Efficient Internal Controls System And Human Resources Management.
INTRODUCTION
Background of the Study
society is increasingly becoming more . We live in a in which both our and leisure are dominated by both private and public complex organizations.
Organizations emerge to carry out certain activities to the benefit of any of their members and the public. Everyone in the organization carries out certain activities to contribute to the goals of the organization and these activities can be positive or negative, high or low.
All of those efforts put in place by individuals to achieve organizational goals is called “individual performance” the sum total of individual and group effort is referred to as organizational performance.
Thus, the objective of every manager is to ensure the individual and groups within the organization put in their best to bring about the performance need to be managed so as to contribute to organization expectation goal, and to bring about performance success which is the essence of the organization; there is need for the success which is the essence of the organization, there is need for the management to predict and control individual and group behavior so as to reduce the incidence of unfavorable attitude.
In other words, it is not only on individual-level only that performance is evaluated. Organization at regular intervals always evaluates its performance against certain criteria to see if it is efficient and effective.
These criteria have variously been termed as a performance indicator. These performance indicators could be meeting goals, sourcing of inputs, organizational participation, and satisfaction, etc.
Internal control is not only essential to maintaining the accounting and financial records of an organization, it is essential to managing the entity.
Reinforcing internal control is generally seen as one of the most important steps in avoiding negative surprises. Effective internal controls ensure that risks are identified at an early stage.
As important as internal control is everyone such as the external auditors, the management, the management, the board of directors, the shareholders of large public companies, the government, etc has an interest in it.
According to the committee of sponsoring organization of the Trade Way Commission (COSO) internal control system is a process, established by an entity’s board of directors, management, and other personnel, to provide reasonable assurance regarding the achievement of objectives in the following categories.
i. Effectiveness and efficiency of operation
ii. Reliability and financial reporting
iii. Compliance with applicable laws iv. Regulations and safeguarding of assets against unauthorized acquisition, use or disposition.
Division of duties makes the internal controls system to be effective, the fundamental principle underlying adequate division off duties is that employees who, as part of their normal, have access to an entity’s assets should not also have uncontrolled access to the records that establish accountability for those assets.
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