Sunday 5 August 2018

Effect of accounting information on fraud control and detection in local government system in

ABSTRACT
This research titled “Effect of accounting information on fraud control and detection in local government system in Ebonyi state. A study of Ezza south LGA” was carried out to determine whether there are adequate accounting information systems and softwares for carrying out accounting operations in Ezza south local government area and to find out whether the nature of revenue collections in Ezza south local government area affect the ability of accountants to use accounting information to detect and control fraud. 


The research was a survey research. The researcher sampled 300 respondents; questionnaire was the major instrument of data collection while frequency tables, simple percentage and chi-square statistical tools were used in data analysis. The findings of the research reveals that, There are inadequate accounting information systems and softwares for carrying out accounting operations in Ezza South LGA. Accountants in Ezza South LGA cannot use accounting information systems and softwares to detect and control fraud. 

The nature and patterns of revenue collection in Ezza South LGA affect the ability of accountants to use accounting information to detect and control fraud.Hence the researcher recommended that, The Government of Ezza South LGA should try as much as possible to provide accountants and auditors with the necessary accounting information systems that will enable them carry out their accounting transactions effectively, detect and control fraud before they escalate.

Read: The state of English language used in Nigerian newspapers all over the country (Nig.)



CHAPTER ONE
INTRODUCTION
1.1 Background of the Study 
In modern management, financial control is very important. Financial control is one of the performance control tool that are used by managers. Financial control allows an organization to evaluate, in a continually objective and systematic manner the variances that are generated on previously established strategic and operation lines. By so doing, this kind of control provides management, or others holding a high level of   responsibility in the business or organizations, with enough useful arguments and insights allowing them to take decision that guarantee the follow-up of any corporate objective(s) proposed. According to Udeagha (2013), financial control system is the processes and procedures used by an organization’s management to exercise financial control and accountability. These measures include recording, verification and timely reporting of transaction that affects revenues, expenditures, assets, and liabilities
It goes to show from the above views that, managers put financial controls into place to track performance and evaluate progress toward the financial goals of any organization or company. Thus, Obadan (2012) posits that, financial control are among the tools that managers use to satisfy the third and fourth aspects of their roles, tracking progress and evaluating results and they fall into the controlling category. Financial controls are the most important for objective measures of planning. 
The public sector is the part of the economy that is controlled by the state. 

The public sector is that portion of an economic system that is controlled by national, state or provincial and local governments. According to Oduma (2011) the public sector is the part of national economy providing basic goods or services that are either not, or can not be provided by the private sector. It consists of national and local governments their agencies, and their chartered bodies. Given that most agencies or organizations in the public sector are not really proper oriented or dogged moved by profit maximization, there to be increasing cases of mismanagement of funds in  most of public sectors hardly use financial control system to ensure adequate management of fund. These often result in cases of looting of public treasury, financial crimes/ frauds, poor inventory management and low productivity and profitability. 

In view of this, Odimegwu (2012) observes that, public sector undertakings spend too heavily on construction as well as designing. This occurs mostly as a result of lack of proper planning, which results heavy draining of funds. Again, public sector undertakings are heavily over- capitalized with the result that there is unfavourable input- output ratio. Inadequate planning, inordinate delays in construction etc are also reasons for over capitalization still another problem is that of budgeting. It seems most of the public sector undertaking have no serious budgeting system. The budgets are of course prepared, but these are primarily with a view of obtaining funds from the government. The budget estimates are kept very high providing for a margin for cuts and when cuts are not made to the extent to which these have been incorporate in the estimated budgets the whole exercise becomes unrealistic. 
It suffices to say from the foregoing that, financial control system is very important in the public sector in order to ensure effective fund management, increase profitability, productivity and sustainability. Financial control systems will help to ensure adequate financial discipline in the public sector by enhancing efficient use of resources and by keeping adequate supervision on the inflow and outflow of resources. Thud, Olakunori (2013) asserts that, financial control systems help to maintain a proper balance between debt collection period and the creditor’s payment period, thereby ensuring proper liquidity exists in a firm which increases the creditors worthiness of the firm. 

The Universal Basic Education programme is a nine (9) year basic educational programme, which was launched and executed by the government and people of the Federal Republic of Nigeria to eradicate illiteracy, ignorance and poverty as well as stimulate and accelerate national development, political consciousness and national integration. Former president Olusegun Obasanjo flagged off universal Basic education on 30th of September, 19999 in Sokoto state. Hence, the universal Basic education Board was established in all the 36 state in Nigeria to pursue and realize the objectives of Universal Basic Education which is to eradicate illiteracy, ignorance, poverty etc. as a public enterprise or sector, Ebonyi state Universal Basic Education Board is funded to be a world class education intervention and regulatory agency for the promotion of Uniform, qualification and functional basic education in Ebonyi State.

No comments:

Post a Comment

I HOPE THIS HAVE BEEN VERY INFORMATIVE,

Get the Full Material delivered to your Email, . Call us on 07034538881

Follow Us On Twitter,
Like Us On Facebook,
Join Our Cycle On Google+

we can keep u updated by subscribing for free using your email
For more clarification, Please Leave a comment.

Related Posts Plugin for WordPress, Blogger...