An Assessment of Inventory Management in Small and Medium Scale Industrial Enterprises in Nigeria

Inventory is a vital asset, necessary for effective operation of any business organisation. The absence of good inventory management practices in the Small and Medium Scale Industrial Enterprises (SMEs) necessitates a study to determine the actual reasons for non application of scientific inventory management techniques in the SMEs. Three hundred and twenty  SMEs in  Food, Textiles, Wood and Metal Products sectors in South Western Nigeria were selected for the study. Two hundred and twelve organizations returned the questionnaire. It is established that non usage of scientific inventory techniques for better inventory decision was due to lack of skilled personnel and inadequate data to use inventory models; and low level of ICT in the SMEs. It is recommended that the SMEs should institute structure to improve the knowledge of their personnel about using quantitative inventory decision models and the SMEs should make the application of Information Communication Technology (ICT) for data management a priority. Keywords: Inventory, Just-In-Time, organisation, Economic- Order- Quantity, Re-order- Quantity, Profitabilit

Effect of Internal Audit on Prevention of Frauds, Errors and Irregularities in Corporate Organisation

It is not possible for organizational activities to be 100% error free; likewise, the incidence of fraud is currently common in our society.  This paper examines the role of internal audit in controlling errors, irregularities and fraud in corporate organizations.  The various types of errors, irregularities, frauds as well as the problems of internal audit are discussed.  Questionnaires were used to collect data from respondents.  Questionnaires were distributed to 150 organisations in South West of Nigeria of which 106 returned the questionnaires.  5-Point Likert Rating was used to analyse the findings.  The study revealed that the existence of internal audit department in a business organization is a good tool of corporate control of errors, irregularities and fraud. Keywords:Fraud, errors, irregularities, internal audit,  organization, misrepresentation,managemen

Incessant Financial Scandals in the Corporate Organizations in Nigeria: Auditors’ Culpability

A reliable audit report is imperative in corporate organizations where the retention of public confidence remains of utmost importance.  In this regard, the statutory auditors are the essential fulcrum upon which the concepts of objectivity, fairness coupled with independence and integrity of financial reporting rest.  This assertion, notwithstanding, it suffices to say that reports from statutory auditors are still challenged.  Against this backdrop, this study seeks to investigate the circumstances capable of compromising the integrity and independence of statutory auditors. A descriptive statistical analysis was used to evaluate the users’ perception of the audit report in Nigeria. One hundred and fifty questionnaires were administered on one hundred and fifty staff of three selected firms as respondents. The data collected were analyzed using chi-square statistical technique. The result revealed that firm of auditors had been indicted of deliberate falsification and overstating the profit of organisations.  The study hereby recommended that greater diligence; professional sensitivity and utmost care should be displayed in the course of audit engagements. Keywords: Financial Scandals; Auditors’ culpability; Corporate Organisation; Auditors’ Relationship and Auditors’ Repor

Internal Control System and the Employee Turnover in Small and Medium Enterprises in South West, Nigeria

The study was on assessment of internal control on the employee turnover in Small and Medium Enterprises (SMEs) in Ekiti, Ogun and Osun states. Three sectors were selected for the study and they were, Food and Beverages, Bakery  and Wood Processing. The study was carried out to determine the effect of internal control system on employee turnover and measures to make internal control effective on employee turnover in SMEs. Leadership style and training and development were used as indicators for employee turnover. The population for the study was Four Thousand, Five Hundred and Seventy Six (4,576) registered SMEs under CAMA (2004).  The sample size was Three Hundred and Forty Six (346) SMEs in the study area using Krejie and Morgan sample formula, out of which Three Hundred (300) were received from the respondents.  Both inferential and descriptive statistics methods were used to  analyse the collected data for the study.  Inferential statistics used were Ordinary Least Square (OLS) Regression method, while descriptive statistics used were Likert ratings, frequency count, percentage and Relative importance index.  Questionnaire were  administered  to collect the data for the study.  The result showed that all types of internal controls existed in most of the SMEs in the study area, though not very effective. The study revealed that personnel management and  organisational controls have significant effect on the training and development of the SMEs in the study area having coefficients value of (0.689;  = 0.007),  (1.162;  = 0.000) and (0.886;  = 0.012) respectively. It was also revealed that the internal control  which significantly has effect on leadership style of the SMEs in the study area includes personnel control (1.093;  = 0.000), physical control (0.633;  = 0.034), arithmetic and accounting control (0.915;  = 0.024), organisational control (0.963;  = 0.003), budget and budgetary control (1.132;  = 0.008) and supervisory control (0.823;  = 0.028). This is an indication that internal control has effect on employee turnover of SMEs in the study area.  The conclusion drawn from the study was that moderate  positive relationship exists between the internal control and the employee turnover in the SMEs.  It was recommended that SMEs should ensure improvement on effectiveness of internal control on employee training and development on the leadership style in order to improve on retention of employee in their organisations. Keywords:Organisation, Leadership Style, Training and Development, Management,  motivation DOI: 10.7176/EJBM/15-16-05 Publication date:September 30th 202

Evaluation of Effectiveness of Internal Control System in Small Business Organisations in Ekiti State of Nigeria

The study evaluates the effectiveness of internal control system in selected small business organizations in Ekiti States in Nigeria.  The study identified types of Internal Control and assesses the impact of internal control on these organizations.  This was with a view to develop appropriate framework to improve the effectiveness of internal control in a system.  The study covered purposefully selected small business organizations in Ekiti states of Nigeria. Questionnaires were administered and were supplemented with oral interview to elicit information from staff of these organizations.  The data collected included the level of the adequacy of internal control, the level of staff involvement in internal control and the impact of internal control on the smooth operations of organisations.  The data collected were analyzed using appropriate statistics.  The result  showed that there was grossly inadequacy of internal control in the organizational aspect having a rating index of 2.50, arithmetic and accounting control with a rating index of 2.88, personnel has rating index of 2.96 and segregation of duties with an index of 2.80.  The study concluded that the compliance with the internal control in small organizations in Ekiti State is very poor.  Suggestions were made on different ways of improving the effectiveness of internal control system in order to achieve the organizational objectives. Keywords: Internal Control, asset, management, compliance, financia