THE EVALUATION OF ACCOUNTING CONTROL SYSTEM IN NIGERIA

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PREFACE

Computer has come to stay.  Like the telephone system that gradually become a life wire in the communication world even the most existing one now hand set (mobile phone), the computer is wording its way through cherry face of life.  Daily people perceive the irresistible offering of this enigma called computer.  No doubt they are unobtrusively getting hypostatized by its alluring kaleidoscope of business, domestic, scientific and what have you comfort that computerization is becoming synonymous with business.

Equipped with very large storage capacities tallied with very large dated flexible reporting and presentation facilities, rolling on its wheels of every sophisticated communication network, the computer is redefining the Eva of file-heap and filling cabinet that used to adorn the offices.

Information technology (t) glut as a whole is putting a big question mark against the relevance of conventional auditing.

Nigeria Brewing Plc. Being one of the industries that incorporate computer system in its department catches out attention in answering the big question poised by computer device.

One of the first thing we need to realize about any internal

Control system be it manual or computerized – is that no control system can completely prevent fraud, it can, however, make the perpetration of fraud very difficult.

Accounting control, therefore, are those procedures techniques and practices intended to protect the company’s resources and provide for reliable financial statement.

We can organize our discussion on internal accounting control system of computerized Nigeria Brewing Plc. By looking personnel control record control, check and balance and role of computer in these areas.

CHAPTER ONE

 

• INTRODUCTION

The business organization will be faced with many problems,

if their accounting control system is not ascertained.  The control system of an organization (business) company must be examine.  This will help the Auditor in time of auditing to easily drew conclusion on his audit work.

Also an internal control system that is efficient helps to adhere to a standard of accounting control system in the companies and other business organization.  But an internal control system that is weak may not examine the account control system of its organization or company.  In this case it may give room for indicating of errors by the management, irregularities, misappropriation of fund.  This may lead to liquidation of a company or business organization even non-business organization because they can be audited just to know the financial condition of that particular organization.

The Evaluation of Accounting Control System in the organization and companies is like a mirror where the owners of the business uses to see how the affairs of the business is been run, thereby making it very easy for an auditor to drew his view on the financial statement of the company or organization.

 

1.1     EVALUATION OF ACCOUNTING SYSTEM

The need to examine the accounting system of organizations and companies in Nigeria is very important.

In this case it leads to verification of and testing the internal control system of the enterprise whether it is effective, efficient storage.  With special regard to how the industries is operating, as well as to ensure the effectiveness of the company or business organization accounting system.

In fact, the regulation of business activities under an efficient system of accounting control may increase the necessity of protracted detail work by the auditors with beneficial result of all the parties concerned.  This is because in some situation especially with regards to cases of fraud and errors in organizations most of the time without the best of intentions, people deliberately falsify records, those who have the best of human intention may still, intentionally or unintentionally, make mistakes.  In most companies or enterprises there are cases of stock losses, misappropriation of funds, embezzlement.  Even though there may be not evidence of the crime committed, yet the facts and figures of fraud both in private and public sector’s are not today’s standard truly staggering in the world.

The individual component of internal control system are down as “control” or “Internal Control”.  These control enable internal check to be placed on employees and responsibility on them thereby bringing about accountability.  The result of the control becomes minimization of fraud, errors, irregularities and dictation of these problem whenever they occur.

 

 

 

1.2     BACKGROUND OF THE STUDY

The performance or result of some enterprises in Nigeria like in the Oil Sector whose productivity is incomparable with other sector of the economy and also in the financial market (banking sector) is toping the chal etc.

Example: to evaluate the accounting control procedures of the two sectors of the economy above, that is oil sector and banking sector in Nigeria (note this is used as example), to ascertain reliability to the accounting practice and principle since they all have accounting department.  These ascertainment of there accounting practices will help to examine the financial strength of the two sectors in the econom