The Role of Accounting in the Control of Public Expenditure in Nigeria.


This research work is titled “The role of Accounting in the control of public expenditure” the incessant incident of budget deficit, misappropriation and embezzlement  of project fund  due  to lackof good accounting system constitute the problems that necessitated this research.

The main objectives are: To ascertain whether adequate budgeting can  regulate  public expenditure, to ascertain whether a good accounting system can ensure transparency and accounting in execution in public expenditure and evaluate standard of costing impact on the control of public expenditure.

Data for this work was obtained using questionnaire. The z test formular was used to test the hypotheses, the sample size is (50) fifty, this actual sample size was used because the size was not large.

Some of the findings were that: public revenue and expenditure constitute an integral aspect of government budget and that the  execution  of public project by government entails incurring public expenditure.

Recommendations made were that: Adequate government budget can regulate public expenditure, and an efficient and effective accounting system can ensure transparency and accountability during public expenditure execution.

Recommendations proffered were: government should seek for the services of professional accountant during budget preparation.

Government and other public institution should instill good accounting and  internal control  system to  check embezzlement of project funds.

Table Of Contents

Title Page i

Declaration ii

Approval Page iii

Dedication iv

Acknowledgments v

Abstract vi

Table of Contents vii

List of Tables viii


1.1      Background to the study 1

1.2      Statement of the problem 2

1.3      Objectives of the Study 3

1.4      Research Questions 3


Significance of the Study 4

1.7      Scope and Limitations of the Study 4

1.8      Definition of Terms 5

References 7


2.1 Conceptual Framework 8

2.1.1 Meaning of Accounting 8

2.1.2 Overview of Accounting Policies 9

2.1.3 Developing Accounting Policies 13

2.1.4 Evaluating Accounting Policies 14

2.2 Theoretical Framework of the Study 21

2.3 Empirical Studies 22

2.4 Summary of Literature Review 22

References 24


  • Sources of Data 26
  • Questionnaire Design 26
  • Library Research 26
  • Population and Determination of Sample Size 26
  • Method of Investigation 27
  • Statistical Tools 27
  • Decision Rule 28

References         29


  • An overview 30
  • Data Presentation and Analysis 30
  • Testing of Hypotheses 40


  • Summary of Findings 46
  • Conclusions 46
  • Recommendations 47

Bibliography               49

Appendix                  51

Questionnaire              52


Background Of Study

Public expenditure is the spending made by the government of a country on the  collective needs and wants of her citizenries such as spending on; the provision  of  infrastructures, pension provision etc. Until the 19th century,

Public expenditure was limited as Laissez faire philosophies which believed that money left in private could bring better returns. In the 20th Century John Maynard Keyness argued the role  of Public  Expenditure  in  determining levels of income and distribution in the economy.

Since  then  government expenditures  has  shown  an increasing trend. In the 17th and the 18th Century Public Expenditure was considered as wastage of money.

Thinkers are of the view that Government should  stay  with  their  traditional functions of spending on defense and maintaining law and other.

Public Expenditures are incurred through budget implementation.

The macro-economic goals  of the state budget are administered  in  specific and  complex systems which were developed  in the managerial information unit of the General Accounting department under the name of “Budget Implementation macro system”

The role of accounting in the control of public expenditures relates mostly on setting of standards via budgeting and ensuring  that  the standard set are adhered to.

The accounting controls also ensure the actualization of the macro-economic goals which are viz:

  • Maintaining the total framework of the planned
  • Adjustment of expenditure rate to the rate of the reception of
  • Regular follow-up of compliance with deficit
  • Planning of the financing of the deficit in order to reduce the national  debt-product ratio


Adeniji, A.A (2009) Cost Accounting: A managerial ApproachEL- TODA Ventures Limited Lagos.

Akpan, G (2009). Improving Business Reporting – A customer focus (the Jenkin Report), America Institute of Certified Public Accountants.

American Institute of Certified Public Accountants (2009).Estimating Financial Accounting Standards Report of the study on Establishment of Accounting Standards.

Australian Accounting Research Foundation (2010). Proposed Reform of the Institutional Arrangement for Accounting Standards Setting in Boston: Houghton Mifflin

Baird (2013) Computer-Oriented Accounting Information System; Ohio: South Western Publishing Company.

Burton, J. C. (2011). Some general and specific thought on the accounting environmental journal of Accountancy,

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