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ASSESSMENT OF THE IMPACT OF INTERNAL CONTROLS ON FRAUD PREVENTION AND EFFECTIVE MANAGEMENT OF BUSINESS ORGANIZATIONS
(A STUDY OF NIGERIAN BOTTLING COMPANY PLC, UYO, AKWA IBOM STATE)
ABSTRACT
The research examine “Assessment of the Impact of Internal Controls on Fraud Prevention and Effective Management”, A study of Nigerian Bottling Company Plc, Uyo, with the population of all staff of champion breweries Plc and sample size of 100. However, out of the 100 sampled, 45 were completed and returned which was used as the bases of analysis in chapter four by the use of frequency table and the Chi-square (X2) tool was use to validate the research hypothesis. The findings reveal that an internal control on fraud prevention influences positively the performance of management of Nigerian Bottling Company Plc. In the process, the writer examined the cause of relevant fraud cases in organization, procedures for minimizing it and also emphasized that in order to have effective internal control in Champion Breweries and other organizations proper transaction, authorization of transactions, safeguarding of assets and segregation of functions have to be followed. This paper also places emphasis in the problems inherent in internal control such as fraud, collusion by management, manipulation of payrolls, carelessness, weakness and other personal factors and perpetration of irregularities. Furthermore, the writer has pointed out measures to be adopted in order to reduce internal control problems. These include segregation of responsibilities between departments and individuals, custody of assets, access to resources and the employment of honest and competent staff so as to ensure effective internal measures.
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