the division of work, the method of recording
transactions, and the use of independently ascertained total against which a
large number of individual items can be proved.
Vouching Audit
This is a method of auditing which involved a
consideration of each entry in the book and vouching the available evidence to
support each entry, the evidence usually consist of document and papers and
should satisfy the auditor that.
(a)
the transaction was authorized by the management.
(b)
The transaction was correctly and adequately described by the entry in
the book.
(c)
The entry is correctly incorporated in the final accounts.
(d)
The transaction came within the aims and objectives of the organization