ABSTRACT

All the business transaction of the Government Organization are to be properly and correctly observed, documented, recorded and collected, then it is important that there must be a strong system of internal control. This is why my case of study is to examine the evaluation of the effectiveness of internal control system in Government Ministries and parastatals, A case study of selected Government Establishment in Abia State. To achieve the aim of the study secondary data were used. The use of questionnaire and interview were adminstered to the various levels of the staff of the ministries and parastatals, to ascertain their views on effectiveness of internal control in order to elicit answers to research question and hypotheses. The total number of question distributed were 70 and 58 where properly answered and returned. The total number of staff in the ministries and parastatals were 150 and the sampling technique used is 109.0. The data collected was analysed using chi-square which is used to test for hypotheseis I and II respectively. The result indicates that there is significance relationship between effective internal control system in Abia State ministries and parastatals.

TABLE OF CONTENTS

Title page

Project Assessment jj-jjj

Declaration iv

Certification v

Dedication vi

Acknowledgment vii

Table of Contents viii-ix

List of Tables x

Abstract xi

CHAPTER ONE

1.1 Backgound of the Study 1

1.2 Statement of the problem 2

1.3 Objective of the study 2

1.4 Research Question 3

1.5 Reserarch Hypo thesise 4

1.6 Significance of study 4

1.7 Scope pf the study 5

1.8 Limitations of the study 5

CHAPTER TWO

2.1 Introduction 6

2.2 Overview of internal contrl 7

2.3 The general concepts of internal controls in Accounting

And Management .. 9

2.4 Internal control and Government reaulation inforce 12

2.4.1 Asoect of.the state Government financial institutions 13

2.4.2 Internal controls in relation with budaets and aDDroved

Estimates 14

2.4.3 Internal controls in Government and AccountinQ Standard 14

2.5 Auditors Prcoceptions on internal control in Government

Establishment 15

A . .J.

z.. - .uuu.0 ruuu ascentainment of existence of

Internal contorl in Government 17

2.6.1 Evaluation of internal control system 18

2.6.2 Importan '

rFrrJ

JI I I I I4I tjl ystem 19

r control System and 'fraud detection 21

2.7 Auditors reoorts on internal control 22

2.8 Audit Reports 24

v ii

CHAPTER THREE

Research Methodology

3.1 Research Design 25

3.2 Area of Study 26

3.3 Population of the study 26

3.4 Sample and sampling Techniques 26

3.5 Source of Data selection 28

3.5.1 Primary Data source 28

3.5.2 Secondary Data source 28

3.6 Data collection instrument and procedure 28

3.6.1 Personal interviews 29

3.6.2 Questionnaire 30

3.6.3 Validity and reliability of instrument 30

3.6.4 Administration of instrument 30

3.7 Data Analysis Techniques 31

3.7.1 Percentage Annalysis 32

CHAPTER FOUR

Data Presentation Analysis and Discussion

4.1 Presentation of Data 33

4.2 Analysis of Data 34

4.3 Hypotheses Testing 50

4.3.1 Testing of Hypotheses one 51

4.3.2 Testing of Hypothese two 54

CHAPTER FIVE

Summary, conclusion and recommendations

5.1 Summary 58

5.5 Recommendation 59

5.3 Conclusion . 60

GLOSSARY

BIBLIOGRAPHY

APPENDIX