INTERNAL CONTROL SYSTEM IN MANUFACTURING INDUSTRIES (A CASE STUDY OF LIFE BREWERIES LIMITED ONITSHA)
ABSTRACT
There is a need for strong internal control system in manufacturing organization to make sure that organization assets are safe guarded. Considering the importance of internal control to life Breweries limited Onitsha the researcher deems it necessary to study the effectiveness of internal control. Officers of the organization were interviewed and their records were also examined related tools were also reviewed by the researcher. The researcher revealed that the organization applies internal control measures though weak, because of the nature of human beings. The researcher recommends that the company should review their operation, measure applied and improve in their system of internal control by training their staffs and changing the corrupted ones.
TABLE OF CONTENTS
CHAPTER ONE
Introduction 1
1.1 Background of study 5
1.2 statement of problem 6
1.3 Purpose of the study 6
1.4 Significant of the study 7
1.5 Statement of hypothesis 7
1.6 Scope of the study 8
1.7 Limitation of the study 8
1.8 Definition of terms 9
CHAPTER TWO
Review of related literature 11
2.1 Introduction 11
2.2 Internal cheek and internal audit 14
2.3 Internal control in manufacturing industries 24
Delegation of duties 29
CHAPTER THREE
Research design and methodology 33
3.1 Sources of data 33
Sample population and size 34
Method of data collection 34
Sources of data 35
Description of questionnaires 36
Method of data analysis 37
Method of typing hypothesis 38
CHAPTER FOUR
Data presentation and analysis 40
4.1 Data presentation 40
Interpretation of data 48
Analysis of data 50
CHAPTER FIVE
Summary of findings, conclusion and recommendation 55
5.1 Finding 55
5.2 Conclusions 56
Recommendation 56
Bibliography 58
Appendix (ices) 60
CHAPTER ONE
INTRODUCTION
Internal control is defined by the consultative committee of accounting bodies in the united kingdom as a whole system of controls, financial an do otherwise established by the management in order to carry on the business of the enterprise in an orderly and efficient manner, ensure adherence to management polices, safeguard the asset and secure as far as possible the completeness and accuracy of his records. The individual components of an internal control system are known as “control” or internal control. According to J.C Ezeh Apil 2001 he defined internal control system as a whole system of control financial and otherwise, established by the management in order to carry on the business of the enterprise in an orderly and efficient manner, ensure adherence to management policies, safe guard the asset and secure as far as possible the completeness and accuracy of the records.
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