IMPACT OF INTERNAL CONTROL ON EFFECTIVE ADMINISTRATION OF LOCAL GOVERNMENT COUNCILS
Need help with a related project topic or New topic? Send Us Your Topic
DOWNLOAD THE COMPLETE PROJECT MATERIAL
IMPACT OF INTERNAL CONTROL ON EFFECTIVE ADMINISTRATION OF LOCAL GOVERNMENT COUNCILS
Chapter one
INTRODUCTION
Background to the Study
The definition of auditing evolved into an independent examination and investigation of the evidence from which a financial statement was prepared, with the goal of allowing the independent examiner to report whether, in his opinion and to the best of his knowledge
the information and explanation obtained by him is properly drawn, and if not, in what respect he is dissatisfied. The impartial examiner who conducts the investigation and reports on it is referred to as an auditor.
The auditor, as an independent examiner who should be professionally qualified, examines the books of account and vouchers to report whether or not he is satisfied that the statement of financial position has been properly drawn up to show a true and fair view of the profit or loss for the financial period.
The role of internal control is rigorous, and based on the above description of an auditor’s position in this dynamic business world, it is possible to conclude that the primary goal of internal control is to ensure that the rules and regulations, policies, and procedures established by an organization’s management to guide its operations are followed and that established standards are met by its employees.
When detecting fraud and error in corporate organisations, it is critical to remember that the auditor is not absolved of responsibility for fraud or error perpetrated by directors.
Local government is Nigeria’s third tier of government. The fourth schedule of the constitution now recognises local government councils, which are responsible for economic planning and making recommendations to a state commission for planning and administration.
The council chairman is now the principal financial officer and administrator, while the counsellor creates laws for the administration. By law, the council generates revenue and receives funds from both the state and federal governments, necessitating accountability and effective administration.
As a result, a sound financial system must be in place to affect internal control through internal auditing to prevent fraud, embezzlement, and defalcation of public funds. For these reasons, internal and external control measures have become administrative tools for this administration.
The internal controls include:
Appointment of committee for various services.
Issue of financial authorities (warrants)
All payments are centralised within the council.
Budget/standing instructions are being prepared for the financial administration.
The external controls include:
Parliamentary control
Control by the public
State/federal government
External auditors monitor
Statement of the Problem
In general, the public and observers consider that internal auditing adds no value to local government council administration because there are yearly external audits and financial regulations governing the control of cash in and out of the system.
Furthermore, there are issues with lack of independence/confidence on the side of internal auditors who are also employees of the organisation. The combined effect of these impedes the effective administration of local government council
and it is on this basis that the researcher is conducting a study to determine the influence of internal control on the effective administration of local government council.
Objectives of the Study
The study’s aims are as follows:
To assess the influence of internal controls on the successful administration of the local government council.
Examine the forces that promote internal control in an organisation.
To identify the issues with internal control in the effective administration of the local government council.
To investigate ways for decreasing internal control issues in the effective administration of local government councils.
Need help with a related project topic or New topic? Send Us Your Topic