THE EFFECTIVENESS OF INTERNAL CONTROL SYSTEM IN MANUFACTURING COMPANY
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Internal control system: – could be define as the whole system of control financial and otherwise established by the management of an organization in order to carry out the business of the enterprises in an orderly and efficient manner, it main objective is to ensure adherence to management police, safeguard it asset and to sure that record of the organization is complete and secured.
An auditor is define as a competent and impartial critic appointed to verify the financial and other accounting statement of organization he must certify the verily of the organization concerned.
However, he is not concerned with the financial strength of the organization but his task to see that financial strength, as show in the balance sheet, is in fact the actual and the true value of the organization.
Moreover auditing form a most important branch of the accountancy profession once have been prepared, then may be checked in other to ensure that then don’t print a destructed picture such process of checking is called auditing. It is compulsory for all limited liability company to have their account audited. Therefore auditing can be define as a independent examination of the expression of opinion financial statement of an enterprises by appointed auditor in purchase of that appointed and in compliance with any relevant stationary obligation.
LESHER HERWARD in his book auditing is state that an audit may be described as examination by an auditor and balance sheet of an organization have a true and fair vie of the summarized transaction for the period under review and of financial state of the organization at the end of date, this enabling the auditor to report there. However, auditing is significant tools needed in internal control system.
The internal control system is a very important part of any organization. It helps to prevent fraud and any other irregularity within the manufacturing company. The major problem in question therefore,
- Is to evaluate the effectiveness of internal control system in a manufacturing company and the efficiency of such to make sure that internal checks are conducted properly and adhered to by internal audit staff and management.
- The internal control system in an organization stress as it strength and weakness.
- Testing the efficiency of the internal control system gingered the researcher to make a study and establish. If any, the fact that the existence of an efficient internal audit department (IAD) and system can alert inefficiency in a manufacturing company.
- OBJECTIVES AND PURPOSE OF THE STUDY
The several objectives of this project are to show the efficiency of internal control system to a business organization with a special focus on NBC Ilorin plant.
- To determine the completeness, accuracy and validity of the records.
- To see how the company safeguards it’ assets by enforcing strict adherence to the management policies.
- To know the levels of the company operating efficiency
- To determine the effectiveness of the information passed from the strategic management to the level of management
1.4 SIGNIFICANCE OF THE STUDY
This research work is important because it examines the internal control system of the organization and evaluates it with the overall performance of the company. Bu the end of this, one should be able to identify its areas of strength and weakness as the regards the management of the company and hence it’s internal control system with a view of enhancing the recommends performance of the company.