Description
Evaluation of effectiveness in internal control system in banking industry – case study of First Bank Nigeria plc, Aba.
Abstract
This study exposed the researcher to the evaluation of the effectiveness of the internal control system in the banking industry.“ Internal control is the whole system of control, financial and otherwise, established by the management in order to carry on the business of the enterprise 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 records.“Internal control system has the following element. Organization: The enterprises must have a clear corporate objective, plan policy and duties of the employee should be clearly defined segregation of duties: Basic to the concept of an internal control system is the segregation of duties of the employee to ensure that no one person is able to record and process a complete transaction. Physical: These involve procedural and security measures designed to ensure that access to assets is limited to authorized personnel. Authorization and approval: All transactions require authorization and approval by appropriate and responsible personnel. Personnel: there should be procedures to ensure that personnel has capabilities commensurate with their responsibilities. Supervision: any system of internal control should have means of supervision by responsible officials for the day-to-day transactions and their recording thereof. Arithmetical and Accounting are the controls within the recording function that check that transactions to be recorded and processed have been authorized and that they are complete and accurately processed. Internal control which can be likened to the heart which regulates the business, helps to adhere to prescribed managerial policy, it also promotes operational efficiency.
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