Title Page i
of content v
CHAPTER ONE: BACKGROUND OF THE STUDY
1.1 Introduction 1
and purpose of the study 3
of the study 3
and limitation of the study 4
plan of the study 4
of terms and concepts 6
CHAPTER TWO: LITERATURE REVIEW
2.1 Introduction 7
of internal control 9
of the internal control 10
important of internal control 11
of internal control 12
of internal control 15
features of internal control procedure 16
of internal control 17
CHAPTER THREE: RESEARCH
3.1 Introduction 22
background of the case study 22
of statically 26
internal audit department in coca-cola 27
and limitation of data collection. 30
CHAPTER FOUR: DATA
PRESENTATION AND ANALYSIS
4.1 Introduction 31
analysis and interpretation 31
5.1 Summary 43
5.2 Conclusion 44
5.3 Recommendation 44
Internal control system:
- could be define as the whole system of control financial and otherwise
established by the management of an organization in order to carry out the
business of the enterprises in an orderly and efficient manner, the main
objective is to ensure adherence to management police, safeguard it asset and
to sure that record of the organization is complete and secured.
An auditor is define as a
competent and impartial critic appointed to verify the financial and other
accounting statement of organization he must certify the verily of the
However, he is not
concerned with the financial strength of the organization but his task to see
that financial strength, as show in the balance sheet, is in fact the actual
and the true value of the organization.
Moreover auditing form a
most important branch of the accountancy profession once have been prepared,
then may be checked in other to ensure that then don’t print a destructed
picture such process of checking is called auditing. It is compulsory for all
limited liability company to have their account audited. Therefore auditing can
be define as a independent examination of the expression of opinion financial
statement of an enterprises by appointed auditor in purchase of that appointed
and in compliance with any relevant stationary obligation.
LESHER HERWARD in his
book auditing is state that an audit may be described as examination by an
auditor and balance sheet of an organization have a true and fair vie of the
summarized transaction for the period under review and of financial state of
the organization at the end of date, this enabling the auditor to report there.
However, auditing is significant tools needed in internal control system.
The internal control
system is a very important part of any organization. It helps to prevent fraud
and any other irregularity within the manufacturing company. The major problem
in question therefore,
to evaluate the effectiveness of internal control system in a manufacturing
company and the efficiency of such to make sure that internal checks are
conducted properly and adhered to by internal audit staff and management.
internal control system in an organization stress as it strength and weakness.
the efficiency of the internal control system gingered the researcher to make a
study and establish. If any, the fact that the existence of an efficient
internal audit department (IAD) and system can alert inefficiency in a
OBJECTIVES AND PURPOSE OF THE STUDY
several objectives of this project are to show the efficiency of internal
control system to a business organization with a special focus on NBC Ilorin
i. To determine the completeness,
accuracy and validity of the records.
ii. To see how the company safeguards it’
assets by enforcing strict adherence to the management policies.
iii. To know the levels of the company
iv. To determine the effectiveness of the
information passed from the strategic management to the level of
1.3 SIGNIFICANCE OF THE STUDY
research work is important because it examines the internal control system of
the organization and evaluates it with the overall performance of the company.
Bu the end of this, one should be able to identify its areas of strength and
weakness as the regards the management of the company and hence it’s internal
control system with a view of enhancing the recommends performance of the
1.4 SCOPE AND LIMITATION OF THE
research work covers some strategic areas, such as effectiveness of internal
control system of the manufacturing company with particular attention on
staffing, knowledge skill, discipline and supervision. It also covers the roles
of an auditor with respect to effectiveness of internal control system. Data
collection is however limited to the accounting and internal audit department
of Nigerians Bottling company Ilorin alone, this is due to financial material
and time constraints.
1.5 ORGANIZATION PLAN OF THE
research report is divided into five chapters. Chapter one contains
introduction parts of the study, briefly history of the case study, given
significance scope and limitation, organization plan of the study as well as
the definition of terms and concepts.
two also contains the literature review on the research topic where as chapter
three centre on research design as well as sources of information and internal
audit department. Chapter four contains the management of business
organization, data generated and discussion of the result. Finally, summary,
conclusion, and recommendation made at the end of the project work could be
read in chapter five.
DEFINITION OF TERMS AND CONCEPTS.
definition of term and concepts of the study include the auditor, accounting,
account system and the internal auditor
(A). AUDITOR: - an auditor is a competent and
impartial critic appointed to verify a financial statement and to certify that
the statement exhibit a true and fair view of the statement of affairs of the
organization concerned. An auditor is usually an accountant under another
title, if they are appointed outside the organization they are regarded as
external auditor. In the case of a limited liability company, they are
appointed by shareholder for the interest protection. However, they contrast
the internal auditor which is appointed by the management of the company to
ensure an effective and efficient maintenance of the company. Internal control
system in term of production and administration of this company.
(b). ACCOUNTING: - is the act of
recording classifying, summarizing and communicating the result there off.
Accounting to American accounting
association (AAA) 1966, accounting is the process of identifying, measuring and
communicating the economic information to permit the financial judgment and
decision by the user of the information (the company internal control system
(c). ACCOUNTING SYSTEM :- this is a
set of element goals, policies, accounting principles equipment, personnel,
input and output and control that can jointly perform accounting function.
Accounting system deliver precise information prepared in a know way about
revenues expenses, asset, liabilities and profits
(d). the accounting system include
manual mechanize and computerized system of installation and an accountant will
choose the method which will suite the organization by considering the nature
the types and the environment which it belongs.
(e). INTERNAL AUDITOR:- these are
independent appraisal of activities within the organization for the review of
operation as a service to management is an element of the management of an
enterprises to examine, evaluate and report on accounting and other voluntary
or in certain operation. Its existence could be due to statutory