Get the complete project »
- The Complete Research Material is averagely 94 pages long and it is in Ms Word Format, it has 1-5 Chapters.
- Major Attributes are Abstract, All Chapters, Figures, Appendix, References.
- Study Level: BTech, BSc, BEng, BA, HND, ND or NCE.
- Full Access Fee: ₦4,000
The objective of this study was to evaluate the internal control system in operation at power holding company of Nigeria Plc in Enugu State with a view to knowing its impact on revenue generation in the state. A sample of 40 was selected for the study randomly. The questionnaires were used in gathering the primary data while secondary data were collected from the work of others in the form of literature review. The data collected were analyzed using the chi-square (x2) as the statistical tool to determine the valuation of the hypothesis. The findings concluded that weak internal control system encourages collusion fraud loss of revenue, embezzlement and computation. This have always impeded the company’s ability to effectively supply electricity to customers and there from generate revenue. Internal audit system ensures operations compliance with set policies, promoting accuracy and reliability of transactions recording. In addition, effective internal control system ensure effective recommends the remodeling of the company’s internal control system and strengthening of the investigating unit. The components sectors of the present corporate Power Holding Company of Nigeria PLC should be unbundled into separate distinct independent entities that handle generation, transmission, distribution and marketing. It further recommends that prepaid meters should be seen as an alternative to further accumulate debts.
1.1 BACKGROUND OF THE STUDY
Internal control or an internal control system is the integration of the activities, plans, attitudes, policies, and efforts of the people of an organization working together to provide reasonable assurance that the organization will achieve its objectives and mission. Every organization has a purpose, which includes making some product and rendering some services at a price. For normal operations of the business organization, it is the product or services of the firm that cause cash receipts (revenue) to flow into the firm. Revenue is associated with products or service of a firm as source of expected cash receipts. Revenue is an event; an increase that applies definitely to value that is monetary. This increase occurs because the firm undertakes certain activities or there is any performance by the firm.
Revenue therefore refers to the monetary event of asset valves increasing in the firm due to the physical event of production or sales of the firms’ products or services.
In Kam (1987:237), Financial Accounting Standard Board(FASB) defines revenue as inflows or other enhancements of assets of an entity or settlements of its liabilities (or combination of both) during a period from delivery or producing goods, rendering service or other activities that constitutes the entity’s ongoing major or central operations. In addition, Hongreen et al (2002:568) described revenue as inflows of asset (almost always cash or accounts receivables) received for products or services provided to customers.
Thus internal control is defined as the whole system of control, financial and otherwise established by the management in order to carry on the business of the enterprise in an orderly and efficient manner to ensure adherence to management policies safeguard the assets and secure as far as possible the completeness and accuracy of the records. In addition the American institute of Certified Public Accountants in 1949 defined internal control as comprising the plan of organisation and all the coordinate methods and measures adopted within a business (or non profit making body) to safeguard its assets, check the accuracy and reliability of its accounting data promote operational efficiency and encourage adherence to prescribed managerial policies. A ‘system’ of internal control extends beyond those matters which relate directly to the functions of the accounting and financial department.
Internal control system is the strength of every organization, has become of paramount important today in banking sectors. The reason being that the control systems in any organization is a pillar for an efficient accounting system. It has also been shown that despite considerable investment, public service delivery by the establishment is widely perceived to be unsatisfactory and deteriorating from bad to worse.
The need for the internal control systems in the organizations, especially in banking industries cannot be undermined, due to the fact that the organizations which has a crucial role to play n the economic development of a nation is now being characterized by macro economic instability, slow growth in real economic activities, corruption and risk of fraud.
1.2 STATEMENT OF PROBLEM
The incidence of internal control weaknesses, unsatisfactory and deteriorating service delivery have the undesired effect of not only weakening the company’s ability to effectively generate revenue but also encourages collusion, fraud, embezzlements, loss of cash (revenue), assets conversion genuine and deliberate mistakes, corruption, lack of transparency and accountability for revenue collection and other assets. Despite considerable investment, public service delivery is unsatisfactory and degenerating. The company is not able to break even and sustain itself from the revenue obtained there from. This impact is so negatively on the company’s existence.
For the enhancement of the attainment of the mission and goals of the company, it is therefore necessary that these hindrances be removed. The management of the banking sector should familiarize themselves with internal control procedures that will ensure effective service delivery and the desired revenue generation.
Unfortunately, there has a dearth of adequate information in this regard. No determined effort has been made to investigate the problem of weak internal control over service delivery and revenue generation. Therefore the main motivating factor underlying this study is the desire to break new grounds with the intent of shedding more light on this problem and seeking avenues for solving it.
Thus, the study seeks to examine the role of internal control system in revenue generation in an organization.
1.3 OBJECTIVES OF THE STUDY
The objectives of the study are to find out the following:
1. To find out the role of internal control system in revenue generation in banking sector.
2. To examine the techniques of internal control system for revenue generation adopted by Nigerian banks.
3. To examine the effect of internal control system on revenue generation in an organization.
4. To identify the problems hindering banking sector in maintaining internal control system for revenue generation.
1.4 RESEARCH QUESTIONS
1. Does internal control system have any role in revenue generation in banking sector?
2. What are the techniques of internal control system for revenue generation adopted by Nigerian banks?
3. What are the effects of internal control system in banking sector in revenue generation?
4. What are the identified problems hindering banking sector in maintaining internal control system for revenue generation?
1.5 RESEARCH HYPOTHESES
1. H0: Internal control system does not play any role in revenue generation in banking sector.
H1: Internal control system plays any role in revenue generation in banking sector.
2. H0: There is no significant difference between the techniques of internal control system and revenue generation adopted by Nigerian banks.
H1: There is a significant difference between the techniques of internal control system and revenue generation adopted by Nigerian banks.
1.6 SIGNIFICANCE OF THE STUDY
This study is significant for the following reasons:
1. These studies will highlight the accounting and administrative control problems plaguing power banking sectors in Nigeria.
2. It will enable managers of banks, organizations and government owned public utility establishments to bring the accounting and the internal control procedures inherent in them in conformity with internal accounting standards and practises.
3. It will help government owned establishments to assess then internal control measures and make amends where necessary.
4. The study could arouse further research into some other further research into some other functional areas in the company by students and accountants. It will also help to broaden (my) researchers’ knowledge.
1.7 SCOPE OF THE STUDY
The study concerns about the role internal control system in revenue generation in an organization with a particular focus on Nigerian banks which include Zenith Bank, Eco Bank and Access Bank.
1.8 LIMITATION OF THE STUDY
The limitation of this study was inability of management divulge certain information which they consider sensitive and fear of publication which might be detrimental to their operation.
Also, the outright inability of some respondents to complete and return the questionnaire to the researcher is one of the limitations of the study.
Another limitation to the study was long distance and traffic congestion for the researcher to meet them in their offices and for possible return of the questionnaire.
Finally, the researcher observed the non-cooperative attitude of some workers of the company to make information available for her.
1.9 DEFINITION OF TERMS
REVENUE: This describes the amount of money a company generates in a set period of time through the sale of products or services.
INTERNAL CONTROL SYSTEM: This is the whole system of control, financial and otherwise established by the management in order to carry on the business of the enterprise in an order to carry on the business of the enterprise in an orderly and efficient manner.
AUDITING: An activity earned on by the auditor when he verifies or examines accounting information determines the accuracy and reliability of the accounting statement and reports and then expresses his opinion.
CONTROL ACTIVITIES: Policies and procedures that management has established
AUDIT: An independent examination of and the subsequent expression of opinion upon the financial statements of an organization.
INTERNAL CHECK: This is the allocation of authority and work in such a manner as to afford checks as the routine transactions of day to day work by means of the work of one person are being proved independently by another or the work of a person being complementary to that of another.
You either get what you want or your money back. T&C Apply
You can find more project topics easily, just search
SIMILAR BUSINESS ADMINISTRATION FINAL YEAR PROJECT RESEARCH TOPICS
» CHAPTER ONE INTRODUCTION 1.1 BACKGROUND OF THE STUDY The contribution of the manufacturing sector to the growth of an economy cannot be overemphasized...Continue Reading »
2. AN APPRASAL OF THE USE OF SUPPLY CHAIN FOR DISTRIBUTION OF PRODUCTS BY MANUFACTURING ORGANISATIONS IN NIGERIA» CHAPTER ONE INTRODUCTION 1.1 BACKGROUND OF THE STUDY All over the universe reduced delivery time, higher customer satisfaction, reduced financial cost...Continue Reading »
» TABLE OF CONTENT Content Page Title page i Certification ii Declaration iii Dedication iv Acknowledgement v Abstract vii Table of content viii CHAPTER...Continue Reading »
4. FINANCE CHALLENGES OF MANUFACTURING COMPANIES IN NIGERIA AND THEIR CONTRIBUTIONS TO THE GROWTH OF NIGERIA» CHAPTER ONE INTRODUCTION 1.1 BACKGROUND TO THE STUDY Manufacturing sector plays a catalytic role in a modern economy and has many dynamic benefits cru...Continue Reading »
5. ENTREPRENEURSHIP DEVELOPMENT; ITS BENEFITS IN A DEVELOPING ECONOMY A CASE STUDY OF IDUMOTA MARKET IN LAGOS ISLAND» ABSTRACT Entrepreneurial development is a major factor towards ensuring that a country experience growth in terms of employment and self dependability...Continue Reading »
» TABLE OF CONTENTS Title page......................................................................................................................ii C...Continue Reading »
» CHAPTER ONE 1.0 INTRODUCTION It is an undisputable fact that Nigeria of the pre independence era was predominately small scale in its productions and ...Continue Reading »
» CHAPTER ONE INTRODUCTION 1.1 Background of the Study Risk Management is the identification assessment and prioritization of risks. It is the effect of...Continue Reading »
» CHAPER ONE INTRODUCTION 1.1 BACKGROUND OF THE STUDY Individuals have needs and business organizations exist to satisfy the needs and wants of the soci...Continue Reading »
10. ORGANIZATIONAL STRUCTURE AS A TOOL FOR EFFECTIVE MANAGEMENT ( A CASE STUDY OF NIGERIA BREWERIES PLC)» CHAPTER ONE INTRODUCTION 1.1 BACKGROUND OF THE STUDY The business environment today has become so dynamic that the decision to structure or restructur...Continue Reading »