Brief Introduction
By studying the internal controls an organization’s strengths and weaknesses can be revealed where internal controls are strong auditors would require testing the financial figures less.
Adequate internal control will provide for extensive segregation of duties so that no one person handles a transaction from start to finish.
The auditor will need to evaluate the effectiveness of the internal control mechanisms to determine the extent of the audit in any given assignment to achieve this a thorough knowledge and understanding of the business and the controls are necessary.
Definitions:- In a study sponsored by the American Institute of a certified public accountant, the Institute of Internal Auditors, and other bodies Internal controls have been defined as a process affected by the entity board of directors management and other personnel designed to provide reasonable assurance regarding the achievement of the following categories.
• Reliability of Financial reporting
• Effectiveness and efficiency of operations
• Compliance with applicable laws and regulations
• Safeguarding assets.
Table of Content
Cover Page
Approval page ———————————————————-i
Dedication ————————————————————–ii
Acknowledgment —————————————————–iii
CHAPTER ONE
1.0 Background of the study——————————————1
What is corruption/Fraud ———————————————20
1.2 Statement of Problem ——————————————–24
1.3 Purpose of the study————————————————24
1.4 Research questions ————————————————25
1.5 Hypothesis ———————————————————–25
1.6 Scope of the study ————————————————26
1.7 Specific limits of internal control———————————27
CHAPTER TWO
2.1 Review of related literature —————————————28
2.2 Administration and accounting control ———————–32
2.3 Relationship of control to auditing——————————–33
2.4 Other non-financial controls ————————————–34
Internal auditor as internal control mechanism the structure
2.5 Organic gram-administration of financial institution———-35
2.6 The American Institute of internal auditors ———————35
2.7 Duties —————————————————————–36
2.8 Independence ———————————————————37
2.7 Stock control as an internal control measure ——————-37
2.8 Reasons for stock control——————————————-38
2.9 Basis of stock control ————————————————39
2.10 The role of internal auditor in the stores management ——-39
2.11 Now financial control mechanisms ——————————40
2.12 Components of control ———————————————40
2.13 Risk assessment —————————————————-41
2.14 Accounting information system ———————————–42
2.15 Control activities —————————————————-42
2.16 Monitoring of control ———————————————–43
2.17 Limitations of internal control ————————————43
Summary of related literature ——————————————-44
CHAPTER THREE
3.0 Research methodology ———————————————-45
3.1 Research Design —————————————————–45
3.2 Area of study———————————————————–46
3.3 Population of study—————————————————46
3.4 Sample and sampling technique ———————————–47
3.5 Instrument for data collection ————————————–47
3.6 Validity of instrument ————————————————48
3.7 Reliability of instrument ———————————————48
3.8 Administration of research instrument (Data Collection)——-50
3.9 Method of Data analysis ———————————————50
CHAPTER FOUR
4.1 Presentation and Analysis of Data (Result) ———————53
4.2 Testing of Hypothesis ———————————————–53
CHAPTER FIVE
5.0 Discussion and conclusion of Results ————————-59
5.1 Discussion of findings ——————————————-59
5.2 Conclusion of study ———————————————-67
5.3 Recommendations ————————————————-68
5.4 Limitation of the study ——————————————–69
References —————————————————————76
Appendix
Questionnaire
