CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF STUDY
In modern business organization, internal control system is required in one form or the other, not only in public institution which this research work is concerned about the even in some private establishment which exercise control over their activities without being conscious of it.
Since there controls are not specified or spelt out properly, it is therefore not surprising that many organizations, particularly large ones are showing more interest in control system as an aid or instruments to efficient management.
Internal control is necessary because it will guide against fraud and error in order to safe assets. It will also help in making sure workers comply the management’s policy.
In time past, emphasis has been placed in the area of financial control which is also a type of internal control and only putting their mind on benefit that can be derived from the financial aspect ands forgetting that benefits that can be derived from the financial aspect and forgetting that benefits can also be derived from other kinds of internal control like; organizational controls, authorization and approval controls, supervision controls might be very important because it deals with ensuring accuracy and reliability of accounting record and so is essentials as far as management and auditing are concerned.
1.2 STATEMENT OF PROBLEMS
It is a well known fact that most of the public institutions and also other kinds of institutions have been grossly involved in financial mismanagement, frauds, deviation from prescribed management policies and principles as well as presentation of unreliable accounting records and financial statement which is due to inadequate internal control system in an organization. It is therefore necessary to examined and analyse internal control system in institutions with problems, noted solutions and suggestion would be offered which will guide against them.