CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
The term “Financial Accountability” according to Hornby (2000:3) is the ability to give explanation of stewardship of money or any other economic resources and assets. Financial Accountability is geared towards ensuring that there is control over fraudulent practices such as defalcation, embezzlements or inflation of contract. The subject of the study of “Financial Accountability” has been a controversial issue even among the early philosopher. Plato condemned the use of money in trade, according to him, for the attendant “social ills” and “unethical reason”. In addition to the above, the peculiar nature of Nigeria economy has made any topic in accountability, financial or otherwise, worth discussing. Nigeria has had her fair share of financial impropriety both in public and private sector, no quite unconnected with her political set ups, the history of the evolution of her financial institutions and level of the country’s development. The research has therefore been reduced to the firm (micro) level and Emenite Nigeria Limited, Enugu has been carefully selected to be used in drawing a line of parallel between the level of accounting in the public and private sectors. Control is adjunct of accountability. The extent of financial accountability therefore should be reflected to the extent of the working mechanisms within the particular organization. The fact that both public and private sectors make use of control measures is undisputable The extent to which they employ this and how it has improve their finances is called to question.
The effective means, by which they employ internal control to safeguard assets, collect debt or pay creditors, etc. is the issue at stake. In the word of a management experts internal control comprises the plan of organization to co-ordinate methods and measures adopted within a business to safeguard its assets, check accuracy and reliability of its accounting data, promote operational efficiency and encourage adherence to prescribed managerial policies. Apparently, the general concept “internal control” here is that it should be effective enough to cause probity in all the organization activities with a resultant discipline financial atmosphere in the organization. Responsibility accounting system as noted by Eze (2014:24) identify various decision centres and trace financial data to the individual managers who are primarily responsible for the data in question. Here manager supervise subordinates and to improve performance, top manager sub-divide operating process and also design an organization structure. Obviously, another general concept of responsibility accounting here is that it should be instituted in the organization to ensure that individual managers are held responsible for the financial data that is assigned in their possession.
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