FINANCIAL CONTROL IN PUBLIC SECTOR AS A MEASURE FOR PREVENTING FRAUD AND FUND MISUSE (A Case Study of federal Inland Revenue Service Ilorin)

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Product Category: Projects

Product Code: 00001230

No of Pages: 67

No of Chapters: 5

File Format: Microsoft Word

Price :

₦3000

TABLE OF CONTENTS

Title page                                                                 

Certification                                                                i

Dedication                                                                 ii

Acknowledgement                                                      iii

Table of contents                                                                vi


CHAPTER ONE

1.1    Introduction                                                       1

1.2    Statement of the Research problem                      5

1.3    Objective of the study                                         5

1.4    Significant of the study                                                5

1.5    Research Question                                              6

1.6    Scope of the study                                              7

1.7    Limitation of the study                                         8

1.8    Study plan                                                         8

1.9    Definition of key terms                                        9


CHAPTER TWO

LITERATURE REVIEW

2.1    The public Sector                                                        11

2.2    Difference between Public and Private Sector Accounting      14

2.3    Accountancy and Financial report                         16    

2.4    Frauds and fund misuse                                      17

2.5    Causes of Frauds and fund misuse                               19

2.6    Types of Frauds                                                 21

2.7    Detection and Prevention of Frauds                      23

2.8    The internal control system                                  24

2.9    Internal and External audit                                  28

2.10  Scope and Internal Audit                                     31


CHAPTER THREE

RESEARCH METHODOLOGY

3.1    Definition                                                           34

3.2    Method of data collection                                     34

3.3    Population and sample size                                  37

3.4    Sampling Techniques                                          37

3.5    Method of Data Analysis                                      37


CHAPTER FOUR

ANALYSIS OF PRESENTATION OF DATA

4.1    Introduction                                                       39

4.2    Data Collection                                                   39

4.3    Data Analysis                                                     40

4.4    Analysis of fraud and fund misuse data question    44


CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATION

5.1    Summary                                                           51

5.2    Conclusion                                                                 56

5.3    Recommendation                                                        56

Reference                                                          59







 

CHAPTER ONE

1.1   INTRODUCTION

        Public sector could be described as the government arm of a country. The three tiers of government in relation to Nigeria include the federal government, the state government and the local government.

Fraud and fund misuse over the year has been a threat to Nigeria economy. The need to prevent it gave birth to financial control system.

Fraud as a conscious premeditated action of a person or group of people with the intention of uttering the truth or fact for selfish personal and monetary gain”

Fraud involves the use of decent and trick and some times highly intelligent cunning and know-how.

The action takes the form of forgery, falsification of documents forging and uttering of signatures and out right.

Fund misuse on its own, occurs in most cases intentionally and it is thus a method of fraud perpetration in most pubic sector establishment.

The need for fraud and fund misuse prevention could be derived from a report fact contained in an extract from the human development report 1994 prepared by the united nations development programme (UNDP) stating that “Developing countries of the world save on estimated $125billion between 1987 and 1994 from reduced military spending but those funds cannot be linked with any development project that can improve the standard of living of their national” what were the fund used for?


1.2   STATEMENT OF THE RESEARCH PROBLEM

In Nigerian today, it’s a fact that accountability in its entire ramification has been unfamiliar to out public sector. This pathetic situation is assumed to be the cumulative effect of various problems confronting “financial control”. In Nigeria Public sector establishment. As a result, this research is being conducted to highlight the problem of frauds and misuses of funds in public sector and the need and significant importance of financial control system in the public sector.

Some of the major problems inhibiting financial control in public sector are as follows: Poor enforcement, procedures, late finalization of accounts, poor enforcement of laid down procedures or financial control, insufficient financial regulations and poor internal control system in various departments.

There is poor number of qualified accountants and professional in other management field to institute sound financial control system and this may be attributed to poor condition of services obtained in the public sector compared with that of private sectors. It is important to note, there is inadequate attention to revenue collection and expenditures resulting in under utilization, incremental budgetary system which encourage accounting officers and other privilege employees to misuse funds and perpetrate funds. There is also the problem of daily up-rise of financial requirements without constant review of a control procedures and existence of antiquated accounting and financial rules procedures development in accounting technology and government spending. The misuse of poor remuneration to public servant compared with other sector encourages inefficiency and fraudulent practices in public sector and poor services to the populace in turn encourage the third parties to perpetrate frauds in public sector.

There factors are problems inhibiting the effective application of both internal and external financial control system in public sector.

 

1.3   OBJECTIVE OF THE STUDY

The objective of the study are as follows:

ü To confirm the existence of financial control system in public sector.

ü To explain the role of internal control system

ü Detection and prevention of errors, frauds and misuse of public fund are indicated.

ü To explain the effect of tax office at improving tax collection procedures.

ü The relevance of auditing for effective control in public sector is explained.

ü To discuss the importance of auditing in the tax office.


1.4   SIGNIFICANCE OF THE STUDY

This study has much relevance and implication to the case study, all government ministries and parastatals, private sectors and Nigerian economy as a whole. the terrible affect of funds and misuse of public fund in government treasury leads to a basic set back paramount in public sector today. The set up of Nigeria and other developing countries of the world today is characterized with embezzlement, corruption and gross indiscipline and it’s the concern of every government of developing countries and even develop, countries to institute sound financial control strategy to save their respective economy from imminent collapse. This therefore calls for a study in this area.


1.5   RESEARCH QUESTIONS

1.     Does financial control has been a major exercise in the public sector

2.     Does fraud involves the use of decent and trick and some terms highly intelligent cunning.

3.     Does adjustment for debtors and creditor are made at the end of the year in order to correct expenses or revenue into account in private sector.

4.     Does public sector provide information necessary for faithful efficient, effective and economical management of a operation of and the entrusted to it.


1.6   SCOPE OF THE STUDY

The study has been majorly carried in Ilorin areas office of federal Inland Revenue Service. The system of financial control of the organization as a whole follows the same pattern with other areas and zonal offices. Reasonable exposures have been made of external and internal control devices applicable in the area office or efficient operation and other relevant financial control system operative in the organization as a whole as far as possible.

 

1.7   LIMITATION OF THE STUDY

Many problems were encountered during the course of this research work but in which I tried my best in order for the problems not to hinder the effectiveness of this research work.

1.     FINANCIAL PROBLEMS: But in which I have to sources for more fund from my sponsors.

2.     TIME CONSTRAINTS: In which I rescheduled my program so as to give enough time for the research work.


1.8   PLAN OF THE STUDY

This study is plan into five chapter, chapter one will consist of introduction and chapter two will cover there view of selected literature, research methodology in chapter three and analysis will be presented in chapter four, the last chapter which is chapter five will contain summary, conclusion and recommendation.

 

1.9   DEFINITION OF KEY TERMS

THE PUBLIC SECTOR: could be described as the government arm of a country. The three tiers of government in relation to Nigeria includes the federal government, the state government and the local government each tier of government lies its own role, power, responsibility, as described by the constitution and relevant decree.

FUND MISUSE: This is the most susceptible factor which fraudster usually relies upon when for instance, a figure is not properly written, it can easily be manipulated by fraudsters.

INTERNAL CONTROL SYSTEM: The meaning attached to the term “internal control” American institute of certified public accountants is a follows. It is the whole system of controls financial and otherwise adopted within a business to safeguard its assets.

INTERNAL AUDIT: means an independent appraised function established within an organization to examine and evaluate its activities as a services to the organization.

AUDITING: can be defined as an independent examination of the expression of an opinion on the financial statement of an enterprise by an appointed auditor in accordance with the term of his engagement in the compliance with relevant obligations and profession requirement.

EXTERNAL AUDIT: is an independent observation. The function of and external auditor is to examine the financial statement prepared by the management with a view to express opinion on the truth and fairness of the accounts.

ADVANCE FEES FRAUDS (419): This is a situation whereby a person promises another person of a contract already awarded and ask him to pay on advance fee to formalize the contract, thereafter the person disappears.

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