INTERNAL CONTROL AS AN EFFECTIVE MANAGEMENT TOOL IN THE BANKING INDUSTRY

Description

THIS RESEARCH WRITING IS ON INTERNAL CONTROL AS AN EFFECTIVE MANAGEMENT TOOL IN THE BANKING INDUSTRY.

CHAPTER ONE

1.0            INTRODUCTION

1.1     Background to the study

1.2            Statement of problem

1.3            The purpose or objective of the study

1.4            Scope of Delimitation of the study

1.5            Research Questions

1.6            Significance or Rationale of the study

CHAPTER TWO

2.0     REVIEW OF LITERATURE.

CHAPTER THREE

3.0     METHODOLOGY

3.1            Research Design

3.2            Area for the study

3.3            Population for the study

3.4            Sample and sampling procedure

3.5            Instrument for data collection

3.6            Validity of the instrument

3.7            Reliability of the instrument.

3.8            Method of Administration of the instrument

3.9            Method of data analysis

CHAPTER FOUR

4.0     DATA PRESENTATION AND RESULTS

CHAPTER FIVE

5.0     DISCUSSION, IMPLICATION AND RECOMMENDATIONS

5.1            Discussion of results

5.2             Conclusions

5.3            Implication of the results

5.4            Recommendations

5.5            Suggestions for further study

5.6            Limitation of the study.

REFERENCE

APPENDICES
TABLE      LIST OF TABLES

4.1.1           Analysis of responses to whether there is a reliable operational internal control.

4.1.2           Analysis of responses to the effects of adherence to laid down regulations helping in effective management.

4.1.3           Analysis of whether the Bank manages in line with the laid down regulations and guidelines.

4.1.4           Analysis of responses to whether effective management an accountability is independent of internal control system.

4.1.5           Analysis to the responses of the use of the reports of the internal Auditors and inspectors per decision making.

4.6.1           Analysis responses to the implementation of he corrections and suggestions from their inspections and internal auditors.

4.1.7           Analysis response to the profitability and operational efficiency of a bank in having relationship with internal control systems.

4.1.8           Analysis response to whether decision of labour does help in internal control.

4.1.9           Analysis response to whether all records are supervised and called over.

4.1.10         Analysis responses to whether one who passed the entries participate in the calling over of the records.

4.1.11         Analysis responses to possibility of effective management and accountability without internal control system in operation.

4.1.12         Analysis responses to training courses and regular motivation to work.

4.1.13         Analysis response to the rate of operational efficiency in FBN PLC.

4.1.14         Analysis responses to he dependence of the future stability of Banks on effective operational internal control.

4.1.15         Analysis responses to the effectiveness of division of labour in FBN PLC, Enugu main.

4.1.16         Analysis responses to the effective and efficient of the existence of internal control system in FBN PLC Enugu. Main.

4a               Illustration using pie chart for the distribution of respondents length of services.

4.2              Test of hypothesis.

4.2.1           Computation of chi-square text using table 4.1.7 for hypothesis 1

4.2.2           Computation of chi-square test using table 4.1.7 for hypothesis  2

4.2.3           Computation of chi square test using table 4.1.2 for hypothesis  3.
ABSTRACT

This project was carried out with the sole aim of studying an evaluating the internal control system in a banking industry- using first Bank of Nigeria PLC, Enugu main as a case study.

The project is written in five chapters: chapter one is the introduction which include the background of the study etc. chapter two enumerated literature Review, where the earlier views on internal controls were reviewed to avoid duplication chapter three is the Research Methodogy. Chapter for –data pre sanitation, Analysis and interpretation and finally, chapter five includes: summary, findings, recommendations, implications, limitations of the study and suggestions.

In handling this project, the survey and historical research method was employed.

A total of 99 workers were chosen as the population of this study. The workers were grouped as staff and non-staff. The staff were 65 in number, which revealed that the 65 staff were made up of 13 management staff, 44 senior staff, 8 junior staff. While the non-staff were 34 in number which made up of 2 contract staff and 32 I.T Staff since the project topic “internal control as an effective management tool in the banking industry” is an important topic, the staff population was chosen, since they are the one to understand the language of the project topic.

The study tools were mostly through questionnaires, oral interviews, reading which includes text books, journals, pas texts, newspapers, annual reports and statement of accounts, manuals, enclopedias, and other publication; and observations.

The data collected were interpreted to the understanding of everybody through the use of tables, pie chart, and chi-square.

The study overviewed the following areas: definitions, categories, types and essentials of internal control system. others are plan of organization authorization, managerial supervision, internal check  and internal audit.

The findings that, top management rely heavily on internal auditors and inspectors report for managing, controlling and decision making among other findings. The research made some recommendations which is hoped will help for the achievement of effective internal control system as well as effective management in FBN PLC.
CHAPTER ONE

INTRODUCTION

1.1     BACKGROUND OF THE STUDY

Internal control is control within the company. In this type of control employees within the establishment can be useful sources which could be very helpful of more effectiveness of the desired goal. This means that it must be within the establishment’s restraints, authority or command. It involves a check within the banking industry to facilitate the effectiveness of its management.

The banking industry of every economy consists of all the activeness of financial institutions geared towards setting and maintaining a healthy cash flow and management policy in such economy.

Banking industry cannot perform their functions very well without maintaining a sound internal control. This is the reason for the study of internal control and its role in the effective management of the banking industry.

According to the Canadian institute of chartered accountants, exposure draft of proposed auditing recommendations, internal central comprise of the plan of an organization and all the co-ordinate systems established by the management of the enterprise to achieve management’s objective of ensuring as far as it is practical. The orderly and efficient conduct of its business including the preparation of reliable financial information.

E. Murphy in her text described internal control as the plan of organization and all of the co-ordinate methods and measures adopted within a business to safeguard its assets, check the accuracy and reliability of its accounting data, promote operational efficiency and encourage adherence to prescribed managerial policies.

Internal control system could be viewed as a firms organization plan including all methods and measures the firm takes to:-

1.                 Safeguard it’s assets

2.                  Ensure the accuracy and reliability of its accounting data.

3.                 Promote operational efficiency and

4.                 To encourage compliance with organization policies.

It is the responsibility of management to determine the internally control system which is appropriate to the organization. The nature and extent of controls will vary between organizations. That is, it differs from one organization to another.