The role of financial accountability in a public limited company save electricity images for drawing

The mismanagement of every organization emanates from the ability of the financial accountability to administer the financial undertaken in order to achieve its profit maximization.Business collapsed, is characterized by negligence to adhere to effective control system, which primarily comes from internal control.An organization encounters problems, which often times result to financial impropriety, which has made many firm to collapse. Some of these problems lie largely outside the control of the organization. These are the problem to be solved by the financial accountability in the interest of effective control system of the organization while other problems arise from the organization’s limitation in his financial undertakings.An analysis of factors that contributed to this fact would be highlighted and useful recommendation towards resolving these problems would be made.This researcher is optimistic in view of the fact that if these recommendations are adhered to, they will go a long way in achieving the objectives of this research work.

Accountability as seen by Iwumenne (1982: 56) is the sole of any business continuity. A mismanaged economy cannot sustain her subjects. In the micro sense, a mismanaged firm is for failure. The main aim of business is profit maximization. This cannot be achieved if the financial mismanagement is endowed in any form. In any business setting, the priority of management is to enable the firm to continue to finance its undertakings. This cannot be achieved without due regard to the prudent financial administration.

According to Muoha Otanka (1975:4) 2. The spirit of continuity of a business is the careful administration that well administers the financial undertakings. Really, the issue of financial importriety has made many a business, collapse. There are many ways to check the menace in both public and private life. Any method used in subsumed in effective control system which primarily cue’s from internal control.

To have effective control of materials, men, and machine, management needs grassroots control affected through monitoring of any financial disbursement. The issue at stake is that good internal control is a necessary condition for efficiency of any organization.

To state it differently, any organization that opts for a continued business entity must be prepared to timely check the personal, procure the right type of personnel, train them on the technical aspect of the work and teach equity and justice in financial appropriation. The financial manager must be a model of sound background of prudent handling of money.

In addition to the above, the peculiar nature of the Nigeria economy has made any topic in accountability, financial or otherwise, worth discussing. Nigeria has had her fair share of financial impropriety both in the public and private sector, not quite unconnected with her political set ups, the history of the evolution of her financial institutions and level of the country’s development.

The fact that both public and private sectors need and make use of control measures is undisputable. The extent to which they employ this and how it has improved their finances is called to question. The effective means, by which they employ internal control to safeguard assets, collect debts or pay creditor, etc is the issue at stake.

In the words of a management experts, “internal control comprises the plan of organization to co-ordinate method and measures adopted within a business to safeguard its assets, check accuracy and reliability of its accounting data, promote operational efficiency and encourage adherence to prescribed managerial policies.

Peter F. Drucker, noted that management is the act of getting thing done through others. The owner of every business expects a reasonable return on their investment of who executes the policies. The problem of policy execution is further compounded by the evolution of large organization.

Personal supervision of the employees by individual seems an attempt at impossibility with large spoons of control. There are therefore the needs for an internal control system. Internal control is such an indispensable tool in the hand of management if it wish to obtain adequate and useful information, protect company assets, but despite the established necessity for installing an internal control system, many managers do not have it, and they of course wallow in the flimsy excuse of its expensive nature. This is the first problem.

The other thing to think about is the effectiveness of control procedures of the internal control is at all established. The effectiveness of control procedures is a function of the fact that segregate duties are not being circumvented by the collusion of the employees, negligence and even personal factors. These factors are problem to the firm and eventually would undermine the effectiveness and efficiency of the internal control system, if not taken care of. The afore – mentioned problem give rise to the following basic questions:

There ius also the importance of this study, which comes as a result of the public glamour for accountability. The promotion of the benefits associated with effective internal control and the attendant financial accountability is the aim of this study.

Through internal control, the control measures, will be the only one computed for analytical purposes. Respondent to the study will astraddle over all departments and even beyond the company. However, a certain sampling procedure, as will be seen later, is adopted to achieve a certain level of reliability of the data gotten.