Effect of Internal Control on Financial Management

4118 Words Feb 11th, 2012 17 Pages
1.1 Background of the study.
Internal control is define as the whole system of internal control, financial and otherwise established by management in order to carry on the business of the enterprise in an orderly manner and efficient, ensure adherence to management policies, safeguard the assets and secure as far as possible the completeness and the accuracy of records. - Dr. Kwame Aveh. (Auditing page 82-83, 2010)
The individual components of an internal control system are known as controls or internal controls.
Internal controls includes all policies and procedures adopted by the directors and management of an entity to assist in their objective to achieve as far as possible the orderly and efficient conduct of the business including
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1.3. Research y question
The possible questions likely to arise from the studies will be; * Dose internal control influence financial management in the SENIOR HIGH SCHOOLS in the Accra metropolis? * Are internal controls related to financial management? * What is the relevance of internal controls in the senior high schools as far as financial management is concerned.
1.4. Justification
The purpose of this study is to establish the benefit of instituting an effective internal control in the area of the studies thereby enhancing their growth

1.5. Research hypothesis Null. : Internal controls have an effect on financial management in the senior high schools within the Accra metropolis. Alternative: internal controls do not have any effect on financial management in the senior high schools within the Accra metropolis.

1.6. Research objectives
The objectives of the study are as follows; * To identify whether there is a correlation between financial management and internal controls in the senior high schools within the Accra metropolis. * To point out the strength of the relationship between these variables (internal controls and financial management) * To make known to the institutions the importance of internal controls * Make appropriate and adequate recommendation to management on how to ensure