INTERNAL CONTROL PROCESS AS AN EFFECTIVE TOOL FOR MANAGEMENT

INTERNAL CONTROL PROCESS AS AN EFFECTIVE TOOL FOR MANAGEMENT (ECONOMICS PROJECT TOPICS AND MATERIALS)

ABSTRACT

This study examine internal control as an effective tool for management with national petroleum investment management in focus and the objectives of study include: Investigate the effectiveness of internal control system in resolving business issued in order to facilitate growth. Assess if internal control is highly prioritized to prevent mistakes and fraud. Examine the relationships between performance and efficiency towards organizational reengineering process. Appraise the interdependence between internal control and decision making in the organization. Evaluate the extent to which employees are co-opted into internal control and decision making process and draw a logical conclusion from the findings. Survey research design was adopted for the study and 120 respondents. were randomly selected for the survey. 107 questionnaires were returned completed, giving a response rate of 89%. A five-point likert scale question was developed to collect information from the respondents. The data were analyzed using descriptive statistics. The core finding of the study shows that internal-: control is very crucial for a good management decision making process.

CHAPTER ONE

INTRODUCTION

1.1     Background of the Study

As the management of an organization strives to achieve excellence in operations, there is the need to continually asses and evaluate her internal control system in order to determine how well it is performing, the degree to which it helps to identify frauds, wastes, abuse, mismanagement and how it might be improved and updated to meet changing conditions.

Internal control is a process affected by an organization structure, work and authority flows, designed to help the organization accomplish specific goals and objectives.

It is a means by which all organizations resources are directed, monitored and measured. It plays an important role in preventing and detecting fraud and protecting the organizations resources both physically (machinery and property) and intangible resources.

At the organizational level, internal control objectives relates to the reliability of financial reporting, timely feedback on the achievement of operational or strategic goals and compliance with laws and regulations.

At the specific transaction level, internal control refers to the action taken to achieve a specific objective (how to ensure that the organizations payment to third parties is for valid services rendered

Internal controls are an integral part of an organizations financial and business policies.

INTERNAL CONTROL PROCESS AS AN EFFECTIVE TOOL FOR MANAGEMENT (ECONOMICS PROJECT TOPICS AND MATERIALS)