Professional Documents
Culture Documents
SUBMITTED TO
UNIVERSITY OF MUMBAI
ACADEMIC YEAR
2021-2022
UNIVERSITY OF MUMBAI
BY
MINAL MANOHAR PADWAL
YEAR-2021-2022
JEEVANDEEP SHAIKSHNIK SANSTHA POI’S
ARTS, COMMERCE AND SCIENCE COLLEGE GOVELI
YEAR-2021-2022
CERTIFICATE
This is to certify that MINAL MANOHAR PADWAL has worked and duly completed her project work
for the degree of bachelor
In commerce under the faculty of commerce in the subject of commerce And her project is entitled,
Under my supervision
I further certify that the entire work has been done by the MINAL MANOHAR PADWAL under my
guidance and that no part of it has been submitted previously for any degree of diploma of any University.
It is her own work and facts reported by her personal findings and investigations.
SIGNATURE OF GUIDING
TEACHER
I the undersigned Miss SHIVAJI ANANTA PADWAL here by, declare that the work embodied in this
PERFORMANCE”
Form my owns contribution to the research work carried out the guidance of “MISS MAYURI KAMBLE”
is a result of my own research work and has not been previously submitted to any other University for any
other degree / diploma to this or any other University.
Wherever reference has been made to previously works of others, it has been clearly indicated as such and
included in the bibliography.
I, here by further declare that all information of this document has been obtained and presented in
accordance with academic rules and ethical conduct.
Certified by
4
5
ACKNOWLEGEMENT
To list who all have helped me is difficult because they are so numerous and the depth is so
enormous.
I would like to acknowledge the following as being idealistic channels and fresh dimensions
in the completion of the project
I take this opportunity to think the University of Mumbai for giving me chance to do this
project
I would like to thank my Principle MR. KORE SIR for providing the necessary facilities
I take this opportunity to thank our Coordinator MSS. DEEPSWINI CHAVHAN, for her
MSS. MAYURI KAMBLE whose guidance and care made the project successful.
I would like to thank my college library, for having provided various reference books and
Lastly, I would like to thank each and every person who directly or indirectly helped me in the
completion of my project especially my parents and peers who supported me throughout
my project
6
TABLE OF CONTENTS
Cover page
Title Page i
Dedication ii
Acknowledgement iii
Approval Page iv
Abstract v
Table of contents vi
CHAPTER
ONE
INTRODUCTI
ON
Statement of problem 3
Research Questions 5
Statement of hypothesis 5
Definition of terms 8
7
References 10
2.1 Introduction 11
system. 27
CHAPTER THREE 34
Research methodology
introduction 34
Research design 34
Sources of data 34
Area of study 35
8
population of the study 35
Research instrument 36
CHAPTER FOUR
introduction 40
Data Presentation 40
Test of hypothesis 45
CHAPTER FIVE
Summary of findings 54
Conclusion 54
Recommendation 55
Bibliography 57
Appendix 59
Questionnaire 60
9
ABSTRACT
Over the years, there have being a problem of incorrect and unreliable
research design was adopted for this research study and a sample size
was selected using Yaro Yamane sampling technique as data used were
significance and the Z table was also used for comparison between
calculated value of significance B and tab le value. The finding from the
CHAPTER ONE
INTRODUCTION
made it hard for the executors to exercise personal and first hand
of
11
the organization
due to the fact that managers are not able to monitor the
control in such a way that the system checks itself and any
and
12
management.
STATEMENT OF PROBLEM
as:
companys’assets.
advantage.
financial statement.
13
financial management.
internal control.
objective.
control system.
RESEARCH QUESTION
statement
STATEMENT OF HYPOTHESIS
hypothesis.
15
Ho: internal control measure does not ensure proper use oforganiza
statement
SCOPE OF STUDY
due
17
to the logical point that not every organization can be studied, this
management.
policies
factor.
DEFINITION OF TERMS
The following terms have been used in the course of this research
below:
18
INTERNAL CONTROL
CONTROL
MANAGEMENT
AUDIT
CHAPTER TWO
LITERATURE REVIEW
INTRODUCTION
INTERNAL CONTROL
the
20
financial information”
might enter the system and thereby affect the firm’s financial
statement.
plan of the organization and all the co- coordinated methods and
21
operational controls.
explained that the need for internal control can be seen in its
thecompany
company.
areattained
financialstatement
23
accounting principles.
ORGANIZATIONAL CONTROL
specified
SEGREGATION OF DUTIES
give out the loan ), Execution ( the person who keeps the money
to be loan out ) and recording (the person who records the whole
PHYSICAL CONTROL
file.
PERSONNEL CONTROL
management.
SUPERVISION CONTROL
MANAGEMENT
to- day routing of the system they include the overall supervisory
management operations.
therefore it is appropriate for these money which are used for are
responsible person
INFINANCIAL MANAGEMENT
27
the controls operative within any organization will depend upon the
following:
own management.
FUNCTION - ENTAILING
.in
28
the size or location. The size varies from organization and the
two or three people, if the work load is adequate for one staff.
the bank.
DISTRESS
under the control of some bodies like CBN, SEC etc. these
bodies
29
indirectly.
the fact that fraud results in huge financial losses to banks and
separate individuals.
theirrelease.
banks.
support
Banks are noted for their full services, which they render to
a. Acceptance of Deposit
b. Granting of loans
Leslie went further to say that where internal audit exist, internal
state
33
requirement.
INTERNAL CHECK
internal checks which also forms part of the system internal control
are:
not post the ledger instead these functions should be carried out
(b) The work flows from one person to another and in the
ANDINTERNAL CONTROL
assigned staff”.
managerial policies”.
whole organization will relax, i.e people will begin to work at will
fraudulent act would thrive very well. Also in a case whereby the
eyes to their
37
INTERNALCONTROL
aspirations.
These include.
b) Misappropriation of assets.
SYSTEM
39
organization
Job rotation
Training programmes
ADMINISTRATIVE CONTROL
Segregation of duties
Dual custody
ACCOUNTING CONTROLS
Date validation
Balancing
Reconciliation
FINANCIAL CONTROL
40
Cash limit
Signing powers
Specialized stationer
PROCESS CONTROL
Input/output validation
Program control
INVENTORY CONTROLS
authority.
distractions etc.
All these are factors that can limit the effectiveness of internal
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION
data analysis.
RESEARCH DESIGN
43
SOURCES OF DATA
Data used for this research work were collected mainly from both
Primary source: The primary data used for this work were
AREA OF STUDY
belown =N
1 + N(e)2
Where
n = Sample size
N = Finite population
1 = Constant
n = 500
1+500(0.05)2
n = 500
1+500(0.0025)
= 222
RESEARCH INSTRUMENT
45
The instruments used for the purpose of the study are oral
the oral interview, certain checks and balances were also adopted
regression
46
management of an organization.
above formula.
n x 100
N 1
Where
100 = Percentage
X12 – nX2
a = Y–
bXWhere
47
X = a given value
X2 = Variance of
score Y
n = Number of
respondenta =
relationship of X and Y
usedY = a+b
Sb = See
x21 - n x2
See = Y12-aY1-bx1Y1
n-2
used.Z = b
Sb
x = calculate value
49
CHAPTER FOUR
INTRODUCTION
hypothesis
DATA PRESENTATION
Questionnaire I
Table 4.2.1
Questionnaire 2
Table 4.2.2
Questionnaire 3
Table 4.2.3
Questionnaire 4
Table 4.2.4
Questionnaire 5
financialmanagement of an organization
Table 4.2.5
Questionnaire 6
Table 4.3.6
Questionnaire 7
Table 4.2.7
Questionnaire 8
your organization.
Table 4.2.8
Questionnaire 9
Table 4.2.9
TESTING OF HYPOTHESIS
questionnairedistributed.
HYPOTHESIS ONE
Ho: Internal control measure does not ensure proper use oforganiza
2 2
Respondent X1 Y1 X1 X1y1 Y1
Account 15 18 225 270 324
Director 20 14 400 280 196
External 29 16 841 464 256
auditor
Manager 7 14 49 98 196
stakeholder 44 45 1936 1980 2025
x1-115 y1-107 X12-3451 Ex1Y1-3092 Y12 – 2997
X = 115 = 23
Y = 107 = 21.4
b = X1Y1 – n x y
X12 – nX2
b = 3092 – 5x23x21.4
3451 – 5x23x23
a = Y - bX
a = 21.4 – 0.78x23
57
= 21.4 - 17.94
= 3.46
of bSb =Y12-aY1-bx1Y1
n-2
X12 - nx2
Sb = 2997-370-2412
3
3451 – 2645
Sb = 215
3
806
806 28.3901
Z= b = 0.78 =2.6
58
Sb 0.30
tailedtest is ± 0.9989.
Decision
states that internal control measure does not ensure proper use of
HYPOTHESIS TWO
X 114 = 22.8
Y = 108 = 21.6
b = X1Y1 – nxy
X12 – nX2
a = Y – bx
a = 21.6 – 2075
= 0.85
Sb= n-2
X12 - nx2
Sb = 3050 – (0.85)(108)-0.91(3127
5-2
Sb = 3050 – 92 – 2846
3328 – 2599
729 27
.: t = b = 0.91 = 3.9
Sb 0.23
tailedtest is ± 0.9989
Decision
system.
62
HYPOTHESIS THREE
statement.
2 2
Respondent X1 Y1 X1 X1y1 Y1
Account 17 16 289 272 256
Director 18 16 324 288 256
External 20 25 400 500 625
auditor
Manager 10 11 100 110 121
stakeholder 45 44 2025 1980 1936
X12-3138 Y12–3194
x1-110 Y1-112 Ex1Y1-3150
X = 110 = 22
Y = 112 = 22.4
b = X1Y1 – nxy
X12 – nX2
b = 3150 – 5x 22 x 22.4
3138 – 5 x 22 x 22
63
b = 3150 –
2464
3138 – 2420
b = 686 = 0.96
718
a = Y - bx
= 22.4 – 0.96 x 22
= 22.4 – 21.12
= 1.28
of bSb =Y12-aY1-bx1Y1
n-2
X12 - nx2
5-2
= 3138 – 5X 22 X 22
64
3138 -2420
Sb = 9
718
Sb = 3 = 0.11
26.7955
:. z = b = 0.96 = 8.7
Sb 0.11
tailedtest is ± 0.9989
Decision
CHAPTER FIVE
ANDCONCLUSION
SUMMARY OF FINDINGS
system.
management functions.
66
CONCLUSION
interest of outsiders but will also retain the zeal of the existing
RECOMMENDATION
operations.
organizational controls and that each staff knows his duties and
BIBLIOGRAPHY
publishers.
YorkRonney Inc.
Press Publication.
QUESTIONNAIRE
appropriate box.
PART A.
PART B
andassets?
controlsystem.
management.