FINANCIAL IMPLICATION OF INTERNAL CONTROL SYSTEM IN AN ORGANISATION (A Case Study of Mercury Microfinance Bank)

FINANCIAL IMPLICATION OF INTERNAL CONTROL SYSTEM IN AN ORGANISATION (A Case Study of Mercury Microfinance Bank)

ABSTRACT  

Internal control systems is a topical issue following global fraudulent financial reporting and accounting scandals in both developed and developing countries.

This research work examine the implications of internal control system in an organization with reference to Mercury Micro Finance Bank. In today’s volatile business environment, banking sub-sector in Nigeria faces a wide array of complex business challenges. These challenges come in the form of regulatory compliance, litigation, competitive market pressure, changing technology, investors demand, corporate governance, business ethics and accountability.

The research examine the various types of internal control and the components of internal control. A questionnaire was designed and administered to the staff of Mercury Micro Finance Bank. The data gathered from the questionnaire were presented on table with the respective percentages. The formulated hypotheses were analysed with the used of Chi square statistical tool. From the analysis it was concluded that;

Effective internal control system make fraudulent practices and other incidences of irregularities very difficult to perpetrate. Constant review of accounting and internal control system will reduce incidence of fraud and irregularities in Microfinance banks. The internal control system currently in operation at Mercury Microfinance Bank is inline with the International Accounting Standard (IAS).

Conclusion was deduced from the result of the analysis and recommendations were made.

TABLE OF CONTENTS

CHAPTER ONE

INTRODUCTION: FINANCIAL IMPLICATION OF INTERNAL CONTROL SYSTEM IN AN ORGANISATION (A Case Study of Mercury Microfinance Bank)

1.1     Background of the Study

1.2     Statement of Problem

1.3     Aim and Objectives of Study

1.4     Research Question

1.5     Statement of Hypothesis

1.6     Research Methodology

1.7     Significance of Study

1.8     Scope and Limitation of Study

1.9     Definition of Terms

CHAPTER TWO: FINANCIAL IMPLICATION OF INTERNAL CONTROL SYSTEM IN AN ORGANISATION (A Case Study of Mercury Microfinance Bank)

LITERATURE REVIEW

2.0     Introduction

2.1     Definition of Internal Control  

2.2     Purposes of Internal Control System

2.3     Types of Internal Control

2.3.1  Directive or Entity Level Controls     

2.3.2  Preventive Internal Control

2.3.3  Detective / Corrective    

2.3.4  Compensating Control

2.4     Components of the Internal Control System

2.4.1  Definition of Responsibilities  

2.4.2  The In-House Dissemination of Relevant and

          Reliable Information      

2.4.3  A System for identifying and Analysing Risk

2.4.4  Control Activities

2.4.5  On-Going Monitoring of the Internal Control System      

2.5     internal Control Players 

2.5.1  The Board of Directors or the Supervisory Board

          (“The Board”)      

2.5.2  Executive Management / The management Board

2.5.3  Internal Audit       

2.5.4  Company Staff     

2.6     Conceptual Framework  

2.6.1  Control Environment     

2.6.2  Risk Assessment  

2.6.3  Control Activities

2.6.4  Application Controls     

2.6.5  Information and Communication       

2.6.6  Monitoring

2.7     Effective Internal Control

          References

CHAPTER THREE: FINANCIAL IMPLICATION OF INTERNAL CONTROL SYSTEM IN AN ORGANISATION (A Case Study of Mercury Microfinance Bank)

RESEARCH METHODOLOGY

3.1     Introduction

3.2     Sources of Data

3.3     Population and Sample Size     

3.4     Research Instrument Design    

3.5     Administration of Research Instrument

3.6     Analysis of Data

3.7     Methodology

CHAPTER FOUR: FINANCIAL IMPLICATION OF INTERNAL CONTROL SYSTEM IN AN ORGANISATION (A Case Study of Mercury Microfinance Bank)

DATA PRESENTATION AND ANALYSIS

4.1     Introduction

4.2     Personal Characteristics of the Respondent

4.3     Response of Respondents of the Problem Areas

4.4     Testing and Interpretation of the Hypothesis

4.4.1  Test of Hypothesis One  

4.4.2  Test of Hypothesis Two 

4.4.3  test of Hypothesis Three

CHAPTER FIVE: FINANCIAL IMPLICATION OF INTERNAL CONTROL SYSTEM IN AN ORGANISATION (A Case Study of Mercury Microfinance Bank)

SUMMARY, CONCLUSION AND RECOMMENDATION

5.1     Introduction

5.2     Summary   

5.3     Conclusion

5.4     Recommendation 

          References

          Appendix

CHAPTER ONE: FINANCIAL IMPLICATION OF INTERNAL CONTROL SYSTEM IN AN ORGANISATION (A Case Study of Mercury Microfinance Bank)

INTRODUCTION

1.1     BACKGOUND OF THE STUDY: FINANCIAL IMPLICATION OF INTERNAL CONTROL SYSTEM IN AN ORGANISATION (A Case Study of Mercury Microfinance Bank)

When companies suddenly collapse, the often resounding question is, “what went wrong?” A breakdown in the internal control system is the usual cause. Internal control is a process that guides an organization towards achieving its objectives. These objectives include operational efficiency and effectiveness, reliability of financial reporting, and compliance with relevant laws and regulations (COSO 1992). Absence of these variables often results in organizational failure. The findings of the Treadway Commission Report of 1987 in the United States (USA) confirmed absence of, or weak, internal controls as the primary cause of many cases of fraudulent company financial reporting.

The widespread global corporate accounting scandals that assumes near epidemic proportions in recent years inform this study. Cases of accounting scandals have been recorded International Research Journal of Finance and Economics - Issue 27 (2009) 125 in JCI and Randgold and Exploration companies. In Nigeria, the Managing Director and Chief Financial Officer of Cadbury Nigeria plc were dismissed in 2006 for inflating the profits of the company for some years before the company’s foreign partner acquired controlling interest.(project topics   final year project topics )                                                 

These scandals emphasize the need to evaluate, scrutinize, and formulate systems of checks and balances to guide corporate executives in decision-making. These executives are legally and morally obliged to produce honest, reliable, accurate and informative corporate financial reports periodically.

The banking industry is a very important subsector of the financial services of any economy. For effective operation and to be able to render a good stewardship to the operations of a bank, it is imperative that there should be reliable accounting and internal control system. The effectiveness of accounting system of any organization depends on the manner and methods used in the recording of financial transactions, which must be in agreement with the International Accounting Standard,(IAS) regulations.

Installation of an effective accounting and in

.

Click Here To Get The Complete Project »

How To Write Chapter Three Of Your Research Project (Research Methodology)

  • Methodology In Research Paper


    Chapter three of the research project or the research methodology is another significant part of the research project writing. In developing the chapter three of the research project, you state the purpose of research, research method you wish to adopt, the instruments to be used, where you will collect your data, types of data collection, and how you collected it.

    This chapter explains the different methods to be used in the research project. Here you mention the procedures and strategies you will employ in the study such as research design, study design in research, research area (area of the study), the population of the study, etc. You also tell the reader your research design methods, why you chose a particular method, method of analysis, how you planned to analyze your data.

    Your methodology should be written in a simple language such that other researchers can follow the method and arrive at the same conclusion or findings.

    You can choose a survey design when you want to survey a particular location or behavior by administering instruments such as structured questionnaires, interviews, or experimental; if you intend manipulating some variables.

    The purpose of chapter three (research methodology) is to give an experienced investigator enough information to replicate the study. Some supervisors do not understand this and require students to write what is in effect, a textbook.

    A research design is used to structure the research and to show how all of the major parts of the research project, including the sample, measures, and methods of assignment, work together to address the central research questions in the study. The chapter three should begin with a paragraph reiterating the purpose of research. It is very important that before choosing design methods try and ask yourself the following questions: Will I generate enough information that will help me to solve the research problem by adopting this method?

    Method vs Methodology

    I think the most appropriate in methods versus methodology is to think in terms of their inter-connectedness and relationship between both. You should not beging thinking so much about research methods without thinking of developing a research methodology.

    Metodologia or methodology is the consideration of your research objectives and the most effective method and approach to meet those objectives. That is to say that methodology in research paper is the first step in planning a research project work.

    Design Methodology: Methodological Approach

    Example of methodology in research paper, you are attempting to identify the influence of personality on a road accident, you may wish to look at different personality types, you may also look at accident records from the FRSC, you may also wish to look at the personality of drivers that are accident victims, once you adopt this method, you are already doing a survey, and that becomes your metodologia or methodology.

    Your methodology should aim to provide you with the information to allow you to come to some conclusions about the personalities that are susceptible to a road accident or those personality types that are likely to have a road accident.

    The following subjects may or may not be in the order required by a particular institution of higher education, but all of the subjects constitute a defensible in metodologia or methodology chapter.

    Click here to complete this article - How To Write Chapter Three Of Your Research Project (Research Methodology)

TESTIMONIES FROM OUR CLIENTS


Please feel free to carefully review some written and captured responses from our satisfied clients.

  • "I love what you guys are doing, your material guided me well through my research. Thank you for helping me achieve academic success."

    Sampson, University of Nigeria, Nsukka.
  • "researchwap.com is God-sent! I got good grades in my seminar and project with the help of your service, thank you soooooo much."

    Cynthia, Akwa Ibom State University .
  • "Sorry, it was in my spam folder all along, I should have looked it up properly first. Please keep up the good work, your team is quite commited. Am grateful...I will certainly refer my friends too."

    Elizabeth, Obafemi Awolowo University
  • "Am happy the defense went well, thanks to your articles. I may not be able to express how grateful I am for all your assistance, but on my honour, I owe you guys a good number of referrals. Thank you once again."

    Ali Olanrewaju, Lagos State University.
  • "My Dear Researchwap, initially I never believed one can actually do honest business transactions with Nigerians online until i stumbled into your website. You have broken a new legacy of record as far as am concerned. Keep up the good work!"

    Willie Ekereobong, University of Port Harcourt.
  • "WOW, SO IT'S TRUE??!! I can't believe I got this quality work for just 3k...I thought it was scam ooo. I wouldn't mind if it goes for over 5k, its worth it. Thank you!"

    Theressa, Igbinedion University.
  • "I did not see my project topic on your website so I decided to call your customer care number, the attention I got was epic! I got help from the beginning to the end of my project in just 3 days, they even taught me how to defend my project and I got a 'B' at the end. Thank you so much researchwap.com, infact, I owe my graduating well today to you guys...."

    Joseph, Abia state Polytechnic.
  • "My friend told me about ResearchWap website, I doubted her until I saw her receive her full project in less than 15 miniutes, I tried mine too and got it same, right now, am telling everyone in my school about researchwap.com, no one has to suffer any more writing their project. Thank you for making life easy for me and my fellow students... Keep up the good work"

    Christiana, Landmark University .
  • "I wish I knew you guys when I wrote my first degree project, it took so much time and effort then. Now, with just a click of a button, I got my complete project in less than 15 minutes. You guys are too amazing!."

    Musa, Federal University of Technology Minna
  • "I was scared at first when I saw your website but I decided to risk my last 3k and surprisingly I got my complete project in my email box instantly. This is so nice!!!."

    Ali Obafemi, Ibrahim Badamasi Babangida University, Niger State.
  • To contribute to our success story, send us a feedback or please kindly call 2348037664978.
    Then your comment and contact will be published here also with your consent.

    Thank you for choosing researchwap.com.