DOMESTIC MANAGEMENT SYSTEM AS AN AIM TO EFFECTIVE ADMINISTATION IN AN ORGANIZATION (CASE STUDY OF UBA BANK PLC UYO, AKWA IBOM STATE)
1.1 BACKGROUND TO THE STUDY
The establishment of company requires technical and management expatriates. For it to be sustained and continue to be in business as a going concern require a sound accounting and administrative policies procedures to be adopted. This is to guide against inefficiencies, misappropriation, fraud, waste and possible loss.
Domestic Management System is a popular administrative and accounting procedure use by various organizations to safe guard it’s assets. Thus the proper functioning of the Domestic Management System of any organization depends largely on the extent to which the internal audit department of that organization discharged it’s responsibilities and the size of such business.
Domestic Management System is defined by the institute of chartered
Accountant as “the whole system of control, financial otherwise, establish by the management in order to carry on the business of the enterprise in an orderly and efficient manner, to ensure adherence to management policies., safeguard the asset and secure as far as possible the completeness and accuracy of the records”.
The concept of the whole system of control in areas of authorization and approvals appraisals and review of performance and budgetary control.
In normal business situation, these controls must be spelt out and seen to be in existence and implemented by staff concern and designed, while the reports and output the emanating from the implementation of the control are sent to the management from the various department heads and supervisors. The responsibility of the internal audit department (staff) is to investigate and appraise the whole system of internal control and the efficiency with which the various department of business are performing that assigned functions.
Accordingly, Alkison (2013) opined that, domestic audit involves all in causes taken by management through the internal audit department to ensure that Domestic Management System is placed functions efficiency and effectively.
Supporting this view, Eketere (2014) states that internal audit act as a managerial control system in area of
- Social and financial policy implementation
- Checking of fraud and preventing errors through regular investigations of possible suspected areas of weakness for the control system.
- Acting as a consultant to management in matter.
- Monitoring external responses to the Domestic Management System to minimize waste, losses and abuses.
- Assisting to educate staff of the organization on the needs to adhere to manage Domestic Management System .
- Making sure that financial information production are authentic and reliable for policy and decision making.
It is suffice to say at this point that internal control provides directions to all activities and monitor the working of all the section and branches of the organization control techniques. It is against this background seeks to explore and evaluate the effectiveness of an administration with reference to UBA pLC, Uyo.
Considering the fiduciary roles banks plays on the economy and the faced that bank dears with money and the need to present a true and fair view of the financial statement by the auditor, it became necessary to analyzed and measured the extent of bank control as a cost reduction technique and controls over its assets.
1.2 STATEMENT OF THE PROBLEM
Inefficient utilization and management to assist of an organization could be as a result of ineffective control system which can create lapses and loopholes for various fraudulent practices to thrive. This problem may be caused partly by management and or law middle staff due to weak designed Domestic Management System . This can lead to non achievement of organization objectives.
In the right of the above management of various banks are therefore faced with the task of ensuring operational efficiency which would lead to achievement of the corporate objectives. The question of how effective is the Domestic Management System put in place by management of this bank would proffer solution to the attendance fraudulent that may likely prevail in the bank.
1.3 OBJECTIVE OF THE STUDY
The major purpose of the study is to:
- Find out how Domestic Management System help check fraudulent practice.
- Find out the type of control system adopted by the bank
- Find out the effect if a weakly designed Domestic Management System in an organization.
- Access the need for internal audit department in the bank.
- Find out if the Domestic Management System of the bank is operational and effective.
1.4 SIGNIFICANCE OF THE STUDY
Some of the expected benefit that would accrued from his study are highlighted and specify as follow;
- It would assist management of organization on the need for a sound system of internal control as a deterrent to fraud.
- It would provide information to management of organization and other employee on the need to good decision adherence to management policy.
- Help management of the organization to design a social accounting and administrative policies and procedures.
- Helps other researcher academician, institution and organization who may want to adopt the working in the future as a guide in Domestic Management System .
- Of important to the researcher as it is conducted as a requirement of the award of National Diploma in Business studies.
1.5 RESEARCH QUESTIONS
In the course of achieving the above objective effort would be made to provide answered to the following research question is stated as follows;
- Does the Domestic Management System help in checking fraudulent practice in your bank?
- Does the need for internal audit department your organization?
- Does the Domestic Management System rate the existing control system in your organization?
- Does the Domestic Management System adopt control system in your bank?
- Does the Domestic Management System weakly design Domestic Management System in any organization.
1.6 RESEARCH HYPOTHESIS
The following hypotheses were carried out to support the study.
Ho: There is no significant relationship between Domestic Management System and management effectiveness.
H1: There is significant relationship between Domestic Management System and management effectiveness.
Ho: There is no significant impact on the Domestic Management System and management
H1: There is significant impact on the Domestic Management System and management.