Internal Control Effectiveness and Performance in Nigeria University System (A Survey of Universities in the South-South Geopolitical Zone)
Chapter One
OBJECTIVE OF THE STUDY
The main objective of this study is internal control effectiveness and performance in the Nigeria University system in south-south geopolitical zone. But for the successful completion of the study; the researcher intends to achieve the following sub-objectives;
- To identify the effectiveness of the internal control system in South-South Universities
- To examine the relationship that exists between internal control and effective performance of the University system in the South-South geopolitical zone
- To examine the relationship between effective internal control systems and the efficiency of educational services in South-South Universities.
- To ascertain if internal control has a relationship with fraud perpetration in the University system in the South-South geopolitical zone.
CHAPTER TWO
REVIEW OF RELATED LITERATURE
INTERNAL CONTROL
This is a control designed and installed by the management of an organization for the growth and survival of the organization. It is the responsibility of the management to ensure and maintain this system of control to enhance efficiency and performance quality of an Organization. Internal control has been variously defined by both academicians and practitioner. Internal control as defined by, is an integral process that is affected by an entity’s management and personnel and is designed to address risks and to provide reasonable assurance that, in pursuit of the entity’s mission, the general objectives are achieved and executed in an orderly manner ethically, economically, efficiently and effectively, there by fulfilling accountability obligations; complying with applicable laws and regulations; and also help in safeguarding resources against any loss, misuse and damage. Reference sees internal control system as the integration of the activities, plans, attitudes, policies, and efforts of the people of an organization working together to provide reasonable assurance that the organization would achieve its objectives and mission. Specifically, the role of internal auditor is assessing internal control systems, which consists of rules and standards set up by the management. From the forgoing, internal auditor could be seen as a measure responsible to provide advices on how to improve the control systems and corrective action if needed. The advices and suggestions given are normally based on the ability of the auditor to foresee the future uncertainty events that may happen due to current weaknesses or loopholes of the control systems. The main objectives of internal control system are to ensure reliability of financial reporting, efficiency and effectiveness of operations and compliance with law and regulations.
DEFINTION OF INTERNAL CONTROL
Internal control can be defined as a set of mechanism designed to motivate an individual or a group towards achievement of a desired objectives (Kirsch, 2002). Ouchi (1979) was of the view that internal control must be able to achieve the objective of bringing about cooperation among people with divergent objectives in the organization. Furthermore, Cahill (2006) defines internal control as a system of internal administrative efficiency which often leads to design of a system that will enhance financial check and balance which will support corrective actions intended by the management of the organization and will ensure the primary goal of the organization is achieved. Similarly, Transparency International (2006) reported that internal control is control developed by organization to generate transparency and avoid corruption. Transparency International (2006) further stated that corruption usually arise as a result of abuse of public office for private gains.
CHAPTER THREE
RESEARCH METHODOLOGY
Research design
The researcher used descriptive research survey design in building up this project work the choice of this research design was considered appropriate because of its advantages of identifying attributes of a large population from a group of individuals. The design was suitable for the study as the study sought internal control effectiveness and performance in Nigeria University system in south south geopolitical zone
Sources of data collection
Data were collected from two main sources namely:
(i)Primary source and
(ii)Secondary source
Primary source:
These are materials of statistical investigation which were collected by the research for a particular purpose. They can be obtained through a survey, observation questionnaire or as experiment; the researcher has adopted the questionnaire method for this study.
Secondary source:
These are data from textbook Journal handset etc. they arise as byproducts of the same other purposes. Example administration, various other unpublished works and write ups were also used.
Population of the study
Population of a study is a group of persons or aggregate items, things the researcher is interested in getting information on the study building collapse and Lagos state urban and regional planning. 200 staff from different Universities from south south was selected randomly by the researcher as the population of the study.
CHAPTER FOUR
PRESENTATION ANALYSIS INTERPRETATION OF DATA
Introduction
Efforts will be made at this stage to present, analyze and interpret the data collected during the field survey. This presentation will be based on the responses from the completed questionnaires. The result of this exercise will be summarized in tabular forms for easy references and analysis. It will also show answers to questions relating to the research questions for this research study. The researcher employed simple percentage in the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain the internal control effectiveness and performance in Nigeria University system in south south geopolitical zone.
In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of internal control effectiveness and performance in Nigeria Universities.
Summary
This study was on internal control effectiveness and performance in Nigeria University system in south- south geopolitical zone. Four objectives were raised which included; To identify the effectiveness of internal control system in South-South Universities, To examine the relationship that exist between internal control and effective performance of University system in South-South geopolitical zone, To examine the relationship between effective internal control system and the efficiency of educational services in south- South Universities, To ascertain if internal control has relationship with fraud perpetration in the University system in South-South geopolitical zone. In line with these objectives, four research hypotheses were formulated and four null hypotheses were posited. The total population for the study is 200 staff from different universities from south south was selected randomly. The researcher used questionnaires as the instrument for the data collection. Descriptive Survey research design was adopted for this study. A total of 133 respondents made up Deans of faculties, Heads of departments, senior lectures and junior lecturers was used for the study. The data collected were presented in tables and analyzed using simple percentages and frequencies.
Conclusion
Management of every organization has the line responsibility for designing, implementing and monitoring their internal controls system. Effective internal control system in an university could be a strong determinant for achieving the institution’s set objectives. The study revealed that the institution’s assets are physically secured, transactions are correctly calculated although not properly entered in the relevant books of accounts, segregation of duties is fair and transactions are appropriately authorized by the responsible officer. Findings have also shown that the right people are not assigning to the right job in the department, budget and management accounting were never used in the institution’s operation and checking of subordinate by their superior officers is not regular. This renders the current internal control structure in the Nigeria universes as ineffective.
Recommendations
The paper recommends that: transparency should be seen as significant, as the institution work toward meeting its objectives, it therefore means that the right staff be assigned the right job and regular checking of the subordinates by their superiors be ensued.
References
- A. Abdullahi, “Financial Management in Nigeria” (1st Ed), Ibadan, New Nigeria Press, 1997. [2]
- P. Adejola, “Internal Control System Appraisal” Financial Management and Control Training Manual, Proceedings of the Mandatory Continuing Professional Development Programme (MCPD) of the Association National Accountant of Nigeria, 2009. [3]
- N. Ahmad, R. Othman, K. Jusoff, “The Effectiveness of Internal Audit in Malaysian Public Sector”, Journal of Modern Accounting and Auditing, 2009.
- Arena, M. Arnaboldi, G. Azzone, “The Role of Internal Auditor in Italian Organisation: A Multiple Case Study”, Managerial Accounting Journal, Vol. 21 No. (3), 2006, pp275-292.
- S. Beasley, “Developing Effective Internal Controls Using the COSO Model Today’s Objectives”, 2007.
- I. Dandago, D. M. Suleiman, “The Role of Internal Auditors in Establishing Honesty and Integrity”: Are the Watchdogs Asleep? Proceedings of the Third National Conference on Ethical Issues in Accounting, BUK, 2005, 56-67. [7]
