CHAPTER 1----INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The aim of every organization whether private or public is to have a successful operation which leads to the achievement of corporate aims of objectives. This requires that the organizations assets and resources are effectively managed. Therefore the need to protect the firm’s assets and the adoption of established procedures and policies for successful operations is imperative. Internal controls consist of all procedures and methods which the firm applies to protect its assets and conduct a successful operation.Emma Zhang (2016). The essence is to prevent fraud and losses arising out of fraudulent activities. Internal control detects deviations in financial records through the adoption of internal control measures. Such as establishing a system of checks and balances, adopting an authorization procedure. The essence of authorization is to verify the validity of transactions. Segregation of duties to provide for check and balances and the detection of errors in the operation of the firm and taking corrective measures. The essence is for operational efficiency and effective communication. Internal control measure also involves the
The maintenance of effective human resources through the establishment of clear line of responsibility and authority. Other internal control measures include the physical protection of the firm’s assets, processes and data, Documentation and record management for the preservation of accurate records and the monitoring of the firms operations. The study seeks to appraise the internal control system as a tool for achieving efficiency in the public sector. (A case study of ministry of Agriculture Abuja.
1.2 STATEMENT OF THE PROBLEM
The increasing level of fraud and inefficient operation is associated with lack of good internal control measures. The process of achieving success in business cannot be disassociated with sound internal control policies as many firms conduct their business without the adherence to sound principles of management as internal control measures. Consequently operations are not properly segmented to establish a clear line of responsibility and authority which leads to inefficient workforce, no proper documentation and record keeping leading to errors in record keeping and fraudulent activities. Also many firms do not take adequate measure to protect their assets, processes and information and lack good monitoring and evaluation method. The study seeks to investigate the internal control system as a tool for achieving efficiency in the public sector. A case study of ministry of Agriculture Abuja.
1.3 OBJECTIVES OF THE STUDY
The main study objective is to investigate internal control system as a tool for achieving efficiency in the public sector. A case study of ministry of Agriculture Abuja; while the specific objectives include
1 To appraise the concept of internal control and internal control measures.
2 To determine the role of internal control system as a tool for achieving efficiency in the public sector.
3 To determine the role of internal control system as a tool for achieving efficiency in of ministry of Agriculture Abuja.
1.3 RESEARCH QUESTIONS
1 What is the internal control and internal control measures?
2 What is the role of control internal control system as a tool for achieving efficiency in the public sector?
3 What is the role of internal control system as a tool for achieving efficiency in ministry of Agriculture Abuja?
?
1.4 STATEMENT OF HYPOTHESIS
The statement of the hypothesis of the study is stated in null
Ho The level of efficiency in ministry of agriculture is low
Ho The role of internal control system as a tool for achieving efficiency in ministry of Agriculture Abuja is low.
1.5 SIGNIFICANCE OF THE STUDY
The study seeks to evaluate the fundamental role of internal control system towards the attainment of organizational efficiency and shall be useful to students and managers of firms
1.5 SCOPE OF THE STUDY
The study focuses on the investigation on the role of internal control system as a tool for achieving efficiency. A case study of ministry of Agriculture Abuja.
1.6 LIMITATION OF THE STUDY
The study was confronted with logistic and geographical constraint
1.7 DEFINITION OF TERMS
INTERNAL CONTROL DEFINED
Internal controls consist of all procedures and methods which the firm applies to protect its assets and conduct a successful operation. The essence is to prevent fraud and losses arising out of fraudulent activities.
FRAUD DEFINED
The falsification and misrepresentation of financial record of the firm
OPERATIONS MANAGEMENT DEFINED
Operations management is the management of business activities to create high efficiency. It is concerned with converting materials and labor into goods and services as efficiently as possible to maximize the profit of an organization.
EFFECTIVE
Capable of achieving or producing the intended or expected result.
EFFICIENT
Achieving outcome in the best possible manner with the least waste of time and effort.
