INTERNAL CONTROL AS AN EFFECTIVE MANAGEMENT TOOL IN THE BANKING INDUSTRY. (A CASE STUDY OF FIRST BANK OF NIGERIA PLC ENUGU MAIN).
INTERNAL CONTROL AS AN EFFECTIVE MANAGEMENT TOOL IN THE BANKING INDUSTRY. (A CASE STUDY OF FIRST BANK OF NIGERIA PLC ENUGU MAIN).
CHAPTER ONE
1.0 INTRODUCTION 1
1.1 Background of the study 1
1.2 Statement of problem 3
1.3 The purpose or objective of the study 4
1.4 Scope or delimitation of the study 5
1.5 Research questions 6
1.6 Significance or Rational of the study 6
CHAPTER TWO
2.0 REVIEW OF LITERATURE 9
CHAPTER THREE
3.0 METHODOLOGY 57
3.1 Research design 57
3.2 Area of the study 57
3.3 Population of the study 58
3.4 Sample and sampling procedure 59
3.5 Instrument for data collection 59
3.6 Validity of the instrument 62
3.7 Reliability of the instrument 62
3.8 Method of Administration of the instrument 63
3.9 Method of Data Analysis 63
CHAPTER FOUR
4.0 DATA PRESENTATION AND RESULTS 66
5.0 DISCUSSION, IMPLICATION AND RECOMMENDATIONS 89
5.1 Discussion of Results 89
5.2 Conclusions 90
5.3 Implication of the Results 91
5.4 Recommendations 92
5.5 Suggestions for further study 94
5.6 Limitation of the study 94
References 96
Appendices 99
LIST OF TABLES
TABLE PAGE
operational internal control 67
to laid down regulations helping in effective management 68
laid down regulations and guidelines 68
and accountability is independent of internal control system 69
the internal auditors and inspectors per decision making 70
and suggestions from their inspections and internal auditors 71
of a bank in having relationship with internal control system 72
internal control 72
and called over 73
participates in the calling over of the records 74
and accountability without internal control system in operation 75
to work 76
FBN PLC. 77
of banks on effective operational internal control 78
in FBN PLC Enugu main 79
existence of internal control system in FBN PLC Enugu main 80
4(a) Illustration using pie chart for the distribution of respondents’
length of service. 81
for hypothesis 1
for hypothesis 2 85
for hypothesis 3 86
ABSTRACT
This project was carried out with the sole aim of studying and evaluating the internal control system in a banking industry – using First Bank of Nigeria PLC, Enugu main as a case study.
The project is written in five chapters: chapter one is the introduction which include the background of the study etc. chapter two enumerated literature review, where the earlier views on internal controls were reviewed to avoid duplication. Chapter three is the Research Methodology. Chapter four – Data Presentation, Analysis and Interpretation and finally, chapter five includes: Summary of findings, recommendations, implications, limitations of the study and suggestions.
In handling this project, the survey and historical research method was employed.
A total of 99 workers were chosen as the population of this study. The workers were grouped as staff and non-staff. The staff that the 65 number, which revealed that the 65 staff were made up of: 13 management staff, 44 senior staff, 8 junior staff. While the non-staff were 34 in number which is made up of 2 contract staff and 32 I. T. staff.
Since the project topic “internal control as an effective management in the banking industry” is an important topic, the staff population was chosen since they are the ones to understand the language of the project topic.
The study tools were mostly through questionnaires; oral interviews; reading which includes text books, journals, past texts, newspapers, annual reports and statement of accounts manuals, encyclopedias, and other publications; and observations.
The data collected were interpreted to the understanding of everybody through the use of tables, pie chart, and chi-square.
The study overviewed the following areas: definitions, categories, types and essentials of internal control system. Others are plan of organisation authorisation, managerial supervisions, internal check and internal audit.
The findings that, top management rely heavily on internal auditors and inspectors report for managing, controlling and decisions making among other findings. The research made some recommendations, which is hoped, will help for the achievement of effective internal control system as well as effective management in FBN PLC.
CHAPTER ONE
INTRODUCTION
Internal control is control within the company. In this type of control employees within the establishment can be useful fro more effectiveness of the desired goal. This means that it must be within the establishment’s restraint, authority or command. It involves a check within the banking industry to facilitate the effectiveness of its management.
The banking industry of every economy consists of all the activities of financial institutions geared towards setting and maintaining a healthy cash flow and management policy in such economy.
Banking industry cannot perform their functions very well without maintaining a sound internal control. This is the reason for the study of the effective management of the banking industry.
According to the Canadian Institute of Chartered Accountants, Exposure Draft of proposed Auditing Recommendations, Internal control comprise of the plan of an organisation and all the plan of an organisation and all the co-ordinate systems established by the management of the enterprise to achieve management’s objective of ensuring as far as it is practical. The orderly and efficient conduct of its business and efficient conduct of its business including the preparation of reliable financial information.
Internal control system could be viewed as a firm’s organizational plan including all methods and measures the firm takes to:
It is the responsibility of management to determine the internal control system which is appropriate to the organisation. The nature and extent of control will vary between organisations. That is it differs from one organisation to another.
Most business organisations in Nigeria of which banking industry is one of them are known for their inability to keep complete and accurate records, and quite often lose some of their assets both financial and others under their control to fraudulent workers, and other enemies of progress who adopt any strategy possible to satisfy their selfish interest at the detriment of the public interest.
The main problem of this research work are us follows:- To identify the nature, weaknesses and limitations inherent in the internal control system as regards the banking sector using the First Bank of Nigeria PLC, Enugu main a\s a case study.
In the real sense, the banking system suppose to reap its full benefits, but the system cannot work where there is management and operational inefficiency among the workers and this will result to a general unprofitability in the banking system. This can only be remedied through the corrective measures, which will be provided as this study proceeds.
The control used will depend on the nature, size and volume of the activities and the degree of control which management are able to exercise personally, geographical distribution and many other factors.
A good internal control system is essentially indispensable to every organisation that has portfolio of assets and bulky transaction to undertake. It is with due knowledge of this indispensable nature of good internal control system to organisations mostly of the banking industry that this research work has designed to base the research to:-
(i) Evaluate how effectively the management has relied on internal control for decision-making and corporate goal attainment.
(ii) Ensure that proper and accurate accounting system is maintained.
(iii) Appraise the cost-benefit of installation of internal control.
(iv) Create awareness of the importance of internal control.
(v) Make recommendations where necessary.
1.4 SCOPE OF THE STUDY
This research work focuses on Banking Industry, using the First Bank case study. First Bank of Nigeria PLC has its headquarters at Lagos and five zonal banking units which include Central, East, North, West and Lagos Banking operation units.
This study will look into banking operations especially the following aspects of internal control of the selected areas as:
1.5 RESEARCH QUESTIONS:
For the purpose of this research work to be achieved, the following hypotheses were formulated:
H1: Effective management and accountability is independent of the internal control system.
H1: The profitability and operational efficiency of a bank has relationship with its internal control system.
H1: Adherence to laid down rules helps effective management.
This research work on “Internal Control” as an effective management tool in the Banking Industry” will be useful to Bankers, Insurers Auditors and other researchers.
Download our android mobile app for more materials
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COMPLETE MATERIAL COST N2,500 Or $10. FRESH PROJECT MATERIAL COST 50,000 NAIRA FOR UNDERGRADUATE, OTHERS 100,000 -200,000 NAIRA.
THE NATURE AND CONSEQUENCES OF JUVENILE DELINQUENCY IN NIGERIA: A STUDY OF ENUGU NORTH LGA, ENUGU STATE
Foreign Transaction For Dollars Payment :
Bank Name: GTBank
Branch Location: Enugu State,Nigeria.
Account Name: Chi E-Concept Int’l
Account Number: 0117780667.
Swift Code: GTBINGLA
Dollar conversion rate for Naira is 175 per dollar.
ATM CARD: YOU CAN ALSO MAKE PAYMENT USING YOUR ATM CARD OR ONLINE TRANSFER. PLEASE CONTACT YOUR BANK SECURITY FOR GUIDE ON HOW TO TRANSFER MONEY TO OTHER BANKS USING YOUR ATM CARD. ATM CARD OR ONLINE BANK TRANSFER IS FASTER FOR QUICK DELIVERY TO YOUR EMAIL . OUR MARKETER WILL RESPOND TO YOU ANY TIME OF THE DAY. WE SUPPORT CBN CASHLESS SOCIETY.
OR
PAY ONLINE USING YOUR ATM CARD. IT IS SECURED AND RELIABLE.
form>DELIVERY PERIOD FOR BANK PAYMENT IS LESS THAN 24 HOURS
CALL OUR CUSTOMERS CARE OKEKE CHIDI C ON : 08074466939,08063386834.
AFTER PAYMENT SEND YOUR PAYMENT DETAILS TO
08074466939 or 08063386834, YOUR PROJECT TITLE YOU WANT US TO SEND TO YOU, AMOUNT PAID, DEPOSITOR NAME, UR EMAIL ADDRESS,PAYMENT DATE. YOU WILL RECEIVE YOUR MATERIAL IN LESS THAN 2 HOURS ONCE WILL CONFIRM YOUR PAYMENT.
WE HAVE SECURITY IN OUR BUSINESS.
CHAPTER ONE
1.0 INTRODUCTION 1
1.1 Background of the study 1
1.2 Statement of problem 3
1.3 The purpose or objective of the study 4
1.4 Scope or delimitation of the study 5
1.5 Research questions 6
1.6 Significance or Rational of the study 6
CHAPTER TWO
2.0 REVIEW OF LITERATURE 9
CHAPTER THREE
3.0 METHODOLOGY 57
3.1 Research design 57
3.2 Area of the study 57
3.3 Population of the study 58
3.4 Sample and sampling procedure 59
3.5 Instrument for data collection 59
3.6 Validity of the instrument 62
3.7 Reliability of the instrument 62
3.8 Method of Administration of the instrument 63
3.9 Method of Data Analysis 63
CHAPTER FOUR
4.0 DATA PRESENTATION AND RESULTS 66
CHAPTER FIVE
5.0 DISCUSSION, IMPLICATION AND RECOMMENDATIONS 89
5.1 Discussion of Results 89
5.2 Conclusions 90
5.3 Implication of the Results 91
5.4 Recommendations 92
5.5 Suggestions for further study 94
5.6 Limitation of the study 94
References 96
Appendices 99
LIST OF TABLES
TABLE PAGE
- Analysis of responses to whether there is a reliable
operational internal control 67
- Analysis of responses to the effects of adherence
to laid down regulations helping in effective management 68
- Analysis of whether the Bank manages in line with the
laid down regulations and guidelines 68
- Analysis of responses to whether effective management
and accountability is independent of internal control system 69
- Analysis to the responses of the use of the reports of
the internal auditors and inspectors per decision making 70
- Analysis to responses to the implementation of the corrections
and suggestions from their inspections and internal auditors 71
- Analysis response to the profitability and operational efficiency
of a bank in having relationship with internal control system 72
- Analysis response to whether division of labour does help in
internal control 72
- Analysis response to whether all records are supervised
and called over 73
- Analysis responses to whether one who passed the entries
participates in the calling over of the records 74
- Analysis responses to the possibility of effective management
and accountability without internal control system in operation 75
- Analysis responses to training courses and regular motivation
to work 76
- Analysis response to the rate of operational efficiency in
FBN PLC. 77
- Analysis responses to the dependence of the future stability
of banks on effective operational internal control 78
- Analysis responses to the effectiveness of division of labour
in FBN PLC Enugu main 79
- Analysis responses to the effective and efficient of the
existence of internal control system in FBN PLC Enugu main 80
4(a) Illustration using pie chart for the distribution of respondents’
length of service. 81
- Test of hypotheses 83
- Computation of chi-square test using table 4.1.4
for hypothesis 1
- Computation of chi-square test using table 4.1.7
for hypothesis 2 85
- Computation of chi-square test using table 4.1.2
for hypothesis 3 86
ABSTRACT
This project was carried out with the sole aim of studying and evaluating the internal control system in a banking industry – using First Bank of Nigeria PLC, Enugu main as a case study.
The project is written in five chapters: chapter one is the introduction which include the background of the study etc. chapter two enumerated literature review, where the earlier views on internal controls were reviewed to avoid duplication. Chapter three is the Research Methodology. Chapter four – Data Presentation, Analysis and Interpretation and finally, chapter five includes: Summary of findings, recommendations, implications, limitations of the study and suggestions.
In handling this project, the survey and historical research method was employed.
A total of 99 workers were chosen as the population of this study. The workers were grouped as staff and non-staff. The staff that the 65 number, which revealed that the 65 staff were made up of: 13 management staff, 44 senior staff, 8 junior staff. While the non-staff were 34 in number which is made up of 2 contract staff and 32 I. T. staff.
Since the project topic “internal control as an effective management in the banking industry” is an important topic, the staff population was chosen since they are the ones to understand the language of the project topic.
The study tools were mostly through questionnaires; oral interviews; reading which includes text books, journals, past texts, newspapers, annual reports and statement of accounts manuals, encyclopedias, and other publications; and observations.
The data collected were interpreted to the understanding of everybody through the use of tables, pie chart, and chi-square.
The study overviewed the following areas: definitions, categories, types and essentials of internal control system. Others are plan of organisation authorisation, managerial supervisions, internal check and internal audit.
The findings that, top management rely heavily on internal auditors and inspectors report for managing, controlling and decisions making among other findings. The research made some recommendations, which is hoped, will help for the achievement of effective internal control system as well as effective management in FBN PLC.
CHAPTER ONE
INTRODUCTION
- BACKGROUND OF THE STUDY
Internal control is control within the company. In this type of control employees within the establishment can be useful fro more effectiveness of the desired goal. This means that it must be within the establishment’s restraint, authority or command. It involves a check within the banking industry to facilitate the effectiveness of its management.
The banking industry of every economy consists of all the activities of financial institutions geared towards setting and maintaining a healthy cash flow and management policy in such economy.
Banking industry cannot perform their functions very well without maintaining a sound internal control. This is the reason for the study of the effective management of the banking industry.
According to the Canadian Institute of Chartered Accountants, Exposure Draft of proposed Auditing Recommendations, Internal control comprise of the plan of an organisation and all the plan of an organisation and all the co-ordinate systems established by the management of the enterprise to achieve management’s objective of ensuring as far as it is practical. The orderly and efficient conduct of its business and efficient conduct of its business including the preparation of reliable financial information.
- Murphy in her text described internal control as the plan of organisation and all of the coordinate methods and measures adopted within a business to safeguard its assets, check the accuracy and reliability of its accounting data, promote operational efficiency and encourage adherence to prescribe managerial policies.
Internal control system could be viewed as a firm’s organizational plan including all methods and measures the firm takes to:
- Safeguard its assets
- Ensure the accuracy and reliability of its accounting data.
- Promote operational efficiency and
- To encourage compliance with organisations policies.
It is the responsibility of management to determine the internal control system which is appropriate to the organisation. The nature and extent of control will vary between organisations. That is it differs from one organisation to another.
- STATEMENT OF PROBLEM
Most business organisations in Nigeria of which banking industry is one of them are known for their inability to keep complete and accurate records, and quite often lose some of their assets both financial and others under their control to fraudulent workers, and other enemies of progress who adopt any strategy possible to satisfy their selfish interest at the detriment of the public interest.
The main problem of this research work are us follows:- To identify the nature, weaknesses and limitations inherent in the internal control system as regards the banking sector using the First Bank of Nigeria PLC, Enugu main a\s a case study.
In the real sense, the banking system suppose to reap its full benefits, but the system cannot work where there is management and operational inefficiency among the workers and this will result to a general unprofitability in the banking system. This can only be remedied through the corrective measures, which will be provided as this study proceeds.
The control used will depend on the nature, size and volume of the activities and the degree of control which management are able to exercise personally, geographical distribution and many other factors.
- THE PURPOSE OF THE STUDY
A good internal control system is essentially indispensable to every organisation that has portfolio of assets and bulky transaction to undertake. It is with due knowledge of this indispensable nature of good internal control system to organisations mostly of the banking industry that this research work has designed to base the research to:-
(i) Evaluate how effectively the management has relied on internal control for decision-making and corporate goal attainment.
(ii) Ensure that proper and accurate accounting system is maintained.
(iii) Appraise the cost-benefit of installation of internal control.
(iv) Create awareness of the importance of internal control.
(v) Make recommendations where necessary.
1.4 SCOPE OF THE STUDY
This research work focuses on Banking Industry, using the First Bank case study. First Bank of Nigeria PLC has its headquarters at Lagos and five zonal banking units which include Central, East, North, West and Lagos Banking operation units.
This study will look into banking operations especially the following aspects of internal control of the selected areas as:
- The authorization custody and recording.
- The nature of segregation of duties.
- The internal checks and internal audit in operation.
- The aspects of supervisory.
- The other control measures being exercised and their adherent to management policies and guidelines.
1.5 RESEARCH QUESTIONS:
For the purpose of this research work to be achieved, the following hypotheses were formulated:
- H0: Effective management and accountability is not independent of the internal control system.
H1: Effective management and accountability is independent of the internal control system.
- H0: The profitability and operational efficiency of a bank has no relationship with its internal control system.
H1: The profitability and operational efficiency of a bank has relationship with its internal control system.
- H0: Adherence to laid down rules does not help effective management.
H1: Adherence to laid down rules helps effective management.
- SIGNIFICANCE OF THE STUDY:
This research work on “Internal Control” as an effective management tool in the Banking Industry” will be useful to Bankers, Insurers Auditors and other researchers.
- To the insurers, Bankers and other Financiers: The operators of the banking system whose sector is being threatened to winding up, may learn some useful reasons from the findings of the research.
- To other Researchers: People who may be carrying out research in this area will certainly find this work relevant. It can serve as a source of information to them. They can find it very useful during their research work.
- To the External Auditors: The findings of this study will be of a great help to the external auditors in determining the extent of work to be carried out by them since they rely on internal control system of their clients.
- To the students and the general public: Students as well as the general public who want to acquire knowledge of internal control in the banking industry will equally benefit from this study.
Download our android mobile app for more materials
ORDER NOW
COMPLETE MATERIAL COST N2,500 Or $10. FRESH PROJECT MATERIAL COST 50,000 NAIRA FOR UNDERGRADUATE, OTHERS 100,000 -200,000 NAIRA.
THE NATURE AND CONSEQUENCES OF JUVENILE DELINQUENCY IN NIGERIA: A STUDY OF ENUGU NORTH LGA, ENUGU STATE
MAKE YOUR PAYMENT INTO ANY OF THE FOLLOWING BANKS:
GTBANK
Account Name : Host Link Global Services Ltd
ACCOUNT NUMBER: 0138924237
Account Name : Host Link Global Services Ltd
ACCOUNT NUMBER: 0138924237
First Bank:
Account Name: Chi E-Concept Int’l
Account Name: 3059320631
Account Name: Chi E-Concept Int’l
Account Name: 3059320631
Foreign Transaction For Dollars Payment :
Bank Name: GTBank
Branch Location: Enugu State,Nigeria.
Account Name: Chi E-Concept Int’l
Account Number: 0117780667.
Swift Code: GTBINGLA
Dollar conversion rate for Naira is 175 per dollar.
ATM CARD: YOU CAN ALSO MAKE PAYMENT USING YOUR ATM CARD OR ONLINE TRANSFER. PLEASE CONTACT YOUR BANK SECURITY FOR GUIDE ON HOW TO TRANSFER MONEY TO OTHER BANKS USING YOUR ATM CARD. ATM CARD OR ONLINE BANK TRANSFER IS FASTER FOR QUICK DELIVERY TO YOUR EMAIL . OUR MARKETER WILL RESPOND TO YOU ANY TIME OF THE DAY. WE SUPPORT CBN CASHLESS SOCIETY.
OR
PAY ONLINE USING YOUR ATM CARD. IT IS SECURED AND RELIABLE.
form>DELIVERY PERIOD FOR BANK PAYMENT IS LESS THAN 24 HOURS
CALL OUR CUSTOMERS CARE OKEKE CHIDI C ON : 08074466939,08063386834.
AFTER PAYMENT SEND YOUR PAYMENT DETAILS TO
08074466939 or 08063386834, YOUR PROJECT TITLE YOU WANT US TO SEND TO YOU, AMOUNT PAID, DEPOSITOR NAME, UR EMAIL ADDRESS,PAYMENT DATE. YOU WILL RECEIVE YOUR MATERIAL IN LESS THAN 2 HOURS ONCE WILL CONFIRM YOUR PAYMENT.
WE HAVE SECURITY IN OUR BUSINESS.
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