ABSTRACT

Effective Internal Control as an aid to management efficiency is critical review of this research work.

From the analysis also, it was found that a number of managerial problems such as inadequate account records, inefficient accounting procedures, unqualified personnel fraud etc are faced due to lack of effective internal control. Over 80% do not have a well designed internal control system and these limits the success and growth of a business enterprise.

Most recommended to these problems is the need to be enlightened about the importance efficiency- check and internal audit but the whole system of control, financial and otherwise established by management in order to carry on the business on the business a company in an orderly manner, safeguard accuracy and reliability of its records. Awoyemi E. O (1990).

The study also sought to know the effect of not having internal control in the management decision and profit level that though the lasting of hypothesis with use of satisfied data.

TABLE OF CONTENTS

Title page

Approval page

Dedication

Acknowledgement

Abstract

Table of contents

CHAPTER ONE: Introduction

1.1  Background of the study

1.2  Statement of the problem

1.3  Purpose of the study

1.4  Research questions

1.5  Research Hypothesis

1.6  Significance of the study

1.7  Scope of the study

1.8  Limitation of the study

1.9  Operational definition of terms

CHAPTER TWO

Review of Related Literature

2.1  Brief history of Nigerian bottling company

2.2  Purpose of internal control

2.3  Meaning of internal control

2.4  Features of a good internal control system

2.5  Types of internal control

2.6  Internal control as an aid to management efficiency

CHAPTER THREE

3.1  Research design

3.2  Population and sample size

3.3  Sources of data

3.4  Techniques of data collection

3.5  Data collection procedure

3.6  Data Analysis techniques

CHAPTER FOUR

PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA

4.1  Data presentation

4.2  Data analysis

4.3  Hypothesis Testing

CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1  Summary of findings

5.2  Conclusion

5.3  Recommendation

       Bibliography

       Appendix 

CHAPTER ONE

INTRODUCTION

 1.1    BACKGROUND OF THE STUDY

The need for study in this area comes from the fact that internal control is a very important management function, however not much has been done to view its impact on business. It has to be understood that without effective internal control, there can be no successful business. This may explain why some business enterprises are higher than those of a similar enterprise and to a larger extent, why many public enterprise and parastatals fail.

The purpose of internal control is to help to ensure that operations and performance conform to the plans. It follows therefore that effective control is not possible without planning and planning without a complementary control system is pointless. In organizational system, control is exercised by the use of information frequently of a financial nature.   

Internal control is beginning to find more dept in the subject of management accounting, especially as part of the theory of control in Accounting. Since control system are established by management to assists in achieving the orderly and efficient conduct of business and improve the negative effects on the health of the business. It can then be argued that effective internal control is a key to organizational performance.

 1.2. SCOPE OF THE STUDY

 Accounting as far back as 4500 BC was practiced as stewardship accounting where land owners would appoint people known as stewards to manage their land for them. This form of recording remained primitive until in recent times when stewardship accounting gave way for financial accounting during the industrial revolutions.

 Management Accounting is another aspect of accounting that got its impetus from Industrial Revolution and analysis to emphasizing detailed information for decision making. Today most enterprise is operating by limited companies which are owned by their shareholders and managed by directors appointed by the shareholders.

The entire purpose of internal control therefore is to establish a system where by though ownership is separated from management; owner will be left in no doubt that their resources are effectively managed.

 1.3     STATEMENT OF THE PROBLEM

 Having seen that there are currently an increase in the fraud were embezzlement, errors and other irregularities and that there are strong need for organizations to have a strong internal control system that can minimize the acts, it then becomes necessary to carry out this research.

1.4   PURPOSE OF THE STUDY                     

The purpose or goals of the study are outlined below:

1. To examine and analyze the existing internal control system of the Organization.
2. To determine if internal control is existing and the effect of the system on the organization’s performance.
3. To go further in determining whether the existing system of control is adequate.
4. To outline the benefits to the organization if it uses standard internal control system.

1.5   RESEARCH QUESTION     

1. What is the meaning of internal control?

2.  Of what purpose is it to a company’s growth?

3.   What are the features of a good internal control?

4. Is there any aids of internal control to management accounting?

 1.6     HYPOTHESIS

HYPOTHESIS 1

HO: The internal control system in Nigeria Bottling                           

   Company is not an aid to management efficiency.

H1: The internal control system in Nigeria Bottling      Company is an aid to management efficiency.

1.7   OBJECTIVES OF THE STUDY

According to feral (1998) the major objective of the study are outlined below:

1. Safeguard the assets of the enterprise from all forms of misuse fraud and errors by workers and managers who convert it for personal use.
2. Establish and maintain the accuracy and reliability of accounting data, information an d records, to minimize embezzlement of funds and other forms of fraud.
3.  Promote operational efficiency and effectiveness as a key to profit making.
4.  Seek, encourage and obtain adherence to prescribed management policies and methods, good internal control system goes a long way to achieve this purpose.

1.8    LIMITATION OF THE STUDY

 This study focus on the effect of effective internal control on management efficiency, the company being Nigeria Bottling Company Ltd (N B C) Owerri. It is hope that this study would provide a useful link between the quality of internal control that exist the company and performance of the company with regard to profit making which for the purpose of the study is assumed to be the primary motive of an enterprise. Attempt should be made where possible to extend the analysis to other companies where this would result in a more balanced deduction. 

It must be noted that certain factors, which could have  an impact on company’s performance, may not in any where be linked with the quality of controls that exist such factors as political environment in which the company exist and the impact of some government actions and policies are of few examples. This study must as matter of fact exclude these factors. 

 1.9    SIGNIFICANT OF THE STUDY

In the era of rapid expansion of the number of companies in the economy, there is an increase pressure for companies to perform. These pressures in turn create room for such practices that could tremendously expose companies to risk of failure even as they provide profit incentives. Such practice would of course over-ride controls which have previously been instituted by managements desire to make profit through practice that may in the long run create adverse control problems.

The need for strong management commitment to strong control environment now cannot be over emphasized and will in fact, increase as more companies spring up.

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