ROLE OF FINANCIAL ACCOUNTABILITY IN A PUBLIC LIMITED COMPANY
The mismanagement of every organization emanates from the ability of the financial accountability to administer the financial undertaken in order to achieve its profit maximization.
Business collapsed, is characterized by negligence to adhere to effective control system, which primarily comes from internal control.
An organization encounters problems, which often times result to financial impropriety, which has made many firm to collapse. Some of these problems lie largely outside the control of the organization. These are the problem to be solved by the financial accountability in the interest of effective control system of the organization while other problems arise from the organization’s limitation in his financial undertakings.
An analysis of factors that contributed to this fact would be highlighted and useful recommendation towards resolving these problems would be made.
This researcher is optimistic in view of the fact that if these recommendations are adhered to, they will go a long way in achieving the objectives of this research work.
Accountability as seen by Iwumenne (1982: 56) is the sole of any business continuity. A mismanaged economy cannot sustain her subjects. In the micro sense, a mismanaged firm is for failure. The main aim of business is profit maximization. This cannot be achieved if the financial mismanagement is endowed in any form. In any business setting, the priority of management is to enable the firm to continue to finance its undertakings. This cannot be achieved without due regard to the prudent financial administration.
According to Muoha Otanka (1975:4)2. The spirit of continuity of a business is the careful administration that well administers the financial undertakings. Really, the issue of financial importriety has made many a business, collapse. There are many ways to check the menace in both public and private life. Any method used in subsumed in effective control system which primarily cue’s from internal control.
According to Jonah Jenny (1982.12)3, internal control can be perceived in the following ways.
– Good record keeping of all transactions in the factory.
– Good stock control system.
– Well co-ordinate channel of raw material procurement.
– Efficient redundantly control.
– Good personal administration
– Avoidance of waste.
– Control of acquisitions
– Effective trade union administration.
There, he said are not exhaustive, it is whom management recognizes the necessity of effective internal control system, management of materials and resources is very much possible.
Akinloye Oyibanji (1999 : 86)4 observed that many factors contributed to the reason why banks failed. The banks collapsed due to lack of financial prudence which is a clear out example of management incapacitation.