The Role of Internal Control as the Foundation of Quality Management.
ABSTRACT
This project titled “The Role of Internal Control as the Foundation of Quality Management: a study of the Broadcast Media in Nigeria” is both a descriptive and an analytical study designed to evaluate the role of internal control in an organization so as to see whether, or otherwise, it is the bedrock of quality management.
The entire work is chronicled into five chapters with each addressing an important segment of the research work.
The objectives of the study are to identify and evaluate: the importance of Internal Control System in the management of an organization using Broadcast Media in Nigeria for the study; the features of a good Internal Control System.
The factors responsible for increase of frauds, embezzlements or misappropriations of funds/assets in the modern day Nigeria; and also to find out why some of them remain undetected for a good number of years whereas the books of accounts of the organization are often being examined by her internal and external auditors.
Furthermore, the population of the study is the Broadcast Media in Nigeria and the determined sample size is 171. Data used for the study were obtained from primary and secondary sources, making use of oral interviews, questionnaires, and literature review.
Again, the data collected were analyzed by the use of tables, simple percentages, and absolute numbers, while chi-square (x2) technique was used to test the hypotheses formulated in the study.Moreover, the major findings made in this dissertation are as follows:
That some of the factors responsible for increase of errors, frauds, embezzlements or misappropriations of funds/assets, in this modern day Nigeria are: greed and lack of contentment; non-compliance with the laid down internal control procedures.
Non-adherence to financial policies and guidelines; collusion; employment of unqualified and incompetent personnel.
Poor remuneration; glorification of ill gotten wealth in Nigeria; and delay in payment of salaries by some employers- that undetected errors, frauds, embezzlements or misappropriation of funds/assets for quite a good number of years (whereas the accounts of the organization are being reviewed by her internal auditors on regular basis and the external auditors yearly) are due to the following: collusion.
Employment of inexperienced internal auditor; negligence on the part of some external auditors; and noncompliance of companies/organizations to auditors’ management letters (letters of weakness).
Finally, based on the major findings above, the following recommendations aimed at improving the situations are made:
establishment of adequate accounting system and effective internal control measures; employment of honest, dedicated and competent personnel; proper supervision of staff.
Compliance with Auditors’ management letters; adequate remuneration and regular payment of salaries, and reorientation of the Nigerian citizens towards the glorification of ill gotten wealth in our society today.
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
It is a well-known fact that everything in this world has a foundation. In fact, the foundation of anything be it a building, an idea, a career, belief, etc matters a lot: it determines, to a very large extent, the strength, durability, quality and success, or otherwise, of that very thing.
The Oxford Advanced Learner’s Dictionary of Current English, defines foundation as: strong base of a building, usually below ground level, on which it is built up; that on which an idea, belief, etc rests; underlying principle; basis; starting point.
Management as an essential ingredient of all organized endeavour has an underlying principle and that is the internal control system.
How successfully an organization achieves its objectives, satisfies social responsibilities or both, and depends upon how well the organization’s managers do their jobs.
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