The effectiveness of internal control system in manufacturing company” has been carried out using the Nigeria bottling company Plc., Ilorin as the case study. The research study focuses on the impact in which internal control system plays on the life of manufacturing company. It is also enumerate the benefits to be derived from it. It help every organisation to carryout the business of the enterprise than orderly and efficiency manner.
In order to arrive at a reasonable conclusion the researcher introduced structured questionnaire together information from the respondents.
TABLE OF CONTENT
Table of contents
CHAPTER ONE: Introduction
1.1Background to the study
1.2 Statement of problems of the study
1.3 Aim and objectives of the study
1.4 Significance of the study
1.5 Scope of the study
1.6 Limitations and constraints of the study
2.2 Meaning of internal control
2.3 Scope of the internal control
2.4 The importance of internal control
2.5 Types of internal control
2.6 The internal control procedure
2.7 Limitations of control
2.8 Control environment
CHAPTER THREE: Research Methodology
3.1 Research Design
3.2 Method of data collection
3.3 Sampling procedure
3.4 Method of data presentation and analysis
Data presentation and analysis, summary and conclusion and recommendations
4.1 Brief history of the case study
4.2 Data presentation and analysis
1.1ACKGROUND OF THE STUDY
Internal control system is the whole system of control financial and otherwise establish by the management of an organisation in order to carryout the business of the enterprise in an orderly and efficiency manner.
It main objectives are to ensure adherent to management policies safeguard it’s asset and to ensure records of the organisation is complete and secured.
An auditor is also involves in internal control system, which is a competent and impartial critic appointment to verify and other accounting or organisation, he must certify the statement exhibits as a true and fair in view of the states of affairs of the organisation concerned.
However, he is not concerned with the financial stringy of the organisation but his task to see the financial strengths as show in the balance sheet, is in fact the actual and the true value of the organisation.
Moreover, auditing form the most important branch of the accounting profession once account have been prepared, they may be checked in other to ensure that they don’t print a destructed picture such process of checking is called auditing. It is compulsory for all limited liabilities company to have their account audited.
Lasher (1980) in his book, states that “An audit may be described as examination by an auditor of the evidence from which the financial revenue account and balance sheet of an organisation have been prepared in order to ascertain than they present, a true and fair view of financial state of organisation at the end of data thus enabling the auditor to report there”
However, auditing is a significant tool in internal control.
1.2 STATEMENT OF PROBLEMS OF THE STUDY
The strategic role that effectiveness of internal control system plays in all organisation generally and Nigeria Bottling Company in particular can not be down played. This implies that the internal control is very important part of any organisation. Some of the major problems therefore are:-
(i) Inability of management to enforce strict policy to safeguard it’s assets?
(ii) In adequate distribution of information within the management, in the organisation?
(iii)Lack of evaluating the performance of the subordinate with the organisation?
(iv)Lack of accuracy and in-valid of records?
1.3 AIM AND OBJECTIVES OF THE STUDY
The general objective of this project is to show the efficiency of internal control system of a business organisation with a special focus on NBC plant in Ilorin plant.
The specific objectives are:-
(i) To determine the completeness are accuracy and validity of the records.
(ii)To see how the company safeguards it’s assets by enforcing strict adhere to the management policies.
(iii)To know the level of company efficiency
(iv)To determining the effectiveness to the information passed from the strategic management to the level management.
1.4 SIGNIFICANCE OF THE STUDY
This is a prominent role that boost up of the company (NBC Ilorin Plant) in a sense of operating and carrying out the task of the company.
However, every organisation needs an efficient leader in a specific area in the company to be controlling and directing his subordinate in carrying out their specific task.
Furthermore, this research work is important because it examine the control system of the organisation and evaluate it with the overall performance of the company by the end of this, one should be able to identify it’s area of strength and weakness as regards the management of company and hence it internal control system with a view of enhancing the recommends performance of the company.
1.5 SCOPE OF THE STUDY
The study focused attention on the effectiveness of internal control system adapted in Nigeria Bottling Company Plc., Ilorin plant, Kwara State.
1.6 LIMITATIONS AND CONSTRAINTS OF THE STUDY
This project will be limited to the internal control system of an organisation (A case study of Nigeria Bottling Company Plc, Ilorin) with emphasis on effectiveness of internal control system in a manufacturing company. Due to complexity envisaged in data collection and the short duration of time available for this type of research, the data used will be strictly those relating to, and generated from the Nigeria Bottling Company Ilorin plant alone, this is due to financing material and time constraints.