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THE IMPACT OF INTERNAL CONTROL IN MANUFACTURING ORGANIZATION (A CASE STUDY OF NIGERIA BOTTLING COMPANY PLC, ONITSHA ANAMBRA STATE)
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Internal control is an indispensable element in the life of any organization, organization cannot meet it’s objectives very well without having an internal control. The need to install internal control becomes imperative due to the increase in size and complexity of the activity of the modern organization. The installation of internal control has a lot of impact on manufacturing organizationi.
Control on the other hand has been identified as one of the essentials of management functions. It is difficult if not impossible to talk about management without control. Control according to Robert. C. apple is an activity that involves checking to see that plans have carried out and derivation attended to control therefore is one element of management to serious organizationi has it own idea of control over finances, control over expenditure tangible assets and the internal control originated from control.
The statement number one of the institute of chartered internal control as one consisting of one only internal check nd internal audit but the whole system of controls, financial or otherwide established by management in order to carry on the business in an orderly manners.
internal control can simply be defined as all measures used by management to regulate and control the affairs of the business without an internal control an organization is likely to be effective and too costly to operate due to constant occurrence of fraud. Regardless of the size, type and occurrence of structure of any organization manger and accountants should know the rudiment of it’s accounting system and internal controls. This will help the managers and other staff to operate the organizationi effectively and efficiently.
1.2 STATEMENT OF PROBLEMS
Does internal control give rise to organization efficiency and good management?
Is it possible to have a good accounting system without an internal control system?
Can the organization achieve its objectives without internal control?
1.3 OBJECTIVE OF THE STUDY
1 To find out what makes up the internal control system of a manufacturing organization.
2 To examine critically the impact of internal control in the management of the company understudy.
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