CHAPTER ONE
1.1  INTRODUCTION
In banking, Accounting and auditing internal control is defined as a process effected by an organization structure, work and authority flows, people and management information system designed to help the banking accomplish specific goals or objectives.
It is a mean by which an organization resources are directed, monitored and measured. It plays an important role in preventing and detecting fraud and protecting the organization’s resources.
Internal control-integrated framework, a widely-used frame-work in not only the United State but around the world, internal control is broadly defined as a process, effected by an entity’s board of directors, management and other personnel, designed to provide reasonable assurance regarding the achievement of objectives in the following categories.
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Internal control has five components
The internal control relates to the aggregate control system of the organization, which is composed of many individual control procedures.
Discrete control procedures, control are defined by the SEC as a specific set of policies, procedures and activities designed to meet an objective. A control may exist with a designated function or activities in a process. A control’s impact may be entity wide or specific to an account balance class of transaction or application.
Internal control procedure reduce process variation, leading to more predictable outcomes. Internal control is a key element of the foreign corrupt practices Act (FCPA) of 1977 and the Sarbanes-Oxley Act of 2002, which requires improvement in internal control within business entities are also referred to as OPERATIONAL CONTROLS.
The internal control system (ICS) consists of a set of rules, procedures and organization structure which aims to.
1.2  STATEMENT OF THE PROBLEM
       The problem of the study by the researcher is to find out the appraisal of internal control system as a means of efficiency and profitability in Nigeria banks. The major statement of the problem are:
1.3  RESEARCH QUESTION
       The focus of this study is to identify the appraisal of internal control system as efficiency and profitability in banks, hence, in the course of the study effect has been to find solution to the following research question.
1.4  OBJECTIVE OF THE STUDY
       The primary objective of this study is to examine the appraisal of internal control system as a mean of efficiency and profitability in the Nigeria commercial bank (money deposit).
The objectives of the study are:
1.5  SIGNIFICANCE OF THE STUDY
       The research work is predicted in nature of the study is enable the banking industry on the way to meet the profit on banks that meet the directives has been stronger.
The study in also be beneficial to the shareholders, the policy is bring about improved and increased in the shareholders value and with through appreciate of their share and it’s market ability through the mega bank customers is also benefit through reduction in cost of paying for services, prompt receiving of services, reductions in time spent in the banking hall.
1.6  RESEARCH HYPOTHESIS
       The basic fundamental for testing hypothesis involved the formulation are:
Ho:  Null hypothesis
Hi:   Alternative hypothesis
Ho:  internal control system has no correlation with profitability and efficiency of money deposit bank in Nigeria
Hi:   internal control system has a great correlation with profitability and efficiency of money deposit bank in Nigeria.
1.7  SCOPE AND LIMITATION OF THE STUDY
The research intend to carry out research work on the appraisal of internal control system as a means of efficiency and profitability in Nigeria bank using Mainstreet bank of Nigeria Plc as a case study.
However, the research intend to cover the lack of recent and adequate material, unwillingness of the respondents and the case study to given the true replies, lack of co-operation of the case study.
However, effort has been made to ensure that the above limitation did not hide effective completion and quality of research work and how it can be improved upon now and the future.
1.8  DEFINITION OF KEY TERMS
Banker:   A company carrying on the business of receiving money, collecting draft for customer subject to the obligation of honouring cheque drawn upon them from time t by customers to the extent of the amount available on the account.
Cheque kite Flying: this is a method whereby depositors utilize the time a cheque to clean to obtain an authorized loan without any interest charge.
Control:   this mean to check put a stop in the activity uses a limit in the activities of individual or a group of individual in the banking industry.
Deflation: this is making or alteration of writing to the prejudge of another man’s right or litter to which he is ordinary entitled to.
Fraud:     is an act of cause of deception deliberately practiced to gain unlawful or unfair advantages, such as deception in directly to the detriment of another.
Negligence:     an act of negligence in committed where employees through ignorance of lack of commitment to duties guard the interest of his employees or railed to follow a prescribed procedure.
1.9  PLAN AND ORGANIZATION OF THE STUDY
       For clarity of research context, the research work has divided into five (5) chapters and adequate research findings and conclusion was drawn to make relevant recommendations for the research.
Chapter one deals with introduction of the topic
Chapter two deals with literature review
Chapter three deals with research methodology
Chapter four deals with data presentation and analysis
Chapter five base on findings, summary, conclusion and recommendations.