Internal Control as a Measure of Preventing Error in Manufacturing Industries
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Abstract on Internal Control as a Measure of Preventing Error in Manufacturing Industries
There is clarion call for a strong internal control as a measure for preventing errors in the manufacturing organization to make sure that, the organization assets are safeguard and that they need up with their financial obligations as at when due. On the lighter mood, considering the importance of internal control of life breweries limited Onitsha, the researcher deems it necessary to study the effectiveness of internal control. Directors and managers of the organization were interviewed and their records were examined, related tools were also reviewed by the researcher. The researcher revealed that the organization applies internal control measures though weak because of the nature of personnel management of the firm. The researcher recommended that company should review operation; measures applied and improve in their system of internal control by training their staff and changing the corrupt ones. It is imperially true that irrespective of the organization nature structure or size or whether is private or public, it must have one form of internal control or another which cuts across its operation inform of accounting system and controls. The main purpose of these controls is to help management, operate their organization more efficiently and effectively. Thus, internal control is essentially concerned with the maintenance of efficiency and effectiveness in the organization Effectiveness and efficiency are separate concepts and cannot be used interchangeable. It s perfectly possible to have an effective organization which is influent and vice-versa.
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