TABLE OF CONTENTS
CHAPTER ONE
1.1
introduction
1.2
statement
of the problems
1.3
research
questions
1.4
objectives
of the study
1.5
research
hypothesis
1.6
significance
/ justification of the study
1.7
scope
and limitation of the study
1.8
Definition
of key terms.
1.9
Organization
plan
CHAPTER TWO
2.1 LITERATURE
REVIEW
2.2 Concept
of internal control system
2.3 Classification
of internal control system
2.4 Types
of internal control
2.5
Reliance on internal control system
2.6 Axes
on internal control system
2.7 Objectives
of internal control system
2.8 Environment
of internal control system
2.9 Requirements
for effective internal control system
2.11 Application
of internal control system
2.13 Limitation
of internal control system
CHAPTER THREE
3.1 RESEARCH
METHODOLOGY
3.2 Historical
of the case study
3.3 types
of Data
3.4
research design
3.5 sample
procedure
3.6 Method
of Data Collection
CHAPTER FOUR
4.1
PRESENTATION ANALYSIS OF DATA
4.2 Data
presentation
4.3 Data
analysis
4. 4 Findings
CHAPTER FIVE
5.0 SUMMARY,CONCLUSION
AND RECOMMENDATIONS
5.1
Summary
5.2
Conclusion
5.3
Recommendation
References
CHAPTER ONE
1.1 INTRODUCTION
Banks are very important
in nation; they are the backbone of the nation’s economy. Functions of the bank according to ezeuiji
(1997), including money creation, acceptance of deposit from the customers,
provision of facilities for domestic and foreign remittance, help government in
implementing monetary policies etc.
According to the
operational standard (guideline). Internal control is defined as the whole
system of controls,, financial and otherwise, established by the management in order and efficient
manner, ensure adherence to management policies, safeguard the assets and
secure as far as possible the completeness and accuracy of the records.
The
function of internal control system include, the detection or safeguarding of business asset but despite
the fact a that all bank have internal
control system, there have been a lot of problem in the banking sector. Ranging
from bank liquidating to defrauding the banks, many banks have been liquidated
example of such bank include savannah bank plc, national bank plc (although it
is now being resuscitated) merchant bank Nigeria limited Nigeria internal bank
limited mention few.
According to central bank
of Nigeria (CBN) annual report over (N16 billion) sixteen billion naira was defrauded
from the banking sector, also recently a bank was suspended from the clearing
system by the central bank of Nigeria (CBN) because of mismanagement of banks
resources expert have given reason as to what causes banks distress. According
to ezeudiji (1997) one of the causes of bank distress is the internal control
system problems include poor or lack of proper authorization of loan and
contract, poor loan recovery, failure to collect proper collateral security,
management override the control e.t.c.
According to koroye
(1989), it bank internal (detective in any significant way) that audit should
be decline outright opinion must be
qualified as strictly as possible. It is because of two main reason.
1.2 STATEMENT
OF PROBLEMS
Internal control system many
organization, including bank is very important because it ensure orderliness,
in the organization, advance to management polices, early detection of error
and fraud, protection of assets e.t.c.
Internal control system problem have
led to closure of many banks in Nigeria, ezudiji (1997) thereby making
depositors customer to shareholder of such bank to loss his or her shares. It
is inimical to nations economy because provide 90% of the capital employed in
Nigeria. Due to the following problem it leads to the following question.
Does bank operation carried out in
any orderly manner and follow the procedure laid down. Does transaction
recorded accurately and correctly.
1.3 RESEARCH QUESTIONS
This project has been able to provide answers to the following
research questions.
1.
What
is internal system?
2.
How
does banks operations can be carried out in internal control system?
3.
What
are the functions of the internal control system?
4.
What
are the benefits of internal control system to the government, public, students
and researchers?
5.
Does
transactions recorded accurately and correctly?
6.
What
cause banks distress?
7.
What
are the problems facing by internal control system?
8.
What
are the aims and objectives of internal control system to banks?
9.
What
is a bank and functions of a bank?
10.
What
is a fraud?
11.
How
to control fraud in banking sector
1.4 OBJECTIVES
OF THE STUDY
The objectives of the study are:
I.
To
find out if there is internal control in union bank plc.
II.
To
investigate the effectiveness of internal control system in union bank plc.
III.
To
find out factors that affects internal control system in union bank plc.
IV.
To
suggest way to improve internal control system effectiveness in union bank plc.
1.5 RESEARCH HYPOTHESIS
Ho: The internal control
system is not significantly effective on deposit money bank
H1: The internal control
system is significantly effective on deposit money bank.
1.6 SIGNIFICANCE /JUSTIFICATION OF
THE STUDY
The study is very importance nowadays
were federal government have hard to invest of in Nigeria. Since foreign
investor will not invest in any country where there is no good banking sector.
The study will be of immense benefit to banks determine the extent to which
internal control system is effective. In addition the study would determine the
factor problem militating against the to it. The study will be of immense help
because most of the founds requires by Nigerian are provided by bank also that
affect banking sector also affect many others sectors such as agriculture and
economy sector of the nations.
1.7 SCOPE AND LIMITATION OF THE STUDY
This study is limited to union bank
plc Muritala Muhammed way branch Ilorin due to financial constraint and other
problem. The study can only be generated to union bank plc branch all over the
country.
ü FINANCE:- due to limitation funds at
students disposal, the researcher has no accessibility of some area dues to
cost of getting to every part of research areas.
ü TIME CONSTRAIN:- considering the time
limit, the researcher do not have enough time to research and elaborate more on
the work. Another factor worthy of mention was the difficult encounter in
getting the right to do the research work at the right time place.
ü INSYFFICIENY OF DATA INFORMATION:-
most of the information available to the researcher have out dated and the
current ones are not easily obtained, therefore the researcher sees it as a
constrain to this project work.
ü PROBLEN OF SOURING:- some of the
respondents regard some questions are secret such as the main target of a
fraudster which they regard as confidential and feel reluctant to disclose.
1.8
DEFINITION OF KEY TERM.
i.
BANK:-
is a financial institution where money and other valuable items are been kept
for safety purpose.
ii.
INTERNAL:
it is the affairs and activities within a country.
iii.
CONTROL:
is the power to direct influence or limit something e.g. fraud, error, and to
safeguard business
iv.
SYSTEM:
it is a set of things working together as a mechanism or network, the
prevailing political or social order.
v.
INTERNAL
CONTROL SYSTEM: This whole of control, financial and otherwise established by
the government in order to carry on business of the enterprises in an orderly
manner, ensures stick firmly to management policies the completeness and
accuracy of accounting records.
vi.
MONEY:
it is anything which is generally acceptable for making payments or in the
settlement of debt.
vii.
DATA:
- is a term used to describe basic “FACT” based on measurement and recording
something knows or assumed as facts and made on basic reasoning or
calculations. It can be said to be unprocessed information or raw facts.
viii.
FRAUD:
- is the act of deceiving somebody in order to get money or goods illegally or
the use of deception to obtain unjust or illegal financial advantage.
1.9 ORGANISATION PLAN
This
research work is divided into five (5) main chapters and each chapter has the
following content:
Chapter one is the
introduction consisting of the statement of problems, research question,
objective of the study, research hypothesis, significance justification of the
study, scope and limitation of the study, definition of key terms, and
organization plan of the study.
Chapter two is the
literature review consisting of the historical of the case study, concept of
internal control system, classification of internal control system, reliance
control, types of internal control system, objective of internal control
system, environment of internal system, requirement for effective internal
control system, application of internal control system.
Chapter three is research
methodology consisting of the types of data, research design, sample procedure
and method of data collection.
Chapter four is data
presentation and data analysis and finding.
Chapter five is summary,
conclusion, recommendation and references.
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