TABLE OF CONTENTS.
BACKGROUND OF THE STUDY
OF RESEARCH PROBLEM
OBJECTIVE OF THE STUDY
SIGNIFICANCE OF THE STUDY
1.6 SCOPE OF THE STUDY
OF THE STUDY
DEFINITION OF KEY TERMS
ACCOUNTING CONTROL SYSTEM
INTERNAL CONTROL SYSTEM REVIEW
INTERNAL AUDITOR AND THE WATCH DOG ROLE ESSENTIAL
ELEMENTS OF INTERNAL CONTROL
HISTORICAL BACKGROUND OF THE STUDY
METHOD OF DATA COLLECTION
Population and sample size
Methods of data analysis
PRESENTATION, ANALYSIS AND INTERPRETATION
PRESENTATION OF THE ANALYSIS
4.2 EVALUATING OF ACCOUNTING
INFORMATION SYSTEM IN THE MANAGEMENT OF
establishment of universities constitutes part of the infrastructure of the
country within which development and an evaluation of accounting is the whole
system of control. Financials and otherwise established by the organization in
an orderly and efficient manner, ensures adherence to management policies, safeguard
the asses and secure as far as possible the completeness and accuracy of records.
order to allow for better administration in the universities, the executive arm
of operate and each is charge with specific duties. They are required to render
an account of their stewardship on how the asset and obligation of the students,
staff and government have been safeguarded. The question that readily comes to
mind is, how far has this stewardship roles been performed.
of embezzlement and misappropriation of public funds are main part these days.
Frauds have been taken many forms in this country within the educational institution
in the area financial frauds which include embezzlement of cash parse by
cashiers falsification or wrongful manipulation of accounts. Materials and
commercial frauds in stole of government parties.
fraud in duties the existence of ghost workers forgoing of certificates and use
of workers and universities time for private jobs while on payroll. Retaining
of employees names in the payroll of two or more departments drawing wages
cheques for a greater amount than actual wages, buttering of fractious names or
retaining the names of previous employees on the payroll.
burglary, breaking in and stealing of materials and requirements such as
typewriters, photocopy machines and cash form universities premises. It should be noted that these fraud
devices have a lot of effect on the operational efficiency of the universities
and the frauds could have been prevented of these are effective and accurate
accounting role procedures. In view of the light rate of frauds in the Nigerian
public sector, it become necessary to develop satisfactory and efficient system
of internal control to safeguard public money and other assets. This could be
reinforced by drastic law and regulations against frauds which the past military
administration of general Abubakar has stated.
There is fraud where there is a poor
accounting role system. A good system of accountability or internal control
system will ensure that every transaction is correctly recorded and that
responsibilities or duties are adequately segregated so that the same person do
not receive money, make entries, and make payment.
Lack of inadequacy internal control
method result in the mismanagement of the economy, lack of public accountability,
insensitivity of the political leadership and general deterioration of the
standard of living, hence there is need for positive action for fraudulent
It would appear that inadequate
accountability has been one of the problems of the Nigerian society since
independence. It is arguable that most public officers holders have not proved
to be quiet successful in accounting efficiency of the stewardship
The inadequate and stewardship of public
officers and politicians did sustain and aggravate economic problem which directly
or indirectly increase unemployment, austerities, inflation scarcities of full local and imported goods,
falling of standard of living which generally resulted in going for fairly used
materials popularly known as Tokunbo.
1.1 BACKGROUND OF THE STUDY
The University of Ilorin was established
by decree of the federal military government in august 1975. This step taken to
implement one of the education directives of the country third national
The university were considered to have
special responsibility themselves, also that they could guarantee their future
awareness of these responsibilities should be expressed in efficiency, in being
due able to fashion curricular which can easily merge with existing system, developing
postgraduate programmes, publishing standard ability to attract and retails
staff originate in curriculum and introducing new concepts engaging in problem
articulated research, maintaining `academic standard, coordinating with lower lever
institutions and laborating democratic internal governance for the universities
to achieves the universal.
A society which is free from corruption
and exploitation and which is led by able leaders imbised with a sense of
justice to all a nation which has educated man and woman oriented towards
services to their localities, country and the under society.
Degree of control by the government is
due to interference in the activities of the universities section by people in
government with litter or no knowledge at all about the operations of the
section is causing a serious problem in the section.
University is institution for the
problem and dissemination of advance leaving, offering degree and engaging in
academic research. University in a developing country roles and functions are
seen to train highly skill staff to satisfy national man power requirement,
promotion, and preservation of and enhance of social, cultural and moral
OF RESEARCH PROBLEM
The checking on day transaction which
operate continuously as part of the routine system whereby the work of one
person is proved independently or is complimentary to the work of another. The objectives
being the prevention or clearly detection of error and fraud.
Arithmetical and accounting controls
fall within the recording function which checks that the transactions to be
recorded and processed have been authorized and that they are all including of
arithmetical accuracy, reconciliations control accounts and the trial balances.
Internal check should not involve the
duplication of duties by two or more persons and the division of duties must be
maintained at all stages. It should also be noted that all transaction should
authorization or approval by an appropriate and responsible person.
Custody procedures and physical controls
are concerned mainly with the custody of assets and involve procedure and
security measures designed to ensure that process to assets is limited to
authorized personnel. This includes both direct access and indirect access via
documentation. To signify their initial for their part in the payment voucher
with space for responsible officials to signify their initial for their part in
the payment of cash and cheque pass responsibility down to individual for instance,
persons responsible for have space on the payment voucher for their initial
with additional space for others information like LPO number, cheque number,
invoice number and account change for such expenditure. The uses of accounting
machines also permit the simultaneous preparation of several documents with
similar information and thus prevent errors in recopying.
If function by measuring and evaluating
the effectiveness of other of control. It could be regarded as the watching for
management because it prints out areas out of deficiencies in the operation of
1.3 OBJECTIVE OF THE STUDY
In evaluation of accounting system which
is regarded as the central or most important part of every educational
establishment therefore, its efficient organization means that the educational
establishment is carrying out its objectives effectively with specific regards
to land down rules and regulations.
Control is essential in management function
that deals with the measurement and correction of the performance of
subordinates with a view of achieving the organization object with maximum
efficiency and at minimum cost.
Therefore, the objective of this study
is to study the role of function of accounting principles in existence at
universities of Ilorin
and see how effective these accounting elements are. In order words, evaluation
will be made as to whether the system of accounting in operation at the
universities of Ilorin is sound and reliable.
The competent, honest, dedicated and
imaginative staff with clear line of authority and responsibility can almost
perform at a high level and generally reliable vouchers even when there are few
other controls to support them. The existence of an effective system of
accounting will refuel an adequate separation of duties if the records kept are
to be relied upon. Those who are custody assets not be made responsible for
maintaining accounting record of such assets as combination of both function
increase the risk of man-detection such frauds.
Having ascertained the existence of
those characteristics of interval controls, compliance test will be carried out
to ensure that accounting procedure are being applied as prescribed, while the
objective will be to make recommendation and suggestions.
1.4 SIGNIFICANCE OF THE STUDY
The significance of the project voices
with individuals and the organization. To the individuals, new staff will be
recruited and trained to explain the feature of the new environment to the
current system of operation and to reduce fraud that is always generated during
the preparation and auditing of the management account which will improved the
efficiency and consistency of their operations by keeping records.
1.5 RESEACH QUESTION
Question can be said to be a self
administration process where by the responding himself read the question and
respond to the question without the assistance of interviewer.
expenditure incurred with the limit of authority?
Are the present
number of staff enough for the internal audit department?
preparation of payroll delegated to suitable people?
adequate segregation of duties regarding those staff involved in the
preparation of money received, records and those involve in the preparation of
money received, and those in other accounting operation?
What is the
problem in recapitalization of the university?
1.6 SCOPE OF THE STUDY
The research work shows the importance
of an evaluation of accounting system in the management of Nigeria
The study also introduce complexities
into the simplify the method by analyzing and evaluating the presence system
and bringing in their innovation for the purpose of yielding fruitful result
through effective participation and utilization of resource in the university
All Nigeria universities to be
considered same for time and financial constraints. Data should be collected
from the staff of accounting department covering period between 2002 and 2008.
OF THE STUDY
In any project work of this nature,
these are bound to some limitation or writing factors. However the work of
project or mine is not an exception of such factors. Some of the problems faced
during research include.
v Lack of cooperation from staff of the accounting
section some of the staff of the accounting department were reluctant to supply
us with information those who were less reluctant felt they will lose after job
as they claimed that the information were up most secret. Some of the
information that has assisted in the success of this study was secret document
for example file down loaded from the internal control system.
v Finance: another factor which limits this work was
finance amount of money at my disposal to carry out this study was not adequate
for a gigantic project of this nature.
v Bias: as would be expected, some response by the
people to which the question was put forward to tended to be with bias mind
just to protect their own interest. Most cases the management will give a
different view from what the workers gave for example the management responded
positively on writers condition of service while the research was the response
of the workers.
v Lack of proper satisfied information it’s a fact
well know in this country that public sector hardly kept record to date and
accurate information, and ever where statistical information or data are
available the figure and facts are often is doubt exaggerated or reduced.
v Time factor: the time specific for the submission of
this study is two short to give way for an intensive research work more practically,
if one take into account that other academic work needed equal attention.
1.8 STUDY PLAN
This project reports consists of five
chapters. The first chapter contained the general introduction. This include
introduction, background to the study, statement of the research problem,
objectives of the study, research question, scope of the study, limitation of the
study, study plan, definition of key terms.
The second chapter center on the
literature review. This contain reviews
of introduction, accounting control system, internal control system review,
internal auditor and watch dog role.
The third chapter focuses the research
methodology of the existing system which includes historical profit of the case
study, research hypothesis, data presentation, method of data collection, population
and sample size, sampling techniques and method of data analysis.
The fourth chapter entails data
presentation and analysis which include presentation of the analysis. Evaluation
of accounting system in the management of Nigerian university and discussion of
The last chapter contains the summary
and conclusion this consists of summary, recommendation and conclusion.
1.9 DEFINITION OF KEY TERMS
In addition to brief description
outlined under the introduction accounting system is defined as “the who system
of controls financial and otherwise established by the management in order to
convey on the business of the enterprises in an orderly and efficient manners.
1. INTERNAL AUDITING: This can be defined as “an
independent appraisal activities on an organization for the review of accounting,
financial and other operations as basis for services to management”. It is
managerial control which function measuring and evaluating the effectiveness of
others controls. An independent appraisal function established within an
organization to examine and evaluate it activities as a service to the
2. ACCOUNTING: This is a means of recording and
reporting the economic transaction of entity. It is aimed at measuring economic
entity with a view of providing information and has been called the business.
Since it serve to record and communicate economic phenomenon in order to
provide a basis for policy.
3. ENTITY: Every economy unit, regardless of its legal
form of existence, is treated as a
separated entity (in accounting) from parties having proprietary to economic
interest in it.
COSTING: This is often refused to as full costing or total costing and
generates in controversy. It is the conventional costing methods, which servers
as basis for all financial accounting statement.
5. DOCUMENTATION: An office withdrawing or retiring
from the services should submit his application through his head of department,
security should never be looked upon as the source of requirement.
6. PUBLIC SECTOR: This is refer to as all organization
that are not privately owned or operated but which are establish, finance and
controlled by the government on behalf of the general public.
7. GOING CONCERN: The assumption is that, the business
until will operate in perceptivity that is the business is not expected to be
liquidated in the foreseeable future. A business is considered a going concern,
if it is capable of earning a reasonable not income and there is no intention
or threat from any source to curtail significantly its line of business in the
8. PERIODICITY: Although, the result of a business
until cannot be determined with precision until its final liquidation or
winding up. The business community requires that the business community and the
used of the financial statement require that the business be divided into
accounting period (usually one year) and that charges in position be measured
over those periods.
9. REALIZATION: The concept establishes the rules for
the period recognition of revenue as soon as:
It is capable of
The value of
asset received or received able in exchange is reasonable certain. It is
possible to recognize revenue at a variety of points, for instance when goods
are produced, when goods are delivered or when the transaction is completed.
10. MATCHING: The concept held that, for any accounting
period, the earned revenue and all the incurred costs that generated that revenue
must be matched and reported for the period. If revenue is called over from a
period or deferred to a future period all elements of cost and expenses
relating to that reserve are usually carried over or differed as the case may
be. While accounting control has been defined as the methods and procedures
that are mainly concerned with the authorization of transaction, the
safeguarding of asset and the accuracy of the financial records. Finally,
management is the combination of human and materials resources in the right
proportion to achieve organization goals.