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ABSTRACT
Internal control system is the process which an organisation governs its activities for effective and efficient operation, reliability of financial accountability and compliance with applicable law and regulation. The study focuses on the internal control system and financial accountability in the Local Government System in Akwa Ibom State. The main objective of the study was to examine the effect of internal control components on financial accountability in the Local Government system in Akwa Ibom State. The study was necessitated by the weakness in the internal control system in the Local Governments, which is capable of producing adverse result. The study focused primarily on four components of internal control: control environment, risk assessment, control activities and monitoring. The survey design was adopted the population comprised 150 staff of five selected departments in Itu Local Government Council. A sample size of 109 respondents was selected using stratified random sampling technique. Out of the total of 109 copies of questionnaire administered, 106 copies were retrieved. The instrument used in data collected was “internal control Evaluation Questionnaire” (ICEQ). Data obtained were analysed using frequency, percentages, linear regression. The hypotheses were tested at the 0.05 level of significance and findings revealed that there was a significant impact of internal control system on financial accountability. The result also revealed that among the four component of internal control considered, internal control activities, risk assessment, monitoring all had significant impact on financial accountability while result obtained for internal control environment was negative and has no significant impact on financial accountability. The study therefore recommended that authorities should take urgent action on internal control environment to avoid any instance of financial misappropriation. It was concluded that internal control has significant impact on financial accountability in Itu Local Government Council in Akwa Ibom State.
TABLE OF CONTENTS
Pages
Title page - - - - - - - - i
Declaration - - - - - - - - ii
Certification - - - - - - - - iii
Dedication - - - - - - - - iv
Acknowledgements - - - - - - - v
Abstract - - - - - - - - vii
Table of content - - - - - - - viii
List of tables - - - - - - - - xiii
CHAPTER ONE: INTRODUCTION
1.1 Background to the Study - - - - - 1
1.2 Statement of the Problem - - - - - 6
1.3 Objectives of the Study - - - - - 7
1.4 Research Questions - - - - - - 8
1.5 Research Hypotheses - - - - - - 9
1.6 Significance of the Study - - - - - 10
1.7 Scope of the Study - - - - - - 11
1.8 Limitations of the Study - - - - - 11
1.9 Organisation of the Study - - - - - 12
1.10 Operational Definition of Terms - - - - 12
CHAPTER TWO: REVIEW OF RELATED LITERATURE
2.1 Introduction - - - - - - - 14
2.2 Conceptual Framework - - - - - 14
2.2.1 Internal Controls in Perspective - - - - 16
2.2.2 Components of Internal Controls - - - - 18
2.2.3 Categories of Internal Control - - - - 28
2.2.4 Internal Control Objectives - - - - - 28
2.2.5 Characteristics of a Good Internal Control System - - 29
2.2.6 Internal Control Evaluation - - - - - 31
2.2.7 Internal Checks - - - - - - 32
2.2.8 Internal Audit - - - - - - - 32
2.2.9 Significance of Internal Control - - - - 33
2.2.10 Problems Affecting the Development of Sound System of
Internal Control - - - - - - 34
2.2.11 Suggestions to the problems of sound Internal Control System in
the Local Government System in Akwa Ibom State - - 35
2.2.12 Relationship between Internal Control and Financial
Accountability - - - - - - - 35
2.2.13 Achieving Accounting Excellence Through Internal Control
in the Local Government - - - - - 37
2.3 Theoretical Framework - - - - - 39
2.4 Empirical Review - - - - - - 41
2.5 Summary of Empirical Literature - - - - 47
2.6 Gap in Literature - - - - - - 51
CHAPTER THREE: METHODOLOGY
3.1 Introduction - - - - - - - 52
3.2 Research Design - - - - - - 52
3.3 Population of Study - - - - - - 53
3.4 Sample size and sampling technique - - - - 53
3.5 Sources of Data - - - - - - 55
3.6 Method of Data Collection - - - - - 56
3.7 Validity of the Instrument - - - - - 57
3.8 Reliability of the Instrument - - - - - 57
3.9 Measurement of Variables - - - - - 59
3.10 Method of Data Analysis - - - - - 60
CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND DISCUSSION OF FINDINGS
4.1 Introduction - - - - - - - 62
4.2 Data Presentation and Analysis - - - - 63
4.2.1 Distribution of the Respondents by Gender - - - 64
4.2.2 Response to the Research Questions - - - - 67
4.3 Test of hypotheses - - - - - - 77
4.4 Model Evaluation - - - - - - 82
4.5 Discussion of the Findings - - - - - 83
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Introduction - - - - - - - 85
5.2 Summary of the Findings - - - - - 85
5.3 Conclusion - - - - - - - 86
5.4 Recommendations - - - - - - 87
5.5 Suggestions for the Findings - - - - - 88
5.6 Contributions of the Study - - - - - 88
References - - - - - - - 89
Appendix - - - - - - - 93
LIST OF TABLES
Table 2.1:
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