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VALUE ADDED TAX AS A TOOL FOR REVENUE GENERATION (A CASES STUDY OF SELECTED INDIVIDUALS IN EDO STATE)

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF STUDY

Some years back, the agricultural sector was playing an important role in the Nigeria economy both in generating revenue and in the physical impact. This was before oil started its own impact on the economy. The impact created by the oil sector begging to be more relevant within a short period of time. Other sectors of the economy become secondary in terms of their relevancies. The sectors were neglected in the favour of oil.

Oil thus becomes the leading factor and the leading product in term of revenue generating and foreign exchange contribution. The condition of the economy became vulnerable to the condition of the word oil market form 1970 till date. The fluctuation of price in the world of oil market in the Nigeria economy is a significant factor to the revenue to be generated. This is by diversifying the revenue generated based on the higher economy.

In addition to the above mention situation, the Nigeria state was increasingly acquires ring national responsibilities along with the traditional role of the government. The financial requirement of the government has been increased over the years in facilitating the accomplishment of government functions. Worthy of mention is this connection in the effective way of revenue generation and collection by the government against responsible for the task. The idea of introducing Value Added Tax (VAT) was therefore considered and the federal government finally approved its introduction. Value added tax is therefore expected to increase and be effective, contribute towards enhancing the revenue generation based on the government. The system is expected to minis of eliminate the corrupt practices associated with revenue assessment and collection.

The important of revenue in any country and of course Nigeria cannot be overemphasized. Revenue has been the bedrock of government performance. The history of revenue in Nigeria dated to the pre-colonial era when tax and levies were paid to the fathers or lord as the case may be to Oba’s, Kings, Emirs. The tax or levies were to be paid in cash or in kind during the pre-colonial era. It was used to support the sustenance of the colonial administration. It has even been used to mobilize farmers into cash crop production mainly for the colonial export through the use of the cash taxes. Even after independency, tax has played in important role in generating revenue for the government. It was used for the running of the affairs of the post independence government in Nigeria.

Furthermore, it has also been used to achieve other policies such as the protection of the infant industries, income re-distribution, checking and controlling the consumption of some certain goods, etc. it is therefore very much likely that it will continue to play a very important role in Nigeria economy.

Following the difficulties, Irregularities, complains associated with the assessment and collection of the said tax, operation committee was set up by the Federal government in 1991 to review the entire tax system in operation. The committee recommended the idea of introducing Value Added Tax (VAT) in the country and another committee was set up to undertake the feasibility study and make recommendation on its implementation after which the government finally approved the introduction of value added tax in Nigeria tax system with effect from 1st September 1993 and was incorporated in the 1994 budget. Therefore, this study seeks to examine Value Added Tax as a means of revenue generation for economy development.

1.2 STATEMENT OF PROBLEM

There have been efforts by the Federal government to increase the revenue base of the economy for better development, and approval growth of the Nation economy. Therefore, this research is carried out to establish the position of Value Added Tax on the overall Nigeria tax system. The ineffective impact of generating revenue for the government and controlling irregularities wildly believed to be associated with the said tax.

1.3 RESEARCH QUESTIONS

The following questions were asked during the research of this project. They are:

1)    How successful has the introduction of value added tax (VAT) been in Nigeria.

2)    What are the relationship between value added tax(VAT) and other forms of taxation.

3)    What are the problems associated with the admission of value added tax(VAT)?

4)    And how can we make it very effective to the needs of Nigerian?

5)    What are the advantages of value added tax (VAT) in generating revenue in Edo state?

1.4 OBJECTIVE OF THE STUDY

The objective of this study includes:

1)    To examine the introduction of the value added tax (VAT) as a system of taxation in Nigeria.

2)    To investigate the relationship between Value Added Tax and generation of revenue through other forms of taxations.

3)    To find out the problem associated with the administration of VAT since its introduction and also to give recommendation on how o make VAT very effective and responsible to the need of the Nigerians.

4)    The study also intends to find out the advantages of Value Added Tax (VAT) in term of generating revenue in Edo state.

It is also set to find out beyond technical level practical problems associated with it and to make recommendation at the end of the study.

1.5 SIGNIFICANCE OF THE STUDY

The significance of the study is that government is in need of money to execute its increasing projects. Having introduced VAT to replace the sole taxation, to escape the difficulties in the old system. The study will be of benefit by enhancing the effective implementation and achievement of the objective, as such; VAT should be regarded as worth and should be encouraged and supported.

The benefactors of the study of Value Added Tax (VAT) are:

1)    The government

2)    The citizens

3)    The investors (foreign and local)

This study is very important, as the value added tax is a new or a modified system, which has a lot of significance. The public needs to be educated on its operation. The study will bring the outstanding between the government, the populaces (the tax payer) and the tax authorities together

Proper knowledge of the Values Added Tax would bring increase return to the government as a result of the compliance by the payer and proper record keeping by the officials.

1.6 SCOPE OF THE STUDY

The scope of the study is to cover the introduction, the implementation, problem and prospect of VAT and its relationship with revenue generation in Edo state. The line frame will cover from its introduction in 1993 till date. In addition to this all data and information to be used will be from area office of the Edo State Board of Internal Revenue.

1.7 DEFINITION OF TERMS

The terms used in this study on the of Value Added Tax are define as follows;

Value Added Tax: This is the tax impose on the value of goods and services in the country either imported or exported which the surlier or the sellers of the goods add to it.

Economy: This means control and management of money, goods and services in a country.

Goods: The term goods cover all tangible and intangible assets                                          and commodities that are traded for considerations.

Supply of goods: This includes delivery and transfer of goods arising from contractual or legal action or transaction though agents.

F.I.R.S:  Federal Inland Revenue service, it the operation of Federal Board of Inland Revenue.

F.B.I.R:  the means Federal Board of Inland Revenue.

Legislation:  This deal with the aspect of making laws in the system of tax.

VAT on input: This is the VAT on the purchase of goods and service on a notable person.

Output VAT: This is the VAT charged on the sale of goods and services it is the VAT paid to the F.I.R.S after vat on the purchase of such good or supply has been deducted.

Vatable person: This means any person co-operates or incorporates who trade in Vatable goods and service for a consideration.

1.8 LIMITATIONS OF THE STUDY

The study is concentrated on the advantage of Value Added Tax (VAT) in terms of revenue generation and its operation in Edo state Board of Internal Revenue office. Value added tax (VAT) as a new introduced system of tax. The study was faced with a problem of its own which limited the research system. Some of the limitation is as follows;

a) Non-availability of books and journals etc. due to lack of relevant textbook, journals and magazine, the other relevant articles or publication on the subject matter through which one could easily collect his materials for the literature review in this research work.

b) The effect of scarcity of data: The issue of scarcity of data arose were some private organization refuse to disclose some information on their record keeping on Vat and especially on returns rendered to the government.

c) Time: Due to shortage of time, the study was carried out in Edo State only. Time did not allow for wilder research in other state of the federation. It was not easy to collect most of the questionnaire distributed due to the fact that the people who the questionnaire were given never got it ready at the appropriate time. They gave appointment for it to be collected. Some even said that they missed the questionnaire.

 

HOW TO GET THE FULL PROJECT WORK

 

PLEASE, print the following instructions and information if you will like to order/buy our complete written material(s).

 

HOW TO RECEIVE PROJECT MATERIAL(S)

After paying the appropriate amount (#5000) into our bank Account below, send the following information to

08068231953 or 08168759420

 

(1)    Your project topics

(2)     Email Address

(3)     Payment Name

(4)    Teller Number

We will send your material(s) immediately we receive bank alert

 

BANK ACCOUNTS

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 0046579864

Bank: GTBank.

 

OR

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 2023350498

Bank: UBA.

 

HOW TO IDENTIFY SCAM/FRAUD

As a result of fraud in Nigeria, people don’t believe there are good online businesses in Nigeria.

 

But on this site, we have provided “table of content and chapter one” of all our project topics and materials in order to convince you that we have the complete materials.

 

Secondly, we have provided our Bank Account on this site. Our Bank Account contains all information about the owner of this website. For your own security, all payment should be made in the bank.

 

No Fraudulent company uses Bank Account as a means of payment, because Bank Account contains the overall information of the owner

 

CAUTION/WARNING

Please, DO NOT COPY any of our materials on this website WORD-TO-WORD. These materials are to assist, direct you during your project.  Study the materials carefully and use the information in them to develop your own new copy. Copying these materials word-to-word is CHEATING/ ILLEGAL because it affects Educational standard, and we will not be held responsible for it. If you must copy word-to-word please do not order/buy.

 

That you ordered this material shows you have agreed not to copy word-to-word.

 

 

FOR MORE INFORMATION, CALL:

08068231953 or 08168759420

 

 

 

Visit any of my project websites below:

www.easyprojectmaterials.com

www.easyprojectmaterials.com.ng

www.easyprojectmaterial.net

www.easyprojectmaterial.net.ng

www.easyprojectsolutions.com

www.worldofnolimit.com

www.worldofnolimit.com

www.nairaproject.com.ng

www.nairaprojects.com.ng

www.nairaproject.net

www.nairaprojects.net

www.uniproject.com.ng

www.uniprojects.com.ng

 

 

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2 days ago 0 Comments Short URL

VALUE ADDED TAX AS A TOOL FOR REVENUE GENERATION (A CASES STUDY OF SELECTED INDIVIDUALS IN EDO STATE)

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF STUDY

Some years back, the agricultural sector was playing an important role in the Nigeria economy both in generating revenue and in the physical impact. This was before oil started its own impact on the economy. The impact created by the oil sector begging to be more relevant within a short period of time. Other sectors of the economy become secondary in terms of their relevancies. The sectors were neglected in the favour of oil.

Oil thus becomes the leading factor and the leading product in term of revenue generating and foreign exchange contribution. The condition of the economy became vulnerable to the condition of the word oil market form 1970 till date. The fluctuation of price in the world of oil market in the Nigeria economy is a significant factor to the revenue to be generated. This is by diversifying the revenue generated based on the higher economy.

In addition to the above mention situation, the Nigeria state was increasingly acquires ring national responsibilities along with the traditional role of the government. The financial requirement of the government has been increased over the years in facilitating the accomplishment of government functions. Worthy of mention is this connection in the effective way of revenue generation and collection by the government against responsible for the task. The idea of introducing Value Added Tax (VAT) was therefore considered and the federal government finally approved its introduction. Value added tax is therefore expected to increase and be effective, contribute towards enhancing the revenue generation based on the government. The system is expected to minis of eliminate the corrupt practices associated with revenue assessment and collection.

The important of revenue in any country and of course Nigeria cannot be overemphasized. Revenue has been the bedrock of government performance. The history of revenue in Nigeria dated to the pre-colonial era when tax and levies were paid to the fathers or lord as the case may be to Oba’s, Kings, Emirs. The tax or levies were to be paid in cash or in kind during the pre-colonial era. It was used to support the sustenance of the colonial administration. It has even been used to mobilize farmers into cash crop production mainly for the colonial export through the use of the cash taxes. Even after independency, tax has played in important role in generating revenue for the government. It was used for the running of the affairs of the post independence government in Nigeria.

Furthermore, it has also been used to achieve other policies such as the protection of the infant industries, income re-distribution, checking and controlling the consumption of some certain goods, etc. it is therefore very much likely that it will continue to play a very important role in Nigeria economy.

Following the difficulties, Irregularities, complains associated with the assessment and collection of the said tax, operation committee was set up by the Federal government in 1991 to review the entire tax system in operation. The committee recommended the idea of introducing Value Added Tax (VAT) in the country and another committee was set up to undertake the feasibility study and make recommendation on its implementation after which the government finally approved the introduction of value added tax in Nigeria tax system with effect from 1st September 1993 and was incorporated in the 1994 budget. Therefore, this study seeks to examine Value Added Tax as a means of revenue generation for economy development.

1.2 STATEMENT OF PROBLEM

There have been efforts by the Federal government to increase the revenue base of the economy for better development, and approval growth of the Nation economy. Therefore, this research is carried out to establish the position of Value Added Tax on the overall Nigeria tax system. The ineffective impact of generating revenue for the government and controlling irregularities wildly believed to be associated with the said tax.

1.3 RESEARCH QUESTIONS

The following questions were asked during the research of this project. They are:

1)    How successful has the introduction of value added tax (VAT) been in Nigeria.

2)    What are the relationship between value added tax(VAT) and other forms of taxation.

3)    What are the problems associated with the admission of value added tax(VAT)?

4)    And how can we make it very effective to the needs of Nigerian?

5)    What are the advantages of value added tax (VAT) in generating revenue in Edo state?

1.4 OBJECTIVE OF THE STUDY

The objective of this study includes:

1)    To examine the introduction of the value added tax (VAT) as a system of taxation in Nigeria.

2)    To investigate the relationship between Value Added Tax and generation of revenue through other forms of taxations.

3)    To find out the problem associated with the administration of VAT since its introduction and also to give recommendation on how o make VAT very effective and responsible to the need of the Nigerians.

4)    The study also intends to find out the advantages of Value Added Tax (VAT) in term of generating revenue in Edo state.

It is also set to find out beyond technical level practical problems associated with it and to make recommendation at the end of the study.

1.5 SIGNIFICANCE OF THE STUDY

The significance of the study is that government is in need of money to execute its increasing projects. Having introduced VAT to replace the sole taxation, to escape the difficulties in the old system. The study will be of benefit by enhancing the effective implementation and achievement of the objective, as such; VAT should be regarded as worth and should be encouraged and supported.

The benefactors of the study of Value Added Tax (VAT) are:

1)    The government

2)    The citizens

3)    The investors (foreign and local)

This study is very important, as the value added tax is a new or a modified system, which has a lot of significance. The public needs to be educated on its operation. The study will bring the outstanding between the government, the populaces (the tax payer) and the tax authorities together

Proper knowledge of the Values Added Tax would bring increase return to the government as a result of the compliance by the payer and proper record keeping by the officials.

1.6 SCOPE OF THE STUDY

The scope of the study is to cover the introduction, the implementation, problem and prospect of VAT and its relationship with revenue generation in Edo state. The line frame will cover from its introduction in 1993 till date. In addition to this all data and information to be used will be from area office of the Edo State Board of Internal Revenue.

1.7 DEFINITION OF TERMS

The terms used in this study on the of Value Added Tax are define as follows;

Value Added Tax: This is the tax impose on the value of goods and services in the country either imported or exported which the surlier or the sellers of the goods add to it.

Economy: This means control and management of money, goods and services in a country.

Goods: The term goods cover all tangible and intangible assets                                          and commodities that are traded for considerations.

Supply of goods: This includes delivery and transfer of goods arising from contractual or legal action or transaction though agents.

F.I.R.S:  Federal Inland Revenue service, it the operation of Federal Board of Inland Revenue.

F.B.I.R:  the means Federal Board of Inland Revenue.

Legislation:  This deal with the aspect of making laws in the system of tax.

VAT on input: This is the VAT on the purchase of goods and service on a notable person.

Output VAT: This is the VAT charged on the sale of goods and services it is the VAT paid to the F.I.R.S after vat on the purchase of such good or supply has been deducted.

Vatable person: This means any person co-operates or incorporates who trade in Vatable goods and service for a consideration.

1.8 LIMITATIONS OF THE STUDY

The study is concentrated on the advantage of Value Added Tax (VAT) in terms of revenue generation and its operation in Edo state Board of Internal Revenue office. Value added tax (VAT) as a new introduced system of tax. The study was faced with a problem of its own which limited the research system. Some of the limitation is as follows;

a) Non-availability of books and journals etc. due to lack of relevant textbook, journals and magazine, the other relevant articles or publication on the subject matter through which one could easily collect his materials for the literature review in this research work.

b) The effect of scarcity of data: The issue of scarcity of data arose were some private organization refuse to disclose some information on their record keeping on Vat and especially on returns rendered to the government.

c) Time: Due to shortage of time, the study was carried out in Edo State only. Time did not allow for wilder research in other state of the federation. It was not easy to collect most of the questionnaire distributed due to the fact that the people who the questionnaire were given never got it ready at the appropriate time. They gave appointment for it to be collected. Some even said that they missed the questionnaire.

 

HOW TO GET THE FULL PROJECT WORK

 

PLEASE, print the following instructions and information if you will like to order/buy our complete written material(s).

 

HOW TO RECEIVE PROJECT MATERIAL(S)

After paying the appropriate amount (#5000) into our bank Account below, send the following information to

08068231953 or 08168759420

 

(1)    Your project topics

(2)     Email Address

(3)     Payment Name

(4)    Teller Number

We will send your material(s) immediately we receive bank alert

 

BANK ACCOUNTS

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 0046579864

Bank: GTBank.

 

OR

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 2023350498

Bank: UBA.

 

HOW TO IDENTIFY SCAM/FRAUD

As a result of fraud in Nigeria, people don’t believe there are good online businesses in Nigeria.

 

But on this site, we have provided “table of content and chapter one” of all our project topics and materials in order to convince you that we have the complete materials.

 

Secondly, we have provided our Bank Account on this site. Our Bank Account contains all information about the owner of this website. For your own security, all payment should be made in the bank.

 

No Fraudulent company uses Bank Account as a means of payment, because Bank Account contains the overall information of the owner

 

CAUTION/WARNING

Please, DO NOT COPY any of our materials on this website WORD-TO-WORD. These materials are to assist, direct you during your project.  Study the materials carefully and use the information in them to develop your own new copy. Copying these materials word-to-word is CHEATING/ ILLEGAL because it affects Educational standard, and we will not be held responsible for it. If you must copy word-to-word please do not order/buy.

 

That you ordered this material shows you have agreed not to copy word-to-word.

 

 

FOR MORE INFORMATION, CALL:

08068231953 or 08168759420

 

 

 

Visit any of my project websites below:

www.easyprojectmaterials.com

www.easyprojectmaterials.com.ng

www.easyprojectmaterial.net

www.easyprojectmaterial.net.ng

www.easyprojectsolutions.com

www.worldofnolimit.com

www.worldofnolimit.com

www.nairaproject.com.ng

www.nairaprojects.com.ng

www.nairaproject.net

www.nairaprojects.net

www.uniproject.com.ng

www.uniprojects.com.ng

 

 

Tags:

2 days ago 0 Comments Short URL

THE USE OF MANAGEMENT ACCOUNTING TECHNIQUES AS A VERITABLE TOOLS FOR ORGANISATIONAL DECISION MAKING

CHAPTER ONE

INTRODUCTION

1.0      BACKGROUND TO THE STUDY

Prices of goods and services are gradually increasing day by day, and due to the fact that the sole aim of a businessman, producer or manufacturer is to make profit they end up making use of low quality materials for production so as to reduce cost of production and maximize profit. Moreover, with the increase of competitors around, most of the producers have thought it wise to manufacture or package a quality product and also enhance their profit level, prevent wastage and utilize available resources, management decision decision needs to be made both mostly in the financial aspect.

The precarious situation of the economy requires to major participants in economic life, policy makers in particular, to take immediate action. However, these measures delays to occur. On the economic level, the decision is at the discretion of the manager. Therefore, a manager cannot achieve its intended objectives, without taking into account information obtained from management accounting techniques. For efficient management of the economic entities having as its object of activity the production of goods, information is needed to calculate product costs. Cost accounting techniques are being applied to collect information on production, to allocate specific spending lots of product and unit cost calculation. Also, as the deployment of production and generation of costs, strict quality control procedures are being applied to compare actual costs with planned costs. Through these methods it can be determined the efficiency of exploitation activity and management. Finally, managers need special financial reports and analysis to substantiate their decisions. Therefore, at the base of management decisions must stand the analysis of alternative lines of action.

Management accounting techniques has been equipping organizational managers with important information to take decision and deals with both constant timely and frequently changing business dealings i.e. order received, order backlog, capacity utilization, and sales. Other analytical reports are prepared for decline in profitability, market share shrinkage, customer loyalty disruption towards the organization. In both cases, it is usually done through comparing actual results with the planned results or benchmarks. Management accounting techniques is about “the process of identifying, measuring and communicating economic information to permit informed judgments and decisions by users of the information” (D. Colin, 2000). Management accounting techniques usually plays as an influencing role for planning, organizing, leading and controlling through managers of the organization. Planning activity is done mostly through budgeting, standard costing, target costing, cost-volume-profit analysis and directing or organizing through process reengineering, just in time (JIT), activity based costing (ABC), flow direction, value proposition. Leading and controlling through total quality management (TQM), balance score card (BSC), actual and budgeted performance comparison, benchmark analysis.

Management accounting techniques is renowned to be very useful accounting resources that extensively help organizations incorporate cost accounting data, financial and non-financial information.  Knowing this information is essential for managers to do their jobs, in the present day today, organizations need development and continual improvement in their performance for maintaining their activity and survival in the dynamic competitive environments. The abilities and capacities of an organization through efficient and effective use of the organization’s resources are introduced as the important tools for improvement of organizational performance that benefiting from it requires aware management. Therefore, collecting and providing relevant information to the performance is indispensible for organizations that the need can be satisfied with employing management accounting techniques.

Furthermore, management for achieving the organization’s objectives requires firm plans that management accounting can employ different solutions in the plans through appropriate operating methods as well as help managers in achieving the objectives. The recent progress of researchers in the field of competitive markets indicates that organizations needs management accounting in order to improve their performance according to the changing competitive conditions.

The conducted research indicates that management accounting techniques can be used in the following ways:

  • Serves as a catalyst for decision making process
  • Use as a financial tools for management decision making
  • provide the managers’ needed information
  • to improve the organization’s performance
  • Sustain company growth and profitability.

As management accounting moves into the 21st century, what happens in the last decade of millennium will be crucial. Management accounting has already undergone a period of trial and tribulations and will no doubt continue to do so.

Management accounting technique can include budgeting, performance evaluation, information for decision-making; and strategic analyses are some of the methods used among many others. Ittner&Larcker (2001) has also argued that due to the development of these new methods, it has changed the basic principles of management accounting to a more superior one that adds value to various practices.  The research study indicated that some techniques such as absorption costing and marginal costing have not been highly favoured by most manufacturing businesses. For example, Dugdale and Jones (2002) stressed that there is a limitation within these costing systems, since they do not provide an accurate method of recording costs to be exact in order to make sound management decisions.

There is a general perception that management accounting provides relevant information for making decisions, both internally and externally and on a long term or short term basis.  There are many different tools for making short term decisions such as cost volume profit (CVP) analysis, and customer profitability analysis, however, the use of discounted cash flows and internal rate of return techniques to calculate the cost of capital seems not to be a regular management accounting practice used by businesses.

The IT based management accounting intends to provide information and insight to management and shareholders, who are in the position to decide the budgets, investments and long term planning with the help of management accounting. Application of IT in management accounting depends on individual organizations’ vision and appropriate system or technology acquired. If the need for strong and structured technology is not installed, an organization can waste its capital investment on technology, however there are still low level of awareness and understanding of technology available and suitable based on organization to be adapted in management accounting including Lack of availability of internal expertise and consultant to suggest, evaluate and implement IT in management accounting.

Furthermore, Quality decision making has never been more important – or more difficult. Competition is relentless, as new innovations and innovators daily disrupt the status quo. The volume and velocity of unstructured data is increasing complexity, in recent years, the cost of products manufactured in Nigeria has been very expensive beyond the reach of common Nigerians. This cost challenges has made many products manufactured in the country unpatronized by the consumers, and as a result of that expires in the hands of the sellers. There is also a problem of poor inventory management which leads to overstocking thereby tying down the company‟s working capital. Another problem facing some or most of the manufacturing firm is the installation of improper plan to reduce cost of production so as to maximize profit, i.e. ( making use of low quality  raw material).

OBJECTIVES OF THE STUDY

The main objective of the study is to examine the use of management accounting techniques as veritable tools for organization decision.

The specific objectives are:

  1. Determine the extent to which management accounting techniques are employed by management.
  2. Explain the differences between management Accounting and other fields of Accounting.
  3. Identify the factors influencing the choice of management accounting techniques by management.
  4. Ascertain level of effectiveness of management accounting techniques for decision making.
  5. Contrast and scrutinize the traditional management accounting approach and modern management accounting techniques.
  6. Eliminate the constraints affecting the application of management accounting techniques by management.

1.4. RESEARCH QUESTION

The following tentative research questions were asked to guide the research study:

  1. To what extent are the management accounting techniques employed by management?
  2. What are the differences between management accounting and other fields of Accounting?
  3. What are the factors influencing the choice of management accounting techniques by management?
  4. Level of effectiveness of management accounting techniques for decision making?
  5. What is the difference between the traditional management accounting approach and modern management accounting techniques?
  6. Are there any constraint mitigating the application of management accounting techniques by management?

1.5 SIGNIFICANCE OF STUDY

This study will have useful implications for theory and practice. Regarding the potential implications for theory, the study will expand the existing management accounting literature in two main ways. First the study will provide new empirical evidence on the use of management accounting techniques. Second, the study will contribute an additional study in the new context of Nigerian firms regarding what contingent factors affect the extent of management accounting techniques use.

On this note, this research work when completed will be very useful to the followings:

Business/ Organisations: To this group, the research work will provide them with the requisite knowledge of management accounting techniques in making provision and interpretation of information required by management at all levels for formulating organizational policies, planning and good decision making.

SME businesses: the creation of awareness among SME managers of the importance of management accounting techniquesas a means of improving performance and maintaining competitiveness in the marketplace.

The study will also be of importance to government corporation, companies, regulators and policy makers who are involved in regulating the accounting Standards and guidelines, it will also educate the general public, investors and entrepreneurs on application of management accounting techniques, types, it application, and benefits, It will also enable a better understanding of common management accounting techniques in relation to other fields of accounting.

This research would contribute to the existing literature by focusing on modern management accounting techniques in Nigeria with a view to identifying the critical problems that are confronting it application so that appropriate measures could be taken to tackle them.

1.6. STATEMENT OF HYPOTHESIS

Hypothesis is “a speculation of the way the variables of study behaves” it is a guide method to be used in their analysis. The needs for such guides rise to the following hypothesis;

Hypothesis one

Ho: Management Accounting techniques has a negative impact on decision making of organization.

Hypothesis Two

There are no significant relationship between the use of management accounting techniques and organizational performance.

1.7. SCOPE OF THE STUDY

From the foregoing discussion, the research focuses on use of management accounting techniques as veritable tools for organization decision using Tower Aluminum Plc, As Case Study.

1.8. LIMITATION OF THE STUDY

Limitations envisage in this research work are:

  1. Uncooperative attitude of the staff in the organisation: this is a major limitation which increase the time spent in completing the research work.
  2. Monetary constraints: this factors serves as a deficiency for the research work, and as a result of low financial capability, it was not enough to give us desired results.
  3. Inadequacy of Reference Material: In the process of carrying out this research work, the most nagging problem facing the study is how to obtain reference materials. The time to carry out the research is short and insufficient, since it is done alongside with some other courses to contend with so as to present a good result.

1.9. DEFINITION OF TERMS

  1. Management accounting is the process of identification, measurement, gathering, analysis, providing, interpretation and presentation of the management’s useful financial information in order to plan, evaluate and control of an organization’s operations.
  2. Capital budgeting is the process of identification, evaluation, planning and financial security of the main investment projects in the commercial units and guiding and monitoring such investments
  3. Budget is the action plan or the organization’s measure in a particular period of time that is presented according to the financial or non-financial quantities.
  4. Decision making: the thought process of selecting a logical choice from the available option. It is done to achieve a specific objective or solve a specific problem.
  5. Management: this is defined as the process of dealing with or controlling things or people. It is the responsibility for control of a company or similar organization.
  6. Costing is the appropriate classification and division of costs in order to determine the final price of the products and services of the commercial unit and adjustment and providence of relevant information appropriately in a way that it would be usable for the guidance of managers, the owners of commercial units to control its operation.
  7. Target costing is a comprehensive cost planning, cost management and cost control concept used to influence or to have an impact on product cost structures primarily at the early stages of product design depending upon the requirements drawn from the market.
  8. Cost volume profit analysis as a method or tool for measuring potential changes in the company‟s revenues, costs and prices. CVP analysis is used in manufacturing companies to determine how many units of a particular product must be sold in order to break even.

9.  Throughput accounting: The most significant recent direction in managerial accounting is throughput accounting; which recognizes the interdependencies of modern production processes. For any given product, customer or supplier, it is a tool to measure the contribution per unit of constrained resource

 

HOW TO GET THE FULL PROJECT WORK

 

PLEASE, print the following instructions and information if you will like to order/buy our complete written material(s).

 

HOW TO RECEIVE PROJECT MATERIAL(S)

After paying the appropriate amount (#5000) into our bank Account below, send the following information to

08068231953 or 08168759420

 

(1)    Your project topics

(2)     Email Address

(3)     Payment Name

(4)    Teller Number

We will send your material(s) immediately we receive bank alert

 

BANK ACCOUNTS

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 0046579864

Bank: GTBank.

 

OR

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 2023350498

Bank: UBA.

 

HOW TO IDENTIFY SCAM/FRAUD

As a result of fraud in Nigeria, people don’t believe there are good online businesses in Nigeria.

 

But on this site, we have provided “table of content and chapter one” of all our project topics and materials in order to convince you that we have the complete materials.

 

Secondly, we have provided our Bank Account on this site. Our Bank Account contains all information about the owner of this website. For your own security, all payment should be made in the bank.

 

No Fraudulent company uses Bank Account as a means of payment, because Bank Account contains the overall information of the owner

 

CAUTION/WARNING

Please, DO NOT COPY any of our materials on this website WORD-TO-WORD. These materials are to assist, direct you during your project.  Study the materials carefully and use the information in them to develop your own new copy. Copying these materials word-to-word is CHEATING/ ILLEGAL because it affects Educational standard, and we will not be held responsible for it. If you must copy word-to-word please do not order/buy.

 

That you ordered this material shows you have agreed not to copy word-to-word.

 

 

FOR MORE INFORMATION, CALL:

08068231953 or 08168759420

 

 

 

Visit any of my project websites below:

www.easyprojectmaterials.com

www.easyprojectmaterials.com.ng

www.easyprojectmaterial.net

www.easyprojectmaterial.net.ng

www.easyprojectsolutions.com

www.worldofnolimit.com

www.worldofnolimit.com

www.nairaproject.com.ng

www.nairaprojects.com.ng

www.nairaproject.net

www.nairaprojects.net

www.uniproject.com.ng

www.uniprojects.com.ng

 

 

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2 days ago 0 Comments Short URL

THE USE OF MANAGEMENT ACCOUNTING TECHNIQUES AS A VERITABLE TOOLS FOR ORGANISATIONAL DECISION MAKING

CHAPTER ONE

INTRODUCTION

1.0      BACKGROUND TO THE STUDY

Prices of goods and services are gradually increasing day by day, and due to the fact that the sole aim of a businessman, producer or manufacturer is to make profit they end up making use of low quality materials for production so as to reduce cost of production and maximize profit. Moreover, with the increase of competitors around, most of the producers have thought it wise to manufacture or package a quality product and also enhance their profit level, prevent wastage and utilize available resources, management decision decision needs to be made both mostly in the financial aspect.

The precarious situation of the economy requires to major participants in economic life, policy makers in particular, to take immediate action. However, these measures delays to occur. On the economic level, the decision is at the discretion of the manager. Therefore, a manager cannot achieve its intended objectives, without taking into account information obtained from management accounting techniques. For efficient management of the economic entities having as its object of activity the production of goods, information is needed to calculate product costs. Cost accounting techniques are being applied to collect information on production, to allocate specific spending lots of product and unit cost calculation. Also, as the deployment of production and generation of costs, strict quality control procedures are being applied to compare actual costs with planned costs. Through these methods it can be determined the efficiency of exploitation activity and management. Finally, managers need special financial reports and analysis to substantiate their decisions. Therefore, at the base of management decisions must stand the analysis of alternative lines of action.

Management accounting techniques has been equipping organizational managers with important information to take decision and deals with both constant timely and frequently changing business dealings i.e. order received, order backlog, capacity utilization, and sales. Other analytical reports are prepared for decline in profitability, market share shrinkage, customer loyalty disruption towards the organization. In both cases, it is usually done through comparing actual results with the planned results or benchmarks. Management accounting techniques is about “the process of identifying, measuring and communicating economic information to permit informed judgments and decisions by users of the information” (D. Colin, 2000). Management accounting techniques usually plays as an influencing role for planning, organizing, leading and controlling through managers of the organization. Planning activity is done mostly through budgeting, standard costing, target costing, cost-volume-profit analysis and directing or organizing through process reengineering, just in time (JIT), activity based costing (ABC), flow direction, value proposition. Leading and controlling through total quality management (TQM), balance score card (BSC), actual and budgeted performance comparison, benchmark analysis.

Management accounting techniques is renowned to be very useful accounting resources that extensively help organizations incorporate cost accounting data, financial and non-financial information.  Knowing this information is essential for managers to do their jobs, in the present day today, organizations need development and continual improvement in their performance for maintaining their activity and survival in the dynamic competitive environments. The abilities and capacities of an organization through efficient and effective use of the organization’s resources are introduced as the important tools for improvement of organizational performance that benefiting from it requires aware management. Therefore, collecting and providing relevant information to the performance is indispensible for organizations that the need can be satisfied with employing management accounting techniques.

Furthermore, management for achieving the organization’s objectives requires firm plans that management accounting can employ different solutions in the plans through appropriate operating methods as well as help managers in achieving the objectives. The recent progress of researchers in the field of competitive markets indicates that organizations needs management accounting in order to improve their performance according to the changing competitive conditions.

The conducted research indicates that management accounting techniques can be used in the following ways:

  • Serves as a catalyst for decision making process
  • Use as a financial tools for management decision making
  • provide the managers’ needed information
  • to improve the organization’s performance
  • Sustain company growth and profitability.

As management accounting moves into the 21st century, what happens in the last decade of millennium will be crucial. Management accounting has already undergone a period of trial and tribulations and will no doubt continue to do so.

Management accounting technique can include budgeting, performance evaluation, information for decision-making; and strategic analyses are some of the methods used among many others. Ittner&Larcker (2001) has also argued that due to the development of these new methods, it has changed the basic principles of management accounting to a more superior one that adds value to various practices.  The research study indicated that some techniques such as absorption costing and marginal costing have not been highly favoured by most manufacturing businesses. For example, Dugdale and Jones (2002) stressed that there is a limitation within these costing systems, since they do not provide an accurate method of recording costs to be exact in order to make sound management decisions.

There is a general perception that management accounting provides relevant information for making decisions, both internally and externally and on a long term or short term basis.  There are many different tools for making short term decisions such as cost volume profit (CVP) analysis, and customer profitability analysis, however, the use of discounted cash flows and internal rate of return techniques to calculate the cost of capital seems not to be a regular management accounting practice used by businesses.

The IT based management accounting intends to provide information and insight to management and shareholders, who are in the position to decide the budgets, investments and long term planning with the help of management accounting. Application of IT in management accounting depends on individual organizations’ vision and appropriate system or technology acquired. If the need for strong and structured technology is not installed, an organization can waste its capital investment on technology, however there are still low level of awareness and understanding of technology available and suitable based on organization to be adapted in management accounting including Lack of availability of internal expertise and consultant to suggest, evaluate and implement IT in management accounting.

Furthermore, Quality decision making has never been more important – or more difficult. Competition is relentless, as new innovations and innovators daily disrupt the status quo. The volume and velocity of unstructured data is increasing complexity, in recent years, the cost of products manufactured in Nigeria has been very expensive beyond the reach of common Nigerians. This cost challenges has made many products manufactured in the country unpatronized by the consumers, and as a result of that expires in the hands of the sellers. There is also a problem of poor inventory management which leads to overstocking thereby tying down the company‟s working capital. Another problem facing some or most of the manufacturing firm is the installation of improper plan to reduce cost of production so as to maximize profit, i.e. ( making use of low quality  raw material).

OBJECTIVES OF THE STUDY

The main objective of the study is to examine the use of management accounting techniques as veritable tools for organization decision.

The specific objectives are:

  1. Determine the extent to which management accounting techniques are employed by management.
  2. Explain the differences between management Accounting and other fields of Accounting.
  3. Identify the factors influencing the choice of management accounting techniques by management.
  4. Ascertain level of effectiveness of management accounting techniques for decision making.
  5. Contrast and scrutinize the traditional management accounting approach and modern management accounting techniques.
  6. Eliminate the constraints affecting the application of management accounting techniques by management.

1.4. RESEARCH QUESTION

The following tentative research questions were asked to guide the research study:

  1. To what extent are the management accounting techniques employed by management?
  2. What are the differences between management accounting and other fields of Accounting?
  3. What are the factors influencing the choice of management accounting techniques by management?
  4. Level of effectiveness of management accounting techniques for decision making?
  5. What is the difference between the traditional management accounting approach and modern management accounting techniques?
  6. Are there any constraint mitigating the application of management accounting techniques by management?

1.5 SIGNIFICANCE OF STUDY

This study will have useful implications for theory and practice. Regarding the potential implications for theory, the study will expand the existing management accounting literature in two main ways. First the study will provide new empirical evidence on the use of management accounting techniques. Second, the study will contribute an additional study in the new context of Nigerian firms regarding what contingent factors affect the extent of management accounting techniques use.

On this note, this research work when completed will be very useful to the followings:

Business/ Organisations: To this group, the research work will provide them with the requisite knowledge of management accounting techniques in making provision and interpretation of information required by management at all levels for formulating organizational policies, planning and good decision making.

SME businesses: the creation of awareness among SME managers of the importance of management accounting techniquesas a means of improving performance and maintaining competitiveness in the marketplace.

The study will also be of importance to government corporation, companies, regulators and policy makers who are involved in regulating the accounting Standards and guidelines, it will also educate the general public, investors and entrepreneurs on application of management accounting techniques, types, it application, and benefits, It will also enable a better understanding of common management accounting techniques in relation to other fields of accounting.

This research would contribute to the existing literature by focusing on modern management accounting techniques in Nigeria with a view to identifying the critical problems that are confronting it application so that appropriate measures could be taken to tackle them.

1.6. STATEMENT OF HYPOTHESIS

Hypothesis is “a speculation of the way the variables of study behaves” it is a guide method to be used in their analysis. The needs for such guides rise to the following hypothesis;

Hypothesis one

Ho: Management Accounting techniques has a negative impact on decision making of organization.

Hypothesis Two

There are no significant relationship between the use of management accounting techniques and organizational performance.

1.7. SCOPE OF THE STUDY

From the foregoing discussion, the research focuses on use of management accounting techniques as veritable tools for organization decision using Tower Aluminum Plc, As Case Study.

1.8. LIMITATION OF THE STUDY

Limitations envisage in this research work are:

  1. Uncooperative attitude of the staff in the organisation: this is a major limitation which increase the time spent in completing the research work.
  2. Monetary constraints: this factors serves as a deficiency for the research work, and as a result of low financial capability, it was not enough to give us desired results.
  3. Inadequacy of Reference Material: In the process of carrying out this research work, the most nagging problem facing the study is how to obtain reference materials. The time to carry out the research is short and insufficient, since it is done alongside with some other courses to contend with so as to present a good result.

1.9. DEFINITION OF TERMS

  1. Management accounting is the process of identification, measurement, gathering, analysis, providing, interpretation and presentation of the management’s useful financial information in order to plan, evaluate and control of an organization’s operations.
  2. Capital budgeting is the process of identification, evaluation, planning and financial security of the main investment projects in the commercial units and guiding and monitoring such investments
  3. Budget is the action plan or the organization’s measure in a particular period of time that is presented according to the financial or non-financial quantities.
  4. Decision making: the thought process of selecting a logical choice from the available option. It is done to achieve a specific objective or solve a specific problem.
  5. Management: this is defined as the process of dealing with or controlling things or people. It is the responsibility for control of a company or similar organization.
  6. Costing is the appropriate classification and division of costs in order to determine the final price of the products and services of the commercial unit and adjustment and providence of relevant information appropriately in a way that it would be usable for the guidance of managers, the owners of commercial units to control its operation.
  7. Target costing is a comprehensive cost planning, cost management and cost control concept used to influence or to have an impact on product cost structures primarily at the early stages of product design depending upon the requirements drawn from the market.
  8. Cost volume profit analysis as a method or tool for measuring potential changes in the company‟s revenues, costs and prices. CVP analysis is used in manufacturing companies to determine how many units of a particular product must be sold in order to break even.

9.  Throughput accounting: The most significant recent direction in managerial accounting is throughput accounting; which recognizes the interdependencies of modern production processes. For any given product, customer or supplier, it is a tool to measure the contribution per unit of constrained resource

 

HOW TO GET THE FULL PROJECT WORK

 

PLEASE, print the following instructions and information if you will like to order/buy our complete written material(s).

 

HOW TO RECEIVE PROJECT MATERIAL(S)

After paying the appropriate amount (#5000) into our bank Account below, send the following information to

08068231953 or 08168759420

 

(1)    Your project topics

(2)     Email Address

(3)     Payment Name

(4)    Teller Number

We will send your material(s) immediately we receive bank alert

 

BANK ACCOUNTS

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 0046579864

Bank: GTBank.

 

OR

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 2023350498

Bank: UBA.

 

HOW TO IDENTIFY SCAM/FRAUD

As a result of fraud in Nigeria, people don’t believe there are good online businesses in Nigeria.

 

But on this site, we have provided “table of content and chapter one” of all our project topics and materials in order to convince you that we have the complete materials.

 

Secondly, we have provided our Bank Account on this site. Our Bank Account contains all information about the owner of this website. For your own security, all payment should be made in the bank.

 

No Fraudulent company uses Bank Account as a means of payment, because Bank Account contains the overall information of the owner

 

CAUTION/WARNING

Please, DO NOT COPY any of our materials on this website WORD-TO-WORD. These materials are to assist, direct you during your project.  Study the materials carefully and use the information in them to develop your own new copy. Copying these materials word-to-word is CHEATING/ ILLEGAL because it affects Educational standard, and we will not be held responsible for it. If you must copy word-to-word please do not order/buy.

 

That you ordered this material shows you have agreed not to copy word-to-word.

 

 

FOR MORE INFORMATION, CALL:

08068231953 or 08168759420

 

 

 

Visit any of my project websites below:

www.easyprojectmaterials.com

www.easyprojectmaterials.com.ng

www.easyprojectmaterial.net

www.easyprojectmaterial.net.ng

www.easyprojectsolutions.com

www.worldofnolimit.com

www.worldofnolimit.com

www.nairaproject.com.ng

www.nairaprojects.com.ng

www.nairaproject.net

www.nairaprojects.net

www.uniproject.com.ng

www.uniprojects.com.ng

 

 

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2 days ago 0 Comments Short URL

THE USE OF COMPUTER IN RECORDING ACCOUNTING INFORMATIONS, PROBLEMS AND PROSPECT

ABSTRACT

This research work is aimed at ascertaining the various roles played by using computer in recording accounting information problems and prospects in the modern business world using Bendel feed and flour mill, Ewu, Edo state as a case study.The importance of using computer in recording accounting information will be apparent when considering the fact from the data that is gathered in the course of this work, from the related literature as well as, from interviews and discussions. Also questionnaire were distributed equally and collected which yielded or revealed that the use of computer in recording accounting information [played a positive role in initiating computer use in the modern business world.The information supplied by the Chief accountant in Bendel feed and flour mill Ewu, Edo state contributed to the success of the exercise. The statistical analysis that used in the study includes the hypothesis testing in which the questionnaire is analyzed under their related hypothesis and the use of chi-square test of homogeneity.It will also be discovered that it is  important among other groups of professionals needed for this implementation of the exercise. Therefore, they formed the pillar on which any successful establishment rests upon. Based on the findings, it was recommended that the use of computer in recording accounting information should be give a free hand in implementation exercise in order to enhance the importance of the use of computer in recoding accounting information.

PROPOSAL

The research work on the topic, “The use of computer in recording accounting information problems and prospects is aimed at making individuals, firms and government aware of the importance and necessities that are attached to the use of computer in recording information in this modern world.To bring this project to execution, I shall review this topic by sourcing data from related literatures such as journals, magazines, new papers and periodical. Base on this, I shall go to libraries and other various places where these literatures will be found or located. In addition, personal interview will be carried out and questionnaires will be structured which will be distributed to respondents. This is to enable me get direct information about the role computer is playing in recording accounting information.In connection with, this hypothesis will be raised and this will be tested through the use of chi-square for efficient proof. For easy understanding by the readers, I shall present the data collected, by the use of tables, graphs charts and other method of presenting data.In view of the procedures listed above to be followed in this research work I am anticipating that there will be difficulties that I going to encounter, which will be a bottle, neck in the course of this work. These problems includes:

·          Availability time to enable me finish the project before August or September.

·         Inadequate finance to buy materials needed and reaching places of importance.

·         The loaded academic work coupled with school activities.

·         Lack of cooperation from the respondents which may bring about wrong information.

However, this project was embarked upon  due to the reluctant attitude individuals and firms are paying to use computer in accounting records. Therefore, I shall make recommendations on my findings in the course of this work to enable them know the necessity, accuracy and efficiency that will benefited from the use of computer in book-keeping.

TABLE OF CONTENTS

CHAPTER TONE

INTRODUCTION

1.1            OBJECTIVE OF STUDY

1.2            STATEMENT OF THE PROBLEM

1.3            PURPOSE OF STUDY

1.4            RESEARCH QUESTIONS

1.5            RESEARCH HYPOTHESIS

1.6            SIGNIFICANCE OF THE STUDY

1.7            SCOPE, LIMITATIONS AND DELIMITATION

1.8            DEFINITION OF TERMS

CHAPTER TWO

LITERATURE REVIEW

2.1              HISTORY OF COMPUTER/DEFINITION

2.2              COMPARISON OF MANUAL AND COMPUTER INFORMATION PROCESSING

2.3              ELECTRONIC DATA COLLECTION (EDP)

2.4              DATA INPUT/OUTPUT AND THE MEDIA SYSTEM

2.5              PARTS/ELEMENTS OF A COMPUTER

2.6              OPERATING TECHNIQUES

2.7              AREAS OF COMPUTER APPLICATION

2.8              LIMITATION OF THE USE AND COMPUTER

2.9              THE ORGANIZATIONAL STRUCTURE OF A DATA PROCESSING DEPARTMENT.

CHAPTER THREE

RESEARCH DEISIGN AND METHODOLOGY

3.1              POPULATION

3.2              SAMPLE SIZE

3.3              LOCATION OF DATA

3.4              INSTRUMENT OF DATA COLLECTION

3.5              METHODS OF DATA PRESENTATION

3.6              METHOD OF DATA ANALYSIS

CHAPTER FOUR

PRESENTATION AND ANALYSIS OF DATA

4.1              HISTORICAL BACKGROUND OF THE COMPANY OF CASE STUDY

4.2              ANALYSIS OF DATA

4.3              RETURNED AND UNRETURNED QUESTIONNAIRE

4.4              ANALYSIS OF RESPONSES

4.5              PERSONAL INTERVIEW ANALYSIS

4.6              TEST OF HYPOTHESIS AND PROOF

CHAPTER FIVE

SUMMARY AND CONCLUSIONS

5.0              FINDINGS

5.1              CONCLUSIONS

5.2              RECOMMENDATIONS

5.3              OTHERS SEGMENTS

BIBLIOGRAPHY

APPENDIX

CHAPTER ONE

 INTRODUCTION

In this present world, individual, business men, firms and government have seen the effects of computer in the area of recording and safe keeping of information,.

However, this computer cannot function unless the day-to-day business activities are well documented and fed into it properly.

Every business get up has different levels of management and each of  these level of management and information to enable them make decision on how he objective of the organization can be achieved likewise, the government need of computer networking can never be over-emphasis in the sense that, every government departments, ministries and parastatals are computerized.

This project is designed to cover every aspect of computer roles in recording accounting information for management use. Unlike the stone age when computer has not been in existence, people were getting information from inscriptions on stones and carvings in wood.  All these information are soon forgotten because there was no special method designed to preserve then.

In Nigeria before the advent of computer, nearly al clerical works are, done by paper and pen. This gives rise to

1.       Mismanagement of stationeries.

2.      Errors and omissions in accounting enterprises

Monotonous work and tiredness and other, associated clerical problems. But since the introduction of computer, these problems are minimized. Therefore, the use of computer in recording accounting information in this modern world cannot be over sighted. In the past, recording, filing and safekeeping of information was known as “routine clerical work” but with the advent of sophisticated, electronic business machines it is now known as “data processing”.

Today, no business can survive without the use of computer especially, in recording accounting information. It is on this ground that this project is carried out to make people; businesses, finance and government know the roles that a computer is playing in keeping accounting records.

1.1      OBJECTIVES OF THE STUDY

This research work on “The use of computer in recording accounting information, problems and prospects” is to investigate or require for the following:

a.    To know a brief history of computer

b.    To understand some important components of the computer

c.    To know the uses and importance of computer in keeping accounting records.

d.    To understand some of the problems that are  associated with the use of computer.

e.    Knowing the advantages and disadvantages in using computer to record accounting information.

f.     To create awareness on the use of computer in business.

1.2     STATEMENT OF THE PROBLEMS

“Garbage in garbage out” is a general phenomenon in computer. Electronic computer has no self-judgment and as such devoid of human errors. It is what you feed into the computer (input) that it gives out (output). For example, if one feeds in wrong data into the computer, no matter how efficient the programming may be wrong output will be the out come because the computer has been mislead.

In addition, computer has its own language and all data are [programmed and written in this special language. There fore, it required a lot of training without which computer will not make any meaning to the users.

Furthermore, computer does not function effectively in a hot environment, for this reason it requires huge amount in installing air-conditions to enhance efficiency.

Finally, small businesses cannot afford computer because it is costly to buy and maintain. This constitutes a bottleneck in getting correct information and as such, the small businesses cannot thrive in the present of the big ones.

1.3      PURPOSE OF THE STUDY

The purpose of this study is to conduct an indebt study in the problems and prospects that is faced with the use of computer in recording accounting information. Moreover, individuals, businessmen, firms and government are not fully aware about the uses of computer, it is design to create this awareness.

Another reason why this research work is embarked on is to answer a lot  at questions that are raised by users and non-users of computer in book-keeping.

1.4     RESEARCH QUESTIONS

The following are some of the questions the researcher would like to find answer to in order for him to carry out the project effectively:

a.     What made individuals, firms and government adopt computer system?

b.   What has been the effect of the use of computer on old and new staff?

c.    Routine clerical work” and “Data processing” which is more economical?

d.  What improvement has computer made to the general accounting system in the counting?

e.  What are the problems that generate  from the use of computer?

f.   What are needed to make computer use effective?

g.  What effect has the use of  computer in the labour market.

h.  In modern accounting, can computer be left out in recording information?

1.5      RESEARCH HYPOTHESIS

The following hypothesis shall be treated in the coursed of carrying out this research work:

1.        HO: There is no significant relationship between the electronic data processing approach and the manual system approach.

Hi: There is significant relationship between the electronic data processing approach and the manual system approach.

2.        HO: Computer has no positive effect in recording accounting information.

 

HOW TO GET THE FULL PROJECT WORK

 

PLEASE, print the following instructions and information if you will like to order/buy our complete written material(s).

 

HOW TO RECEIVE PROJECT MATERIAL(S)

After paying the appropriate amount (#5000) into our bank Account below, send the following information to

08068231953 or 08168759420

 

(1)    Your project topics

(2)     Email Address

(3)     Payment Name

(4)    Teller Number

We will send your material(s) immediately we receive bank alert

 

BANK ACCOUNTS

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 0046579864

Bank: GTBank.

 

OR

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 2023350498

Bank: UBA.

 

HOW TO IDENTIFY SCAM/FRAUD

As a result of fraud in Nigeria, people don’t believe there are good online businesses in Nigeria.

 

But on this site, we have provided “table of content and chapter one” of all our project topics and materials in order to convince you that we have the complete materials.

 

Secondly, we have provided our Bank Account on this site. Our Bank Account contains all information about the owner of this website. For your own security, all payment should be made in the bank.

 

No Fraudulent company uses Bank Account as a means of payment, because Bank Account contains the overall information of the owner

 

CAUTION/WARNING

Please, DO NOT COPY any of our materials on this website WORD-TO-WORD. These materials are to assist, direct you during your project.  Study the materials carefully and use the information in them to develop your own new copy. Copying these materials word-to-word is CHEATING/ ILLEGAL because it affects Educational standard, and we will not be held responsible for it. If you must copy word-to-word please do not order/buy.

 

That you ordered this material shows you have agreed not to copy word-to-word.

 

 

FOR MORE INFORMATION, CALL:

08068231953 or 08168759420

 

 

 

Visit any of my project websites below:

www.easyprojectmaterials.com

www.easyprojectmaterials.com.ng

www.easyprojectmaterial.net

www.easyprojectmaterial.net.ng

www.easyprojectsolutions.com

www.worldofnolimit.com

www.worldofnolimit.com

www.nairaproject.com.ng

www.nairaprojects.com.ng

www.nairaproject.net

www.nairaprojects.net

www.uniproject.com.ng

www.uniprojects.com.ng

 

 

Tags: ,

2 days ago 0 Comments Short URL

THE USE OF COMPUTER IN RECORDING ACCOUNTING INFORMATIONS, PROBLEMS AND PROSPECT

ABSTRACT

This research work is aimed at ascertaining the various roles played by using computer in recording accounting information problems and prospects in the modern business world using Bendel feed and flour mill, Ewu, Edo state as a case study.The importance of using computer in recording accounting information will be apparent when considering the fact from the data that is gathered in the course of this work, from the related literature as well as, from interviews and discussions. Also questionnaire were distributed equally and collected which yielded or revealed that the use of computer in recording accounting information [played a positive role in initiating computer use in the modern business world.The information supplied by the Chief accountant in Bendel feed and flour mill Ewu, Edo state contributed to the success of the exercise. The statistical analysis that used in the study includes the hypothesis testing in which the questionnaire is analyzed under their related hypothesis and the use of chi-square test of homogeneity.It will also be discovered that it is  important among other groups of professionals needed for this implementation of the exercise. Therefore, they formed the pillar on which any successful establishment rests upon. Based on the findings, it was recommended that the use of computer in recording accounting information should be give a free hand in implementation exercise in order to enhance the importance of the use of computer in recoding accounting information.

PROPOSAL

The research work on the topic, “The use of computer in recording accounting information problems and prospects is aimed at making individuals, firms and government aware of the importance and necessities that are attached to the use of computer in recording information in this modern world.To bring this project to execution, I shall review this topic by sourcing data from related literatures such as journals, magazines, new papers and periodical. Base on this, I shall go to libraries and other various places where these literatures will be found or located. In addition, personal interview will be carried out and questionnaires will be structured which will be distributed to respondents. This is to enable me get direct information about the role computer is playing in recording accounting information.In connection with, this hypothesis will be raised and this will be tested through the use of chi-square for efficient proof. For easy understanding by the readers, I shall present the data collected, by the use of tables, graphs charts and other method of presenting data.In view of the procedures listed above to be followed in this research work I am anticipating that there will be difficulties that I going to encounter, which will be a bottle, neck in the course of this work. These problems includes:

·          Availability time to enable me finish the project before August or September.

·         Inadequate finance to buy materials needed and reaching places of importance.

·         The loaded academic work coupled with school activities.

·         Lack of cooperation from the respondents which may bring about wrong information.

However, this project was embarked upon  due to the reluctant attitude individuals and firms are paying to use computer in accounting records. Therefore, I shall make recommendations on my findings in the course of this work to enable them know the necessity, accuracy and efficiency that will benefited from the use of computer in book-keeping.

TABLE OF CONTENTS

CHAPTER TONE

INTRODUCTION

1.1            OBJECTIVE OF STUDY

1.2            STATEMENT OF THE PROBLEM

1.3            PURPOSE OF STUDY

1.4            RESEARCH QUESTIONS

1.5            RESEARCH HYPOTHESIS

1.6            SIGNIFICANCE OF THE STUDY

1.7            SCOPE, LIMITATIONS AND DELIMITATION

1.8            DEFINITION OF TERMS

CHAPTER TWO

LITERATURE REVIEW

2.1              HISTORY OF COMPUTER/DEFINITION

2.2              COMPARISON OF MANUAL AND COMPUTER INFORMATION PROCESSING

2.3              ELECTRONIC DATA COLLECTION (EDP)

2.4              DATA INPUT/OUTPUT AND THE MEDIA SYSTEM

2.5              PARTS/ELEMENTS OF A COMPUTER

2.6              OPERATING TECHNIQUES

2.7              AREAS OF COMPUTER APPLICATION

2.8              LIMITATION OF THE USE AND COMPUTER

2.9              THE ORGANIZATIONAL STRUCTURE OF A DATA PROCESSING DEPARTMENT.

CHAPTER THREE

RESEARCH DEISIGN AND METHODOLOGY

3.1              POPULATION

3.2              SAMPLE SIZE

3.3              LOCATION OF DATA

3.4              INSTRUMENT OF DATA COLLECTION

3.5              METHODS OF DATA PRESENTATION

3.6              METHOD OF DATA ANALYSIS

CHAPTER FOUR

PRESENTATION AND ANALYSIS OF DATA

4.1              HISTORICAL BACKGROUND OF THE COMPANY OF CASE STUDY

4.2              ANALYSIS OF DATA

4.3              RETURNED AND UNRETURNED QUESTIONNAIRE

4.4              ANALYSIS OF RESPONSES

4.5              PERSONAL INTERVIEW ANALYSIS

4.6              TEST OF HYPOTHESIS AND PROOF

CHAPTER FIVE

SUMMARY AND CONCLUSIONS

5.0              FINDINGS

5.1              CONCLUSIONS

5.2              RECOMMENDATIONS

5.3              OTHERS SEGMENTS

BIBLIOGRAPHY

APPENDIX

CHAPTER ONE

 INTRODUCTION

In this present world, individual, business men, firms and government have seen the effects of computer in the area of recording and safe keeping of information,.

However, this computer cannot function unless the day-to-day business activities are well documented and fed into it properly.

Every business get up has different levels of management and each of  these level of management and information to enable them make decision on how he objective of the organization can be achieved likewise, the government need of computer networking can never be over-emphasis in the sense that, every government departments, ministries and parastatals are computerized.

This project is designed to cover every aspect of computer roles in recording accounting information for management use. Unlike the stone age when computer has not been in existence, people were getting information from inscriptions on stones and carvings in wood.  All these information are soon forgotten because there was no special method designed to preserve then.

In Nigeria before the advent of computer, nearly al clerical works are, done by paper and pen. This gives rise to

1.       Mismanagement of stationeries.

2.      Errors and omissions in accounting enterprises

Monotonous work and tiredness and other, associated clerical problems. But since the introduction of computer, these problems are minimized. Therefore, the use of computer in recording accounting information in this modern world cannot be over sighted. In the past, recording, filing and safekeeping of information was known as “routine clerical work” but with the advent of sophisticated, electronic business machines it is now known as “data processing”.

Today, no business can survive without the use of computer especially, in recording accounting information. It is on this ground that this project is carried out to make people; businesses, finance and government know the roles that a computer is playing in keeping accounting records.

1.1      OBJECTIVES OF THE STUDY

This research work on “The use of computer in recording accounting information, problems and prospects” is to investigate or require for the following:

a.    To know a brief history of computer

b.    To understand some important components of the computer

c.    To know the uses and importance of computer in keeping accounting records.

d.    To understand some of the problems that are  associated with the use of computer.

e.    Knowing the advantages and disadvantages in using computer to record accounting information.

f.     To create awareness on the use of computer in business.

1.2     STATEMENT OF THE PROBLEMS

“Garbage in garbage out” is a general phenomenon in computer. Electronic computer has no self-judgment and as such devoid of human errors. It is what you feed into the computer (input) that it gives out (output). For example, if one feeds in wrong data into the computer, no matter how efficient the programming may be wrong output will be the out come because the computer has been mislead.

In addition, computer has its own language and all data are [programmed and written in this special language. There fore, it required a lot of training without which computer will not make any meaning to the users.

Furthermore, computer does not function effectively in a hot environment, for this reason it requires huge amount in installing air-conditions to enhance efficiency.

Finally, small businesses cannot afford computer because it is costly to buy and maintain. This constitutes a bottleneck in getting correct information and as such, the small businesses cannot thrive in the present of the big ones.

1.3      PURPOSE OF THE STUDY

The purpose of this study is to conduct an indebt study in the problems and prospects that is faced with the use of computer in recording accounting information. Moreover, individuals, businessmen, firms and government are not fully aware about the uses of computer, it is design to create this awareness.

Another reason why this research work is embarked on is to answer a lot  at questions that are raised by users and non-users of computer in book-keeping.

1.4     RESEARCH QUESTIONS

The following are some of the questions the researcher would like to find answer to in order for him to carry out the project effectively:

a.     What made individuals, firms and government adopt computer system?

b.   What has been the effect of the use of computer on old and new staff?

c.    Routine clerical work” and “Data processing” which is more economical?

d.  What improvement has computer made to the general accounting system in the counting?

e.  What are the problems that generate  from the use of computer?

f.   What are needed to make computer use effective?

g.  What effect has the use of  computer in the labour market.

h.  In modern accounting, can computer be left out in recording information?

1.5      RESEARCH HYPOTHESIS

The following hypothesis shall be treated in the coursed of carrying out this research work:

1.        HO: There is no significant relationship between the electronic data processing approach and the manual system approach.

Hi: There is significant relationship between the electronic data processing approach and the manual system approach.

2.        HO: Computer has no positive effect in recording accounting information.

 

HOW TO GET THE FULL PROJECT WORK

 

PLEASE, print the following instructions and information if you will like to order/buy our complete written material(s).

 

HOW TO RECEIVE PROJECT MATERIAL(S)

After paying the appropriate amount (#5000) into our bank Account below, send the following information to

08068231953 or 08168759420

 

(1)    Your project topics

(2)     Email Address

(3)     Payment Name

(4)    Teller Number

We will send your material(s) immediately we receive bank alert

 

BANK ACCOUNTS

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 0046579864

Bank: GTBank.

 

OR

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 2023350498

Bank: UBA.

 

HOW TO IDENTIFY SCAM/FRAUD

As a result of fraud in Nigeria, people don’t believe there are good online businesses in Nigeria.

 

But on this site, we have provided “table of content and chapter one” of all our project topics and materials in order to convince you that we have the complete materials.

 

Secondly, we have provided our Bank Account on this site. Our Bank Account contains all information about the owner of this website. For your own security, all payment should be made in the bank.

 

No Fraudulent company uses Bank Account as a means of payment, because Bank Account contains the overall information of the owner

 

CAUTION/WARNING

Please, DO NOT COPY any of our materials on this website WORD-TO-WORD. These materials are to assist, direct you during your project.  Study the materials carefully and use the information in them to develop your own new copy. Copying these materials word-to-word is CHEATING/ ILLEGAL because it affects Educational standard, and we will not be held responsible for it. If you must copy word-to-word please do not order/buy.

 

That you ordered this material shows you have agreed not to copy word-to-word.

 

 

FOR MORE INFORMATION, CALL:

08068231953 or 08168759420

 

 

 

Visit any of my project websites below:

www.easyprojectmaterials.com

www.easyprojectmaterials.com.ng

www.easyprojectmaterial.net

www.easyprojectmaterial.net.ng

www.easyprojectsolutions.com

www.worldofnolimit.com

www.worldofnolimit.com

www.nairaproject.com.ng

www.nairaprojects.com.ng

www.nairaproject.net

www.nairaprojects.net

www.uniproject.com.ng

www.uniprojects.com.ng

 

 

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2 days ago 0 Comments Short URL

THE ROLE OF RATIO ANALYSIS IN BUSINESS DECISIONS A CASE STUDY OF O. JACO BROS. ENT. (NIG.) LTD., ABA, ABIA STATE

INTRODUCTION

  • BACKGROUND INFORMATION

The two primary objectives of every business are profitability and solvency.  Profitability is the ability of a business to make profit, while solvency is the ability of a business to pay debts as they come due.  (Hermanson et al, 1992: 824).  However, the achievement of these objectives requires efficient management of resources of the business through planning, budgeting, forecasting, control, and decision – making.  Also, the strengths and weakness of the business need to be identified and necessary corrective measures applied.  Interestingly, accounting provides information that facilitates these functions.

Basically, accounting measures and communicates economic information needed for decision –making.  Thus, the American Accounting Association (in Okezie, 2002:1) defined accounting as “the process of identifying, measuring and communicating economic information to permit informed judgments and decisions by the information”.  Statement and the Balance Sheet.  The Income Statement shows the profitability or  profitability or operational result of a business, while the balance sheet shows the solvency or financial position of a business.

Although profiles are often used as the basis for judging the performance of a business, such profits must be related to the various items of the financial statements in order to be meaningful and useful for decision making. Furthermore, owing to the summarized nature of financial statements, a lot of truths are hidden in them. Thus, they need to the analyzed and interpreted by means of financial ratios to enable the users understand the meaning of the absolute amounts shown in them, and make informed business decisions.

In this regard, Essien (2006:144) observed:

Financial statements carry lots of financial Information that are hidden in the figures. The figures in financial statements become more useful when they are related to each other or to some other relevant financial data. Therefore, users of financial information go a further step to establish relationships (or ratios) among selected data in financial statements.

According to Igben (1999:423), “Accounting {or financial} ratio is a proportion or fraction or percentage expressing the relationship between one item in a set financial statements and another item in the financial statements. Accounting ratios are the most powerful of all tools used in analyzed and interpreting financial statements”. Therefore, ratio analysis involves taking stats of number (or items) out of financial statements and forming ratios with them, to enhance informed judgments and decisions (Lasher, 1997:66).

MCShane et al. (2000:336) defined decision-making as “a conscious process of making choices among one or more alternatives with the interior of moving toward some desired state of affairs.” Therefore, business decisions can be defined as choices relating to the allocation and/or use of business resources to achieve business goals.

Decision-making calls information. Bittel et al. (1984:340) observed: “Managers want information because they need to make decisions. The proper use of information is an important part of decision-making.” Remarkably, one of the effective ways of providing information needed for decision-making is ratio analysis.

Yes, business dictions of make or buy, investment or divestment, expansion or contration, capital-organization and reconstruction, and so on cannot be properly made without the aid of financial ratios. They give cue to the financial strengths and weaknesses of a business, and highlight aspects of a business requiring further investigation.

Therefore, this research is carried out to show ratio analysis help managers, shareholders, investors, creditors, and other stakeholders make informed judgments and decisions about the past performance, present condition, and futures potential of a business.

1.2   STATEMENT OF PROBLEM                     

Financial information provided in financial statements are useful in business decisions. However, it must be noted that financial statements are means to an and not an end in themselves. Thus the use of financial statements in decision-making is not always easy owing to the following problems:

  1. In view of the summarized nature of the information contained in financial statements, they need to be analyzed and interpreted by means of financial ratios to enable management and stakeholders understand them and make well-informed business decisions.
  2. Many users of financial statements are not knowledgeable about accounting ratios and how the ratios can be applied to financial statements to aid decision-making.
  3. Despite the immense benefits of ratio analysis, there are a lot of weaknesses or limitations associated with its use.

In view of the above stated problems, this research is embarked upon to identify the proper use of financial ratios, and the roles ratio analysis plays in business decisions.

1.3   OBJECTIVES OF THE STUDY

In consideration of the problems identified above, the objective of this research include.

  1. To show how ratio analysis facilitates proper understanding of information contained in financial statements.
  2. To show how ratio analysis aids business decisions.
  3. To examine the techniques used in analysis financial statements.
  4. To identify the usefulness of financial ratios in measuring and predicting the performance and financial position of a business.
  5. To unravel the obstacles to the proper use of financial ratios in business decisions.
  6. To suggest on ways to enhance efficient use of ratio analysis in decision-making.

1.4   RESEARCH QUESTIONS

  1. Is ratio analysis useful in evaluating and prediction the performance of a business as well as intensifying areas that regret improvement?
  2. Do you agree with the fact that ratio analysis facilitates proper understanding of information contained in financial statements?

iii.    Is ratio analysis useful to management investors, shareholders and creditors in their business divisions?

  1. Does financial ratio helps to unravel the mass of truth hidden in financial statements?
  2. Are there obstacles that affect the proper use of ratio analysis in business decisions?

1.5   SIGNIFICANCE OF THE STUDY

The significance of this study is that on its completion, the following benefits will be derived:

  1. The study will help management of O. Jaco Brros. Ent. (Nig.) Ltd, Aba and others to know how ratio analysis can help them understand the financial contained in financial statements and enhance their business decisions.
  2. The findings of the research and the supportive reference materials will be of immense help to students in tertiary institutions and other researchers to investigate further in the area of study.
  3. It is hoped that the result of the research will facilitate optimal business decisions when the recommendations are complied with.
  4. The study will encourage businessmen, investors, managers, and government authorities to appreciate quantitative techniques like financial ratios when making economic and business decisions.

1.6   SCOPE OF THE STUDY

According to Akpakpan (2005:7), “scope of the study is the limits or boundary lines of the study. It is the areas covered by the research or the extent the researchers would go. Limitations of the study are hindrances or obstacles witnessed by the researcher in the course of the study. Which could influence his conclusions.”

In     view of the impossibility of covering every type of financial statement, this study is therefore restricted to the analysis of the income statement and the Balance Sheet by means of financial ratios. However, other analytical techniques such as horizontal analysis, vertical analysis and termed analysis would also be explained and illustrated.

Finally, although University Ratio Analysis is the core of the study, nevertheless, multivariate Ratio Analysis would be partly illustrated using Du pont Equations.

1.7   LIMITATION OF STUDY

In the course of this research work, the researcher was faced with some constraints which plaved a limit he the ability and performance of the researcher encountered the following constraints among others.

  1. Insufficient Financial: The researcher needed a lot of money to travel as far as Aba to collect the necessary data from the firm under syudy. Money was also required to visit secondary data sources such as the internet, libraries, professional bodies, and so on.
  2. Lack of Co-Operation: The unco-operative attitudes of many employees of the firm under study were not encouraging. Some of them were so biased and prejudiced that did not care to understand the purpose of the research. This resulted to their failure to provide sufficient information required for proper completion of the study.
  3. Time Pressure: Time allowed was not enough for thorough completion of the research, in consideration of the fact we were also facing other academic studies during the semester.

1.8   DEFINITION OF TERMS USED IN THE STUDY

Accounting:    The process of recording, summarizing, analysis and interpreting financial (money-related) activities to permit individuals and organizations to make informed judgments and decisions. (Dansby et al., 2000: 1033).

Balance Sheet:                A financial statement containing assets, liabilities, and owner’s equity or capital at a particular data or at the end of a particular period, to show the financial position of a organization. (Akpakpan, 2002:106).

Business:         An activity, enterprise or organization established to provide goods and services at a profit, in order to satisfy human wants. (Ikon,2004:2).

Business Decision: Choices made on matters relating to the allocation and/or use of business resources for making, buying, selling, or supplying goods or services at a profit.

Decision-Making:   A mental process by which an individual or group of individuals gather data and make a choice between two or more alternative courses action. (Ayandele, 2005:3).

Financial Ratio:      A proportion, fraction, or percentage expressing the relationship between one item ion sett of financial statements and another item in the same financial statements. (Igben, 1999:423).

Financial Statement:             Quantitative information on the economic activities of an organization prepared to show the result and the financial position of the entity, often presented in terms of Balance Sheet, Income Statement, Funds flow statement, and so on.

Income Statement:        A financial statement often referred to as the trading and profit loss account, matching revenues against expense to show the profitability or operational results of an enterprise over a period of time, such as a month or year. (Hermanson et al. 1992:25).

Ratio:       A fractional relationship of one number (or itme) to another. (Dansby et al. 2000:1047).

Ratio Analysis:       A systematic review of accounting data by establishing relationships among various figures on the financial statements which bring together the results of the activities a business. (Omuya, 1983:430).

Role:                The degree to which somebody or something is involved in a situation or an actively and the effect that they have on it. (Hornby et al.2000:1021).

1.9   BRIFF HISTORICAL BACKGROUND OF O. JACO BROS. ENT. (NIG). LTD. ABA STATE

  1. Jaco Bros. Ent. (Nig) Ltd, Aba, Abia Sate was established in 1982. It started as a sole proprietorship business owned, runned, and managed by Nze Josephat Okolocha.

The firm is a trading concern. It specialized in sale, marketing, and distribution of various kinds of motorcycles, spare parts, and electric generators.

Meanwhile, in line with outstanding growth witnessed by the firm in the last couple of years, the organization is now an incorporated private limited liability company since 1999.

At present, the company has a total asset base of over N50 million and employs more than 30 workers. It has 6 branches. 4 in Aba, 1 in port Harcourt, and in Ekwulobia (Anambra State).

The head office located at  59, Jubilee Road, Aba, Abia State, (which is the center focus of this study), has 4 departments: the sales and marketing department, the purchasing and supply department, the Administration and personnel department, and the finance and Accounts Department.

 

HOW TO GET THE FULL PROJECT WORK

 

PLEASE, print the following instructions and information if you will like to order/buy our complete written material(s).

 

HOW TO RECEIVE PROJECT MATERIAL(S)

After paying the appropriate amount (#5000) into our bank Account below, send the following information to

08068231953 or 08168759420

 

(1)    Your project topics

(2)     Email Address

(3)     Payment Name

(4)    Teller Number

We will send your material(s) immediately we receive bank alert

 

BANK ACCOUNTS

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 0046579864

Bank: GTBank.

 

OR

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 2023350498

Bank: UBA.

 

HOW TO IDENTIFY SCAM/FRAUD

As a result of fraud in Nigeria, people don’t believe there are good online businesses in Nigeria.

 

But on this site, we have provided “table of content and chapter one” of all our project topics and materials in order to convince you that we have the complete materials.

 

Secondly, we have provided our Bank Account on this site. Our Bank Account contains all information about the owner of this website. For your own security, all payment should be made in the bank.

 

No Fraudulent company uses Bank Account as a means of payment, because Bank Account contains the overall information of the owner

 

CAUTION/WARNING

Please, DO NOT COPY any of our materials on this website WORD-TO-WORD. These materials are to assist, direct you during your project.  Study the materials carefully and use the information in them to develop your own new copy. Copying these materials word-to-word is CHEATING/ ILLEGAL because it affects Educational standard, and we will not be held responsible for it. If you must copy word-to-word please do not order/buy.

 

That you ordered this material shows you have agreed not to copy word-to-word.

 

 

FOR MORE INFORMATION, CALL:

08068231953 or 08168759420

 

 

 

Visit any of my project websites below:

www.easyprojectmaterials.com

www.easyprojectmaterials.com.ng

www.easyprojectmaterial.net

www.easyprojectmaterial.net.ng

www.easyprojectsolutions.com

www.worldofnolimit.com

www.worldofnolimit.com

www.nairaproject.com.ng

www.nairaprojects.com.ng

www.nairaproject.net

www.nairaprojects.net

www.uniproject.com.ng

www.uniprojects.com.ng

 

 

Tags: , ,

2 days ago 0 Comments Short URL

THE ROLE OF RATIO ANALYSIS IN BUSINESS DECISIONS A CASE STUDY OF O. JACO BROS. ENT. (NIG.) LTD., ABA, ABIA STATE

INTRODUCTION

  • BACKGROUND INFORMATION

The two primary objectives of every business are profitability and solvency.  Profitability is the ability of a business to make profit, while solvency is the ability of a business to pay debts as they come due.  (Hermanson et al, 1992: 824).  However, the achievement of these objectives requires efficient management of resources of the business through planning, budgeting, forecasting, control, and decision – making.  Also, the strengths and weakness of the business need to be identified and necessary corrective measures applied.  Interestingly, accounting provides information that facilitates these functions.

Basically, accounting measures and communicates economic information needed for decision –making.  Thus, the American Accounting Association (in Okezie, 2002:1) defined accounting as “the process of identifying, measuring and communicating economic information to permit informed judgments and decisions by the information”.  Statement and the Balance Sheet.  The Income Statement shows the profitability or  profitability or operational result of a business, while the balance sheet shows the solvency or financial position of a business.

Although profiles are often used as the basis for judging the performance of a business, such profits must be related to the various items of the financial statements in order to be meaningful and useful for decision making. Furthermore, owing to the summarized nature of financial statements, a lot of truths are hidden in them. Thus, they need to the analyzed and interpreted by means of financial ratios to enable the users understand the meaning of the absolute amounts shown in them, and make informed business decisions.

In this regard, Essien (2006:144) observed:

Financial statements carry lots of financial Information that are hidden in the figures. The figures in financial statements become more useful when they are related to each other or to some other relevant financial data. Therefore, users of financial information go a further step to establish relationships (or ratios) among selected data in financial statements.

According to Igben (1999:423), “Accounting {or financial} ratio is a proportion or fraction or percentage expressing the relationship between one item in a set financial statements and another item in the financial statements. Accounting ratios are the most powerful of all tools used in analyzed and interpreting financial statements”. Therefore, ratio analysis involves taking stats of number (or items) out of financial statements and forming ratios with them, to enhance informed judgments and decisions (Lasher, 1997:66).

MCShane et al. (2000:336) defined decision-making as “a conscious process of making choices among one or more alternatives with the interior of moving toward some desired state of affairs.” Therefore, business decisions can be defined as choices relating to the allocation and/or use of business resources to achieve business goals.

Decision-making calls information. Bittel et al. (1984:340) observed: “Managers want information because they need to make decisions. The proper use of information is an important part of decision-making.” Remarkably, one of the effective ways of providing information needed for decision-making is ratio analysis.

Yes, business dictions of make or buy, investment or divestment, expansion or contration, capital-organization and reconstruction, and so on cannot be properly made without the aid of financial ratios. They give cue to the financial strengths and weaknesses of a business, and highlight aspects of a business requiring further investigation.

Therefore, this research is carried out to show ratio analysis help managers, shareholders, investors, creditors, and other stakeholders make informed judgments and decisions about the past performance, present condition, and futures potential of a business.

1.2   STATEMENT OF PROBLEM                     

Financial information provided in financial statements are useful in business decisions. However, it must be noted that financial statements are means to an and not an end in themselves. Thus the use of financial statements in decision-making is not always easy owing to the following problems:

  1. In view of the summarized nature of the information contained in financial statements, they need to be analyzed and interpreted by means of financial ratios to enable management and stakeholders understand them and make well-informed business decisions.
  2. Many users of financial statements are not knowledgeable about accounting ratios and how the ratios can be applied to financial statements to aid decision-making.
  3. Despite the immense benefits of ratio analysis, there are a lot of weaknesses or limitations associated with its use.

In view of the above stated problems, this research is embarked upon to identify the proper use of financial ratios, and the roles ratio analysis plays in business decisions.

1.3   OBJECTIVES OF THE STUDY

In consideration of the problems identified above, the objective of this research include.

  1. To show how ratio analysis facilitates proper understanding of information contained in financial statements.
  2. To show how ratio analysis aids business decisions.
  3. To examine the techniques used in analysis financial statements.
  4. To identify the usefulness of financial ratios in measuring and predicting the performance and financial position of a business.
  5. To unravel the obstacles to the proper use of financial ratios in business decisions.
  6. To suggest on ways to enhance efficient use of ratio analysis in decision-making.

1.4   RESEARCH QUESTIONS

  1. Is ratio analysis useful in evaluating and prediction the performance of a business as well as intensifying areas that regret improvement?
  2. Do you agree with the fact that ratio analysis facilitates proper understanding of information contained in financial statements?

iii.    Is ratio analysis useful to management investors, shareholders and creditors in their business divisions?

  1. Does financial ratio helps to unravel the mass of truth hidden in financial statements?
  2. Are there obstacles that affect the proper use of ratio analysis in business decisions?

1.5   SIGNIFICANCE OF THE STUDY

The significance of this study is that on its completion, the following benefits will be derived:

  1. The study will help management of O. Jaco Brros. Ent. (Nig.) Ltd, Aba and others to know how ratio analysis can help them understand the financial contained in financial statements and enhance their business decisions.
  2. The findings of the research and the supportive reference materials will be of immense help to students in tertiary institutions and other researchers to investigate further in the area of study.
  3. It is hoped that the result of the research will facilitate optimal business decisions when the recommendations are complied with.
  4. The study will encourage businessmen, investors, managers, and government authorities to appreciate quantitative techniques like financial ratios when making economic and business decisions.

1.6   SCOPE OF THE STUDY

According to Akpakpan (2005:7), “scope of the study is the limits or boundary lines of the study. It is the areas covered by the research or the extent the researchers would go. Limitations of the study are hindrances or obstacles witnessed by the researcher in the course of the study. Which could influence his conclusions.”

In     view of the impossibility of covering every type of financial statement, this study is therefore restricted to the analysis of the income statement and the Balance Sheet by means of financial ratios. However, other analytical techniques such as horizontal analysis, vertical analysis and termed analysis would also be explained and illustrated.

Finally, although University Ratio Analysis is the core of the study, nevertheless, multivariate Ratio Analysis would be partly illustrated using Du pont Equations.

1.7   LIMITATION OF STUDY

In the course of this research work, the researcher was faced with some constraints which plaved a limit he the ability and performance of the researcher encountered the following constraints among others.

  1. Insufficient Financial: The researcher needed a lot of money to travel as far as Aba to collect the necessary data from the firm under syudy. Money was also required to visit secondary data sources such as the internet, libraries, professional bodies, and so on.
  2. Lack of Co-Operation: The unco-operative attitudes of many employees of the firm under study were not encouraging. Some of them were so biased and prejudiced that did not care to understand the purpose of the research. This resulted to their failure to provide sufficient information required for proper completion of the study.
  3. Time Pressure: Time allowed was not enough for thorough completion of the research, in consideration of the fact we were also facing other academic studies during the semester.

1.8   DEFINITION OF TERMS USED IN THE STUDY

Accounting:    The process of recording, summarizing, analysis and interpreting financial (money-related) activities to permit individuals and organizations to make informed judgments and decisions. (Dansby et al., 2000: 1033).

Balance Sheet:                A financial statement containing assets, liabilities, and owner’s equity or capital at a particular data or at the end of a particular period, to show the financial position of a organization. (Akpakpan, 2002:106).

Business:         An activity, enterprise or organization established to provide goods and services at a profit, in order to satisfy human wants. (Ikon,2004:2).

Business Decision: Choices made on matters relating to the allocation and/or use of business resources for making, buying, selling, or supplying goods or services at a profit.

Decision-Making:   A mental process by which an individual or group of individuals gather data and make a choice between two or more alternative courses action. (Ayandele, 2005:3).

Financial Ratio:      A proportion, fraction, or percentage expressing the relationship between one item ion sett of financial statements and another item in the same financial statements. (Igben, 1999:423).

Financial Statement:             Quantitative information on the economic activities of an organization prepared to show the result and the financial position of the entity, often presented in terms of Balance Sheet, Income Statement, Funds flow statement, and so on.

Income Statement:        A financial statement often referred to as the trading and profit loss account, matching revenues against expense to show the profitability or operational results of an enterprise over a period of time, such as a month or year. (Hermanson et al. 1992:25).

Ratio:       A fractional relationship of one number (or itme) to another. (Dansby et al. 2000:1047).

Ratio Analysis:       A systematic review of accounting data by establishing relationships among various figures on the financial statements which bring together the results of the activities a business. (Omuya, 1983:430).

Role:                The degree to which somebody or something is involved in a situation or an actively and the effect that they have on it. (Hornby et al.2000:1021).

1.9   BRIFF HISTORICAL BACKGROUND OF O. JACO BROS. ENT. (NIG). LTD. ABA STATE

  1. Jaco Bros. Ent. (Nig) Ltd, Aba, Abia Sate was established in 1982. It started as a sole proprietorship business owned, runned, and managed by Nze Josephat Okolocha.

The firm is a trading concern. It specialized in sale, marketing, and distribution of various kinds of motorcycles, spare parts, and electric generators.

Meanwhile, in line with outstanding growth witnessed by the firm in the last couple of years, the organization is now an incorporated private limited liability company since 1999.

At present, the company has a total asset base of over N50 million and employs more than 30 workers. It has 6 branches. 4 in Aba, 1 in port Harcourt, and in Ekwulobia (Anambra State).

The head office located at  59, Jubilee Road, Aba, Abia State, (which is the center focus of this study), has 4 departments: the sales and marketing department, the purchasing and supply department, the Administration and personnel department, and the finance and Accounts Department.

 

HOW TO GET THE FULL PROJECT WORK

 

PLEASE, print the following instructions and information if you will like to order/buy our complete written material(s).

 

HOW TO RECEIVE PROJECT MATERIAL(S)

After paying the appropriate amount (#5000) into our bank Account below, send the following information to

08068231953 or 08168759420

 

(1)    Your project topics

(2)     Email Address

(3)     Payment Name

(4)    Teller Number

We will send your material(s) immediately we receive bank alert

 

BANK ACCOUNTS

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 0046579864

Bank: GTBank.

 

OR

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 2023350498

Bank: UBA.

 

HOW TO IDENTIFY SCAM/FRAUD

As a result of fraud in Nigeria, people don’t believe there are good online businesses in Nigeria.

 

But on this site, we have provided “table of content and chapter one” of all our project topics and materials in order to convince you that we have the complete materials.

 

Secondly, we have provided our Bank Account on this site. Our Bank Account contains all information about the owner of this website. For your own security, all payment should be made in the bank.

 

No Fraudulent company uses Bank Account as a means of payment, because Bank Account contains the overall information of the owner

 

CAUTION/WARNING

Please, DO NOT COPY any of our materials on this website WORD-TO-WORD. These materials are to assist, direct you during your project.  Study the materials carefully and use the information in them to develop your own new copy. Copying these materials word-to-word is CHEATING/ ILLEGAL because it affects Educational standard, and we will not be held responsible for it. If you must copy word-to-word please do not order/buy.

 

That you ordered this material shows you have agreed not to copy word-to-word.

 

 

FOR MORE INFORMATION, CALL:

08068231953 or 08168759420

 

 

 

Visit any of my project websites below:

www.easyprojectmaterials.com

www.easyprojectmaterials.com.ng

www.easyprojectmaterial.net

www.easyprojectmaterial.net.ng

www.easyprojectsolutions.com

www.worldofnolimit.com

www.worldofnolimit.com

www.nairaproject.com.ng

www.nairaprojects.com.ng

www.nairaproject.net

www.nairaprojects.net

www.uniproject.com.ng

www.uniprojects.com.ng

 

 

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2 days ago 0 Comments Short URL

THE ROLE OF INTERNAL AUDITORS IN FRAUD CONTROL IN A BUSINESS ORGANIZATION (A CASE STUDY OF CHAMPION BREWERIES PLC UYO)

ABSTRACT

This research study was conducted to investigate the role of auditors in fraud control in business organization with particular interest and attention on Champion Breweries Plc, Uyo. Staff of Champion Brewery constitutes the population of the study from which a sample size of forty (40) respondents was selected. Three hypotheses were formulated and tested, Chi-square and percentage distribution was the statistical tool used in testing the hypothesis, while questionnaires were the method used for collection of data for the study. The result reveals that internal auditors play a significant role in keeping the organization accounting records in order. They also help in checking fraud. The problem affecting internal auditor in the champion brewery plc Uyo are enumerated.

  CHAPTER ONE

INTRODUCTION

1.1     BACKGROUND OF THE STUDY

It is pertinent at this introductory part to note the term auditing I its primitive and rudimentary form can well be traced back to the ancient firms but the term auditing is seen today in its formed state and was established in the later part of 19th century. Originally an auditor was one whom the receipt and payments of an establishment were read.

The definition of auditing came as independent examination and investigation of the evidence from which a financial statement has been prepared with a view of enabling the independent examiner to report whether in his opinion and according to the best of his knowledge, the information and the explanations obtained by him is properly drawn up and gives a fair view of what it report to show if not in what respect he is not the independent examiner who does the investigation and report there upon is referred to as the auditor.

The auditor being an independent examiner who should be professionally qualified examine the book of account and vouchers of the company as will enable him to report whether he satisfied or not that balance sheet is properly drawn upon so as to show a true and fair view of the profit and loss for the financial period.

The role of auditor is rigorous and from the above description of an auditor positions in this dynamic business do represent a true and fair view of financial position and earning and that the accuracy of the account is not distorted by any fraud and error which the auditor came across in the course of auditing. (Normond 2009).

The detection of fraud and error is not the primary responsibility of the auditor in a business organization, is therefore important to note with great concern that the auditors is not absorbed from the responsibility of fraud or error committed by directors or managers of a company.

The auditor must therefore satisfy himself that the accounts are incorrect in the consequent of fraud or error committed in director managers’ consequent upon the paradox position in which the auditors has found himself as regards the detection and prevention of fraud and errors the mechanism need to be instituted the efficiency by which the auditor can rely upon in carrying out his work. This brings us to internal check and control as the system of control, financing and otherwise, established by the government in order to carry on the enterprise business in an orderly and efficient manner. It is design to ensure adherence to management policies, safeguard the assets and secure as fair as possible. The completeness and the accuracy of the records. It brings into play both internal check and internal audit (auditing guidelines 2004).

1.2     HISTORICAL BACKGROUND OF CHAMPION BREWERIES COMPANY PLC. UYO

Champion breweries plc, was incorporated as a private limited liability company on 31st of July 1974 with the name south east breweries limited. Because of political imperative in Nigeria, the company’s name was change from south east breweries to cross river breweries and thereafter to champion breweries limited. The later name, champion breweries plc, on the 1st of September 1992.

On the 20th of November 1974, the government of the south eastern state of Nigeria signed an agreement with Messers Haable Barerie GMBH of Hambling (Technical partner) for the supply and construction of a Turkey Brewery in Uyo with a capacity of 150.00 hectoliters. The foundation stone of breweries was laid on the 19th of March 1975. On 11th December, 1976, the brewery was officially commissioned and its products champion larger beer lunched into the market with success.

On the 22nd of July 1977, a second contract was signed with the technical partners to increase the capacity of brewery from 150,000 10 500,000 hectoliters. The foundation stone for the expansion was laid on the 24th December 1977. The expansion which uncorrupted more sophisticated machinery was completed and put on the trial run in September 1979. The second production line was officially commissioned on the 11thof December 1979, the same year the company’s product “champion ledger beer” and “Champ Malta” won silver medal at an international contest in Paris, France. Champion lager beer had previously won the election for beer and non-alcoholic beverage in Luxemburg.

The champion breweries located at Aka Offot along Nung Udoe Road about 3km from Ibom Plaza, are mainly engaged in production and distribution of champion beer and champion Malta (soft drink).

Consequently upon pressure of demand for its products, the company took a decision to double its capacity to one million hectoliters. This third expansion which gulped substantial resources could not be realized. The non-completion of the expansion programme coupled with lack of working capital, and inadequate maintenance of the plants forced the company to close its doors for business between 1990 and 1991. All subsequent reactivation attempts did not yield desired result.

With the advent of democracy in Nigeria in May 1999 the government of Akwa Ibom State made reaction of the brewery a cardinal activity.

Consequently, Akwa Ibom investment and industrial promotion council (AKIIPOC) was charged with responsibility to reactivate the company  pursuance to this mandate, AKIIPOC, in conjunction with the board of directors of the company went to the market to solicit for core investor technical managers. In process, Messrs, Montgomery ventures incorporated of Paroma (with offices in Geneva, Switzerland was identified and brought into the company as core investors/technical managers after a memorandum of understanding was signed.

Based on a memorandum, reactivation committee was set up by the board of the company to work with the core investors and technical managers for revamping of the company.

The reactivation process, which commenced in February, 2000, lasted about nineteen months. Now the plants has been revamped and restricted to use one hundred percent locally sourced raw material. The brewery is now fully operational and the capacity is 500,000 hectoliters per annum.

The reactive brewery was officially commissioned on 23rd October, 2001. Champion larger beers is now in the market and doing well, other products of the company including Champ Malta will follow soon. Already the company has successfully held an extra-ordinary general meeting of the shareholders during which approval was given for authorized share capital of company to be increased from N26 million to N 45 million. The second phase of the reactivation programme has begun already. The aim is to diversify the company’s product and bring the capacity to 1,000,000 hectoliters per annum.

Moreover, the company has been able to create employment opportunities for both the people in the locality and Akwa Ibom State at large.

The staff strength is three hundred (300) which is made up of administrative, personnel, finance, marketing and operations.

1.3     STATEMENT OF THE PROBLEM

The research attempts to investigate the problem of the role of internal auditor in a business organization such as lack of independence, confidence among others. How the combine effect of these problem hinder the organizational progress. The negligence of auditor’s reports by management also constitutes a problem.

1.4     SCOPE OF THE STUDY

The study was Concentrated on the structure of auditors’ role in a business organization. The study will also go further to deal with the role of internal auditor’s fraud control, type of an auditor, who is an auditor, duties/responsibilities of internal auditors and so on.

1.5     PURPOSE/OBJECTIVE OF THE STUDY

The purpose and objective of the study are:-

1        To know the role of internal auditors in a business           organization

2        To evaluate whether auditors’ role is important in a business organization.

  1. To know the contributions of internal auditors to the progress of an organizations.
  2. To identify the possible causes of fraud in champion brewery plc. Uyo of which auditors try to prevent.

5        To evaluate the procedures of auditing by internal auditors of champion brewery plc. Uyo and finally to know the reason auditors role has failed to prevent fraud in champion brewery Plc Uyo.

1.6     SIGNIFICANCE OF THE STUDY

  1. a) It will increase and expand the knowledge of prospective students of accountancy on the role of internal auditors in a     business organization.
  2. b) Proffer solution thereby trying to solve problem arising from the role of internal auditors in business organization.
  3. c) It will definitely serve as a reference point of criticism for further research.
  4. d) It will suggest and also proffer solutions which will help moderate and regulate the role of internal auditors in a        business organization.
  • RESEARCH HYPOYESIS

1        HO:  Internal auditors do not play any important role in an organization.

HI:    Internal auditors play very important role in an organization.

2        HO:  internal auditors do not help in keeping proper and efficient financial record in an organization.

HI:    internal auditors do help in keeping proper and efficient financial record in an organization.

3        HO:  internal auditors do not help in checking fraud and error in an organization

HI:    internal auditors do help in checking fraud and error in an organization

1.8     LIMITATION OF THE STUDY

The lack of time and finances, the unavailability of reliable and authority’s texts by authorities in the field of auditing were some of the limitation of the study. Again most people are skeptical when it comes to giving out information especially such that is required for a research work like this.

  • DEFINITION OF TERMS AND ACRONYM
  1. a) AUDIT: Audit is interpreted to mean an independent examination of an expression of an opinion on those financial statements so examined by external audit regarding a firm’s financial position at a particular period and to ensure that all applicable laws, regulations and policies and complied with Akpakpan 2002.
  2. b) AUDIT REPORT: this is a communicated statement of opinion (judgment) based upon convincing evidence by an independent, word potent and authoritative person concerning the degree of correspondence, in all materials respects of accounting and information communicated by the entity (individual) companies government unit) established (American committee of auditor concept, Okezie 1991)
  3. c) BUSINESS ORGANIZATION: this is a business unit or an enterprise that undergoes business transaction with the aim of making profit.
  4. d) FRAUD: the crime of deceiving somebody in order to get money or goods illegally, a person who pretends to have qualities, abilities etc. that they don’t really have in order to deceive other (Advance Learners Oxford Dictionary 6th Edition 472)
  5. e) ERROR: a mistake especially one that causes problems affects the result of something.
  6. f) Accountability: this mean keeping proper records of revenue or income and making remittance to the account (Anyanwu, 1997:27).

 

HOW TO GET THE FULL PROJECT WORK

 

PLEASE, print the following instructions and information if you will like to order/buy our complete written material(s).

 

HOW TO RECEIVE PROJECT MATERIAL(S)

After paying the appropriate amount (#5000) into our bank Account below, send the following information to

08068231953 or 08168759420

 

(1)    Your project topics

(2)     Email Address

(3)     Payment Name

(4)    Teller Number

We will send your material(s) immediately we receive bank alert

 

BANK ACCOUNTS

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 0046579864

Bank: GTBank.

 

OR

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 2023350498

Bank: UBA.

 

HOW TO IDENTIFY SCAM/FRAUD

As a result of fraud in Nigeria, people don’t believe there are good online businesses in Nigeria.

 

But on this site, we have provided “table of content and chapter one” of all our project topics and materials in order to convince you that we have the complete materials.

 

Secondly, we have provided our Bank Account on this site. Our Bank Account contains all information about the owner of this website. For your own security, all payment should be made in the bank.

 

No Fraudulent company uses Bank Account as a means of payment, because Bank Account contains the overall information of the owner

 

CAUTION/WARNING

Please, DO NOT COPY any of our materials on this website WORD-TO-WORD. These materials are to assist, direct you during your project.  Study the materials carefully and use the information in them to develop your own new copy. Copying these materials word-to-word is CHEATING/ ILLEGAL because it affects Educational standard, and we will not be held responsible for it. If you must copy word-to-word please do not order/buy.

 

That you ordered this material shows you have agreed not to copy word-to-word.

 

 

FOR MORE INFORMATION, CALL:

08068231953 or 08168759420

 

 

 

Visit any of my project websites below:

www.easyprojectmaterials.com

www.easyprojectmaterials.com.ng

www.easyprojectmaterial.net

www.easyprojectmaterial.net.ng

www.easyprojectsolutions.com

www.worldofnolimit.com

www.worldofnolimit.com

www.nairaproject.com.ng

www.nairaprojects.com.ng

www.nairaproject.net

www.nairaprojects.net

www.uniproject.com.ng

www.uniprojects.com.ng

 

 

Tags:

2 days ago 0 Comments Short URL

THE ROLE OF INTERNAL AUDITORS IN FRAUD CONTROL IN A BUSINESS ORGANIZATION (A CASE STUDY OF CHAMPION BREWERIES PLC UYO)

ABSTRACT

This research study was conducted to investigate the role of auditors in fraud control in business organization with particular interest and attention on Champion Breweries Plc, Uyo. Staff of Champion Brewery constitutes the population of the study from which a sample size of forty (40) respondents was selected. Three hypotheses were formulated and tested, Chi-square and percentage distribution was the statistical tool used in testing the hypothesis, while questionnaires were the method used for collection of data for the study. The result reveals that internal auditors play a significant role in keeping the organization accounting records in order. They also help in checking fraud. The problem affecting internal auditor in the champion brewery plc Uyo are enumerated.

  CHAPTER ONE

INTRODUCTION

1.1     BACKGROUND OF THE STUDY

It is pertinent at this introductory part to note the term auditing I its primitive and rudimentary form can well be traced back to the ancient firms but the term auditing is seen today in its formed state and was established in the later part of 19th century. Originally an auditor was one whom the receipt and payments of an establishment were read.

The definition of auditing came as independent examination and investigation of the evidence from which a financial statement has been prepared with a view of enabling the independent examiner to report whether in his opinion and according to the best of his knowledge, the information and the explanations obtained by him is properly drawn up and gives a fair view of what it report to show if not in what respect he is not the independent examiner who does the investigation and report there upon is referred to as the auditor.

The auditor being an independent examiner who should be professionally qualified examine the book of account and vouchers of the company as will enable him to report whether he satisfied or not that balance sheet is properly drawn upon so as to show a true and fair view of the profit and loss for the financial period.

The role of auditor is rigorous and from the above description of an auditor positions in this dynamic business do represent a true and fair view of financial position and earning and that the accuracy of the account is not distorted by any fraud and error which the auditor came across in the course of auditing. (Normond 2009).

The detection of fraud and error is not the primary responsibility of the auditor in a business organization, is therefore important to note with great concern that the auditors is not absorbed from the responsibility of fraud or error committed by directors or managers of a company.

The auditor must therefore satisfy himself that the accounts are incorrect in the consequent of fraud or error committed in director managers’ consequent upon the paradox position in which the auditors has found himself as regards the detection and prevention of fraud and errors the mechanism need to be instituted the efficiency by which the auditor can rely upon in carrying out his work. This brings us to internal check and control as the system of control, financing and otherwise, established by the government in order to carry on the enterprise business in an orderly and efficient manner. It is design to ensure adherence to management policies, safeguard the assets and secure as fair as possible. The completeness and the accuracy of the records. It brings into play both internal check and internal audit (auditing guidelines 2004).

1.2     HISTORICAL BACKGROUND OF CHAMPION BREWERIES COMPANY PLC. UYO

Champion breweries plc, was incorporated as a private limited liability company on 31st of July 1974 with the name south east breweries limited. Because of political imperative in Nigeria, the company’s name was change from south east breweries to cross river breweries and thereafter to champion breweries limited. The later name, champion breweries plc, on the 1st of September 1992.

On the 20th of November 1974, the government of the south eastern state of Nigeria signed an agreement with Messers Haable Barerie GMBH of Hambling (Technical partner) for the supply and construction of a Turkey Brewery in Uyo with a capacity of 150.00 hectoliters. The foundation stone of breweries was laid on the 19th of March 1975. On 11th December, 1976, the brewery was officially commissioned and its products champion larger beer lunched into the market with success.

On the 22nd of July 1977, a second contract was signed with the technical partners to increase the capacity of brewery from 150,000 10 500,000 hectoliters. The foundation stone for the expansion was laid on the 24th December 1977. The expansion which uncorrupted more sophisticated machinery was completed and put on the trial run in September 1979. The second production line was officially commissioned on the 11thof December 1979, the same year the company’s product “champion ledger beer” and “Champ Malta” won silver medal at an international contest in Paris, France. Champion lager beer had previously won the election for beer and non-alcoholic beverage in Luxemburg.

The champion breweries located at Aka Offot along Nung Udoe Road about 3km from Ibom Plaza, are mainly engaged in production and distribution of champion beer and champion Malta (soft drink).

Consequently upon pressure of demand for its products, the company took a decision to double its capacity to one million hectoliters. This third expansion which gulped substantial resources could not be realized. The non-completion of the expansion programme coupled with lack of working capital, and inadequate maintenance of the plants forced the company to close its doors for business between 1990 and 1991. All subsequent reactivation attempts did not yield desired result.

With the advent of democracy in Nigeria in May 1999 the government of Akwa Ibom State made reaction of the brewery a cardinal activity.

Consequently, Akwa Ibom investment and industrial promotion council (AKIIPOC) was charged with responsibility to reactivate the company  pursuance to this mandate, AKIIPOC, in conjunction with the board of directors of the company went to the market to solicit for core investor technical managers. In process, Messrs, Montgomery ventures incorporated of Paroma (with offices in Geneva, Switzerland was identified and brought into the company as core investors/technical managers after a memorandum of understanding was signed.

Based on a memorandum, reactivation committee was set up by the board of the company to work with the core investors and technical managers for revamping of the company.

The reactivation process, which commenced in February, 2000, lasted about nineteen months. Now the plants has been revamped and restricted to use one hundred percent locally sourced raw material. The brewery is now fully operational and the capacity is 500,000 hectoliters per annum.

The reactive brewery was officially commissioned on 23rd October, 2001. Champion larger beers is now in the market and doing well, other products of the company including Champ Malta will follow soon. Already the company has successfully held an extra-ordinary general meeting of the shareholders during which approval was given for authorized share capital of company to be increased from N26 million to N 45 million. The second phase of the reactivation programme has begun already. The aim is to diversify the company’s product and bring the capacity to 1,000,000 hectoliters per annum.

Moreover, the company has been able to create employment opportunities for both the people in the locality and Akwa Ibom State at large.

The staff strength is three hundred (300) which is made up of administrative, personnel, finance, marketing and operations.

1.3     STATEMENT OF THE PROBLEM

The research attempts to investigate the problem of the role of internal auditor in a business organization such as lack of independence, confidence among others. How the combine effect of these problem hinder the organizational progress. The negligence of auditor’s reports by management also constitutes a problem.

1.4     SCOPE OF THE STUDY

The study was Concentrated on the structure of auditors’ role in a business organization. The study will also go further to deal with the role of internal auditor’s fraud control, type of an auditor, who is an auditor, duties/responsibilities of internal auditors and so on.

1.5     PURPOSE/OBJECTIVE OF THE STUDY

The purpose and objective of the study are:-

1        To know the role of internal auditors in a business           organization

2        To evaluate whether auditors’ role is important in a business organization.

  1. To know the contributions of internal auditors to the progress of an organizations.
  2. To identify the possible causes of fraud in champion brewery plc. Uyo of which auditors try to prevent.

5        To evaluate the procedures of auditing by internal auditors of champion brewery plc. Uyo and finally to know the reason auditors role has failed to prevent fraud in champion brewery Plc Uyo.

1.6     SIGNIFICANCE OF THE STUDY

  1. a) It will increase and expand the knowledge of prospective students of accountancy on the role of internal auditors in a     business organization.
  2. b) Proffer solution thereby trying to solve problem arising from the role of internal auditors in business organization.
  3. c) It will definitely serve as a reference point of criticism for further research.
  4. d) It will suggest and also proffer solutions which will help moderate and regulate the role of internal auditors in a        business organization.
  • RESEARCH HYPOYESIS

1        HO:  Internal auditors do not play any important role in an organization.

HI:    Internal auditors play very important role in an organization.

2        HO:  internal auditors do not help in keeping proper and efficient financial record in an organization.

HI:    internal auditors do help in keeping proper and efficient financial record in an organization.

3        HO:  internal auditors do not help in checking fraud and error in an organization

HI:    internal auditors do help in checking fraud and error in an organization

1.8     LIMITATION OF THE STUDY

The lack of time and finances, the unavailability of reliable and authority’s texts by authorities in the field of auditing were some of the limitation of the study. Again most people are skeptical when it comes to giving out information especially such that is required for a research work like this.

  • DEFINITION OF TERMS AND ACRONYM
  1. a) AUDIT: Audit is interpreted to mean an independent examination of an expression of an opinion on those financial statements so examined by external audit regarding a firm’s financial position at a particular period and to ensure that all applicable laws, regulations and policies and complied with Akpakpan 2002.
  2. b) AUDIT REPORT: this is a communicated statement of opinion (judgment) based upon convincing evidence by an independent, word potent and authoritative person concerning the degree of correspondence, in all materials respects of accounting and information communicated by the entity (individual) companies government unit) established (American committee of auditor concept, Okezie 1991)
  3. c) BUSINESS ORGANIZATION: this is a business unit or an enterprise that undergoes business transaction with the aim of making profit.
  4. d) FRAUD: the crime of deceiving somebody in order to get money or goods illegally, a person who pretends to have qualities, abilities etc. that they don’t really have in order to deceive other (Advance Learners Oxford Dictionary 6th Edition 472)
  5. e) ERROR: a mistake especially one that causes problems affects the result of something.
  6. f) Accountability: this mean keeping proper records of revenue or income and making remittance to the account (Anyanwu, 1997:27).

 

HOW TO GET THE FULL PROJECT WORK

 

PLEASE, print the following instructions and information if you will like to order/buy our complete written material(s).

 

HOW TO RECEIVE PROJECT MATERIAL(S)

After paying the appropriate amount (#5000) into our bank Account below, send the following information to

08068231953 or 08168759420

 

(1)    Your project topics

(2)     Email Address

(3)     Payment Name

(4)    Teller Number

We will send your material(s) immediately we receive bank alert

 

BANK ACCOUNTS

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 0046579864

Bank: GTBank.

 

OR

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 2023350498

Bank: UBA.

 

HOW TO IDENTIFY SCAM/FRAUD

As a result of fraud in Nigeria, people don’t believe there are good online businesses in Nigeria.

 

But on this site, we have provided “table of content and chapter one” of all our project topics and materials in order to convince you that we have the complete materials.

 

Secondly, we have provided our Bank Account on this site. Our Bank Account contains all information about the owner of this website. For your own security, all payment should be made in the bank.

 

No Fraudulent company uses Bank Account as a means of payment, because Bank Account contains the overall information of the owner

 

CAUTION/WARNING

Please, DO NOT COPY any of our materials on this website WORD-TO-WORD. These materials are to assist, direct you during your project.  Study the materials carefully and use the information in them to develop your own new copy. Copying these materials word-to-word is CHEATING/ ILLEGAL because it affects Educational standard, and we will not be held responsible for it. If you must copy word-to-word please do not order/buy.

 

That you ordered this material shows you have agreed not to copy word-to-word.

 

 

FOR MORE INFORMATION, CALL:

08068231953 or 08168759420

 

 

 

Visit any of my project websites below:

www.easyprojectmaterials.com

www.easyprojectmaterials.com.ng

www.easyprojectmaterial.net

www.easyprojectmaterial.net.ng

www.easyprojectsolutions.com

www.worldofnolimit.com

www.worldofnolimit.com

www.nairaproject.com.ng

www.nairaprojects.com.ng

www.nairaproject.net

www.nairaprojects.net

www.uniproject.com.ng

www.uniprojects.com.ng

 

 

Tags:

2 days ago 0 Comments Short URL