THE APPLICATION OF INTERNAL CONTROL SYSTEM ON THE SUCCESS OF AN ENTERPRISE A STUDY OF CHAMPION BREWERIES PLC, UYO

THE APPLICATION OF INTERNAL CONTROL SYSTEM ON THE SUCCESS OF AN ENTERPRISE A STUDY OF CHAMPION BREWERIES PLC, UYO

CHAPTER ONE

BACKGROUND OF THE STUDY

1.1   INTRODUCTION

Over the years the senior executives have long rough lungs to better control the enterprises they run. Internal controls are put in place to keep the company on course toward profitable profitability goals and achievements, shifting customer demands and priorities and restructuring  for future the reliability of financial statements and compliance with laws and regulations.

Because internal control serves, many important purposes. There are increasing  calls for better internal control systems are report cards on them. Internal control is looked more and more as a solution to a variety of potential problems. Internal control system are to be an integrate part of any organization that is financial and business policies. Internal controls consist of all measures taken by the organization for the purpose of in protecting its resources against waste

1. Fraud, and inefficiency
2. Ensuring accuracy and reliability in accounting and operation data.

• Security compliance with the policies of the organization and

1. Evaluating the level of performance in all organizational units of the organization, internal control system as a component of control environment and procedures plaug a vital role that help to ascertain the success of an enterprise and other entities. The effectiveness of internal control system is directly measure by how successful a company is in rendering high level of customers services.

Champion Breweries Plc. was incorporated as a private limited ability company on the 31^st July 1974 with the Mane “South East Breweries Limited on July 1976 following the creation of cross rivers state out of former south eastern state. Champion breweries plc has its industrial layout at Aka Offot P.M.B 110 Nung Udoe Road, Uyo. About three kilometers from plaza and mainly. Involved in the production of beer. Such as champion layer beer and champ-Multa. On November 24^th (1976) investment. Trust company Limited signed a project contract it  Mesrs Hanse Brover, (MB) of humbling, western Germany for the supply and construction of turkey breweries facilities in Uyo with initial capacity of 150,000 hectoliters of beer and 10,000 hectoliters of non alcoholic Malt drink (Ebong 1998) Thus on December 11^th 1976 the breweries was officially commissioned and champion layer beer was launched into the market. Then it more than production capacity in less than one year of its production. the second contract was signed on July, 22^nd, 1997 with the same technical partners to increase production captivity from initial 150,000 hectoliters annually and was officially commissioned on December 11^th, 1979. Before the second expansion programme commended on that year (1977), the champion beer, has won an international award at Luzembourg. England, as the best quality beer and thought honour to the company.

However, a further expansion was attempt in 1987 under which Dr. Dimachi was to be raised the production. capacity to 1,000,000 hectoliters of lager beer per annum but this project was temporarily closes. And the company was temporarily closed in 1988, due to the shortage supply of raw material and economic situation. It resumed operation again in 1992, when group captain Idongesit  Nkanga, the then governor of Akwa Ibom State provide a sum of N150,000.00 to remove the economy melt down for the company. The reactivated breweries were officially commissioned on the 23^rd October 2002. Champion lager beer is now in the market and is doing well.

1.2   STATEMENT OF THE PROBLEM

The application of internal control system in an organization are complex and indispensable. It emphasis legal form over, The absence of effective planning and control may leads to failure of most business organization. It is common known in Nigeria that enterprises both in the private and public sectors of the economy have some set back due to inadequate planning and control system. Incessant failure of power supply have provided the level of support required for sustainable control system. Another major environmental problems is the low level of  literacy in our society. Inefficiency ion the preparation accounting records or mismanagement of internal control system constitution more serious problems in 600 string the productivity of an enterprises.

1.3   OBJECTIVES OF THE STUDY

The objectives of the study include the following

1.   To find out how internal control system function in organization effectively
2. To make recommendations based on research finding
3. To evaluate the effectiveness of the internal control
4. to highlight the important of internal control system

1.4   RESEARCH QUESTION

1. To what extent has the application of internal control system contribute to the success of an enterprises?

Does internal control system really help to safeguards, detect and prevent fraud in