ABSTRACT

The primary objective of this project work is to discern the impact of internal control system assessment in government establishment Power Holding Company of Nigeria, Enugu as a case study.  Many people think of internal control system as a highly technical field which can be understood only by professional Auditors.  

Actually nearly every establishment practices internal control in one form or another on an almost daily bases.

According to WIKIPEDIA, the free encyclopedia, in accounting and organization theory, INTERNAL CONTROL is defined as a process effected by an organization’s people and information technology (I.T) system, designed to help the organization accomplish specific goals or objectives. It is a means by which an organization’s resources are directed, monitored and measured. It plays an important role in preventing and detecting fraud and protecting the organization’s resources both physical (e.g. machinery and property) and intangible (e.g. Reputation and intellectual property such as trade marks) the organizational level, internal co9ntrol objectives relate to the reliability of financial reporting; timely feedback on the achievements of operational or strategic goals and compliance with laws and regulations. At the specific transaction level, internal control refers to the actions taken to achieve a specific objective (e.g. how to ensure the organization payments to third parties are for valid services rendered) 

However, internal control system therefore could be viewed as a firms or organizational plan including all methods and measures taken to:

i)Safeguard its assets 

ii)Ensure the accuracy and reliability of its accounting data

iii)Promote operational efficiency and 

iv)Encourage compliance with the organizational policy.

These are the main concern of this research work efforts have been made in this research work to explain the normal governmental internal control systems, and its usage as an aid to asses government institutions. Various internal control procedures being practised in Power Holding company of Nigeria, Enugu unit are identified.

The findings were that internal control system needs urgent attention so as to ensure strict compliance to management  policy.

Finally, in this research work, there is a constructive explanation of scope, objective, basis concepts and principles of internal control applicable in government establishment as an aid to solving the problem of expenditure control.  The researcher therefore conclude that for internal control to be effective, emphasis should be placed on the accountability morality, integrity, Honesty, ethics and behaviours of the officers operating the system.

TABLE OF CONTENTS

TITLE PAGE

CERTIFICATION

DEDICATIONS

ACKNOWLEDGEMENT

ABSTRACT

TABLE OF CONTENTS

CHAPTER ONE 

INTRODUCTION

1.1BACKGROUND OF STUDY

1.2PURPOSE OF THE STUDY

1.3STATEMENTS OF PROBLEM

1.4RESEARCH QUESTIONS

1.5RESEARCH HYPOTHESIS

1.6SCOPE AND LIMITATION OF STUDY 

1.7DEFINITION OF TERMS

REFERENCES

CHAPTER TWO

REVIEW OF LITERATURE

2.1INTRODUCTION

2.1.1COMPONENT OF INTERNAL CONTROL

2.1.2METHODS OF KEEPING BOOKS AND RECORDS

2.1.3INBUILT CONTROL TECHNIQUES

2.1.4MANAGEMENT TECHNIQUES 

2.2WEAKNESSES AND SPECIFIC FAILURES CONNECTED TO INTERNAL CONTROL SYSTEM

2.2.1STAFF COLLUSION

2.2.2ABUSE OF AUTHORITY

2.2.3MANAGEMENT OVERRIDING ESTABLISHED CONTROLS.

2.2.4ALTERATION OF SYSTEM

2.2.5OBSOLESCENCE

2.2.6STAFF INCOMPETENCE

REFERENCES

CHAPTER THREE

3.0RESEARCH DESIGN AND METHODOLOGY.

3.1RESEARCH DESIGN.

3.2SOURCES OF DATA

3.2.1PRIMARY SOURCE

3.2.2SECONDARY SOURCE

3.3POPULATION SIZE

3.4SAMPLE SIZE DETERMINATION 

3.5SAMPLE SELECTION

3.6METHOD OF ANALYSIS

REFERENCES

CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS

4.1DATA PRESENTATION

4.2RESPONSES RATE

4.3ANALYSIS OF QUESTIONNAIRE RESPONSES

4.4TESTING OF HYPOTHESIS

CHAPTER FIVE

SUMMARY AND FINDINGS, CONCLUSION AND RECOMMENDATION.

5.1SUMMARY AND FINDINGS

5.2CONCLUSION

5.3RECOMMENDATIONS

BILIOGRAPHY

REFERENCES

APPENDIX