INTERNAL CONTROL SYSTEM IN THE ADMINISTRATION OF WAGES AND SALARIES IN MINISTRIES (A CASE STUDY OF SELECTED MINISTRIES IN IMO STATE)

Thesis Overview

<p> </p><p><strong>1.0 INTRODUCTION<br></strong></p><p><strong>1.1 BACKGROUND<br>OF THE STUDY</strong></p><p>&nbsp;Ministries faced and saddled with the responsibility of administration of wages and salaries. The need for this arises so as to eliminate the case of ghost workers, to ensure that standards are maintained and adhered to, to ensure that workers are paid at the appropriate rate and to detect fraud by managers or other persons. These motives led to the introduction of an internal control system which has been defined in statement on auditing (U.4) as being “not only internal check and internal audit but the whole system of control, financial and otherwise, established by management in order to carry on the business of the company in an orderly manner, safeguard its assets and secure as far as possible the accuracy and reliability of its records”.</p><p>&nbsp;It is known fact that management in all ministries irrespective of their size and nature has financial statement as their main vehicle for presenting accountability and stewardship to the shareholders of their ministries.</p><p>&nbsp;Accounting to LYNN (1983) “The statistical data that must be estimated and accumulated to plan and control virtually all operation of ministries are best used in conjunction with financial data”. It can then be deducted that accountability and stewardship are best rendered in form of financial statement. Hence, management must device adequate means of promoting efficiency in operations safe guarding resources from fraud and other forms of mis-management and creating a reliable atmosphere over recorded transaction. This necessitates the concept of internal controls system in any ministry. If a financial statement is to present a true and view, then there must be effective control at all facts of ministries.</p> <br><p></p>