THE EFFECTIVENESS OF INTERNAL CONTROL SYSTEM AND PROCEDURE ON PRODUCT INNOVATION IN NIGERIAN BANKS (A CASE STUDY OF WEMA BANKS PLC)


THE EFFECTIVENESS OF INTERNAL CONTROL SYSTEM AND PROCEDURE ON PRODUCT INNOVATION IN NIGERIAN BANKS (A CASE STUDY OF WEMA BANKS PLC)

ABSTRACT

Internal control in banks helps to protect the bank against fraudulent act and practices. Though its procedure varies from one institution to the other, its aim and objective remains the same. Internal control have therefore help banks to be better managed, more liquid and directed toward profit-making by the bank. This project is therefore undertaking to know the effectiveness of this internal control system and procedures on innovation of product in Nigeria. The result was that with effective control internally, product would be well innovated. The result of the findings of the questionnaires would be tested through the chi-square method.

 TABLE OF CONTENT

Title Page i

Certification ii

Dedication iii

Acknowledgment iv

Abstract v

Table of content vi-vii

CHAPTER ONE

1. Introduction 1

2. Statement of the Problem 1

3. Significance of the Study 2

4. Limitation of the Study 2

5. Research Questions 3

6. Definition of Terms 3-4CHAPTER TWO2.0 Historical Background 5-7

2.1 Definition of Internal audit 7-8

2.2 Objective of Internal Control System 8-10

2.3 Internal Control System 10

2.4 Types of Internal Control 10-12

2.5 Function of Internal Control Department 12

2.6 Internal Audits Report 13

2.7 Drafting Audit Reporting 13

2.8 Appointment of Auditors 13

2.9Qualification of External Auditors 14

2.10 Qualification of Internal Auditors 14

2.11 Relationship Between Internal and 14

External Auditor Common Interest

2.12 Differences 15

2.13 Provision of CAMA ’90 on Independence of Auditors. 15

CHAPTER THREE

3.1 Research Methodology 16

3.2 Sample Size and Procedure 16

3.3 Method of Data Collection 17

3.4 Research instrument 17

CHAPTER FOUR

4.0 Data Presentation and Procedure 18-20

4.1 Discussion of Findings 21

CHAPTER FIVE

5.0 Summary of Finding, Recommendation and Conclusion 22

5.1 Summary of Finding 22-23

5.2 Recommendation 23

5.3 Conclusion 23

References 24

Appendix 25

CHAPTER ONEINTRODUCTION This research work is an attempt to review thoroughly the effectiveness or otherwise of the internal control systems and procedures in a banking environment. A case study of Wema Bank Plc.The importance of an effective internal audit, internal check, and control system cannot be overemphasized. More so with government policy of promoting accountability by others interested with government fund.Auditing can be described as an activity carried out by an independent person with the sole aim of reporting on the truth. And fairness of a financial statement. It can be regarded as the activity embarked upon by the author when verifying accounting data. Determining the accuracy and reliability of accounting statements. Report and issue reports based on his finding.Internal audit can be appropriately termed as one conducted by an employee of an organization into any aspect of its affairs and work exclusively for the organization. Internal audit can be described as the eye of the board and the watch of the organization's activities. Internal control is the whole system of controlling finances and established by 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.1.2       STATEMENT OF THE PROBLEMThe role of internal auditors of an organization has been underestimated. If not totally relegated to the background when compared with their counterparts in the private practice.That is the external auditor may be attributed to the fact that internal auditors are employees of the organization. The act of underestimating the role of the internal auditor is not exhibited by the authority alone. Workers of the organization also underrate the work of the internal auditors.1.3       SIGNIFICANCE OF THE STUDYThe purpose of the organization's research work is to examine the control system is operating in a banking environment to look out for any loophole out of any loophole or weakness in the audit program as revealed in the response of questionnaires to be administered.Study the relation and interdependence the internal auditors and external auditors. Make recommendations for improvement or a complete change of the system in operation so that the new improved methods can be introduced to replace the old system.The researcher is of the option that the stakeholders of the research work will be beneficial to all stakeholders in the banking environment.If the recommendation put forward is adopted, it will surely go a long way to reduce cases of fraud. Misappropriation inefficient use of assets and availability.LIMITATION OF THE STUDYMany people believe internal auditor can never be independent. This is largely true. Since the scope of any internal department is determined by the management of the organization concerned. The management also dictates low for the audit department can carry out its duties and the types expended from them.RESEARCH QUESTIONSIt is assumed that lack of adequate and lack of organized internal audit systems creates an avenue for fraudulent practices. Unreliable accounting data, lack of good and proper maintenance culture, wasteful spending as well as lack of strict adherence to prescribed management policies and financial regulations. Answers to the following questions will be importantDoes the existing internal audit in the institutions provide safety for their moveable and immovable assets?Is the adoption of a good internal audit procedure the appropriate measure used to eradicate or minimize the occurrence of fraud and other malpractices in tertiary institutions?To whom should the internal audit report?To what extent should the management take action on the reports of the internal audit?DEFINITION OF TERMSINTERNAL AUDITINGThis can be defined as an independent appraisal function established by the management of an organization as services to the organization.INTERNAL CONTROLThis auditing guideline on internal control defines internal control thus: the internal control system is the whole system of controlling financial and otherwise, established by the management in order to carry on the business manner, ensure adherence to management policies safeguard the assets, and score as far as possible the completeness and accuracy of the records.INTERNAL CHECKAn internal check is meant on the day activities or transaction which operates continuously as part of the routine system whereby the work of one person is proved independently to work of another, the prevention of error, all transaction independent of each other. Internal checks involve the distribution of duties of accounting staff in such a way the work of each employee will be subject to continuous and automatic checks by the other members of the company’s staff.AUDITINGAuditing can be defined as the independent examination of and expression on the financial statement of an enterprise by an appointed in pursuance of the appointment and in compliance with any relevant statutory obligation.MANAGEMENT AUDITThis is an inquiry into the advisability of any of the policies of the direction in furthering the objects of the company as defined in the memorandum and into efficiency which they secure the execution of these policies.PRIVATE AUDITThis is an audit conducted into organization affairs by an independent auditor. Because the owners (usually) sole proprietors when the audit to take place not because the law requires it.STATUTORY AUDITThese are audits carried out because the law requires that the accounts be audited at specific intervals. The company and Allied Matters Act (CAMA ’90) make the audit to limited liability Company be compulsory annual.

.


TYPE IN YOUR TOPIC AND CLICK SEARCH.






RESEARCHWAP.COM

Researchwap.com is an online repository for free project topics and research materials, articles and custom writing of research works. We’re an online resource centre that provides a vast database for students to access numerous research project topics and materials. Researchwap.com guides and assist Postgraduate, Undergraduate and Final Year Students with well researched and quality project topics, topic ideas, research guides and project materials. We’re reliable and trustworthy, and we really understand what is called “time factor”, that is why we’ve simplified the process so that students can get their research projects ready on time. Our platform provides more educational services, such as hiring a writer, research analysis, and software for computer science research and we also seriously adhere to a timely delivery.

TESTIMONIES FROM OUR CLIENTS


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

  • "Exceptionally outstanding. Highly recommend for all who wish to have effective and excellent project defence. Easily Accessable, Affordable, Effective and effective."

    Debby Henry George, Massachusetts Institute of Technology (MIT), Cambridge, USA.
  • "I saw this website on facebook page and I did not even bother since I was in a hurry to complete my project. But I am totally amazed that when I visited the website and saw the topic I was looking for and I decided to give a try and now I have received it within an hour after ordering the material. Am grateful guys!"

    Hilary Yusuf, United States International University Africa, Nairobi, Kenya.
  • "Researchwap.com is a website I recommend to all student and researchers within and outside the country. The web owners are doing great job and I appreciate them for that. Once again, thank you very much "researchwap.com" and God bless you and your business! ."

    Debby Henry George, Massachusetts Institute of Technology (MIT), Cambridge, USA.
  • "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 .
  • "Great User Experience, Nice flows and Superb functionalities.The app is indeed a great tech innovation for greasing the wheels of final year, research and other pedagogical related project works. A trial would definitely convince you."

    Lamilare Valentine, Kwame Nkrumah University, Kumasi, Ghana.
  • "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.