THE ROLE OF FINANCIAL ACCOUNTABILITY IN THE MANUFACTURING SECTOR
CHAPTER ONE
INTRODUCTION
GENERAL INDUCTION
Accountability as seen by Iwumunne (1982:56) is the goal of any business entity. A mismanaged form is a failure. The main aim of business is profit maximization. This cannot be achieved if financial mismanagement is enthroned in any form . in any business setting, the priority of management is to enable the firm to continue to finance its undertaking. This cannot be achieved without due regard to prudent financial administration According to Muola Otanka (1975) the spirit of continuity of a business is the careful administration that will administer the financial undertakings. Really, the issue of financial impropriety has made many business collapsed. There are many ways to check the menace in both public and private life. Any method used is subsumed in effective control system which primarily cues form internal control. According to Jonah Jenny (198212) internal control can be perceived in the following ways: -Good record keeping of all transaction in the shop and factory -Shop and factory -Good stock control system -Well-coordinated channel of raw material procurement -Articulate handling of organizational behaviour seen kin the enterprise -Effective trade union administration -Efficient redundary control -Good personal administration -Avoidance of waste -Good structural organization -Acceptable party with government policies -control of acquisitions -Good pension scheme There, he said are not exhaustive. It is when management recognizes the necessity of effective internal control system management of material and resources is very much possible. Quoting the issue of bank distress. Akinloye Oyibanyi (1999:86) observed that may factors contributed to the reason why banks failed. Right loan administration to project supervision, there was no commitment to the whole affair everybody administration has loan process. The banks collapsed due to lack of financial prudence, which is a clear cut example of management in capacitating To have effective control of material men and machine management need grassroots control affected through monitoring of pay financials disbursement. The issue at stake is that good internal control is a necessary condition for efficiency of any organizations. To state it differently, any organization that opts for a continued business entity must be prepared to timely check the personnel, procure the fight type of personnel, train them on the technical aspect of the work and teach equity and justice in finance appropriation The financial manager must be a model of sound background of prudent handling of money. That bank failed means that management failed. In the small-scale business, there is the tendency to effectively manager the resources well. This is due to the man-to-man approach of the management The system of internal control is comparatively higher than that of public sector. It is in this note that management of small-scale enterprises is mostly looked upon as very efficient in financial management This is not to say that they are not without any blame. Infact, they do not reap internal economic of scale at least in the developing world due to their largess. But in the areas of prudent handling of finance, they out weight the public sector. This could be due to the own-personal nature of the business. The prevailing economic crunch in the country is also attributed to the lack of effective internal control system. Being that the head of any development nation is in the business of the private sector, the way internal control is handled that area is suggestive of the level of development revealing. Besides, the competitive nature of industry require good internal control system. Issues that are central to the effective internal control system include: organization, authorization and approval, physical control, personal capabilities, arithmetic and accounting managerial control and supervision. According to Wabare (1998) the central idea of auditing and investigation is to prevent Wastes in financial appropriation, which is the bedrock of effective internal control system anywhere. He observed that no meaningful internal control existed outside the principle and ethics of auditing in all its four cardinal principles advisory, implementation reporting and routine testing auditing tries to foster the spirit of corporation and control resources. This helps to keep the business on.
THE ROLE OF FINANCIAL ACCOUNTABILITY IN THE MANUFACTURING SECTOR