THE ROLE OF FINANCIAL ACCOUNTABILITY IN A PUBLIC LIMITED COMPANY

Chapter one

1.0 Introduction

Accountability as seen by Iwumenne (1982: 56) is the sole of any business continuity. A mismanaged economy cannot sustain her subjects. In the micro sense, a mismanaged firm is for failure. The main aim of business is profit maximization. This cannot be achieved if the financial mismanagement is endowed in any form. In any business setting, the priority of management is to enable the firm to continue to finance its undertakings. This cannot be achieved without due regard to the prudent financial administration.

According to Muoha Otanka (1975:4)2. The spirit of continuity of a business is the careful administration that well administers the financial undertakings. Really, the issue of financial importriety has made many a business, collapse. There are many ways to check the menace in both public and private life. Any method used in subsumed in effective control system which primarily cue’s from internal control. According to Jonah Jenny (1982.12)3, internal control can be perceived in the following ways. 1. Good record keeping of all transactions in the factory. 2. Good stock control system. 3. Well co-ordinate channel of raw material procurement. 4. Efficient redundantly control. 5. Good personal administration 6. Avoidance of waste. 7. Control of acquisitions 8. Effective trade union administration. There, he said are not exhaustive, it is whom management recognizes the necessity of effective internal control system, management of materials and resources is very much possible Akinloye Oyibanji (1999 : 86)4 observed that many factors contributed to the reason why banks failed. The banks collapsed due to lack of financial prudence which is a clear out example of management incapacitation. To have effective control of materials, men, and machine, management needs grassroots control affected through monitoring of any financial disbursement. The issue at stake is that good internal control is a necessary condition for efficiency of any organization. To state it differently, any organization that opts for a continued business entity must be prepared to timely check the personal, procure the right type of personnel, train them on the technical aspect of the work and teach equity and justice in financial appropriation. The financial manager must be a model of sound background of prudent handling of money. The subject of financial accountability has been a controversial issue even among the early philosophers