Computer has come to stay. Like the telephone system that gradually become a life wire in the communication world even the most existing one now hand set (mobile phone), the computer is wording its way through cherry face of life. Daily people perceive the irresistible offering of this enigma called computer. No doubt they are unobtrusively getting hypostatized by its alluring kaleidoscope of business, domestic, scientific and what have you comfort that computerization is becoming synonymous with business.
Equipped with very large storage capacities tallied with very large dated flexible reporting and presentation facilities, rolling on its wheels of every sophisticated communication network, the computer is redefining the Eva of file-heap and filling cabinet that used to adorn the offices.
Information technology (t) glut as a whole is putting a big question mark against the relevance of conventional auditing.
Nigeria Brewing Plc. Being one of the industries that incorporate computer system in its department catches out attention in answering the big question poised by computer device.
One of the first thing we need to realize about any internal
Control system be it manual or computerized – is that no control system can completely prevent fraud, it can, however, make the perpetration of fraud very difficult.
Accounting control, therefore, are those procedures techniques and practices intended to protect the company’s resources and provide for reliable financial statement.
We can organize our discussion on internal accounting control system of computerized Nigeria Brewing Plc. By looking personnel control record control, check and balance and role of computer in these areas.
TABLE OF CONTENTS
TITLE PAGE
CERTIFICATION
APPROVAL
DEDICATION
ACKNOWLEDGEMENT
PREFACE
TABLE OF CONTENT
CHAPTER ONE
INTRODUCTION
1.1 EVALUATION OF ACCOUNTING SYSTEM
1.2 STATEMENT OF PROBLEM
1.3 OBJECTIVE OF THE STUDY
1.4 SIGNIFICANCE OF THE STUDY
1.5 LIMITAITON AND SCOPE OF THE STUDY
1.6 DEFINITION OF TERMS
CHAPTER TWO
2.0 LITERATURE REVIEW
2.1 ACCOUNTING CONTROL SYSTEM
2.2 NEED FOR ACCOUNTING CONTROL
2.3 ESTABLISHMENT AND MAIN DIVISION OF ACCOUNTING CONTROL
2.4 COMPONENT OF ACCOUNTING CONTROL SYSTEM
2.5 THE USE OF ACCOUNTING CONTROL BY AUDITORS
2.6 THE AUDIT TRIAL IN COMPUTER BASED ACCOUNTING
2.7 EVALUATING OF ACCOUNTIGN
CHAPTER THREE
3.0 SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION
3.1 FINDINGS
3.2 RECOMMENDATION
REFERENCE
The business organization will be faced with many problems,
if their accounting control system is not ascertained. The control system of an organization (business) company must be examine. This will help the Auditor in time of auditing to easily drew conclusion on his audit work.
Also an internal control system that is efficient helps to adhere to a standard of accounting control system in the companies and other business organization. But an internal control system that is weak may not examine the account control system of its organization or company. In this case it may give room for indicating of errors by the management, irregularities, misappropriation of fund. This may lead to liquidation of a company or business organization even non-business organization because they can be audited just to know the financial condition of that particular organization.
The Evaluation of Accounting Control System in the organization and companies is like a mirror where the owners of the business uses to see how the affairs of the business is been run, thereby making it very easy for an auditor to drew his view on the financial statement of the company or organization.
1.1 EVALUATION OF ACCOUNTING SYSTEM
The need to examine the accounting system of organizations and companies in Nigeria is very important.
In this case it leads to verification of and testing the internal control system of the enterprise whether it is effective, efficient storage. With special regard to how the industries is operating, as well as to ensure the effectiveness of the company or business organization accounting system.
In fact, the regulation of business activities under an efficient system of accounting control may increase the necessity of protracted detail work by the auditors with beneficial result of all the parties concerned. This is because in some situation especially with regards to cases of fraud and errors in organizations most of the time without the best of intentions, people deliberately falsify records, those who have the best of human intention may still, intentionally or unintentionally, make mistakes. In most companies or enterprises there are cases of stock losses, misappropriation of funds, embezzlement. Even though there may be not evidence of the crime committed, yet the facts and figures of fraud both in private and public sector’s are not today’s standard truly staggering in the world.
The individual component of internal control system are down as “control” or “Internal Control”. These control enable internal check to be placed on employees and responsibility on them thereby bringing about accountability. The result of the control becomes minimization of fraud, errors, irregularities and dictation of these problem whenever they occur.
1.2 BACKGROUND OF THE STUDY
The performance or result of some enterprises in Nigeria like in the Oil Sector whose productivity is incomparable with other sector of the economy and also in the financial market (banking sector) is toping the chal etc.
Example: to evaluate the accounting control procedures of the two sectors of the economy above, that is oil sector and banking sector in Nigeria (note this is used as example), to ascertain reliability to the accounting practice and principle since they all have accounting department. These ascertainment of there accounting practices will help to examine the financial strength of the two sectors in the economy of Nigeria.
1.3 STATEMENT OF PROBLEMS
Present the accounting control system in some sector of the economy in Nigeria has been improved especially in the banking sector where the Governor of Central Bank of Nigeria has mandated banks to have 25 billion naira capital based.
some of the enterprises is faced with the problem of “Accounting Control System” due to inefficiency of the employees, these problem can be easy solve by employing a qualified and efficient accountant. And also the problems can be caused by a weak internal control system which, if a storage internal control system is put in place will not be a problem. It also makes it difficult for an auditor to draw his opinion in the financial position of an enterprise. Instability of the accounting control system also makes the economy of that particular country to be very weak.
An auditor will state that an account that is the financial statement of an enterprise is qualified when he can not draw a reasonable opinion in that financial statement. And accounting control system if not effectively put in place will lead to the problem of qualification of an audit work.
Attention must be paid to the accounting control system of an enterprise, because if there is no attention paid to accounting system, probably that enterprise may experience the following problems.
The primary aim of this term paper work is to ascertain the
accounting control system in the organization or some sectors in the economy,
example Oil and banking sector as given above.
The auditors intends to evaluate the system byy identifying the areas of strength and weakness instituted by the management of the sectors or the enterprises.
Also to provide for security and safeguard accuracy, reliability and consequently find ways of reducing the probability of frauds, error and other irregularities common in the organization or sector of the economy as the case may be.
Moreover it is aimed at observing the principles that guides the recording of the financial transaction of the organization or some sectorism the economy with the intention of ascertaining the compliance of these principles with general accepted accounting principles. After analyzing and evaluating the organization system of control, the term paper work aimed at offering suggestion and recommendation based on the findings. These findings we hope will be a great help to the business enterprise and also some sectors of the Nigeria economy.
As this area of accounting that has not been extensively
studied in Nigeria, the result of this term paper work shall assist in laying emphasis on the computerized accounting system contribution of computers in industries found in the economy in the ascertainment of accounting control system in the organization or some sectors of the economy. It has also help in the evaluation of internal control system of the business organization. This term paper work will help the organization or the firm to ensure that the following is in existence.
This study may be beneficial and helpful to the following bodies in the Nigeria economy.
- The economy is general: - This is because it creates an awareness and effectiveness in the management process of an industry
- the banking sector
- The oil sector
- In fact industries
- Home industries that are keeping standard account of there transaction
- The productive sector/business: The effective control of the business will result to wealth maximization and profit accumulation.
The communication facts and ideas in any field is dependent
on a mutual understanding on the word used. The purposes of this section is to present different definitions for some of the technical terms used in this term paper work.
i. ACCOUNTING
Accounting is used to describe the transaction entered into by all kinds of organization. These terms is therefore used by people associated with business, whether they are manager’s owners, investors, banks, lawyers and accountant.
ii. OIL SECTOR
This is the part of the economy that produces oil )crude oil) eg. NNPC
iii. IRREGULARITIES: Its subset is fraud and errors.
iv. EVALUATION: - This is the process of assessing of something or forming an idea on something.
v. FRAUD: - This is a deceitful way of acquiring money or property.
vi. E.DP: - Electrical data processing.
vii. ACCRUAING CONTROL: - This is a contr
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