INTERNAL AUDIT AS A TOOL FOR PROMOTING ACCOUNTABILITY AND TRANSPARENCY (A CASE STUDY OF OKEHI LOCAL GOVERNMENT AREA OF KOGI STATE)

ABSTRACT

The major objective of this study is to examine how internal audit can promote Accountability and transparency. The first chapter gave an in-depth of the background to the study, statement of the problem, objective of the study, research question, research study, limitation, definition of term in the course of the study, many literary works were on the literature review and conceptual framework in this chapter, the researcher was able to explain the concept of Internal Control based on the explanation given by different authors. The researcher was able to relate Internal audit as a check on Internal Control. Also, the researcher explained the concept of Accountability and Transparency, limitation of Internal System, and lastly review of previous Studies which the researcher gave a lot of Authors opinion. There is no research that can be done without presenting data. Chapter three, which is the research methodology on respondent who are well informed about auditing. The data collected were mostly analyzed by using chi-square method (x2) to arrived at final conclusion. Chapter Four focuses on the data presentation, analysis and interpretation. Based o the data collected and analyzed. It was discovered that the relationship between Internal audit department and other department strongly affect the Effectiveness of Accountability and Transparency in Okehi Local Government. The factors that hindering the effective performance of auditors includes auditor’s independence, qualification and working experience and laid down rules and regulations, while Chapter Five focus on Summary, Conclusion, Recommendation and Suggestion for further studies.

TABLE OF CONTENTS

Title page                                                                                i

Dedication                                                                               ii

Certification                                                                            iii

Dedication                                                                               iv

Acknowledgement                                                                  v

Abstract                                                                                  vii

Table of Contents                                                                    ix

List of Tables                                                                          xiii

CHAPTER ONE:                   INTRODUCTION

1.1     Background of the Study                                          1

1.2     Statement of the Study                                                  3

1.3     Objective of the Study                                                   4

1.4     Research Question                                                          5

1.5     Research Hypothesis                                                     6

1.6     Significance of the Study                                               7

1.7     Scope of the Study                                                                  8

1.8     Limitation                                                                      9

1.9     Definition of Terms                                                       10

CHAPTER TWO:    LITERATURE REVIEW

2.1     Introduction                                                                            12

2.2     Concept of Internal Control                                           13

2.3     Internal Audit as a Check on Internal Control               17

2.4     Internal Check                                                               21

2.5     Concept of Accountability and Transparency               23

2.6     Limitation of Internal Control System                                    25

2.7     Review of Previous Studies                                           27

2.8     Summary                                                                       30

CHAPTER THREE:    RESEARCH METHODOLOGY

3.0     Introduction                                                                   32

3.1     Research Design                                                            33

3.2     Population of the Study                                                          33

3.3     Sampling Method                                                          34

3.4     Sampling Procedures                                                     34

3.5     Research Instrument                                                      35

3.6     Analysis of Data Collected                                            36

3.7     Statistical Tools and Analytical Procedures                            36

3.8     Limitation of Methodology                                            37

CHAPTER FOUR:       DATA ANALYSIS RESULTS AND DISCUSSION

4.1     Introduction                                                                   39

4.2     Data Analysis                                                                39

4.3     Analysis of Responds/Items on the Questionnaire                  44

4.4     Testing of Research Hypothesis                                    51

4.5     Discussion of Findings                                                  57

CHAPTER FIVE:        SUMMARY, CONCLUSION AND RECOMMENDATION

5.1     Introduction                                                                            60

5.2     Summary                                                                       60

5.3     Conclusion                                                                     62

5.4     Recommendation                                                           63

5.5     Suggestion for Further Studies                                                65

          References                                                                      66

          Appendix                                                                       69

          Questionnaire     

LIST OF TABLES

Table 1:      Age Distribution of Respondents                         39

Table 2:      Marital Status of Respondents                                      40

Table 3:      Gender Distribution of Respondents                    41

Table 4:      Respondents Level of Education                          42

Table 5:      Working Experience of Respondents                             43

Table 6:      Percentage Score of the Responses                      44

Table 7:      Percentage Score of the Responses                      45

Table 8:      Percentage Score of the Responses                      46

Table 9:      Percentage Score of the Responses                      46

Table 10:    Percentage Score of the Responses                      47

Table 11:    Percentage Score of the Responses                      48

Table 12:    Percentage Score of the Responses                      49

Table 13:    Percentage Score of the Responses                      50

Table 14:    Percentage Score of the Responses                      51

Table 15:    summary of chi-square (x2) result of the impact of internal auditing in promoting transparency in the local government council                                             52

Table 16:    Summary of Chi-square (X2) result of the impact of internal audit in promoting accountability in Okehi Local Government Area of Kogi State                                      54

Table 17:    Summary of Chi-square (x2) result of the impact of internal auditor’s independence, qualification and working experience in promoting accountability and transparency in Okehi Local Government Council of Kogi State                                                                  56

CHAPTER ONE

INTRODUCTION

1.1     Background to the Study

The growth and increasing complexity of business environment has made it imperative for management to seek for more of control which has resulted to internal and it serves as control measure in both public and private sector. It is now very rare to find an enterprise of any size which does not have internal control system.

Internal control system said to be essentially and appraising activity with an organization that contributes to a good controlled environment through an effective internal audit function.

According to Dandago (2002), internal auditing is the independent review or appraisal within an organization of accounting, financial or other operations as basic for protection and constructive service to the management of such an organization.

Accountability is an obligation imposed by law or lawful order or regulation on an officer or other person for keeping accurate record of property, documents or funds.

It is quiet understand that internal audit is the major role play in the public sector and expected to enhance accountability. But there are some sector that is still lack accountability despite the internal audit is put in place by government.

I carry out the research and discover there are some challenges facing by internal auditors that is why internal audit in public sector lack accountability.

The reason of carrying out the research is to correct and maintain proper internal control and adequate internal audit to enhance accountability in public sector.

The challenge that affects internal audit in order not to enhance accountability is inadequate staffing, organizational policy and incompetent staff.

With the challenges listed above, if government can make adjustment and put in place adequate staffing manipulation of organizational policy and employ quality auditors.

If all these can be meaningful and financial statement of every parastata will be fair and free from miss- appropriation.

1.2     Statement of the Problem

INTERNAL AUDIT AS A TOOL FOR PROMOTING ACCOUNTABILITY AND TRANSPARENCY (A CASE STUDY OF OKEHI LOCAL GOVERNMENT AREA OF KOGI STATE)

AN ASSESSMENT OF CORPORATE GOVERNANCE IN NIGERIA’S BANKING INDUSTRY (A CASE STUDY OF ZENITH BANK PLC 2006-2015)

ABSTRACT

The objective of corporate governance in the strategic management of the banking industry in Nigeria is to ensure healthy financial system and economic development. This study therefore discusses the corporate governance and financial reporting in the banking sectors in Nigeria. This was embarked upon to explore the intricacies of corporate governance and financial reporting issues in the banking industry. Data were obtain from Zenith Bank of Nigeria annual report 2006-2015. Data analysis adopted is Pearson’s product moment correlation coefficient is two variable only and percentages to analyze both the primary and secondary data. It was discover during testing of hypothesis, that corporate governance is significantly related with Nigerian banking industry, measured in terms of equity capital and profitability (Total Asset Turn Over) in the period under review, it also reveals that poor administrative efficiency and weak internal control has mitigated against implementation of corporate governance in Nigerian banking industry. The findings of the study reveals answers to all the objectives of the study and possible recommendations are implemented that administration should embarked upon making application of corporate governance effective in their various banks, this recommendations are made, so that if they are adhered to, the Nigerian banking industries will be strong enough to stimulate fast development in Nigeria.

CHAPTER ONE

introduction

1.1 BACKGROUND OF THE STUDY

Corporate governance is the process and structures by which the business and affairs of an institution are directed and managed in order to improve the long term shareholder’s value by enhancing corporate performance and accountability. This can be done by taking into account the interest of other stakeholders. Retention of public confidence through the enthronement of public confidence is very essential, given the role of the industry in the mobilization of funds, the allocation of credit to the needy, the payment system, as well as the implementation of monetary policies. Corporate governance is one of the most critical issues concerning financial industry across the globe. Failure of the industry in the past has made it imperative to promote good corporate governance. Also, financial scandals around the world and the recent collapse of major corporate institutions have brought to fore the need for the practice of good corporate governance. Poor corporate governance can be said to be one of the major factors promoting financial distress in Nigeria. It is against this background that 13-point agenda was introduced during the banking sector consolidation in 2007 to enable enforcement of new codes of corporate governance for banks. The emergence of mega banks in the post-consolidation era takes as essential the skills and competencies of boards and management of banks in improving shareholders’ welfare and balance same against other stakeholder interests in corporate environment. The major area that the corporate governance code seeks to address is the enhancement of the requisite skills and competences of board and management of these banks. In view of the greatly enhanced resources of the consolidated entities, board members may lack the requisite skills and competencies in management of these banks, corporate identities, new businesses acquisition and product development. To ensure that bank directors upgrade their skills and knowledge, the Central Bank of Nigeria in collaboration with the Financial Institutions Training Centre (FITC) initiated a continuous education programme for bank directors. The programme was aimed at raising the level of corporate governance in the banking industry. The central goals which the programme seeks to serve include: creating a platform for bank directors to continuously upgrade their knowledge on corporate governance; equip the directors with the requisite skills and insights needed to discharge onerous responsibilities on the boards of their various banks; and raising the standard of governance in the sector. Good corporate governance makes for a more judicious use of resources; it serves the long-term interest of shareholders, and also delights and attracts local and international investors. Apart from serving as catalyst for economic growth, the Nigerian banking industry has acquired some unique features which attract the worldwide attention. Not surprisingly through, the sector had led the vanguard in the introduction of change and innovation in business management in Nigeria. Again the performance of our banks in the last two years has given us cause to cheer. It is therefore not surprising to note that the Nigeria banking sector is being asked to champion the efforts being proposed to make Nigeria one of the twenty leading economies of the world in the near future.The code of corporate governance stipulates that the number of non executive director should be more than that of executive directors subject to a maximum board size of directors. At least two none executive board members should be independent directors (who do not represent any particular shareholders interest with the bank) appointed on merit. The code added that there should be strict adherence to the existing code of conduct for bank directors, failing which the regulatory authorities would impose sanctions including removal of the erring directors from the board. The existence and proper functioning of securities regulators and stock exchanges to enforce rules relating to transparency and disclosure do help to strengthen market discipline in Nigeria. The Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange (SEC) exercise some regulatory oversights on banks listed on the stock exchange. Corporate governance must be seen as a vehicle that countries use to attract investors, both local and foreign, and assure them that their investments will be secure and efficiently managed in a transparent and accountable manner. Zenith Bank Plc was incorporate on May 30 1990 as a private company limited by share. Since its incorporation Zenith Bank’s vision is to become the leading Nigerian, technology driven global financial institution providing a distinctively unique range of financial services. Zenith Bank Plc is a leader in the provision of financial services with headquarters in Nigeria and subsidiaries in the United Kingdom, Ghana, Sierra Leone, Gambia and South Africa. The bank has become synonymous with the development of state of the art technologies in banking. It has two (2 subsidiary companies and three (3) companies incorporated in Nigeria, these are: Zenith General Insurance Limited with 99% holdings. Zenith Securities Limited with 94% holdings. The three majority shareholding acquired are: Qubit Spectrum Limited Venue Telecom Limited, and Cyber Space Networks Limited They are under small and medium enterprise equity scheme (SMEES). Zenith Bank Plc was licensed to carry on the business of banking in June 1990, the banking name was changed from Zenith Bank limited to Zenith Bank Plc on 20 May 2004 to reflected its status as a public limited liability company. The bank’s shares were listed on the Nigerian Stock Exchange (NSE) on 21st October, 2004 following a highly successful initial public offering (IPO). Nigerian institutions and individuals numbering over a million currently hold the shares of the bank. The bank’s main service delivery channels in Nigeria are its business offices which as at 2012 had risen to about 338 branches and over 125 cash offices, these are located in prime business and commercial centre’s in all states of the federation and the federal capital territory (FCT) Abuja. Within the first decade of operation, the bank made its mark on profitability and all other performance indices and has maintained this prime position till date. From being just another bank in Nigeria, Zenith Bank Plc has grown organically to become a financial service institution of choice with presence in some African countries and United Kingdom, this is as a result of the bank’s strategic resolve to exceed the limit of the Nigerian banking industry, and bolster the strength of their brand. The impressive performances of the bank in all locations and offices within and outside Nigeria are eloquent testimonies of its passionate commitment to global best practices and consistent quality service delivery.

1.2 STATEMENT OF THE PROBLEM

Few studies undertaken on bank corporate governance normally focuses on a single aspect of governance. There is no gain saying that the present economy deserves a sound stable and better banking performance following the causative factors such as unethical and unprofessional practices poor management quality, among others which contributed to low level of bank performance and sometimes lead to failure of banks. The experiences of business failure and financial scandals around the world brought about the need for good governance practices. Also the bitter experiences of Asian financial crisis underscore the importance of effective corporate governance procedures to the survival of an economy. This crisis demonstrated in no unmistakable term that even strong economies, lacking transparent control, responsible corporate boards and shareholders right can collapse quite as investor’s confidence collapse. Other countries like United States of America, Brazil, Canada, Germany, France, Nigeria, and so on all witnessed financial failure in one form or another. Bell and Pain (2007) supported this view that the last 20 years have witnessed several bank failures throughout the world. Financial distress in most of these countries was attributed to high incidence of nonperforming loans, capital deficiencies, weak management, poor credit policies, and governance system. In the view of Bollarel (2008), the weaknesses in some of the ailing banks reflected poor management of conflicts of interest, inadequate understanding of banking risks and poor oversight by boards of the risk management system and internal audit arrangement. These problems were further compounded by poor quality of financial disclosure and ineffective external audit. This study is therefore undertaken to examine the possible relationship that exist between corporate governance and Nigeria’s banking sector performance using Zenith Bank Plc as a case study in terms of level of profitability (Return on equity) and Asset Management Measure (Total Asset turn over) for the period from 2006 to 2015.

AN ASSESSMENT OF CORPORATE GOVERNANCE IN NIGERIA’S BANKING INDUSTRY (A CASE STUDY OF ZENITH BANK PLC 2006-2015)

AN APPLICATION OF INTERNAL AUDITING IN LOCAL GOVERNMENT ADMINISTRATION (A CASE STUDY OF INI LOCAL GOVERNMENT COUNCIL)

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Originally the need for internal auditing arose when managers of early large companies realized that annual audits of the financial statements by the certified public accountants were not enough. Subsequently, the demand for reliability of the published accounts gave rise to the expansion of internal auditing. This demand resulted in the expansion of the internal auditor’s responsibilities, including a more detailed test of internal control and other accounting information not taken into consideration by the external auditors. Internal auditing process is considered to be part of administration structure run with organization operational procedures at all government units. Historically, internal auditing as Asare posits, has been perceived as being merely the proper maintenance of accounting and underlying records, the safe guarding of assets and the compliance with policies and procedures. With changing times, the concept of internal auditing has undergone significant change with regards to its definition, scope of coverage and approach. Asare asserts that, in some organizations, the scope of modern internal auditing has been broadened from financial issues to include valve for money, evaluation of risk, management effectiveness and governance processes. In 2002 the Institute of Internal Auditors (IIA), revised its definition of internal audit function as “an independent, objective, assurance and consulting activities designed to add value and improve an organization and accomplish its objectives by bringing systematic, disciplined approach to evaluate and improve the effectiveness of risk management control and governance process. With the increased emphasis on accountability, transparency and improvement in public sector performance especially in the developing countries where the various stakeholders including civil society and the media are becoming more interested in how public funds are allocated and expended, it is imperative that government are seen to have a sense of responsibility coupled with an effective and efficient financial control mechanisms. Asare 2008, p. 61) noted that public sector auditing, particularly public expenditure, ensuring financial accountability, and strengthening governance systems of public institutions. The local government as a segment of public sector is the third tier of government in Nigeria. At that level the authority is entrusted with public resources and charged with the task of ensuring their proper utilization. To optimize the utilization or resources of entrusted to control expenditures and sources of financing these expenditures. To ensure adherence to financial regulations, laid down procedures, policies and plans, internal audits are established. The Uyo local government is a creation of statute of federal government of Nigeria. It is by creation one of the 36 local government councils that make up Akwa Ibom State, which is one of the 36 states of the federation of Nigeria. Its creation was a condensed account of political struggle of people existence of Uyo local government area, the Akwa Ibom State capital as providing the nucleus for the development of the people once neglected. The town became the capital of the state on September 23, 1987 following the creation of Akwa Ibom State from erstwhile Cross River State.

1.2 STATEMENT OF THE PROBLEM

In Nigeria, the oil boom of early 1970’s increased the funds available to the public sector, hence the local government system in Nigeria as a third tier government is expected to perform more crucial role(s) for the citizenry at the grass root level. However the Nigerian local government has encountered serious internal problems which handicap the achievement of its goal. Hence, a necessity of auditing to sanitize the sector and make it relevant to the present day government for proper financial accountability. Despite the various internal control measures adopted in local government, the objective of auditing is yet to be achieved. Sometimes, execution of project to public interest are diverted for personal interest. Problems of bond development is still at peak, occasionally the inability of the chairman to exhibit high sense of financial prudence and whether to what extent does the local government accounting practices conform with the relevant financial regulations. The application of internal auditing method will lead to immune of any organization from falling into any cases of fraud or manipulation embezzlement, but however, there must be a regulator of any process; this is what a system analysts can do, but many of them lack knowledge or competence in order to carry out any fullest efficiency and effectiveness; organizations which has not any in-depth analyzing systems, they will suffer naturally from lot of fraud and manipulations, so it is difficult for any with absence of auditing system, will be hard to detect any of these cases. In the majority of local government internal audit has a systematic attitude, which constantly fails to asses and to develop the effectiveness of the risk management and controlling procedures of local government accounting practices. Hence this research carried out to empirically examine the application of internal auditing in promoting accountability, good governance and transparency in local government administration.

1.3 OBJECTIVES OF THE STUDY

The objectives of the study include:

To know whether internal auditing in the council is effective.

To ascertain if internal auditing promotes accountability, good governance and transparency in the council.

To examine whether the books of account are properly kept and transactions properly recorded.

To examine the extent to which the council’s internal auditing practice conforms with financial regulations.

To know how effective and efficient internal auditing is in terms of meeting the yearly budgeted revenue and in detecting errors and frauds.

1.4 STATEMENT OF HYPOTHESIS

The following hypothesis has been drawn for the study:

H : The application of internal auditing does not significantly promotes accountability, good governance and transparency in Uyo Local Government Council.

H : The application of internal auditing significantly promotes accountability, good governance and transparency in Uyo Local Government Council.

AN APPLICATION OF INTERNAL AUDITING IN LOCAL GOVERNMENT ADMINISTRATION (A CASE STUDY OF INI LOCAL GOVERNMENT COUNCIL)

ELECTRONIC BANKING SYSTEM AND ITS IMPLICATION ON NIGERIAN DEPOSIT MONEY BANK (A CASE STUDY OF FIRST BANK OF NIGERIA PLC)

ABSTRACT

Prior to the advent of electronic banking, the manual system of banking data, recording and retrieval was in use. As the wind of change started blowing most banks if not all adopted the use of electronic banking (e-banking) for transaction just like any other part of the world, in Nigeria today, e-banking is fast becoming the rule rather than exception. A number of good reasons are adduced for this dynamic change in banking systems especially Nigerian deposit money Bank. One of these reasons is the inherent benefit of e-banking to save time and magnificent efficiency in the speed in the transaction of banking activities and consequently enhancing the performance of banks. Another benefit is the accuracy and reliability of this information if accurate data are inputted. This work is designed to find out the following things; the benefit and problems of electronic banking on Nigerian deposit money Bank. The method of data collection were secondary data which comprises of electronic banking guidelines, financial summary of the Bank over the years, annual report of Bank, journals and magazines of e-banking, computer data base accessed through the internet. analysis tool used to test the hypotheses is the simple linear regression and the student’s t-test. The findings were: the application of e-banking has enhanced the profitability (operating profit, profit before tax and profit after tax) of banks. The study recommends that there is the need for Nigerian deposit money Bank to upgrade their information and communication technology infrastructural facilities, cost of installing a sound ICT should be minimized or regulated by the government and more so, Government should as matter of urgency fix the issue of power supply.

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

The importance of an efficient telecommunication industry to the socio economic development of any nation is not in doubt and cannot be over-emphasized. It has proved to be such a critical factor in the overall development of societies that it has become both a factor and an indicator of socio-economic development. Without efficient telecommunication system there can be no electronic banking. Electronic banking is an offshoot of internet payment resulting from electronic transaction leading to internet marketing. Following the consolidation of the Nigerian Banking sector in 2005, electronic and internet banking, including mobile banking services and its application has been on the increase in Nigeria. This is so because of the elaborate platform provided by internet technology. The improved internet technology has brought all players into a “Global village”. Businesses and many Nigerian Banks have spread their operations beyond their immediate boarders by tapping into the internet (Oseni, 2008). According to Layi (2008), electronic banking is the wave of the future. It provides enormous benefits to consumers in terms of the ease and cost of transactions. But it also poses new challenges for the country authorities, in regulating and supervising the financial system, and in designing and implementing macro economic policy. However, e-banking has been around for some time in the form of Automatic Teller Machines (ATMs), telephone and mobile transactions, etc. Most recently, it has however been transformed by the internet, a new delivery channel for banking services that benefits both the customers and banks. Access is fast, convenient, available, round the clock and wherever customers are located. Besides, banks can provide services more efficiently and at substantially lower cost with electronic banking. E-banking also make easier for customers to compare banks services and products, increases competition among banks, and allow banks to penetrate new markets and thus expand their geographical reach. Some even see electronic banking as an opportunity for countries with under developed financial system to leap frog developmental stages, customers in such countries can access services more easily from banks abroad and through wireless communication systems, which are developing more rapidly than traditional “wired” communication networks. The adverse effects of this technology boom are that e-banking is not only susceptible to, but may exacerbate some of the same risks inherent in traditional banking. In addition, it poses new challenges, in response many national regulations should be exacted to achieve their main objectives. That is ensuring the safety and soundness of the domestic banking system, promoting market discipline and protecting customer’s rights and the public burst in the banking system. Policy makers are also becoming increasingly aware of the greater potential impacts of the macro economic policy on capital movements (Nsouli and Schaecter, 2010).

Implication of electronic banking in Nigeria; the implication here is that with the introduction of computer technology and other electronic information devices into the banking system in Nigeria, bankers are in a better position to provide better quality services to the banking public, sustain their loyalty and offer them their products and services when and where they want them (Oseni, 2008). In realization of the numerous benefits which banks can derive from this era of computer technology and electronic information age, the First Bank of Nigeria Plc has been in the forefront to embrace the electronic banking system, hence it is taken here as a case study.

BACKGROUND OF FIRST BANK OF NIGERIA PLC.

The history of First Bank of Nigeria could be traced to as far back as the free banking era of 1892-1952. This era was characterized by the absence of any banking legislation. First Bank of Nigeria (FBN) Plc for over the century has distinguished itself as a leading banking institution and major contributor to the economic advancement and development of Nigeria. Founded in 1894 by a shipping magnet from Liverpool, Sir Alfred Jones, the bank commenced operation in the office of Elder Dempster and Company in Lagos (FBN, 2008). It was incorporated as a limited liability company on March 31, 1894 with head office in Liverpool. It started business under the corporate name of the Bank for British West Africa (BBWA) with a paid-up capital of 12 pounds sterling, after absorbing its predecessor, the African Banking Corporation which was established earlier in 1892 (FBN, 2008). This signaled the pre-eminent position, which the Colonial Government bestowed on it to perform the traditional functions of the Central Bank such as issue of specie in the West African sub-region. To justify its West African coverage, a branch was opened in Accra, Gold Cold Coast (now Ghana) in 1896 and another in Freetown, Sierra Leone in 1898. These marked the genesis of the bank’s international banking operations (FBN, 2008). The second branch of the bank in Nigeria was opened in the Old Calabar in 1900 and two years later, the services were extended to Northern Nigeria. The bank maintains the largest branch network in the banking industry in Nigeria (FBN, 2008). To satisfy the need of its customers, First Bank has diversified into a wide range of banking activities and services. These include, corporate and retail banking, registrarship, trusteeship and insurance brokerage (FBN, 2008). In addition, as part of its strategy of progressive internationally, in November 2002, the bank became the first financial institution in Nigeria to establish a subsidiary bank in United Kingdom. Over the years, the bank has experienced phenomenal growth. With the era of the consolidation in Nigeria in 2005, the Bank was able to raise the required capital base as stipulated by the Apex bank in Nigeria (FBN, 2008). In 1969, the bank was incorporated locally as Standard Bank of Nigeria Ltd in line with the Companies Act of 1968 (now Companies and Allied Matter Act, 1990), changes in the name of the bank also occurred in 1979. First Bank of Nigeria got listed in the Nigerian Stock Exchange (NSE) in March 1971 and won the Nigerian Stock Exchange President’s Merit Award nine times for best financial reporting in the banking sector (FBN, 2008). First Bank Plc is said to be one of the long standing banks in Nigeria. It celebrated its one century anniversary in 1994 and since has joined the new generation banks in improving banking services through information technology.

ELECTRONIC BANKING SYSTEM AND ITS IMPLICATION ON NIGERIAN DEPOSIT MONEY BANK (A CASE STUDY OF FIRST BANK OF NIGERIA PLC)

ACCOUNTING PROBLEMS OF SELECTED SMALL-SCALE MERCHANDISING BUSINESS ENTERPRISE IN IKOT EKPENE

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Small scale merchandizing businesses have been widely acknowledged as the springboard for sustainable economic development. It has tremendous impact on employment generation. However, several of these enterprises demise without fulfilling expectation due to poor management arising from week accounting structure. A sound accounting and internal control system in any business irrespective of its scale is crucial. Audits of small scale enterprises have proven to be worrisome for professional accountants because of the inadequacy of the internal controls. Except for statutory demands, small and medium enterprises hardly give serious thoughts to the process of sound accounting yet, the adequacy and ineffectiveness of accounting process have been responsible for the ultimate collapse of a host of them. The uniqueness of small scale enterprises calls for a careful consideration in the design of an accounting system argues that failure by small and medium enterprise (SMEs) to manage cash flows results in illiquidity and finally the demise of SMEs. He advocated for the engagement of a qualified accountant who can be instrumental in advising on strategic response to turbulent and competitive business environment. Accounting systems processes data and transaction to provide users with information they need to plan, control and operate their business.

1.2 STATEMENT OF THE PROBLEMS

The level of book keeping and accounting in one man businesses have created many problems against the effective operation and accountability of a sole proprietorship. One man business suffers disproportionately from the regulatory burden compared to large companies. Since the smaller enterprise often do not have sufficient financial and human resources to manage their obligations in the most efficient way. Meanwhile, a number of small scale enterprises have not given much attention to book keeping in relation to their business transaction, despite its importance in the success of businesses. This could be lack of sound knowledge in book keeping practices by owners or respective manager. Also, there was difficulty in ascertaining whether there is a comprehensive accounting record that satisfied the law which under it was incorporated. Presently, small-scale business enterprise in Nigeria are faced with accounting problems that hampers the growth and development of these enterprises. This support the saying that the success of any business whether small, big or mega depend largely on book keeping practices. Because of the importance of appropriate accounting information for owners and managers of one man businesses and their different stakeholders. It is therefore important in this study to access the accounting problems of small-scale business enterprise in terms of accounting records. Accounting system functions are not solely for purpose of producing financial reports rather its role goes beyond this traditional view and can also be used as a controlling mechanism for budgeting. Full adoption of the system will essentially require attainment of all the benefits of the system. Evidence from a number of studies reveals that small scale business financial accounting has remained the principle source of information for the owners and managers. Small scale business has been given due recognition especially in the developed nations for playing very important roles towards fostering accelerated economic growth, development and stability within several economies. They make up the largest proportion of businesses all over the world and play tremendous roles in the reduction of unemployment rate, creating a better standard of living as well as immensely contributing to the gross domestic products of many counties. Small scale businesses play a significant roles in the sector of the economy by reducing the ever- growing unemployment rate. For instance the united state economy is considered by many people to be largely dominated by large- scale corporations but actually over 60% of all the firms are owned and managed by small-scale merchants. In Akwa Ibom State although there are no accurate records of registered small- scale business enterprise in Ikot Ekpene the proliferation of these businesses in all the nooks and crany indicate that thousands of indigene and non- indigenes depend solely on the sector of the economy for their survival. Moreover, this sector also constitute an important channel through which goods and services reach the final consumer in the society.

1.3 OBJECTIVE OF THE STUDY

The main purpose of this study are:

i. To access the accounting problems of small scale merchandising business

ii. To ascertain the types of accounting records kept by the small scale merchandizing business

iii. To identify the consequences of failing to keep proper financial record and writing financial reports.

iv. To access the quality of account personnel responsible for keeping records of small-scale merchandizing business enterprise.

1.4 RESEARCH QUESTIONS

i. What accounting problems do small-scale merchandizing business enterprise face?

ii. What type of accounting records do small-scale enterprise keep?

iii. What are the consequence for not keeping proper financial records and writing financial reports?

iv. Who is responsible for keeping records of small scale merchandizing business enterprise?

ACCOUNTING PROBLEMS OF SELECTED SMALL-SCALE MERCHANDISING BUSINESS ENTERPRISE IN IKOT EKPENE

THE ROLES OF INTERNAL AUDIT AS A GUARD AGAINST FINANCIAL AND ASSET EMBEZZLEMENT (THEFT AND FRAUD) IN GOVERNMENT ESTABLISHMENT (A CASE STUDY OF DEPUTY GOVERNOR’S OFFICE, UYO ,AKWA IBOM STATE)

ABSTRACT

The research work was conducted to assess the role of internal audit as a guard against theft and fraud in government establishment, using the Deputy Governor’s Office Uyo, Akwa Ibom State, as a case study. The approach adopted in carrying out the study was the descriptive research method. The questionnaire was used as a primary instrument for data collection. The chi-square statistical test was adopted in testing of the hypothesis the findings of the study revealed that internal audit pays a significant role in any establishment, whether public or private. An effective audit unit will not only, ensure a reliable intern a control system which checkmates the academic of fraud and theft, but also ensures the safe guards of assets and measures aimed at achieving the attainment of corporate goals and objectives. On the basis of these findings, it’s recommended that in view of the importance of internal audit in unit organizations, the staff of internal audit unit should be honest and respected within and outside the organization; and they should be highly competent as internal auditors with ability to carry out independent investigation, checks and verifications the report of internal auditors should be respected by management of the organization.

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

Management principles in any organization are derived from its ability to combine all factors of production for effective and efficient production and quality outputs. However, human resources management is a big task to management efforts and needs motivated strategy, control, adequate technical training and proficiency of duties to employees. Beside this, employee’s deviant character is an experience to management strategy. Fraud, theft and misappropriation of funds and assets of the organization is a stress to management efforts and principles. A step to prevent these behaviours and create sanity in an establishment has emerged the need for internal control unit. Several countries have embarked on this reform to safeguard private and public enterprises. Auditing has become the basic requirement for statutory declaration of companies worldwide. External auditor is an independent examination of the financial statements of an enterprise by an appointed auditor in compliance with any relevant law and regulation. Internal audit therefore is a part of external control in express terms. Consequently every establishment should institute internal audit unit as a part of its internal control organ. This unit is responsible for carrying out auditing of the establishment or organization. It is also ensure that all economic activities as affecting the organization are properly recorded, properly accounted for, properly authorized and all financial policies are carried out in order to protect the assets of the organization and ensure accountability. Adequate system of internal control promotes accuracy and reliability. In accounting data errors are quickly and automatically brought to light by build-in proofs and cross inherent in the system. According to statement of auditing standard (SAS 52) that the auditor should assess the risk, error and irregularities that may cause financial statement to certain material misstatement. Based on that assessment, the audit designs to provide reasonable assurance of detecting errors and irregularities that are material to financial statement. Yet, despite widespread auditing efforts empirical evidence indicates that itsanticipated benefits are yet to be felt in many African countries. Many studies have also documented the relatively poor performance, management of funds and fraud in Nigeria public enterprises compared with other countries of the world in both relative and absolute terms (World Bank, 1996). Kikeri et al, (1992) however, only limited efforts have been made to identify the causes, and determinants of the uniquely unsatisfactory performance of state owned enterprises, thus resulting to policy of privatization and commercialization. In addition, internal control is to safeguard the assets of an enterprise against fraud and inefficiency. Internal control auditing intends to make sure that there exist a division of labour and to make sure that the handling of transaction or economic activity is not made to one person from the beginning to the end. It intends to ensure that there is a complete separation of duties and responsibility to ensure that the transaction is properly recorded and should be recorded at the time transaction takes place at the right book by the right person and to make sure that the persons in-charge of the recording of the transaction in the source documents are different from those who record those data in the book of original entry.

1.2 Statement of the Problem

Every enterprise grows up within the framework of both human and material resources. These resources are the building block of every successful enterprise in any organization toward the achievement of goals. The principle and system of good and effective management lies on the ability of the management to combine the resources for effective performance, productivity, efficiency and business growth in line with the set goals and objective of the organization. However, several studies have been carried out by scholars who point out the fact that the: i. Problem or failure for the mismanagement and misappropriation of funds, theft and fraud in any establishment is affected by the roles played by the internal audit control unit. ii. Many scholars therefore seem to think that fraud and theft by workers in any establishment is due to internal audit control system.

1.3 Objectives of the Study

The general objective of this study is to determine the roles of internal audit as a guard against theft and fraud in public establishment. More specifically the study seeks: i. To examine the factors that necessitates poor and in effective internal auditing control unit and its effects on theft and fraud in government establishment.

ii. To make useful recommendations such that will bring increase and ideal audit framework and control in any government establishment in Akwa Ibom State.

iii. To encourage management to examine their internal audit unit with a view of making this control unit more effective and efficient.

iv. To identify basic bottlenecks militating against the free management to the auditors and vice versa.

v. To examine the modern auditing techniques that can help any public establishment and enterprise in the attainment of the set goals.

1.4 Research Questions

The study will seek answers to these questions: i. How does the management of Deputy Governor’s Office maintain are liable internal control system through a specialized internal audit unit? ii. Do internal auditors detect and prevent fraud, financial,misappropriation, losses and waste in public enterprise? iii. To what extent does internal audit help the management of the Deputy Governor’s Office to improve operational performance such as fund, management and asset monitoring? iv. Does internal audit unit contribute to the achievement of set goals of the organization? v. To what extent does an internal auditor help in the management and achievement of corporate objectives?

THE ROLES OF INTERNAL AUDIT AS A GUARD AGAINST FINANCIAL AND ASSET EMBEZZLEMENT (THEFT AND FRAUD) IN GOVERNMENT ESTABLISHMENT (A CASE STUDY OF DEPUTY GOVERNOR’S OFFICE, UYO ,AKWA IBOM STATE)

THE ROLE OF ACCOUNTING INFORMATION SYSTEM IN CORPORATE ORGANIZATIONS

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Accounting has been globalized in the world. An accounting information system is a structure that a business uses to collect, store, manage, process, retrieve and report its financial data so that it can be used by accountants, consultants, business analysts, managers, chief financial officers, auditors and regulatory and tax agencies. According to Longe and Kazeem (2010, p. 2), the starting point of accounting can be linked to the merchants in the Babylonian and Assyrian civilizations, about 4000 years BC. The father of accounting is Lucca Paciolio, the crucial event in accounting was the introduction of double entry book system in Italy described as “Italian method”. In this 21 century, accounting professional body is IFRS – International Financial Reporting Standards. This standard helps in reporting accounting in uniform, which means that the financial statement prepared in Nigeria can be analyze and interpret in United State of America. The accounting information is based on numbers, measurable data. It is black and white: you have a profit of loss. The effectiveness of accounting information will promote profitability and given a clear decision making in the corporate organization. Accounting information ought to be objective, reliable and analyzable. So as to enable the corporate organizations achieve their set goals and objectives. Accounting is simply a process of providing financial information required to make economic decisions, whether in public or private organization. The case of proficiency with which economic decisions are taken depends largely on the accounting information available. Commercial selling information on all transactions and managers in order to assess the worth of the organization and ascertain in changes in the stock of wealth of shareholders. Accounting information is the language of business as it is the basic tool for recording, reporting and evaluating economic events and transaction the affect enterprises. It process all documents of a business financial performance from payroll, cost capital expenditure and other obligations to sale revenue and owner’s equity. Information has become a valuable commodity to managers, owners of companies and other interested parties because expect in business management have come to agree that today’s business environment, where competition have become extremely stiff. Available and effective information can indeed become a critical factor which enables a business organization to have that vital edge over its competitors. According to Anderson and Ruan (2009, p. 61) information is the life blood of business and it plays an increasing role in the day to day management of business. Accounting communicate information that owners, manager and investors need to evaluate a company’s financial performance. Management uses both financial and non-financial information to make effective decisions that would help achieve the goals and objectives of the organization. Bushman (2007, p. 30), financial information used by management accountants include sale growth, profits, return on capital employed and market shares, non-market shares, non-financial information include customer satisfaction level, production quality, performance of competing products and customer loyalty. According to Andrew-Essien (2008, p. 25), planning helps management to make decision on what to produce, how to produce and when to produce. Corporate organizations is a legal entity that is separate and distinct from its owners. Corporations enjoy most of the right and responsibilities that an individual possess; a corporation has the right to enter into contracts, loan and borrow money, sue and be sued, wire employees, own assets and pay taxes. Accounting information system provides a check for the validity through the process of auditing and accountability, Gray. Effective and efficient accounting information system plays a central role in improving profitability in the corporate organization. Union Bank of Nigeria Plc was established in 1917 and is one of Nigeria’s long-standing and most respected financial banking institutions. Mr. Emeka Emuwa is currently the Group Managing Director and Chief Executive Officer, Executive Director of Union Bank of Nigeria Plc since November 1, 2012. Union Bank of Nigeria is a deposit money bank which accepts deposit from customers and grant loans to customers who fulfilled the 5’cs of credit – capital, character, collateral, condition and capacity to gauge the credit worthiness of potential borrowers, Asukwo. An effective accounting information system will promote profitability of corporate organization. Accounting information system generally consist of six main parts: people, procedures and instructions, data software, information technology infrastructure and internal controls.

1.2 STATEMENT OF THE PROBLEM

Effective accounting information system is a means of achieving organizational goals and objectives in terms of profit maximization, management now sees themselves in one business problem or the other, such as how to solve the problem of cost, sales, customers requirements. The problem however lies in the quality and validity of the information, that is, if it is timely, adequate and clear. Bank crisis that took place in 2009 was as a result of false accounting information. The major purpose of the use of accounting information is to maximize risk, failure and uncertainties and also stay ahead of competitors. The use of accounting information is indispensable for decision. A qualified accounted has the duty of preparing the account of the company and the auditors must give a report that is unbiased. Computer equipment has been the main measures of accounting information system. The problem of having a computer expertise, qualified accountant and auditor. This research is carried out see the impact of accounting information system on corporate organizations in terms of profitability and earnings per share (EPS) in the period 2007-2016. 1.3

OBJECTIVES OF THE STUDY

1. To examine the impact of accounting information system on corporate organizations in terms of profitability and earnings per shares (EPS) in the period 2007-2016.

2. To assess if corporate organizations employee the services of qualified accountant.

3. To know whether accounting information system serves as a means for effective planning and control of organization resources.

4. To assess whether management of corporate organizations are acquainted with the usefulness of accounting information system.

5. To know if accounting information system influences the decision making of corporate organizations.

1.4 STATEMENT OF HYPOTHESIS

H : Accounting information system has no significant impact on corporate organizations in terms of profitability and earnings per share (EPS) in the period 2007-2016. H : Accounting information system has a significant impact on corporate organizations in terms of profitability and earnings per share (EPS) in the period 2007-2016.

1.5 RESEARCH QUESTIONS

1. What are the impacts of accounting information system on corporate organization in terms of profitability and earnings per share (EPS) in the period 2007-2016?

2. To what extent do corporate organizations employ the services of qualified accountant?

3. Do accounting information system serves as a means for effective planning and control of organizations resources?

4. Do management of corporate organizations acquainted with the usefulness of accounting information system?

5. What influence does accounting information system has on the decision making of corporate organizations?

THE ROLE OF ACCOUNTING INFORMATION SYSTEM IN CORPORATE ORGANIZATIONS

THE ROLES OF ACCOUNTING IN ECONOMIC GROWTH AND DEVELOPMENT (CASE STUDY OF MINISTRY OF ECONOMIC DEVELOPMENT AKWA IBOM STATE)

CHAPTER ONE

1.1 Background of the Study

The concept of how much and how many cannot be nipped in the bud as it has many metamorphosed into what we known as book keeping and accounting. According to Batho(2015) Accounting is the process of providing information regarding primarily, the financial activities of economic entities so that the users of this information may make decision about the entities. Accounting was once define as what accountant do. This definition today is still useful through narrow. Accounting according to Littleton (1953) is the central purpose of matching possible periodic costs (efforts) and revenue (accomplishment). (1966) states that accounting is the process of identifying, measuring and communicating economic information to permit informed judgement and decision by users of the information. We can also say the accounting is the process of recording, classifying and summarizing of financial transactions or event in terms of money and reporting result to the management and other users of accounting information. According to Ifiok Abasi E. (2009) the users of accounting information is grouped into two and summarized into External and Internal Users. The internal users include managers, Employees, internal Auditors while the External users include Creditors, Debtors, Board of Directors, External Auditors, Government, Tax payers and customers, they need these accounting information for various purposes. Accounting has existed a long ago, it is as old as human haven’t began about 400 BC during the early civilization in some cities like Babylon, Samaria and Assyria. This was made possible by the merchants who traded in many items and commodities and had their record done primitively on Tablets, Stones, marking on the wall.

1.2 Statement of the Problem

The present day government of Nigeria is trying by all means to stop corruption in public places. This corruption range from financial misappropriation of public funds, embezzlement, improper recording of financial and non-financial statement etc. hence, this study will aid in informing and enlightening on the need for proper keeping of accounting records.

1.3 Objectives of the Study

The board objective of this study is to ascertain the role of accounting in economic growth and development of Nigeria, while the specific objectives of this study are as follows;

i To ascertain the impact of proper accounting records keeping on economic growth and development.

ii To ascertain the impact of accounting information on decision making

iii To ascertain the impact of accounting information on economic sustenance.

1.4 Research Question

i Does proper accounting record keepings have any impact on economic growth and development?

ii Does Accounting information help in decision making? iii Does accounting information have any impact on Economic Sustenance?

1.5 Research Hypothesis

The Null hypotheses (H ) of the study are as follows:

H : Proper accounting record keeping does not have any impact on economic growth and development.

H : Accounting information does not have any impact in decision making.

H : Accounting information does not have any impact in Economic Sustenance.

Similarly; The Alternative hypotheses (H ) of the study are as follows;

H : Proper accounting record keeping helps in economic growth and development.

H : Accounting information has an impact in decision making.

H : Accounting information helps an impact in Economic Sustenance.

1.6 Significance of the Study

Decision making: this will help in effective decision making which in turns will bring growth and development to the economic. This study will aid in widening the researchers knowledge and also gives the researcher the Zeal to carry out more research. This research work will serve as a reference to other researchers on this field.

1.7 Scope / Limitation of the Study

This study was carried out at Ministry of Economic Development, Akwa Ibom in order to fully assess how accounting help in economic growth and development in Nigeria.

It is anticipated that this study will have the following Limitations:

a. That some of the questionnaire may be lost in transit and as such affecting the result of the research.

b. That some of the responses given may not be accurate.

c. That the respondents may not be able to provide all the information needed by the researcher due to ignorance.

d. That the researcher may not have enough funds and sufficient time to gathers sufficient data.

THE ROLES OF ACCOUNTING IN ECONOMIC GROWTH AND DEVELOPMENT (CASE STUDY OF MINISTRY OF ECONOMIC DEVELOPMENT AKWA IBOM STATE)

THE SIGNIFICANCE OF ACCOUNTING INFORMATION IN MANAGEMENT DECISION MAKING PROCESS OF AN ORGANIZATION

ABSTRACT

Information is the life wire of every business organization. However, it is of various diversities, but accounting information was selected for this study on the grounds that some business organizations do not base their decision on available accounting information and therefore lack a controlling power on their income and expenditure.

CHAPTER ONE

1.0 Introduction

Accounting is often defined as a series of activities which are analyzed and form a progression of steps, beginning with observing, then collecting, recording, analyzing and finally communication information to it users. Therefore accounting information has special meaning, in that it is data organized for a special purpose, that is for decision making, task of the accountant is to transform raw data into information. The application of systems analysis to the treatment of accounting facilitate the study of accounting as a social science, and enable s the examination of its various activities to the relevance of its output for decision making purposes. The main objective of this project topic is to examine the significance of accounting information in management decision making process of an organization in union bank of Nigeria Plc , Ikot Ekpene

1.1 BACKGROUND OF THE STUDY

Accounting information is the language of business as it is the basic tool for recording, reporting and evaluating economic events and transactions that affect business enterprises. It processes all documents of a business financial performance from payroll, cost, capital expenditure and other obligations to sale revenue and owners equity. It provides financial information about ones business to the internal and external users, such as managers, investors and others. It is sometimes referred to as a means to an end, with the ending being the decision that is helped by the availability of accounting information . The making of Leave a message decision, as everyone knows from personal experience is a burdensome task . In most cases indecision is as disastrous as making a wrong one, therefore a plan of action is indispensable. Management is constantly confronted with the problem of alternative decision making especially knowing that resources are alternatively scarce and limited. It is therefore, pertinent that good accounting information be made available for proper and accurate decision making, maximizing of profitability and optimal utilization of scarce resources. Accounting information is not only necessary for evaluation for the past and keeping the present on course; it is useful in planning the future the enterprise. According to Mbenefo, planning may conventionally be called budget targets, which gives meaning and direction to operations of the organization within a defined period. At the end of the budget period the external result are compared with budgeted performance and discrepancies (variance) are analyzed for purposes of exposing the causes so as to prevent re-occurrence. Budgeting uncovers potential bottle necks before they occur, coordinates the activities of the entire organization by integrating the plans and objectives of various parts. The budgets ensures that the plans and objectives of the part are in consistency with the broad goals of the organization. It compel managers to think ahead before formalizing their planning efforts and finally provides define goals and objectives which serve as bench marks for evaluation of subsequent performance. Management uses both financial and non-financial information to make effective decisions that would help achieve the goal and objectives of the organization .

Accounting generates three basic types of information.

These are:-

i The score-keeping/stewardship information

ii Attention directing information

iii problem solving information The Score-Keeping/Stewardship

Information provided by financial accounting relates to the statutory financial statement which must be prepared in most cases on annual basis. Attention direction information and problem solving information has a fusion. Attention directing information is mainly supplied by cost accounting , while the problem solving information is supplied by management accounting. They both relate to the issue of planning, controlling, and decision making processes rely on such information like budgeting variance analysis. Capital investment appraisal, cost determination, contract costing. Accountant needs to emphasis on score-keeping information rather than pay more attention on the Attention directing and problem solving information because it required for day-to-day decision making by management.

1.2 STATEMENT OF THE PROBLEM

Generally, the use of accounting information is indispensable for decision making in any business organization. The problem however lies in the quality and validity of the information, that is, if its timely Leave a message adequate and clear. According to the report of the joint Auditor’s First Bank Annual Report and Account falsified accounting that accounting information was the reason for many failed banks in Nigeria. The major purpose of the use of accounting information is to maximize risk, failure and uncertainties, and also stay ahead of competitors. Notwithstanding the immense benefit of the use of accounting information, it is generally acknowledged that most unqualified accountants generates inaccurate information and so result in failure of organization to achieved desired goals. There are cases of managers refusing the use of accounting information because of their inability to interpret such data, thereby making the organization to remain at status quo ante. The problem largely contributes to the failure of the use of accounting information in business with the result that inaccurate decisions are made to the detriment of the organization. It is against these backdrops that this study is being conducted to examine the significance of accounting information in management decision making process of an organization.

THE SIGNIFICANCE OF ACCOUNTING INFORMATION IN MANAGEMENT DECISION MAKING PROCESS OF AN ORGANIZATION

THE ROLE OF THE NIGERIAN DEPOSIT INSURANCE CORPORATION IN THE REGULATION OF NIGERIA BANKING SECTOR

ABSTRACT

The Nigerian banking sector plays a major role in economic development in any country. These they do, through financial intermediation and other banking functions to encourage real sector or innovate productive activities. However, distress in banking sector cannot be totally erased because like other forms of businesses, risks are involved. In combating this, the central bank of Nigeria served as the apex in the banking sector and performs regulatory and supervisory activities to create and sustain confidence in the banking sector, in the public, government, owners and the economy.        For proper supervision and monitoring regulatory activities due to various reforms in the banking sector, the Nigeria deposit insurance corporation was established to provide complimentary functions with the central bank in sanitizing the banking sector. However, their major function was to insure all deposit liabilities of banks so that confidence can be installed in the banking sector.

CHAPTER ONE

1.0 INTRODUCTION

1.1 BACKGROUND TO THE STUDY

The practice of modern banking in Nigeria dates back to 1892. The pioneer banks were understandably expatriate institutions set up to facilitate the colonial administration as well as trade with Britain.

        The first bank was set up in 1892 and it was called the African Banking Corporation which opened the first branch in Lagos and this was championed by Elder Dempster and co; a shipping firm based in Liverpool but had it branches in Lagos in 1894 another bank called the British Bank for British West Africa. The bank acted as an agent of the bank received, stored and issued the west Africa silver coins in exchange for sterling coins or London drafts. This bank later changed its name to standard bank.

        In 1899, the Anglo-African bank was established in compete with the British bank of West Africa. The bank was established in old Calabar but because of the monopoly enjoyed by the British Bank of West Africa for the importation of silver from the royal mint in Britain, the Anglo African bank sold after it, changed its name to bank of Nigeria to BBWA. Another bank opened in 1917 called the Barclays bank DCO (Dominion Colonial and Overseas). Between 1894-1933, the British bank of West African and Barclays bank DCO dominated the banking scene. Another bank joined the banking scene in 1949.

This bank was called the British and French bank. The bank became the third expatriate bank to dominate early Nigerian banking scene. The banks at this period were principally these expatriate banks, which were principally to render services in connection with international trade. So their relation at that time was chiefly with expatriate trading companies and with the government. These banks also controlled 90% of aggregate bank deposits. They largely ignored the development of local African entrepreneurship.         It should be noted that these various expatriate banks changed their names. The British bank of West African changed its name to standard bank and its presently called 1st bank of Nigeria plc. The Barclays bank DCO changed its name to union bank plc. The British and French bank also changed its name to united bank for Africa Ltd (UBA). However, Nigerians did not take active part in banking ownership until 1930s.         In an attempt to create a competitive environment with the expatriate banks, the first indigenous bank was established in 1929. The bank was the industrial and commercial bank. This bank was setup by patriotic Nigerians, but failed in 1930, in 1931; another indigenous bank was established and was called the Nigerian mercantile bank but liquidated in 1936 due to the same reasons like the industrial and commercial bank. The first indigenous bank to survive was established in 1933, called the national bank of Nigeria ltd. Other banks established include: the Agbonmagbe bank; a private indigenous bank founded by chief Okupe in 1945. However, the bank was taken over by the western government in 1969 and its name later changed to WEMA bank plc till date. Also established was the Nigerian penny bank in early 1940s but failed in 1946; the Nigerian farmers and commercial bank in 1947 but failed in 1953 and the merchants banks in 1952 but failed in  1960.         Despite the fact that up to 185 banks were established between 1947 and 1952, only four (4) banks survived. These banks include: the National bank of Nigeria established in 1933; Agbonmagbe bank established in 1945 now WEMA bank; the African continental bank established in 1947; an expatriate bank. The British and French bank now united bank for Africa established in 1949 ( Nwankwo, 1980). However, this period of banking can be termed free for all because banking activities were unregulated. A committee called the patrons committee was constituted to look into the causes of bank failures. The report of this committee revealed the following; most banks were faced with under capitalization, poor and inexperienced management and competitive pressures from the well established foreign banks.         In 1952, the 1st indigenous ordinance was made. This ushered in the era of formal banking practice in Nigeria. it established standards before license is granted to operated banks. This was applicable immediately on new banks and a period of three years was given to all existing banks survived, they include; Agbonmagbe bank, African continental banks, national bank and mercantile bank. The ordinance was later replaced with 1st indigenous banking act of 1959, and has undergone series of amendments in 1972, 1975, 1979 and was fully consolidated by 1990 company and allied matters decree and currently called banks and other financial institution decree of 1991 (BOFID).

THE ROLE OF THE NIGERIAN DEPOSIT INSURANCE CORPORATION IN THE REGULATION OF NIGERIA BANKING SECTOR

THE ROLE OF COMMERCIAL BANK IN THE DEVELOPMENT OF SMALL SCALE INDUSTRY IN NIGERIA (A CASE STUDY OF FIRST BANK PLC, ILORIN)

INTRODUCTION

        This research work is carried out to examine the role of commercial bank in the development of small-scale industries in Nigeria. This paper reviews the crucial role of small scale industries in facilitating industrial development and also their source of finance (Commercial bank). It also reviews the type of problem face by small scale industries and some recommendations on how this problem can be solved.

LITERATURE REVIEW

        This is to give a wiser knowledge to what small scale industry is all about due to different orientation of scholars. I have to review both foreign and Nigerian base scholars so as to synthesis both ideals. This scholars use some indicator such as:

1.     The size of capital investment (Fixed Assets)

2.     The annual turnover (Sales)

3.     The number of employees (Workers)

The above mention indicators are use by some of this scholars and some government parastatal to define small scale industries.

RESEARCH METHODOLOGY

        This research was based primarily on first bank plc, Ilorin branch which happen to be one of its branch in Ilorin and they all have;

1.     Operate along the same method.

2      Have common aims and objectives

3.     Are subject to a common supervision system and personnel.

The sources of data was also analyze extensively from the manager, senior staff, and some of the bank employee. The use of questionnaire was not left out.

PLAN OF THE STUDY

        The plan of the study is to look at the role of commercial bank in the development of small scale industry in Nigeria refers to the usefulness of the study. The importance of the assistance being given to small scale industries by the commercial bank.

OBJECTIVE OF THE STUDY

        This study would investigate the source and application of fund from the commercial bank to the small scale industries. It will also evaluate permanent solution to the issue of poor relationship between the commercial banks and small scale industries owners.

        The need for the development of small scale industries has a key in the development of industrialization and as a key to improve the gross domestic product (GDP) and national income of Nigeria. It will also evaluate why some small scale industries are unable to source fund from commercial banks.

LIMITATION AND SCOPE OF STUDY

        This work does not seek solution to all the problems encountered by small scale industries but only how they can be finance by commercial banks. And other limitation is the problem encounter with obtaining information from first bank plc, when information is made available. It is done after undue delay and suspicion.

DEFINITION OF KEY TERMS

        The researcher gives detail information of technical terms used in writing this project work. This is done purposely to enable the reader or lay man to have easy understanding of the terms when reading the project work. Some of the key terms are:

1.     Bank

2.     Account

3.     Accounting

4.     Assets     

5.     Loan

6.     Cheque

7.     Customer

8.     Services

9.     Bank overdraft

10.   Bank statement

11.   Collateral Security

12.   Interest

SUMMARY, CONCLUSION AND RECCOMMENDATION

          The government has been using the monetary policy through the Central bank of Nigeria to stimulate the growth of small scale industries has a base of creating import substitution of product and services to fulfill the economic aspiration of full employment in Nigeria. How far these as help and what need to be done so as to achieve more.

THE ROLE OF COMMERCIAL BANK IN THE DEVELOPMENT OF SMALL SCALE INDUSTRY IN NIGERIA (A CASE STUDY OF FIRST BANK PLC, ILORIN)

THE PROBLEM AND PROSPECT OF GOVERNMENT ACCOUNTING (A CASE STUDY OF OFFICE OF ACCOUNTANCY)

TABLE OF CONTENT

Title page

Certification

Table of content

CHAPTER ONE

1.1    background of the study

1.2    objective of the study

1.3    scope of the study

1.4    significance of the study

1.5    definitions of key concepts

CHAPTER TWO

LITERATURE REVIEW

2.0    definition of government accounting

2.1    The legal of government accounting

2.2    users of government accounting

2.3    bases for operation of government accounting

2.4    time of establishment o office of accounting general

CHAPTER THREE

3.1    research methodology

3.2    brief background of accountant general office

3.3    research design and approach

3.4    research population and sample

3.5    administration of instrument

3.6    method of data analysis

3.8    problem of methodology

3.9    limitation of the study

CHAPTER FOUR  

4.1    presentations of data and analysis

4.2    data presentation

4.3    testing of hypothesis

4.5    findings

CHAPTER FIVE

5.0    summary, conclusion and recommendation]\

5.1    summaries

5.2    conclusions

5.3    recommendations

Reference

CHAPTER ONE

INTRODUCTION

1.1    BACKGROUND OF THE STUDY

The term government accounting is the oldest form of accounting long temporary form of business accounting emerged in whatever form

The word government accounting is an old as man and over since, it has as record of tax controlled either monthly or in kind as well as dispose off by their pressure. Also government tend to keep financial record longer than other entities.

Government accounting had long been the focus professional and academic pursuit over the years. The reason being that it encompasses all sector of the economy and cover all aspect of human Endeavour.

Accounting general may be considered as a discipline concerned with the recording analysis and forecasting of income and with wealth of business and other entities generally it record in money term the flow of economic value between or witching economic

THE PROBLEM AND PROSPECT OF GOVERNMENT ACCOUNTING (A CASE STUDY OF OFFICE OF ACCOUNTANCY)

THE IMPACT OF COMPUTER APPLICATION IN MODERN DAY BANKING SYSTEM IN NIGERIA (A CASE STUDY OF UNION BANK NIGERIA PLC ILORIN)

ABSTRACT

This survey carried out in order to access the attitudes and order to know of actually computer applications can be said to have achieved its objectives.

Mention was made about the meaning, impact nature as well as the purpose of computer application activities on consumer’s patronage and the statement of the hypothesis. Literature review was carried out in which various relevant terms were defined. More over computer application activities itself was extensively discussed.

The research methodology carriedout was together with some facts useful for the conduct of the study in this research questionnaire were used.

The data collected through the research will be also used or analyzed in addition with their interpretations.

Finally, certain conclusions will be drawn and useful recommendation will also be given to the company’s industries as a means of increasing its banking system volume and achieving other objectives desire.

TABLE OF CONTENTS

CHAPTER ONE: INTRODUCTION

1.1              Background to the study

1.2              Statement of problems of the study

1.3              Aims and objectives of the study

1.4              Significance of the study

1.5              Scope of the study

1.6              Limitations to the study

CHAPTER TWO: LITERATURE REVIEW

2.1              Definition of computer

2.2              Classification of computer

2.3              What is banking?

2.4              Roles and functions of banks in Nigeria

2.5              Modern day banking and computer system

2.6              Advantages and disadvantages of computer to modern banking

CHAPTER THREE: RESEARCH METHODOLOGY

3.1              The research population

3.2              Source of data collection

3.3              Method of data analysis

3.4              Limitation of the study

CHAPTER FOUR: DATA PRESENTATION, SUMMARY, CONCLUSION AND RECOMMENDATION

4.1              Data presentation and analysis

4.2              Summary

4.3              Conclusion

4.4              Recommendation

CHAPTER ONE:

1.1              Background to the study

          The banking industry constitutes one of the pillars in which the economy of any nation rests. The computer has massive effect. On the nature, quality and structure of works almost everywhere there by becoming largely responsible for the emergency of the modern post industrial societies. Proper application of the computer is a major technical factor affecting organization efficiency and culture worldwide.

          In the past decades, the introduction of workstation and powerful networking devices have put computer on the desk of offices. It has continues to play a central role in the operation of many corporations while other forms of computing are used in business in various capacities, the largest place in the e-banking environment such as banking health care government, insurance e.t.c.

          The results of the use of computer union bank in banking sector include:

  1. E-banking:- Electronic banking also use electronic technology as a substitute for cheque and other paper transactions.
  2. ATM:- Automatic teller machine- these are electronic terminal that permit banking transaction almost any time. To withdraw cash, make deposits or transfer fund, between accounts, the user generally insert the ATM card, enter the personal identification number (PIN).

The use of the ATM is increasing over the years.

  • Direct deposit:- it permit the user to authorize specific deposits, such as pay cheques and social security cheques, to the account on regular basic.
  • PC- banking:- personal computer banking permit customer to handle may banking transaction via- the pc. The customer may use the computer to view the account balance request, transfer between accounts and pay bills electronically.
  • Point of sale transfer:- this allows the user to pay for purchase with a debit card, which also may be the ATM card.
  • Paying bills on:- line: this is a process whereby remote terminal is linked directly in to the processor.

The following are steps involves with setting yup an on-line paying program.

  • First the user must decide if bills are going to be paid through the bank (assuming the banks offer the service) or through a third party vendor.
    • Check out the on-line banking fees to help the user make the decision.
    • Once the user have set up the account with the bill paying service provider, the user will have to input the address, homes and phone numbers of the payees, as well as the number for each of the accounts.
    • Many banks offer lower checking accounts to customer who refer to bank ATM, phone or computer and every few charges on individual account access.
THE IMPACT OF COMPUTER APPLICATION IN MODERN DAY BANKING SYSTEM IN NIGERIA (A CASE STUDY OF UNION BANK NIGERIA PLC ILORIN)

THE EFFECT OF HISTORICAL COST ACCOUNTING ON THE REPORTED PROFIT OF A COMPANY AN EVALUATION OF CURRENT COST ACCOUNTING AS AN ALTERNATIVE REPORTING METHOD

CHAPTER ONE

INTRODUCTION

  1. BACKGROUND TO THE STUDY:

Working capital refers to the organisation’s investment in short term assets and it is important to the financial health of businesses of all sizes (Padachi, 2006). This importance is hinged on many reasons, first, the amounts invested in working capital are often so high in proportion to the total assets employed and it is vital that these amounts are used in an efficient way. Second, the management of working capital directly affects the liquidity and profitability of the corporate organization and consequently its net worth. Working capital management therefore, aims at maintaining a balance between liquidity and profitability while conducting the day-to-day operations of a business concern (Smith, 1980).

 Working capital is of utmost importance in any organization. Management of working capital is one of the most important functions of corporate management.  Every organisation whether profit oriented or not, irrespective of its size and nature of business, needs requisite amount of working capital to be maintained at any point in time. The capital to keep an entity moving on day-to-day operation of the business is working capital. The efficient working capital management is the most crucial factor ensuring survival, liquidity, solvency and profitability of the concerned business organisation (Jose, Lancaster and Stevens,1996). An organisation needs sufficient cash to carry out purchase of raw materials, payment of day-to-day operational expenses including salaries, wages, repairs and maintenance expenses and others. Funds to meet these expenses are collectively known as working capital.

In simplicity, working capital refers to that portion of total fund, which finances the day-today working expenses during the operating cycle of a business. Working capital is necessary in the day to day running of the business and this includes inventories, debtors, short term marketable securities, cash at bank, cash on hand, short term loans and advances, payment of advance tax and all current assets and current liabilities. A business organisation should determine the exact requirement of working capital and maintain the same evenly throughout the operating cycle. It is worth mentioning that a firm should have neither excess nor inadequate working capital as both phenomena of over capitalisation and under capitalisation of working capital generates adverse effects on the profitability and liquidity of the concerned companies. The effective working capital necessitates careful handling of current assets as to ensure liquidity and solvency of the business (Harris, 2005).

The ultimate objective of any firm is to maximize the profit (Deloof, 2003). However, preserving liquidity of the company to a minimal level is also an important objective for organisational survival (Smith, 1980). Thus, the problem is that increasing profits at the cost of liquidity can bring serious problems to the company. Therefore, there must be a trade off between these two objectives of the company (Eljelly, 2004). The debtors collection period should be reduced while the creditors payment period should be increased. One objective should not be at the cost of the other because both have their importance for corporate survival. If organisations do not care about profit, they cannot survive for a longer period. On the other hand, if they do not care about liquidity, they may face the problem of insolvency or bankruptcy which may finally lead to liquidation. Thus, to achieve the above corporate objectives, there is need for proper consideration of working capital management and ultimately its effect on corporate profitability (Egbide, Enyi and Uremadu, 2012). Hence, this study examines working capital management and corporate profitability, analysis of Nigerian firms.

1.2       STATEMENT OF RESEARCH PROBLEM

One of the serious problems faced by a good number of companies is poor working capital management (Smith, 1980). A large number of business failures in the past had been blamed on the inability of financial managers to plan and control the working capital of their respective organizations (Egbide et al, 2012). These reported inadequacies among financial managers are still manifesting today in many organizations in the form of high bad debts, high inventory cost, etc. which adversely affect their operating performance. Also, increasing of profits at the cost of liquidity might cause serious trouble to the firm and this might lead to financial insolvency. Moreover, insufficient liquidity might damage the firm’s goodwill, deteriorate firm’s credit standings and might lead to forced liquidation of company’s assets (Charterjee, 2012). In view of the above problems, this study will consider working capital management and corporate profitability, analysis of Nigerian firms.

  1.       OBJECTIVES OF THE STUDY

      The main objective of the study is

  • To assess the impact of working capital management on corporate profitability in Nigerian companies.

The specific objectives are,

  • To examine the impact of working capital management on liquidity in Nigerian companies.
  • To establish the effects of liquidity on corporate profitability of firms in Nigeria.
  • To ascertain a relationship between corporate profitability and debt of firms in Nigeria.
THE EFFECT OF HISTORICAL COST ACCOUNTING ON THE REPORTED PROFIT OF A COMPANY AN EVALUATION OF CURRENT COST ACCOUNTING AS AN ALTERNATIVE REPORTING METHOD

TOTAL QUALITY MANAGEMENT IN THE BANKING INDUSTRY A CASE STUDY OF ZENITH BANK NIGERIA PLC

ABSTRACT

The topic of this project is “Total Quality Management in the Banking Industry. (A case study of Zenith Bank of Nigeria Plc)  The major objective of the study is to ascertain the level of awareness and adoption of TQM practices among staff of Zenith Bank in Enugu metropolis and also determine the major limitations of the TQM practice in the bank.  Instrument for data collections are questionnaires and research questions, which formed the course of primary data, while materials from various published articles, textbooks, journals and newspapers formed the secondary data.  The method of analysis is the use of tables, percentages and chi square.  The major finding of the research is that all staff of Zenith Bank are aware of the TQM elements and are fully involved in the practice of TQM in their day to day business.  The study recommends that since the practice of TQM improves customer service and care, there is need for constant training of all staff on TQM practices on a continuous basis.  Employees and subordinates should be given opportunity to participate in decision making using the element of TQM practice and culture.

CHAPTER ONE

INTRODUCTION

1.1       Background of the Study:

Today every organization has to study what customer demand is. Who is our customer? How do we delight our customers? What do customers wish to experience when dealing with us? What do customers frame in their mind about us? All these questions should be taken into consideration hence it is the customer who defines quality (Arora 2006:1).

Quality is fast becoming an essential aspect of banking, and in the coming years it would form a basic requirement for the survival of the industry.  It is indeed worthy of note that quality needs to be natural through positive attitude and quality culture in an organisation.

At a time when the deregulation of financial services and consequent ready access to funds produced a new competitive environment, both the commercial and merchant banks in the country then were competing with finance and mortgage houses, insurance companies and stock brokers. The new competition brought about successes for some and spectacular failure for others.  In the new millennium, banking has gone even beyond expectation, and for the surviving banks, competition has just began.  The financial service sector has not been immune from or ignored the era of quality revolution.  New products sought initial competitive advantage, new attractive interest rate, turnaround time, all in the bid to attract more customers.   Macdonald (1998:13).

In the service sector, we have non-invertible products. Demand for service is variable. Service sectors are hospitals, banks, transportation and public utility e.t.c.

In the early 1990s, there was a sea of change in the banking industry that sent many Chief Executives of the industry back to the drawing board to find new ways to compete.  At this time, the top management of the industry learned the fundamental lessons that customers were willing to pay a price premium for products and services that consistently meet high standard of quality. Customers now perceive that they have the right to demand for good services, since they pay for it. As the service industries are setting promises, all that the customer wants is for the promises to be kept.

According to Arora (2006:50), Reputation is either built or lost through satisfying or dissatisfying customers. What does it take to satisfy a customer today? The customer will have a need which we are trying to fulfill. This may be weakly articulated or very vague.  Either way, it is our responsibility to identify the need as precisely as possible and meet it.  If we do this, then the customer is satisfied.

The loss of a customer can be devastating, although we may be blissfully unaware of it, each customer who walks away, takes away future years of repeat revenue.

We do not sell to customers today, they buy. That is, they call the tune, they have the choice of banking with any bank of their choice (with the advent of a stable capital base for the existing banks).  They will only bank with a particular bank if that bank makes it easy or special.  Excellence in services can be achieved through ISO 9000, ISO 14000, 18000, TQM, team work, Quality Assurance.    Arora (2006:3).

Customer satisfaction can only be achieved when the bank defines customer needs from the customer point of view and not from its own point of view. For this, the customer must be the centre of all the activities carried out in the organization.

According to Arora 2006.9, quality of a product throughout its lifespan is total Quality. All personnel of theZ organization are committed to quality by doing the right thing the first time and every time by employing the organization’s recourses to provide value added quality to the customers.

Total quality accomplishes the business goals by designing and supplying products and services to achieve customer satisfaction at an economic level. 

The term TQC (total quality control) was conceived by A. V. Freignbaum 1983, Japan, TQC later became TQM. It is a corporate business management philosophy which recognizes that customer needs and business goals are inseparable. Arora (2008:11).

Management must be able to recognize that TQM will not happen by accident. TQM is a managed process which involves people, system and supporting tools and techniques. Quality should begin to permeate financial institutions as a way of life and it should begin with employee satisfaction. 

TQM, though a recent phenomenon is important in the banking sector. It has evolved as a management concept out of the need by organizations for continuous quality improvement and critical importance of increased profitability and survival in the face of competitive challenges in the banking industry.

This starts with the customers by learning to identify and meeting their basic requirements and then empowering staff by giving them the tools they need to perform excellently.

It is in this regard that this research work is aimed at assessing the practice of Total quality management by Zenith Bank Plc.

1.2       Statement of the Problem:

Banks being financial intermediaries are the backbone of any economic system involved in channeling funds from those having surplus to those having its shortage,(Luckett,1994:36). The objective of this fund channeling is to earn profit.  In order to reach maximum number of customers, banks develop a network of branches. Branches are the points where banks offer their products. Banking products are almost the same in any country but what matters is the way the product is offered and the quality aspects associated with those products. Total Quality Management (TQM), a buzzword phrase of the modern age is based on the assumption that quality can be managed in every aspect of a company’s business. Total Quality Management is viewed as virtually a new organizational culture and a way of thinking. So the approach has an intense focus on customer satisfaction, accurate measurement of every critical variable in business operations, continuous improvement of products, services and processes and on work relationships based on mutual trust and teamwork, (Pearce & Robinson 2005:24).

Total Quality Management is a structured system for satisfying internal and external customers and suppliers by integrating in the business environment, continuous improvement, and breakthroughs with development, improvement, and maintenance cycles while changing the whole organizational culture,(Cole & Mogab1 999:35). This is the comprehensive approach towards quality management covering all areas of business.

Like other industries, quality improvement is taking place at a revolutionary pace in the banking sector,  (Rana,2005:15). Keeping in view the competitive environment in the banking sector where bank officers are trying their best to offer high quality services to their customers, there is great need to develop a TQM model for commercial banking branch operations, highlighting the different departments in the branch and the application of TQM principles to such departments with proper assessment of the extent of practice of TQM principles in our chosen bank of research, which in this case is Zenith bank plc. There is no such comprehensive model available in the body of knowledge covering all departments of commercial banking branch.

TOTAL QUALITY MANAGEMENT IN THE BANKING INDUSTRY A CASE STUDY OF ZENITH BANK NIGERIA PLC

THE ROLE OF SMALL AND MEDIUM ENTERPRISES IN THE NIGERIAN ECONOMY

ABSTRACT

          This research work was designed to determine the role of small and medium enterprise in the development of Nigeria economy.  Some selected enterprises were used as a case study and questionnaires were administered in order to extract information on this project.  The objectives of the study includes to identify the roles of small and medium enterprises in the development of the Nigeria economy and to evaluate the problems the encountered in the  establishment of small businesses.  Some literature were reviewed in relation to the topic with the themes and sub themes of the study.    However, in research methodology, the researcher used some instruments for data collection.  These instrument s emanated from both the primary and secondary source of data.  The data collected were analyzed, grouped into frequency, computed and arranged in tables for easy references.  The statistics tools for analysis are the simple percentage and chi-square technique.  These techniques were appropriately applied at 5% level of significance.  The result of the study shows that small and medium enterprise plays a vital role in the development of Nigerian economy despite the various problems the encounter in the establishment of small businesses.  Some recommendation were also made based on the results of the findings.

TABLE OF CONTENTS

Title page

Certification

Dedication

Acknowledgement

Abstract

Table of Contents

CHAPTER ONE: INTRODUCTION

  1. Background of the Study
    1. Statement of the Problem
    1. Objective of the Study
    1. Significance of the Study
    1. Scope and Limitation
    1. Research Question
    1. Definition of Terms

CHAPTER TWO: LITERATURE REVIEW

  • Meaning and Concept of Small Business Enterprise
    • Basic Characteristics of Small Scale Enterprise
    • Types of Small business
    • Sources of Fund to Small Businesses
    • Government Influence on Small business Enterprises
    • The Role of Small Scale Business
    • Problems of Establishing Small Business Enterprise in Nigeria

CHAPTER THREE: RESEARCH METHODOLGOY AND DESIGN

  • Research Design
    • Sample Size Used
    • Instrument for Data Collection
    • Population of the Study
    • Validity and Reliability of Instrument
    • Method of Data Analysis

CHAPTER FOUR: PRESENTATION OF DATA

  • Data Presentation and Analysis
    • Testing of Hypothesis

CHAPTER FIVE: SUMMARY OF FINDINGS, RECOMMENDATION AND CONCLUSION

  • Summary of Findings
    • Recommendations
    • Conclusions

Bibliography

Appendix A

Appendix B

CHAPTER ONE

INTRODUCTION

  1. BACKGROUND OF THE STUDY

For the past decades, small business enterprises in Nigeria were characterized as essentially backward and cog in the wheel of the overall development of the Nigeria economy.  As a result of this, there has been a prevalent feeling that such businesses could be assisted only for social reasons, not as a promising opportunity for national development.  Obviously, too little attention has been paid to the benefits to be derived from helping small enterprises of modernize and grow.  This attitude arose partly amongst both the citizens and government and mainly from the very nature of the small business which made it difficult for its impact to be felt in the economy.

The latent contributions which small business can make are now attracting recognition.  This awareness is manifest in the ever-increasing number of Nigerians who daily strive to put up their personal ideas and abilities to effective use [by starting small business] ventures.  Evidence around the world indicate that small scale enterprise provide an effective means of stimulating indigenous entrepreneurship, enhancing greater employment opportunities per unit of capital invested and aiding the development of technology.  Through their wide dispersal, they provide an effective means of mitigating rural-urban migration and resource utilization.  Furthermore, by producing intermediate products for use I n large scale enterprises, small businesses contribute to the strengthening of industrial linkages.

Accordingly, due to the recognition of the roles of small business, the Nigerian government has since 1970 initiated programmes for the assistance of small businesses, especially, in the areas of finance, extension and advisory services including, training   and provision of infrastructures.  All these are designed to enhance the development of small businesses.  Successive governments in Nigeria have for the past three decades shown great interest in the financing of small businesses by establishing specialized banks and other credit agencies/schemes to provide customized funding.

In spite of all the contributions and the attention given to it by the government, the small business enterprise is still confronted with problems peculiar to what many may refer to as the ‘Nigerian factor’.  One of such problems is the lack of funds, “It takes money to do business”.  From the time a business idea is conceived of [the promotional state] until after it has ceased to operate, there are financial implications in every activity at every point in time associated with the businesses. It is therefore not surprising that the issue of financing is of major concern to small business organization.  Despite that, the role of SMEs in Nigeria cannot be underestimated.

It is noteworthy that most of the small businesses in Nigeria are sole proprietorship and partnerships.

THE ROLE OF SMALL AND MEDIUM ENTERPRISES IN THE NIGERIAN ECONOMY

THE ROLE OF THE INTERNAL AUDITING DEPARTMENT IN ORGANIZATIONS: A CASE STUDY OF SELECTED BANKS IN ENUGU STATE

ABSTRACT

Nigeria emerged from colonial rule with little technological know-how. This attributed to the fact that the colonial masters made no attempt at laying foundation for acquisition of the know-how required to build the economy. Despite this, the Nigerian economy has greatly evolved and is now termed the fastest growing economy in Africa. This is due the fact that they have developed skills and procedures so that businesses and organizations can prosper. Inn relation to banks, before the 2005 consolidation exercise so many individual had little or no faith at all in these financial institutions as some kept on folding out. How ever the consolidation process endorsed by the Central Bank of Nigeria was see and considered a savior to the economy. The banks later developed schemes and strategies to grow and face their competitors without crumbling; one of such schemes being the thorough function of the internal auditing department. This research reviews the roles and functions played by the internal audit department in organizations. It is therefore unavoidable to talk of the role of the internal audit department without relating to the views of the staff who work in such a department in any organization. Three firms in the same industry (the banking industry were thus selected) and questionnaires were issued to the members of staff working in this department. This project therefore focused on the importance of the existence of an Internal Auditing Department in any organization. It high lights some problems faced by banks and how the IAD could assist them in combating these problems

Chapter three dwelt on the research methodology employed in the study. I discussed the various sources data used, the sample from which information was sought and the reasonability of using such samples. Chapter four provide presentation and analysis of data collected and testing of research hypothesis. Finally Chapter five summarized the findings of the research and offers recommendations and conclusion. 

CHAPTER ONE

INTRODUCTION

  1. Background to the Study

Through out the past decade, Nigeria has witnessed a rise and fall in several businesses. The businesses or organizations which are still in existence and experiencing growth set up structures and practices of boards so as to monitor the performance of the organizations. This is done so as to impress the shareholders of the various businesses and attract new investors.

The companies or establishments which did not make it could have suffered from one problem or another. The most prominent one which can not be ignored is that of fraud. This alone has caused a lot of damage in the financial markets and the entire economy has been plunged into a terrible crises. The fall of a company like Enron in the United States of America caused an up rise and raised so many eyebrows hence leading to a sagging investor’s confidence.

On the other hand, there are some organizations growing in strength. One of the factors that could contribute to the steady growth of companies is the setting up of an Internal Auditing Department. As fraudulent financial reporting and restatements of earnings have become more prevalent, auditing (be it external, internal or governmental audits) has become more important. So to monitor the procedures and adherence to principles to an organization, internal auditing could be looked upon as a key. A typical example is seen in the case of World com, (a financial establishment in United States of America) when Cynthia Cooper (Vice President of the internal auditing team) and her staff unveiled several auditing practices which were not in line with the Generally Accepted Accounting Principles (GAAP). In carrying out this audit, it was discovered that for previous two years, $3.8 billion in cost had been capitalized rather than expensed. This announcement was made in June 2002.

 Pinero (2001), in his paper presented at a workshop for internal auditors stated that “the prime objective if the Internal Auditing Department (IAD) in any bank is to evaluate whether the bank’s framework of risk management, internal control and corporate governance processes are adequate and functioning properly and carried out throughout the year. He added that the objective of the internal auditing department (IAD) includes suggesting and recommending the management for improvement in internal control and risk mitigating factors. Internal audit services provided by the IAD therefore exist to add value to the organization, to concentrate on the key risks, to evaluate and assess the Internal Control System (ICS) and contribute to the proper economic, efficient and effective use of resources in banks and other organizations (Miten Keynes Council,2002). As such the IADs of Oceanic bank plc, UBA plc and First bank plc could be looked up to as monitors in their various organizations as they check the risks and ICS of the organizations. Therefore internal auditors in Nigeria, in carrying out their function and roles judiciously could as well save a company or organization from a fall.

From the above, it will be reasonable enough to agree with Frigo (2000) who points out that it is wrong to think of auditing as only “financial” in nature. According to him the scope of internal auditing within an organization is very broad and may involve topics such as:

  • The efficiency of operations
  • The reliability of financial reporting
  • Deterring and investing fraud
  • Safeguarding assets and
  • Compliance with laws and regulations

As a result of the broad scope of involvement, internal auditors (those who carry out the profession of internal auditing) may have a variety of higher educational and professional backgrounds.

It can be interpreted from the above that audit departments in organization function in a particular way to ensure the growth and development of the organizations.

THE ROLE OF THE INTERNAL AUDITING DEPARTMENT IN ORGANIZATIONS: A CASE STUDY OF SELECTED BANKS IN ENUGU STATE

THE IMPACT OF TAXATION ON THE ECONOMIC AND SOCIAL DEVELOPMENT IN NIGERIA

ABSTRACT

This research work focuses on the impact of Taxation on the economic and social development in Nigeria. Using secondary data gotten from the CBN statistical bulletin with the help of regression as a statistical tool, we analyzed the postulated hypothesis which dwelt on the relationship that exist between taxation and Economic and social development in Nigeria. It was discovered that taxation has a positive relationship with the economic and social development in Nigeria.  The researcher then recommends a well defined policy for inter governmental collaboration, co-operation and co-ordination between different tiers and agencies of government, awareness on the tax payers on the role of taxation in the economic and social development in Nigeria should be created and has been created in this research work.  Efforts should also be made by the government to ensure they channel revenue from taxation towards socio-economic activities that will benefit the tax payers.

CHAPTER ONE

  1. INTRODUCTION

1.1   BACKGROUND TO THE STUDY

        The world we live in presents a picture of appalling contrasts.  Some Countries are immensely prosperous, nearly two-thirds of the population of the world subsists on sub-standard incomes. Some Countries of the world are considered as developed and others developing, underdeveloped, or less developed with characteristics including illiteracy, inadequate housing and infrastructural facilitates, lack of medical care, malnutrition, unemployment and low levels of technology.

Nigeria is the most populous Nation in Africa and the 11th in the world and is also endowed with vast human and natural resources but unfortunately, Nigeria is also one of the Nations regarded as underdeveloped or developing.

        According to Udabah (2000:1) “the fundamental challenge facing counties like Nigeria is in the transformation of their economic or economic structures from an underdeveloped to a developed status”. This entails the development of their economic wealth for the well-being of their citizens and the formation of social structures in a manner which improves their capacity to fulfill their aspirations.

        Okpe (1998:1) stated that the existence of government is a necessity that cannot continue without financial means to pay it’s expenses as there are certain services which the government must provide to it’s citizens because of their essential nature.  Government does this to ensure that the supply of such goods and services are evenly distributed in any given society so that the rich and poor alike may benefit.  One may ask how does government get such huge amounts to finance the supply of such essential good and services to her citizens.  It is true that government mints money but there are other important economic factors that should be considered so that excessive money is not, in circulation in any economic. Thus Olashore (1999:23) noted that for an economic and social balance to be maintained in an economy government found ways of financing her activities and one of such finance apart from loans and grants is taxation. 

Taxation plays a crucial role in promoting economic and social activities and growth. Though taxation, government ensures that resources are channeled towards important projects in the society while giving succor to the weak.  Orjih (2001:153) stated that taxation is useful in raising revenue, controlling the consumption of certain commodities, controlling monopoly, reducing income inequalities, improving the balance of payments as well as protecting infant industries.

        In essence, taxation is a core pillar of a country’s regulatory framework for investment and growth. It features prominently in investment decision making motivated by profit maximization while also spurring local enterprise development but this can only happen when taxation and it’s administration are properly designed. 

1.2   STATEMENT OF THE PROBLEM

Nigeria and other African Countries at large are facing a series of challenges when it comes to optimizing taxation for economic and social growth while aiming to reach development targets.  Perhaps the most inherently difficult challenge is how to find the optimal balance between a tax regime that is business and investment friendly while at the same time leveraging enough revenue for public service delivery which in turn makes economics more attractive to investors.

        The taxation system in Nigeria has not been fully tapped and maximized and its role in promoting economic and social activities and growth is not felt because of it’s poor administration. Thus, Olashore (1999:53) stated that the economy has remained in deep slumber as all macro economic indicators show an economy in dire need of rejuvenation, balancing and indeed radical reform.

        Identifying the impact of taxation on economic and social development in Nigeria is a research work born at the right time as there is an urgent need to delve deep and look into the situation of tax evasion and the likes which are punishable by law and also to look into measures required to meet challenges.

        This will not only guarantee improved revenue base for the country but also position the country properly to take full advantage offered by the new millennium global tax reform system.  This research work shall examine the impact of taxation on economic and social development in Nigeria by analysing the tax gap in the system over the years thereby revealing the critical challenges that need to be tackled.

THE IMPACT OF TAXATION ON THE ECONOMIC AND SOCIAL DEVELOPMENT IN NIGERIA

THE USEFULNESS OF FORENSIC APPROACH TO BANK AUDITING AND INVESTIGATION IN NIGERIA

ABSTRACT

Fraudulent practices in Nigeria banks have led to increased losses and collapse of commercial banks, hence the need to use forensic approach services to detect and prevent such fraudulent activities. The banking industry is a very important institution with many internal controls in order to overcome the fraudulent practices. The objective of this study was to examine the usefulness of forensic approach to bank Auditing and investigation in Nigeria , the most prevalent type of  fraud and to establish the major areas of application of forensic accounting services. The data collection instrument preferred for the study was a questionnaire. Findings from the study saw that fraud detection and prevention increased when forensic  accounting services was employed.   The sample size of 179 were used and was chosen among the 9 commercial banks in Nigeria  using Bowleys proportional allocation formula Data were analyzed using table and simple percentage, hypothesis were tested using chi-square statistics ( x2).  The study findings indicated that the application of forensic approach services by banks led to increased fraud prevention in the commercial banks and the highest application was on enhancing quality of financial reporting.

CHAPTER ONE

  INTRODUCTION

1.1 Background to the Study

Considerable scandals that have been experienced in recent years in commercial banks in Nigeria have reduced the confidence to financial and non financial statements leading to improved regulations governing both the banking sector and the accounting practices as well. Due to this, forensic accountancy as a profession with its services as litigation support, consultancy expert testimony and fraud auditing (investigation accountancy) filled a large gap in prevention of such frauds. History has shown that despite the presence of Sarbanese-oxley legislation of 2002 in the United States and the publishing Enron and other big companies in US, employees have continued to manipulate even the best internal controls available for their own personal gain.  These scandals have financially devastated employees and investors and severely harmed the reputation of auditors, analysts and corporate managers. It is in realization of this that  various initiatives have been put into place to enhance and enforce the applicability of  forensic accounting services by use of the right people, tools, techniques and insight to  prevent and detect fraudulent activities and to ensure that the applicability of such  services are effective. Modern Information technology has even increased the pace of electronically manipulated frauds in the complex business environment. According to Fraud Survey of KPMG (2008), the total value of fraud reported was $301.1 million with an average value for each organization of $1.5million in Australia and New Zealand of 420 organizations surveyed which represented 20% of the 2018 surveys distributed.  In May 2011 in a response to spiraling fraud cases, the CBN demanded an audit of automated payment processing systems operated by commercial banks after their investigations showed the rising cases of fraud were in fact being initiated by bank employees at the point of entry of information into their internal payment systems. Due to this, this study focused on the impact of forensic accounting services on fraudulent practices in the commercial banks in Nigeria. Theoretical prediction indicated that, the application of Forensic Accounting Services helps to prevent fraud occurrence in the commercial banks. According to Gollwitzer (1990), the mindset of a fraud specialist will lead them to search for pertinent information pertaining to frauds. When people are much aware that their fraudulent activities were to be disclosed by the application of forensic accounting services, they feared to commit fraud in the banking industry. 

1.2       Statement of the Problem

 The failure of statutory audit to prevent and reduce misappropriation of fund and an increase in corporate crimes have  put pressure on the  professional accountant and legal practitioner to find a better way of exposing this financial crimes. The problem is incessant financial crimes in the corporate world require regular audit. Forensic auditing should be responsible for digging out frauds committed through application of auditing, accounting, and investigative techniques in order to come up with sufficient evidence that can be used in court proceedings (Albrecht et al, 2001).  Although a number of studies had been done on the concept of forensic accounting services, none of them had focused on the impact of forensic accounting services on fraud prevention and detection specifically in commercial banks in Nigeria hence making this study justifiable as it was to address if such applications had an impact on prevention and detection of fraud in our financial institutions.

THE USEFULNESS OF FORENSIC APPROACH TO BANK AUDITING AND INVESTIGATION IN NIGERIA

THE IMPACT OF PROFESSIONAL BODIES ON THE DEVELOPMENT OF ACCOUNTANCY PROFESSION IN NIGERIA

ABSTRACT

In Nigeria there are three well recognized Accountancy professional bodies that see to the overall affairs of Accountancy profession. These professional bodied are; Institute of Chartered Accountants of Nigeria (ICAN). Association of National Accountants of Nigeria (ANAN), Institute of Cost and Management Accountants (ICMA). This work analysis the impact of professional bodies on the development of Accountancy profession in Nigeria. In order to find out the impact of these professional bodies on the development of accountancy in Nigeria, the activities of these professional bodies were examined. The mutual relationship among these professional bodies was studies and various impacts created by some organs of professional bodies such as society of Woman Accountants of Nigeria, Chartered Accountants in Business etc, were also examined. Secondary data were the main source of data used for the analysis. Analysis made disclose that professional accounting bodies have made a great impact in the development of Accountancy profession in Nigeria. The problems and prospects of accountancy professional bodies were examined and recommendation made for further development of accountancy profession in Nigeria.

CHAPTER ONE

1.1       BACKGROUND OF THE STUDY

Accountancy as a profession has undergone various stages in its development. Various accounting bodies of the world have contributed in the development of the profession in their various countries and beyond. In order to lay more emphasis on the impacts of the professional bodies mostly as it concerns Nigeria let’s look at three major professional accountancy bodies in Nigeria; the Institute of Chartered Accountancy of Nigeria (ICAN), the Association of National Accountants of Nigeria (ANAA) and the Chartered Institute of Cost and Management Accountants (CIMA). ICAN as the first and foremost professional accountancy body in Nigeria was seen to have contributed greatly to the development of the accountancy profession in Nigeria. It was discovered that ICAN has made contribution for the development of the profession in the following ways;

  • Formation of Nigeria Accounting Standard Board (NASB) in 1982. This is responsible for the issuance of accounting standard (SAS) in Nigeria.
  • Training of professional accountants through professional examination which takes various stages.
  • Establishment of Accounting Technician Scheme (ATS) in 1989 to train middle level accountants.
  • Partaking in the drafting of companies and allied matters, 1990.
  • Establishment of Society of Women Accountants (SWAN) in 1978 to consolidate the impact of women in the development of the profession.
  • ICAN prepares the standards and guidelines for auditing in Nigeria through Auditing Standard Committee (ASC).

ICAN also organizes seminars, mandatory continuing professional education programme etc. ICAN works with and represents Nigeria in other international accounting bodies in the world such as IFAC. All these have helped greatly in the development of the profession in Nigeria. It was also discovered that ANAN is making a good impact in the development of the accountancy profession in Nigeria, especially the establishment of Nigeria College of Accountancy (NCA) in Jos which is a breeding grounds for professional accountants.  ANAN also organizes professional examination, continuing professional education, seminars etc.

The chartered institute of cost and management accountants is a new body, but was discovered to be making a good impact in the development of the profession. For the maintenance of the standards of the professional accountant, it was found out that the professional accountancy bodies have severe punishment for their erring members and students. Students can be banned from taking the institutes examination or suspended for some years if caught in examination misconduct or suspended for some years.

Many professional accountancy bodies have been formed in various countries. Some of these bodies include the Institute of Chartered accountants in England and Wales, the American Institute of Certified Public Accountants, the Institute of Chartered Accountants of Scotland etc. apart from these bodies which are country based, there are other professional accountancy which cut-across various countries. These bodies include, International Federation of Accountants (IFAC), Accountancy Bodies of West Africa (ABWA), and Africa Accounting Organization (AAO) etc. these bodies have strongly contributed to the development of accountancy in their various countries and in the whole world in general.

In this research work, each of these bodies will be examined, their establishment, activities and most importantly their impact on the development of accounting profession in Nigeria.

1.2       STATEMENT OF PROBLEM

The institutes of accountants and their members have been subjected to increasing public scrutiny following protracted criticism in many jurisdictions over a substantial period (Lovell 1995 p.60). The failure of accounting documents to reveal a more accurate reflection of the financial well being or ill health of organization and the collusion of accountants in the preparation and validation of those documents, to the failure of the accountancy profession satisfactorily to take account of the public interest in the determination of the future of accounting and auditing practice.

High profile corporate collapses and fraud with which accountants have been associated to auditors, executives and directors have prompted searching question to be asked as to the integrity of the professional accountants’ involved (Clark et el, 2003). These collapses or systemic failure, as the broad range of financial scandals exposed in the early years of the 21st century have been labeled, have brought into sharp focus and over a more concentrated time scale, issues of long-standing debate include; audit and accounting regulation, auditor and independence earnings management, audit and audit firm quality controls (Browns 2005, Young 2005, Reinstein and Mcmillian 2004).

Briloff (1986) alerted over the years that the credibility of accountancy profession is threatened when the idea of integrity, independence, public service and ethical standards came under suspicion. The core issue in the context of the accountancy profession is the statutory audit monopoly privilege enjoyed by public accounting practitioners and the accountability that is demanded by that privilege. These and other problems affect the development of accountancy profession especially in Nigeria and they need to be addressed.

THE IMPACT OF PROFESSIONAL BODIES ON THE DEVELOPMENT OF ACCOUNTANCY PROFESSION IN NIGERIA