ABSTRACT
Implication
of Agency relationship on management control systems in small and medium scale
business in Abi Local Government Area of Cross River State was carried out to
determine whether implication of Agency relationship can lead to goal accomplishment
in Agency theory. The research used the questionnaires approach in collecting
data that were analyzed with statistical tool such as parametric, percentage
and student t-test. The questionnaires were distributed to two category of
SMES forming the sample size.
The
revealed that implication of agency relationship in management control systems
in small and medium scale business and that implication of agency alone does
not have significant effect on efficiency on implication of agency. Based on this,
we recommend that the government should evolve deliberate policies to develop
small and medium Scale business as they constitute the bedrock of micro
economic development in the state.
IMPLICATION OF AGENCY RELATIONSHIP ON MANAGEMENT
CONTROL SYSTEMS IN SMALL AND MEDIUM SCALE BUSINESS IN CROSS RIVER STATE
A PROJECT SUBMITTED TO THE DEPARTMENT OF
ACCOUNTANCY
FACULTY OF MANAGEMENT SCIENCES
IN
PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF POSTGRADUATE DIPLOMA
(PGD) IN ACCOUNTANCY
TABLE OF CONTENTS
Title
page i
Approval ii
Certification iii
Dedication iv
Acknowledgements v
Abstract
vi
List
of tables- x
Table
of contents
CHAPTER ONE: INTRODUCTION
1.1 Back ground of the Study 1
1.2 Statement of Problem 3
1.3 Objective of the Study 3
1.4 Research Question 4
1.5 Hypotheses of the Study 5
1.6 Significance of the Study 6
1.7 Definitions of the Term 7
1.8 Scope of Study 8
1.9 Limitation of the Study 8
CHAPTER TWO: LITERATURE REVIEW
2.1 Theoretical Framework 9
2.2 Agent 15
2.3 Creation of Agency 15
2.4 Agency Relationship 16
2.5 Share holds Versus Managers 17
2.5.1
Possible solution 19
2
.6 Creditors Versus Share Holders 22
2.6.1 Relation between the principal and third
parties 23
2.6.2 Duties of the Principal 24
2.7 Management 25
2.7.1 Why Management Control Fail 25
2.8 The system and process of controlling 27
2.8.1 Two prerequisites of control systems 27
CHAPTER THREE: METHODOLOGY
3.1 Research Design 30
3.2 Population of Study 30
3.3 Sampling Design 30
3.4 Survey Instrument 31
3.5 Method of Analysis 31
3.6 Testing of the hypotheses 32
CHAPTER FOUR: FINDINGS
4.1 Analysis of Data 34
4.2 Testing of Hypotheses 37
CHAPTER FIVE: DISCUSSION
5.1 Introduction 49
5.2 Discussion of Findings 49
CHAPTER SIX: SUMMARY, CONCLUSION AND
RECOMMENDATION
6.1 Summary 51
6.2 Conclusion 53
6.3 Recommendations 54
6.4 Recommended Areas for further Research 54
References 55
Appendices
LIST OF TABLES
Table
1: Implication of Agency
relationship on effective
segregation of duties 35
Table
2: Agency relationship on
physical security 36
Table
3: Implication of Agency
relationship on
documentation and record keeping. 37
Table
4: Average sales of SMEs with
Agency relationship
againstsales of those without Agency relationship
on management override. 38
Table
5: Average sales of SMEs with
Agency
relationship against sales of those without
agency relationship 39
Table 6: Average
total expenditure of SMEs
with agency relationship against total expenditure
of those without agency relationship. 42
Table 7: Average
net income of SMEs of SMEs with
Agency relationship against net income of those
without agency relationship 45