Full Project-AN APPRAISAL OF THE ACCOUNTING SYSTEM OF LOCAL GOVERNMENT
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CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Local government is the third tier out of the three tier of government in Nigeria and in this way, part of the framework of Nigerian administrative authorities it has administrative structure like any level of government, statutory assigned function, social commitment and financial argument needed for it to maintain itself and perform its statutory function to its citizenry.
According is defined as the act and science of recording business transaction in a systematic manner, so as to show the true state of affairs of a business during a specific period usually called according period. A system on the other hand, is a whole unit made of inter related element working together to achieve the objective of the whole unite.
Accounting in the government setting tends to satisfy the specialized needs of the government, it is aimed at demonstrating the propriety of transaction and their conformity with established rule to give evidence of accountability for the stewardship of government resources and to provide useful information for good control and efficient management of government operations.
1.2 STATEMENT OF THE PROBLEM
This study entitled appraisal of the accounting system of local government attempt to determine the problem involved in establishing and applying standard accounting system in local government with practical reference to Okigwe local government area of Imo state, Nigeria some of the problem facing the local government are; that the accounting system installed in the local government is not fully effectively operated. Also, the accounting system of the local government is inadequate in design. As a result of these, the financial statement as prepared by the local government does not reflect or show its true financial positions.
1.3 PURPOSE OF THE STUDY
The purpose of this study is to Identify the problem inherent in accounting system of local government. Keep the local government concerned, learn how to keep proper accounting statement
1.4 SIGNIFICANCE OF THE STUDY
There are three categories of people that are going to benefit from this study,they are The chief accounting officers, Financial officers, Auditor general.
During this study, it indicated that majority of local government in Enugu, Imo and Abia state particularly, and so many other places in Nigeria, are not aware of the legal requirement for recording, processing and presenting information about the transaction carried on in business they are managing, some do not keep proper accounts for their business.
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