TAKORADI TECHNICAL UNIVERSITY

TOPIC:

THE IMPACT OF FINANCIAL ACCOUNTABILTY IN PUBLIC LIMITED

COMPANIES. A CASE STUDY OF ELECTRICITY COMPANY OF GHANA

(TAKORADI OFFICE).

BY

ANYANA KWAKU JAMES - 07173112

BRIKWANG-MARFO BENJAMIN - 07173052

GYAN ADAMA ISAAC - 07173111

AUGUST, 2020

vii
 TOPIC:

THE IMPACT OF FINANCIAL ACCOUNTABILTY IN PUBLIC LIMITED

COMPANIES. A CASE STUDY OF ELECTRICITY COMPANY OF GHANA

(TAKORADI OFFICE).

BY

ANYANA KWAKU JAMES - 07173112

BRIKWANG-MARFO BENJAMIN - 07173052

GYAN ADAMA ISAAC - 07173111

A PROJECT WORK SUBMITTED TO THE DEPARTMENT OF ACCOUNTING AND

FINANCE, TAKORADI TECHNICAL UNIVERSITY IN PARTIAL FULFILMENT OF

THE REQUIREMENT FOR THE AWARD OF THE HIGHER NATIONAL DIPLOMA

(HND) IN ACCOUNTANCY.

AUGUST, 2020

viii
 DECLARATION

We declare that this project work does not include any material already submitted for the award

of a degree or diploma in any institution. It is therefore our original research work whose

findings have not yet been submitted in any institution and that all references in the work have

been properly acknowledged

CANDIDATE NAME: ANYANA KWAKU JAMES

SIGNATURE: ………………………………………………

DATE: ………………………………………………………..

CANDIDATE NAME: BRIKWANG-MARFO BENJAMIN

SIGNATURE: ………………………………………………

DATE: ………………………………………………………..

CANDIDATE NAME: GYAN ADAMA ISAAC

SIGNATURE: ……………………………………………..

DATE: ……………………………………………………….

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 CERTIFICATION

The undersigned certify that this project work has been supervised and assessed in accordance

with the laid down procedures and guidelines by Takoradi Technical University and therefore

recommend it to the faculty of Business Studies for acceptance.

SUPERVISOR: MR, MARSHALL WELLINGTON BLAY

SIGNATURE: …………………………………………………..

DATE: …………………………………..………………………

HEAD OF DEPARTMENT: MS. ABIGAIL PADI

SIGNATURE: ……………………………………………….

DATE: ……………………………..…………………………

x
 DEDICATION

This research project is dedicated to our families for giving us the invaluable support to

concentrate on this research. God bless you all. We thank Almighty God who is our source of all

inspiration in allowing us to undertake this project that is too involving in terms of time and

resources, and also to the late Kwesi Asare Nkansah a staff member of Takoradi Technical

University (Accounting and Finance Department)

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 ACKNOWLEDGEMENT

Achieving success in academics including research projects rides on tremendous contributions

from both human and divine support. First of all is the loving care we are accorded by our

heavenly father, The Almighty God. He has granted us favor that saw us through course work

and research project.

We acknowledge the various scholars and the academic family for providing information and

enabling environment in which we have managed to carry out our research project with the intent

of enriching what has been studied as well as giving a chance to other scholars to carry out

further studies.

To our supervisor Mr. Marshall Blay Wellington, whose constant corrections immensely

contributed to the shaping of this research project, your suggestions prompted us back to books

several a time over to ensure the success of the project. The whole team of lecturers at TTU

thank you and may God bless you all.

Thanks to our work colleagues, classmates and everyone else, thanks and may our loving

Heavenly Father continue to guide you in all your endeavors.

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 TABLE OF CONTENTS
DECLARATION ………………………………………………........................................ ii

CERTIFICATION ……...…………………………………………..…............................. iii

DEDICATION ……………………………………………………………………………. iv

ACKNOWLEDGEMENT ……………………………...................................................... v

LIST OF TABLES …………………………………………………………………..……. vii

LIST OF ABBREVIATIONS …………………………………………………………….. viii

ABSTRACT………………………………………………………………………………. ix

CHAPTER ONE ………………………………………………………………………….. 1

INTRODUCTION ………………………………………………………………………… 1

1.1 Background of the Study ……………………………………………………………… 1

1.2 Problem Statement ……………………………………………………………………. 2
1.3 Research Objectives ………………………………………………………………….. 3
1.4 Research Questions …………………………………………………………………… 3
1.5 Significance of the Study …………………………………………………………….. 4
1.6 Scope of the Study ……………………………………………………………………. 5
1.7 Research Limitation …………………………………………………………………... 5
1.8 Organization of the Study ……………………………………………………………... 6

CHAPTER TWO ………………………………………………………………………….. 7

LITERATURE REVIEW
……………………………………………............................... 7

2.0 Introduction …………………….................................................................................. 7

2.1 Financial Accountability ……………………………………………………………… 7
2.2 Financial Performance ……………………………………………………………….. 10
2.3 Relationship between Financial Accountability and Financial Performance……….. 13
2.4 Financial Reporting …………………………………………………………………… 15

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2.5 Public Limited Company ……………………………………………………………...
16Fraud …………………………………………………………………………………..

2.6.1 Fraud Theory ………………………………………………………………… 18

2.7 Empirical Review ……………………………………………………………… 20

CHAPTER THREE …………………………………………………………….. 22

RESEARCH METHODOLOGY ……………………………………………… 22

3.0 Introduction …………………………………………………………………... 22

3.1 Research Design ……………………………………………………………… 22

3.2 Population and Sample Size…………………………………………………… 22
3.3 Sample Design ………………………………………………………………… 23
3.3 Data Collection Instrument …………………………………………………… 23
3.5 Data Collection Procedures …………………………………………………… 23
3.6 Data Analysis Procedures …………………………………………………….. 24

CHAPTER FOUR ……………………………………………………………….. 25

DATA ANALYSIS, PRESENTATION, AND INTERPRETATION ………… 25
4.0 Introduction …………………………………………………………………… 25
4.1 Demographics …………………………………………………………………. 25
4.1.1 Respondent Position ………………………………………………………… 25
4.1.2 Respondent Gender …………………………………………………………. 26
4.1.3 Respondent Age …………………………………………………………….. 27
4.1.4 Level of Education ………………………………………………………….. 28
4.1.5 Number of Years of Experience ……………………………………………... 28
4.2 Financial Accountability ………………………………………………………. 29

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4.2.1 Extent of Financial Accountability ………………………………………….. 29

4.3 Financial Performance ………………………………………………………… 33

4.3.1 Fraud on Performance ………………………………………………………. 33
4.3.2 Use of Technology on Fraud Detection …………………………………….. 34
4.3.3 Measure of Detecting and Control Fraud …………………………………… 35

CHAPTER FIVE …………………………………………………………………. 36

SUMMARY OF FINDINGS, CONCLUTIONS, AND RECOMMEDATIONS... 36
5.0 Introduction …………………………………………………………………… 36
5.1 Summary of the Findings ……………………………………………………… 36
5.2 Conclusion …………………………………………………………………….. 37
5.3 Recommendation ……………………………………………………………… 38
REFERENCES …………………………………………………………………… 41
APPENDICES ……………………………………………………………………... 45
Questionnaire ……………………………………………………………………….. 45

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 LIST OF TABLES

Table 4.2: Respondent Position

……………………………………………………………………………….. 26

Table 4.3: Respondent Gender

…………………………………………………………………………………. 26

Table 4.4: Respondent Age

……………………………………………………………………………………….. 27

Table 4.5: Level of Education

……………………………………………………………………………………. 28

Table 4.6: Number of Years of Experience ………………………………………………………………..

29

Table 4.7: Does the Organization Prepare Regular Financial Reports for the Benefit of
Stakeholders? .......................................................................................................................................
29

Resources Entrusted to them and How they are been Used During the Year? …………
31

Table 4.10: Does the Management of the Organization Periodically prepare Income and Expenditure
Accounts?
………………………………………………………………………………………………………………
…. 32

Table 4.11: Does the Staff of the Organization Submit Reports for Business Advances in a Timely
Manner?

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……………………………………………………………………………………………………….............
32

Table 4.12: Fraud on Performance

……………………………………………………………………………. 34

Table 4.13: Use of Technology on Detecting Fraud ……………………………………………………

34

Table 4.14: Measures of Detecting and Control Fraud ……………………………………………….

35

Table 4.8: Does the Organization Annual Financial Reports Demonstrate Financial Accountability and
Stewardship? …………………………………………………………………………………….. 30

Table 4.9: Does the Annual Financial Statement of the Organization show a Clear Picture of the

Table 4.1: Response Rate ………………………………………………………………………… 25

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 LISTS OF ABBREVIATIONS

ROA: Return on Assets

ROE: Return on Equity

ROS: Return on Sales

LLC: Limited Liability Company

PLC: Public Limited Company

DSC: Digital Signature Certificate

ROC: Registrar of Companies

TAN: Tax Deduction and Collection Account number

IPO: Initial Public Offering

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 ABSTRACT

The study objective was to establish the effects of financial accountability on the performance of

public limited companies in Ghana. The research design used in this study was descriptive

survey. Using stratified random sampling design, the researcher selected 15 samples on whom to

conduct the survey. Semi structured questionnaire were used to collect the primary data. The

study found that public limited companies that applied financial standards in ensuring

accountability of finances in the organizations boosted trustworthiness of stakeholders which

resulted in improved performance. The study also established a significant relationship between

financial performance and financial accountability in public limited companies. The study finally

concludes that, a unit increase in financial accountability will lead increase in the scores of

financial performance in public limited companies in Ghana. The study recommends that all

public limited companies should have policies and procedures established so that; boards and

officers understand their fiduciary responsibilities to ensure financials are managed properly and

the charitable purposes of the organization are carried out.

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 CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

Financial accountability in a public company has the aim of enhancing a perfect influence over

deceptive practices and activities such as embezzlement of funds committed by individuals in an

organization. There is not much to be said in relation to the public sector with regards to

financial accountability only for the fact that companies are driven together to produce rather

than publishing yearly documents and reports on the financial statement which is capable of

being audited by the Auditor General at the end of each financial year. Financial can be

associated to finance and finances or an upright means to payment of dues. However, the

financial situation of an organization or an individual has to do with money matter or transaction

of some size or importance. Accountability can be seen as the objective of any business

continuity. The lives of citizens in a mismanaged firm is for failure. Profit maximization is the

main aim of every firm. These goals cannot be accomplished if financial mismanagement is

overlooked. In every business setting the objective of management is to be able to provide

finance for all its activities to be undertaken in the course of operations. These goals cannot be

achieved without paying attention to the prudence of the firm's financial administration.

Premchand, A. (1999). "Accountability can also be viewed as rendering the account of

stewardship on performance". Accountability emanates principally from the processes and

guidelines through which a firm can devise as a way of controlling cost both in the private or

public sector. In business English, financial accountability is responsible for the way money is

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used and managed. In this case, the budget is a crucial aspect of financial accountability and the

terminal reports usually include information used in the preparation of a budget. According to

the Business dictionary, a public limited company refers to a company whose securities are

traded in the stock exchange market and can be bought during an initial public offering. It is

mandatory by law for public limited companies to publicize their complete and genuine financial

statement, so as to enable stakeholders to ascertain the true value of their issued stock.

1.2 Problem Statement

Ghanaian public limited companies are faced with numerous problems. These problems make it

difficult for them in carrying out their assigned task effectively and efficiently to improve the

lives of its citizens. Following this, we discovered that there is an untrusted relationship between

the public sector companies and the public. Public sector companies have not demonstrated its

competence, reliability, and honesty in a way that allows the public to judge the trustworthiness

of the public sector in using public money and resources. Finn, (1994) "public trust and public

accountability", Griffith Law Review, Volume 3 Number 2, Page 228. Financial accountability

becomes a problem when there are no flexible measures towards ensuring compliance with set

rules and regulations, which shows a way of conducting financial transactions and accountability

in public limited companies. Alternatively, the inability to provide an explanation for budgetary

estimates, managing the usage of allocated funds and also auditing of accounts all comprise the

reason for the study. In addition to this there are other problems faced by public limited

companies. These include; fraudulent practices engaged by officers and agencies, inability to

keep and operate an accurate accounting system as required by law, and the problem of poor

coordination in finding solutions to these problems and gap, we deem it necessary to conduct this
xxi
research in our study area. This research seeks to explore the need for financial accountability

and its impact on public limited companies.

1.3 Research Objective

The objective of this study is to identify the effect of financial accountability in public Limited

companies within the Takoradi metropolitan assembly. (Electricity Company of Ghana). The

specific objectives are:

1. To ascertain the method by which fraud can be checked.

2. To ascertain the extent to which with financial accountability aid public limited

companies in attaining their set objectives.

3. To show the extent to which accountability ensures the judicious use of funds in public

limited companies.

1.4 Research Question

In carrying out this research effectively, the following questions were designed

1. How does public company check fraud through financial accountability?

2. What is the extent to which financial accountability aid public limited companies in

attaining their set objectives?

3. What is the extent to which the judicious use of funds by public limited companies

enhances accountability?

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1.5 Significance of the Study

This study is of relevance because it will help enhance the knowledge and understanding on the

topic "the impact of financial accountability in public limited companies of Electricity Company

of Ghana (Takoradi Office)". First of all, this study is to show how the use of reliable and

accurate information has a role to play on the impact of financial accountability in public limited

companies in Ghana, this will then serve as a basis for actions of application to be observed by

all relevant stakeholders.

Second, researchers will also find this study useful because it will equip them with the necessary

resources and materials for carrying out their research study. This is so because the information

will equip them with the requisite knowledge to aid them in carrying out their research study in a

more logical manner and also increase their knowledge in their field of study. Furthermore, the

government could as well from the study formulate and implement policies on all government

institutions on the relevance of financial accountability to aid performance in the public sectors.

This, when adhered to will minimize the rate of fraudulent practices and increase effective

financial performance. In addition, this study may also be used by those who will be interested in

carrying out further investigation.

In conclusion, this study will, as a matter of fact, help public limited companies know whether or

not requisite mechanisms are employed in terms of management and fraud detection towards

achieving effective financial accountability.

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1.6 Scope of study

The covered by this include all activities companies practically engage in, particularly related to

financial terms. These are the acquisition of raw materials, employment of sales and production

units, payment and collection of debt etc. with the help of internal control measures, we were

able to account for analytical reasons why this study is of relevance to every other department

within a firm. Our main focus was on Electricity Company of Ghana (Takoradi Office)

1.7 Research Limitation

This study would have been much easier had it not these difficulties the group faced

Firstly, financial challenge was faced by the group that has to do with cost of traveling to collect

data from sources, the printing of questionnaires prepared by the group. However, we gave out

our best in ensuring that activities were carried out diligently. In addition, insufficient time were

another constraint faced by the group since the time assigned for the completion of the whole

work was so limited because the study requires so much of the data collection and analysis and

these require a considerable longer period of time.

In conclusion, the data collection procedures of the study sparked redundancy of diminishing

returns from respondents. Based on our study, the manager of Electricity Company of Ghana,

(Takoradi Office) decide to limit our set questionnaires to the finance department of the

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organization. This limited the number of respondents in the answering the questionnaires

although attempts in efforts were made by explaining the important of the study.

1.8 Organization of the study

Chapter one (1) of the study deals with the introduction which concerns itself with the

background of the study, problem statement, study objectives, research questions, the

significance of the study, the scope of study and finally the limitations of the study.

Chapter two (2) of the work covered information on the area of study provided by the literature

including theoretical and empirical review.

Chapter three (3) of the research covered the study area, research designed, study population and

sample size, sample design, source of data collection instruments, data collection procedures, and

analysis of data.

Chapter four (4) of the study covered data presentation, analysis, and discussions on findings.

Finally, Chapter five (5) of the study presented the summary of findings, conclusions,

recommendations, and the way forward for further study on the topic.

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 CHAPTER TWO

LITERATURE REVIEW

2.0 Introduction

This chapter presents a view of the relevant literature of the study in the research area under

discussion. The literature review has the objective of rendering a contextual understanding of the

research study entirely. This chapter is subdivided into two (2) main part; the theoretical

literature review and empirical literature review. This study has its focus on financial literature in

public limited companies, Electricity Company of Ghana (Takoradi Office)

2.1 Financial Accountability

Relates to ability to explain how funds available are assigned and utilized (Neocleous, M. 2000).

This also means keeping citizens informed about the financial position, financial performance,

Service effort and accomplishment. This is the process where by management of public sector

organization entrusted with funds are held to account to the citizens, and how that can be done. It

emphasizes stewardship on trust and wider focus on well-being outcomes and how best public

sector organization can plan for and manage it reforms implications. According to Finn,

Accountability is an obligation of all who hold office in the public sector companies.

Accountability establishes the importance in maintaining a trust relationship between public

xxvi
sector companies and the citizens in a representative democracy. Principles, procedures,

regulations, institutional arrangements, and participants to enable effective accountability body

system that contributes to a clear judgment of the public sector organization trustworthiness.

Effective and accurate financial accountability of an organization depend on effective internal

control system, proper accountability cannot be achieved, if internal control system is poor.

Accountability is the goal of any business, and a mismanaged form is a failure. (Premochand,

A.1999). Internal control comprises the plan of an organization to co-ordinate method and

measures adopted within a business to safeguard assets, check accuracy and reliability of its

accounting data, promote operational efficiency and encourage adherence to prescribed

managerial policies.

Financial accountability can be defined as the management of the finances of an organization in

order to achieve the financial objectives of the organization (Tooley, S. and Hooks, J. 2009). It

broadly embraces two aspects, namely: Financial planning which is a plan to ensure that enough

funding is available at the right time to meet the needs of the organization for short, medium or

long-term capital. For example, how much money is needed to smooth out changes in debtors,

creditors and other cash requirements, should a new asset be bought or leased; and financial

control which seeks to assess whether the plan put forward meets the objectives of the

organization in question.

According to Kanyinga, H. and Mitullah, R. (2007) financial accountability includes; Financial

reporting and analysis, the nature, frequency and purpose of financial reporting, auditing,

analysis and interpretation of financial performance; Working capital accountability non-

financial and financial considerations in asset acquisition, quantitative techniques for capital

project evaluation, investment hurdle rate determination and handling risk and uncertainty in this

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context; Financial structure accountability- financial leverage or gearing, accounting to lenders,

knowledge of sources and uses of finance, non-financial and financial considerations in financial

structure decisions and non-financial and financial considerations in profit distribution decisions;

Financial planning and control- financial objectives and targets, cost-volume profit analysis,

pricing, financial budgeting and control, and accountability responsibility centers; Financial

advice- internal and external sources and types of financial advice and use of public accounting

services; Financial accountability- expertise informal and formal education, training and

experience in financial accountability, relevant qualifications, and overall financial

accountability expertise.

With public limited companies, financial accountability is a requirement to provide information

to parties both inside and outside the organization. (Viswesvaran, C. 2006). It is the process of

identifying, measuring and communicating economic information to permit informed and

rational decisions to be made. Accountability refers to the final responsibility for the success or

failures of the organization. This final responsibility is usually with the governing body, which

delegates this function to the Chief Executive. Accountability is a key requirement of good

governance in public limited companies. Public limited companies are accountable to those who

will be affected by its decisions or actions. Since public limited companies get most of their

funding from shareholders, accountability for public limited companies is usually to the

shareholders, the beneficiaries, the employees and other stakeholders (Wells, 2003).

Lin W, (2003), state that fiscal or financial accountability is about making sure that funds have

been spent as agreed and according to appropriate rules and regulations. Harrison et al., (2011)

states that financial accounting is financial responsibility or operational transparency that

requires demonstrating how resources to your organization have been used and how effective

xxviii
your organization is in achieving its goals. Koh, H. and Woo, E. (2008) contend that financial

accountability is the fiscal or financial honesty and avoidance of fraud that makes sure that

money is spent and recorded as agreed and according to appropriate rules and that accurate

reports are given to stakeholders in a timely manner. Financial accountability is made by

preparing and circulating financial statements or reports to stakeholders. According to Fremont-

Smith (2004), financial accountability gives public limited companies legitimacy and credibility,

contributes to their reputation and adds to their sustainability. Good financial accountability

limits fraud and mismanagement. It also empowers beneficiaries and other stakeholders since

information is power.

2.2 Financial Performance

Is a subjective measure of how well a firm can use assets from its primary function to yield

revenue. It can be also used as a criterion for measuring the overall financial status within a

given period, can also be used as a comparison tool for similar companies within the same

industry or an aggregate of industries (Will Kenton, 2018). It is observed that while considering

the firm performance, the profit and wealth maximization are linked and are effected by one-

another.

According to Association of Certified Fraud Examiners (2010), performance refers to the ability

to operate efficiently, profitability, survive grow and react to the environmental opportunities and

threats. In agreement with this, Lee, T.H, Ali, A and Kandasamy, S. (2008c) assert that,

performance is measured by how efficient the enterprise is in use of resources in achieving its

objectives. It is the measure of attainment achieved by an individual, team, organization or

xxix
process. Many firms' low performance is the result of poorly performing assets (businesses).

Low performance from poorly performing assets is often related to strategic errors made in the

acquisition process in earlier years. A common reason for such errors is overvaluation of

managerial capability in the acquisition process.

According to Pincus, K. (1989), appropriate performance measures are those which enable

organizations to direct their actions towards achieving their strategic objectives. Performance is

measured by either subjective or objective criteria, arguments for subjective measures include

difficulties with collecting qualitative performance data from small firms and with reliability of

such data arising from differences in accounting methods used by firms. Lee, T.& Ali, A. (2008)

found out that, objective performance measures include indicators such as profit growth,

revenue growth, return on capital employed. Financial consultants Stern Stewart & Co. created

Market Value Added (MVA), a measure of the excess value a company has provided to its

shareholders over the total amount of their investments. This ranking is based on eight more

traditional aspects of financial performance including: total return for one and three years,

sales growth for one and three years, profit growth for one and three years, net margin, and

return on equity. Viswesvaran (2006) however, mentions other financial measures to include

value of long-term investment, financial soundness, and use of corporate assets. He also talks

of non-financial performances measures to include; innovation, ability to attract, develop, and

keep talented people, quality of management, quality of products or services, and community

and environmental responsibility. Saucier, S. and Goldberg, L. (1996) mention accounting-

based performance using three indicators: return on assets (ROA), return on equity (ROE), and

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return on sales (ROS). Each measure was calculated by dividing net income by total assets, total

common equity, and total net sales, respectively

Financial performance is therefore normally judged by series ratios or figures, however there are

three ratios parameters which can be can used to evaluate financial performance, they are:

Return on Equity, Earnings per Shares, and Price Earnings Ratio. The balance sheet also

indicates the financial position of a company as at a given period of time while the statement of

profit and loss is prepared to indicate the performance of a company for a particular financial

year.

The analysis of financial performance is used by most of the business communities which

include: Trade Creditors, the creditors provide goods and services on credit to the firm. They

always face concern about recovery of the money. The creditors are always keen to know about

the liquidity position of the firm. Thus, financial performance parameters for them evolve around

short terms liquidity condition for the firm. Investors are the persons who have invested their

money in the equity of the firm. They are most concern users of financial performance as they

have taken risk of investments, thus expecting a better financial performance of the firm. They

judged the performance of the company by analyzing firm´s present and future profitability,

revenue and risk position. Management of a firm is always keen on financial analysis. It is

ultimately the responsibility of management to look at the most effective utilization of resources.

They always try to match effective balance between the asset liability management, effective risk

management, and short term and long term solvency condition. Suppliers of long term debt

provide financial for on-going or expansion of the firm´s. Long term debt providers will always

focus upon the solvency condition and survival of the business by considering the firm

xxxi
profitability over a period of time, the firm´s ability to generate cash to be able to pay interest

and repay principal, and the relationship between various sources of funds.

2.3 Relationship between financial accountability and financial performance

According to Lee, T. and Ali, A. (2008) there is a strong relationship between financial

accountability and financial performance. This is because financial accountability improves

financial performance; the goal of financial accountability is to improve performance, not to

place blame and deliver punishments. Systems of budget reporting have been established with

the accounting for public limited companies’ expenditures and the provision of information on

performance for use by implementers, managers and politicians. The mismanagement and

embezzlement of funds by the officials of the public limited companies have contributed to poor

financial performance. Jones, M. (2009) argues that for financial accountability to be effective,

action should be taken upon institutions, which render inadequate financial accountability. There

may be a functioning financial system, but due to information asymmetries or social polarization,

the outcomes may still be biased against the poor.

Humphrey, C. (1993) sights an example of contracts and financial accountability in developing

nations where the local community ask the authority to verify work done before payments are

effected on every phase completed. This has ensured quality work done. The wide range of cost

estimates itself hints at an insufficient level of financial accountability in these programs, while

also provoking the important question of what society is receiving as a return on its substantial

investment in the regions. Effective financial accountability to public limited companies requires

xxxii
that, staff support their departments through their actions, advice and information (Baron et al.,

2007). Effective and useful financial accountability measures must be unambiguous, either

monotonically increasing or decreasing measures of either costs or benefits.

To ensure financial accountability, the compliance model requires that every step of the public

limited companies financial process be thoroughly documented (Batley, R. 2006). Formulators

and overseers of policy are “principals” who delegate the task of actual implementation of policy

to subordinates, or “agents.” Principals and their agents are assumed to have more or less

diverse, even divergent preferences and goals for policy implementation. The operators who

actually deliver financials to people might not do so in the proper way if left to their own

devices, therefore public limited companies must design a system to compel their proper

behavior or force them to account for improper behavior (Gibelman, M. and Gelman, S. 2002).

According to Moyes, D. (2006), financial reports must exhibit certain qualities that make them

useful to the stakeholders and these include relevance, reliability, understandability and

timeliness. Australian Accounting Research Foundation (1990) stated that it is important for

financial reports to be relevant. They must have value in terms of making and evaluating

decisions about the allocation of scarce resources and in assessing the rendering of accountability

by the providers. The reports must also be reliable because users use them for decision making.

Reliability means that information is reasonably free from error and bias and faithfully represents

what it purports to represent. Understandability is the ability of users to understand the financial

reports. Timeliness of financial reports is very crucial because reports which are relevant and

reliable may be rendered irrelevant if there is undue delay in presenting them. According to

Borman, W. (1991), poor quality of financial reports greatly diminishes the quality of public

limited companies. Quality information is one that is readable, reliable, comparable, consistent,

xxxiii
complete, timely, decision useful, accessible and cost effective. The integrity of the public

limited companies is served best if public limited companies are accountable. Although both

agency and stewardship theories offer a lens for understanding financial accountability, they are

based on fundamentally different assumptions about human behavior. Green, P. and Calderon, T.

(1996) has pointed out ultimately, if one wishes to complete the performance information loop

completely, one must not only demonstrate good results, but also that they are the result of what

public limited companies are doing. Financial accountability measures are an attempt to assert

more direct public limited companies control over the financial projects. They are primarily

concerned with resource allocation and fiscal efficiency. While it is completely appropriate for

those who pay the bills taxpayers, and donors to evaluate critically what they get for their money

from public limited companies projects.

2.4 Financial Reporting

Refers to the disclosure of financial information to management and the citizens about how the

company is performing over a specific period of time, (Solola, H. E 2006). Financial reports are

usually issued on a quarterly and annually basis. Financial reports are included in a public

company’s annual report. Financial reporting serves two primary purposes. First, it helps

management to engage in effective decision- making concerning the company’s objectives and

overall strategies. The data disclosed in the reports can help management discern the strengths

and weaknesses of the company, as well as overall financial health. Second, financial reporting

provides vital information about the financial health and activities of the company to its

stakeholders including its shareholders, potential investors, consumers, and government

regulators. It’s a means of ensuring that the company is being run appropriately.
xxxiv
Financial Statements and Analysis, the primary financial statement used in financial reporting

and what each will tell you about in company. A balance sheet is a snapshot of what the

company owns through borrowing or through the company owner’s investments. A balance sheet

is based on the standard accounting model: Assets =Liabilities + Equity. The balance sheet

breaks down these components and reports the company’s assets, liabilities, and equity.

2.5 Public Limited Company

Refers to a legal designation of a limited liability company (LLC) that offer shares to the general

public and has limited liability. The stock of a public limited company (PLC) is floated to the

general public and can be acquired by any interested party during an initial public offering or

through trades on the stock market. (Bosch, H. 2002). A public limited company is a very

different from private limited companies; however, both are there in the business for profit

earning. They various features of a public limited company. The ownership of a public limited

company lies with two or more shareholders who own the shares of the company. The liability of

the shareholders of a public limited company in case of loss is only limited to the amount of

investment they have made in the company (Thomas, C. 2011). Their assets cannot be charged

liable for any such damages. The Company needs to have a minimum paid-up Capital as decide

by the law of that Country. A public limited company needs to have three or more directors for

its existence. The Company has to end its registered name with the word ‘limited’ for making it a

public limited company. The company needs to get the company name approved under the

companies Act, 2013, which is valid up to twenty days from the date of approval. A company

can go for one resubmission under Reserving Unique Name web service. Filing of the online

application forms for a public limited company requires signature supported by the DSC of the
xxxv
directors and the shareholders (Winchester College, Hampshire). Digital signature certificate can

be taken by submitting a DSC application attached with identity proof, address proof,

Photographs of the respective signatory. The register of companies is responsible for issuing a

unique identification number known as Directors Identification Number. The application should

next take and furnish the approval from the respective department, appropriate authority,

regulatory body or ministry of central or state Government depending on the type of business

and the work to the Registrar of Companies (ROC). An application for incorporation or

registration of the PLC supported by declaration, affidavit, memorandum and Article of

Associations is to be submitted to the Registrar of Companies (ROC). A registration certificate,

also known as a certificate of incorporation is issued by the ROC after inspecting the application

and document submitted. The business can be now commenced under the norms of a public

limited company. Simultaneously with the certificate of incorporation, the application needs to

apply for the Permanent Account Number and Tax Deduction and Collection Account Number

(TAN). Lastly, the public limited company so formed, has to compulsorily open a current

account with any bank, by submitting the registration certificate and the other required. Public

limited companies are highly credible, investors find the public limited company to be more

reliable and trustworthy, increasing its credibility. Tax Efficient, a public limited company gets

various tax benefits like tax-deductible costs and other allowances. On paying off the corporation

tax, the company is saved from paying high-income tax. Initial Public Offering (IPO), is a source

of raising funds for the public limited company meet the capital requirement of the business. The

shareholders aren’t liable to pay the company’s debts or loss beyond their investment value in

case of insolvency or bankruptcy. The company is efficiently managed by board of directors

comprising of expert and talented people. The acquisition of additional by issuing of shares,

xxxvi
provide financial strength to the business and develops the scope of growth. The shares of a

public limited company can be bought or sold in seconds on the stock exchange market. Thus,

making it convenient for the investors and shareholders to acquire a part of the company. Since,

there are many shareholders owning small portions in the company, the risk of loss and

insolvency is also widespread among them. However, public limited companies have demerits

which include, A company is abided by the laws and regulation formed by the corporate house to

function as a public limited company which is a hefty task, the loss of ownership leads to the loss

of control over the election making of the company, public limited company has to disclose the

complete financial health of the company in front of the public to assure a high level of

transparency, profit sharing is done in a vast scale among all the shareholders, which entitle each

one of them a tiny proportion of that profit.( Fremont-Smith, M.2004) .

2.6 Fraud

Fraud involve the false representation of facts, whether by intentionally withholding important

information or providing false statements to another for the party specific purpose of gaining

something that may not have been provided without the deception. Financial fraud, it happens

when someone deprive you of your money or harms your financial health through misleading,

deceptive, or other illegal practices. Financial fraud can be of the form identity theft, investment

fraud, mortgage and lending fraud, and mass marketing fraud. (Albrecht, C. 2001)

2.6.1 Fraud Theory.

xxxvii
Researchers and philosophers in various fields of research focusing on fraud inquiry

acknowledge three (3) main aspects in relation to an individual practicing fraud. These elements

(fraud model) comprises of perceive pressure facing a person, perceived possibility of a person

engaging in fraud, and the state of mind or behavior of the person. The fraud models emanate

from a renowned criminologist Harrison etal (2011),"Research and classical theory". Employees

with good sense of integrity will always be affected by the behavior of employees with levels of

integrity (Cressey, H. 1973). Anyone who violates a trust to commit a fraud behavior is usually

affected by a comparable financial need. In the eyes of the offender is what is deemed w non-

shareable. Non-shareable need occurs when the individuals who are trusted breaks the trust and

consider themselves as suffering from financial problems with the idea that the problems can

resolved secretly by going contrary to the status of financial trust in that situation. In other terms,

trust violators have some kind of perceived financial problems of which they have the feeling

that it has to be solved secretly and they have the ways, aims and rationale to solve the problems

by embezzling funds. The fraud elements are; false depiction of a material fact and

representation produced with understanding of its falsehood (Fremont-Smith,2004). Fraud by

management symbolizes the situation of the agency problem where the interest of management is

to satisfy their personal needs than that of their shareholders (Harrison etal,2011).

Brinkmann, J. and Henrikson, A. (2008) indicate that, in making available detailed information

and more insight on the financial report prepared, the audit committee has the role of improving

the ability of the board to act as management control. The Board of Directors are responsible for

internal surveillance and their feasibility is increased by having independent non-executive of the

board (Fanning, K. and Cogger, K. 1998). The Board, senior management and internal auditors

are supposed to accept fraud prevention and detection as a function.

xxxviii
2.7 Empirical Review.

The empirical review is a research based on observed and measured phenomena which drive

knowledge from actual experience rather than from theory or beliefs. This aspect of research suit

into the framework and makes contributions to existing literature. It is essential to group them

according to their concepts, scope, approach and findings. This approach is employed in

measuring the quality of financial statements as a means of accountability (Koornhof, C. and

Duplessis, D. 2000). The study also analyzed the financial statements of chief Constable for 22

years and it was revealed that financial statements are the main means of accountability for an

authority, which must include and help improve the criterion of performance.

In order of Kanyingah, H. and Mitullah, R. (2007) to discover what they want in financial

statements, they studied three (3) user groups. Earlier 1991, their research revealed included

performance information (five or ten-year trend) which was considered worthy and would give

more insight into the performance of public limited companies.

Moyes, G. and Hasan, I. (1996) also contributed their opinions on empirical review about public

limited companies. It was discovered in their research that, accidentally in terms of evidence on

reporting to stakeholders on performance levels appeared to be lacking. Ones, D. and

Viswesvaran, C. (1996) also declared their support for the results above when they verified that

aside financial statements, performance information is also important.

xxxix
According to a research carried out by Sancier, G. and Golderg, L. (1996) on financial

statements of Italian local governments by the use of checklist developed on the basis of the

literature disclosed on accountability index. In carrying out the research, a survey was used to

know the actual users of financial statements and information needs. Their study also revealed

that financial statement was not the ultimate force of obtaining useful information. While the

above study was focused on the importance of financial statement in achieving accountability

globally, there has been little evidence from public limited companies in developed and

developing nations.

xl
 CHAPTER THREE (3)

RESEARCH METHODOLOGY

3.0 Introduction

This particular chapter shows the procedures used in obtaining data and specific research tools in

collection of data required to solve problem. The methodology involves a theoretical systematic

analysis of the methods used in the area of study. This applies to areas such as research design,

target population, procedures and data collection instruments.

3.1 Research Design

The purpose of the study was to collect information from the respondents on both attitude and

views that relate to the impact of financial accountability in public limited companies at

Electricity Company of Ghana (Takoradi Head Office) conducting our research successfully, the

quantitative technique was adopted to help gather analyses and construe the primary data.

3.2 Population and Sample size

The target population of the study constituted the entire officials of Electricity Company of

Ghana. The sample was made out of fifteen (15) officials from Takoradi office. It comprised of

xli
three (3) managers and twelve (12) members of staff from the Takoradi office. We considered

twelve sample size because of limited time, high cost, and covid-19 situation which made it

impossible for us to cover the total population.

3.3 Sample Design

In selecting our sample, the stratified random sampling design was used. Since the entire

population of the staff in the finance department of Electricity Company of Ghana (Takoradi

Head Office) could not be used as respondents for the questionnaire due to time factor and covid-

19 situation. This choice was made because it gives each segment equal chance of being

selected. Based on this, the sample frame used as respondents for the questionnaires were fifteen

in number.

3.4 Data Collection Instrument

In the data collection, we used questionnaires where the semi-structured questionnaires were

used. The close-ended questions were used for easy coding. Where as to generate more

information from the respondents to complete any missing links, the open-ended questions were

used. The questionnaires contain items that helped in providing solutions to the research question

to meet the research objectives. A high level of the normalization of data and the acceptance of

popularized information among any population is provided by the questionnaires.

3.5 Data Collection Procedures

xlii
It was required of the respondents to complete the questions as honestly and completely as

possible. Assistants from the organization helped in distributing the questionnaires to the

selected respondents by hand. On completion, the research assistants helped in collecting the

questionnaires and also ensured high completing rate. Drop and pick method was employed to

give the respondent enough time fill the questionnaires.

3.6 Data Analysis Procedures

To provide answers to the research question, the analysis of data was adopted. In enhancing the

ease in the analysis of data collected, sorting, classification, coding, and tabulation were applied.

The analyzed data was then summarized and grouped base on their common features. A further

presentation of the data was done in frequency distribution table, bar chart and pie chart which

had its interest focused on the frequency of appearance of attributes of measures.

xliii
 CHAPTER FOUR

DATA ANALYSIS, PRESENTATION, AND INTERPRETATION

4.0 Introduction

This chapter provides the study’s and results as outlined in the research methodology. The results
are presented on the impact of financial accountability in public limited companies at Electricity
Company of Ghana (Takoradi office). From the questionnaires as research instrument, the data
was gathered exclusively. In line with the objectives of the study, the questionnaires were
designed.

Table 4.1: Response Rate

Response Frequency Percentage

Respondent 12 80

Non-Respondent 3 20

Total 15 100

Source: Survey Data (2020)

4.1: Demographics

4.1.1 Respondent Position

The study aimed at investigating the respondents’ position in the various public limited
companies. According to the findings, 58% who were the majority were finance officers, 25%
were internal auditors and 17% were top management. The findings show that the targeted
department were presented in the study.
xliv
Table 4.2: Respondent Position

Position Frequency Percentage

Top management 2 17

Finance officers 7 58

Internal auditors 3 25

Total 12 100

Sources: Survey Data (2020)

4.1.2: Respondent Gender

The research was design to investigate the gender of the respondent. Out of the respondent
gender, 8 males who were majority represent 67% whiles 4 who were females represent 33%.

Table 4.3: Respondent Gender

Gender Frequency Percentage

Male 8 67

Female 4 33

Total 12 100

Source: Survey Data (2020)

xlv
4.1.3 Respondent Age

The respondents were asked to indicate their ages, those between the ages of 41 to 50 years
represented 42%, those between the ages of 31 to 40 years represented 25%, those between the
ages of 51 to 60 years represented 25% and those between the ages of 20 to 30 years represented
8%. Meanwhile, none of the respondents was above 60 years. This exhibits that the respondents
could answer the questionnaires appropriately because they were matured.

Table 4.4: Respondent Age

Age Frequency Percentage

20-30 1 8

31-40 3 25

41-50 5 42

51-60 3 25

Total 12 100

Source: Survey Data (2020)

xlvi
4.1.4 Level of Education

The research discovered that 67% of the respondents who were the majority had a university
degree, 25% had diploma, and 8% had post graduate certificate. This shows that the respondents
were well educated.

Table 4.5: Level of Education

Level of Education Frequency Percentage

Diploma 3 25

University Degree 8 67

Post Graduate 1 8

Others - -

Total 12 100

Source: Survey Data (2020)

4.1.5 Number of Years of Experience

Upon investigating the number of years of experience in the public limited companies of
Electricity Company of Ghana (Takoradi Office), those who had worked for the period between
1 to 5 years were the majority representing 75%, those who had worked for the period between 6
to 10 years represented 21%, those who had worked for period above 10 years represented 4%
and none worked in the sector below 1 year. This gave a clear indication that all the respondents
had stayed in their respective public limited companies for a period of time and hence were
conversant with how the company operated financially.

xlvii
Table 4.6: Number of Years of Experience

Period Frequency Percentage

1-5 9 75

6-10 2 21

Above 10 1 4

Total 12 100

Source: Survey Data (2020)

4.2: Financial Accountability

4.2.1 Extent of Financial Accountability

In order to achieve the objective of ascertaining the extent to which compliance with financial
regulations aid public limited companies in attaining their objectives, the following
questionnaires were developed.

Table 4.7: Does the organization prepare regular financial reports for the benefit of
stakeholders?

Response Frequency Percentage

Yes 10 83

No 2 17

xlviii
 Total 12 100

Source: Survey Data, (2020)

From table above 10 respondents representing 83% agreed that public limited companies prepare
regular financial report for the benefit of stakeholders whiles 2 respondents representing 17%
disagreed. It can be concluded that financial reports of public limited companies are prepared on
regular basis for the benefit of stakeholders.

Table 4.8: Does the organization annual financial reports demonstrate financial accountability
and stewardship?

Response Frequency Percentage

Yes 9 75

No 3 25

Total 12 100
Source: Survey Data (2020)

From the table above 9 respondents representing 75% responded yes to the question whiles 3
respondents representing 25% responded No to the question. It can be deducted that, public
limited companies annual financial reports demonstrate financial accountability and stewardship.
On the contrary the 25% who responded No gave the following reasons to support their views.

1. Misappropriation of funds in public limited companies,

2. Improper records keeping,
3. Weak internal control system.

xlix
Table 4.9: Does the annual financial statement of the organization show a clear picture of the
resources entrusted to them and how they have been used during the year?

Response Frequency Percentage

Yes 8 67

No 4 33

Total 12 100

Source: Survey Data (2020)

From the table above, on whether the organization annual financial statement show a clear
picture of the resources entrusted to them and how they been used, 67% who were the
majority responded Yes whiles 33% responded No. those who said Yes supported their
answer that, resources were efficiently and effectively utilized and clearly indicated in the
financial statement. But those who said No supported their view that, the utilization of
resources were not fully disclosed in the financial statement.

l
Table 4.10: Does the management of the organization periodically prepare income and
expenditure accounts?

Response Frequency Percentage

Yes 12 100

No - -

Total 12 100
Source: Survey Data (2020)

It is seen from the table above that, all the 12 respondents representing 100% agreed that
management periodically prepare income and expenditure accounts of the organization. It can be
deduced that, public limited companies’ income and expenditure accounts are periodically
prepared.

Table 4.11: Does the staff of the organization submit reports for business advances in a timely
manner?

Response Frequency Percentage

Yes 7 58

No 5 42

Total 12 100

li
 Source: Survey Data (2020)

From the table above, 58% representing the majority cited Yes while 42% cited No. From the
response, it can be deduced that public limited companies reports for business advances are
averagely submitted in timely manner.

4.3: Financial Performance

4.3.1 Fraud on Performance
The study aimed at investigating the extent to which fraud affected the activities and
performance
of public limited companies, 42% who were the majority indicated that public limited companies
performance was affected by fraud
to a great extent, 25% cited that public limited companies performance was affected by fraud to a
very great extent, 17% indicated that public limited companies performance was affected by
fraud to a moderate extent, 8% indicated
public limited companies performance was affected by fraud to no extent while 8% indicated that
companies performance was affected by fraud to a Little extent. The findings are tabulated in the
table below.

lii
Table 4.12: Fraud on Performance

Response Frequency Percentage

Very great extent 3 25

Great extent 5 42

Moderate extent 2 17

Little extent 1 8

No extent 1 8

Total 12 100

Source: Survey Data (2020)

4.3.2: Use of Technology on Detecting Fraud

Table 4.13: Use of Technology on Detecting Fraud

Response Frequency Percentage

Yes 3 25

No 9 75
Total 12 100

Source: Survey Data (2020)

The study aimed at investigating whether the public limited companies have recent technology
that can detect any

liii
fraud intended. 25% of the respondents indicated yes while 75% indicated no as their response.
This shows that public limited companies have not adopted new technology of fraud detection.

4.3.3: Measures of Detecting and Control Fraud

Table 4.14: Measures of Detecting and Control Fraud

Response Frequency Percentage

Yes 3 25

No 9 75

Total 12 100

Source: Survey Data (2020)

On whether public limited companies had set measures of detecting and controlling fraud, 67%
who were the majority cited Yes they had set measures of detecting for controlling fraud whiles
33% cited No as their response. In support of their answer who cited Yes indicated that this was
a mandate given by the stakeholders and have to be implemented and monitored regularly and
hence had to adopted. Those who respondent that they don’t have measure of detecting and
controlling fraud cited that, they did not see any importance since the finances are well
accounted for and they have never received any complaints none had issues with accounting to
their use.

liv
 CHAPTER FIVE

SUMMARY OF FINDINGS CONCLUSIONS AND RECOMMENDATION

5.0 Introduction

This chapter gives a summary of the findings of chapter four and also provides the conclusions

and recommendations of the study based on the objective of the study. The aim of the study was

to enhance an understanding of public limited companies of Electricity Company of Ghana

(Takoradi office) with the objectives, to ascertain the method by which fraud can be checked, to

ascertain the extent to which financial accountability aid public limited companies in attaining

their set objectives, and to show the extent to which accountability ensures the judicious use of

funds in public limited companies.

5.1 Summary of the Findings

Upon conducting the research, it was revealed that majority of the respondents belong to the

finance department. Using the gender parity, it was observed that, majority of the respondent

were male. Majority of the respondents were between the ages of 41 to 50 years, which indicates

how matured they could respond or answer the questionnaires appropriately. Majority of the

respondents were university degree holders which shown how educated they are. Majority of the

respondents have worked for a period between 1 to 5 years, which is due to the instability of job

posts in the public sector.

lv
It was also discovered that public limited companies prepare financial statement to ensure

financial accountability in their organizations. To achieve this, financial manual were reviewed

and passed on to managers, officers, staff, trustees and stakeholders to verify the authenticity of

their documents. To management only upheld the access, input and modification of electronic

data with the aim of preserving electronic records and ensuring data compatibility when systems

change and design appropriate record retention policy. Financial accountability in public limited

companies was found to be of strong extent. Quality of financial report was found to be of strong

extent. There was a need for public limited companies to determine their internal control,

sampling techniques used in accounting, audit evidence using internal and external sources and

the company’s emphasis on the truth and fairness of financial statement, thus enabling

respondents to describe the organization in terms of the quality of the financial report.

The study revealed that public limited companies lack the recent technology that can help detect

and control any fraud intended. It was indicated by the respondents that their companies had set

measures implemented to help in detecting and controlling fraud as a result of the presence of the

both internal and external audit function.

5.2 Conclusion

Financial accountability in public limited companies is a very essential key that drives the

economy to a greater higher. Accountability is not an end in itself, but a mean to an end.

Accountability has the main aim of improving the service delivered for the benefits for the public

lvi
and this could be attained through the effective and efficient implementation of both

management strategies and financial control systems in public limited companies.

From the study, it was inferred that, public limited companies uphold financial accountability to

strong extent, nevertheless, fraud was still seen as a challenge that could affect the quality of

financial documents due to the non-existence of modern technological tools in fraud detection.

Finally, the research concluded that a unit increase of financial performance in public limited

companies resulted from the unit increase in financial accountability. Therefore, it is established

from the study that, there is a significant relationship between financial accountability and

financial performance in public limited companies.

5.3 Recommendation

The following recommendations were made based on the research findings:

The research suggests that the officers and boards of those public limited companies should take

responsibility to uphold and manage assets of which all stakeholders will benefit. The following

guidance is recommended to aid board members and others in conducting their supervision of

public limited companies. Public limited companies should have their policies and procedures

constituted so that, board members and officials are able to comprehend their stewardship,

leading to proper management of finances and also ensure that the objectives of the companies

are carried out on matter of the mission or size of the organization. The inability to comply with

these obligations will result in a breach of their stewardship and could give rise to financial and

other liability for the board and officers. In order to protect the organization’s finances and also

aid proper management, effective internal control should be encouraged.

lvii
The research further suggests that public limited companies develop and apply recent technology

to help detect and control fraud. This is because just the presence of external and internal

auditors without the requisite technology to detect fraud may mark conclusions not accurate

which will hamper the attainment of good financial performance.

The research also suggests that it is the main responsibility of officers and directors to ensure that

public limited companies are accountable to their stakeholders for the service provided.

Companies are required to comply with applicable laws and ethical standards and therefore

adhere to the company’s mission, protecting the right of stakeholders, adhering to accounting

policies, preparing and filling an annual financial report to the board of directors, finally making

the report available to all shareholders and the public who may be interested.

The research also recommends that a written job description should be made available to

directors, officers and stakeholders. The organizations’ mission will be achieved and problems

will be prevented if all those engaged are able to understand what is expected of them as well as

authority limitation.

Finally, it is recommended that the parties involved are trained appropriately. It is required by

those familiar with the company and its operations, including financial accountability, to train

new managers, officers and other employees in the organization. It is necessary that managers,

officers and staff working in public limited companies do not have any business or personal

interest that may conflict with management. In order to avoid this, it is required of companies to

have conflict of interest policy “ which states clearly the procedures to be followed in case an

lviii
employee’s personal or financial interest is advanced by the board’ action, an establishment of an

audit committee is important for the governance of public limited companies. Typically, the

committee consist of board members, one of whom is at least an accounting specialist, and those

who are independent of any financial interest in the organization.

lix
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lxiii
 APPENDICES

Questionnaire by (optional) __________________Date:

SECTION A: DEMORGRAPHICS/ RESPONDENT PROFILE

1. Organization’s Name (Optional) ………………………………………………………….

2. Position of Respondent …………………………………………………………

3. Gender
Male [ ]
Female [ ]
4. Age
20- 30 years [ ]
31- 40 years [ ]
41-50 years [ ]
51-60 years [ ]

5. Please indicate your highest level of education attained

Diploma [ ]

University Degree [ ]

Post Graduate [ ]
Others [ ]

6. Number of years of experience in public

limited companies ………………

lxiv
SECTION B: FINANCIAL ACCOUNTABILITY

7. To what extent can you describe the financial standards applied in ensuring accountability of
finances in your organization?
……………………………………………………………………………………………………………………………………………………
……………………………………...………………………………………………………………………………………

8. To what extent does your organization ensure the given in relation to financial accountability.
Use a scale of 1-5 where 5 Very great extents, 4 Great extents, 3 Moderate extent, 2 Little
extents and 1 No extent
1 2 3 4 5
Does the organization prepare regular financial reports for the benefit of
stakeholders?
Does the organization annual financial reports demonstrate financial accountability
and stewardship?

Does the annual financial statements of the organization show a clear picture of the
resources entrusted to them and how they have been used during the year?

Does the management of the organization periodically prepare income and

expenditure statements?

Does the staff of the organization submit reports for business advances in a timely
manner?

9. According to your organization how can you describe your quality of financial reports?
…………………………………………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………………………………………...

10. To what extent does your organization ensure the given information is relation to quality of
financial reports. Use a scale of 1-5 where 5 Very great extents, 4 Great extents, 3 Moderate
extent,
2 Little extents and 1 No extent

Statement 1 2 3 4 5

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How accurate is the information in the organization’s financial reports
How well are there sufficient and reliable information on budget execution
Can the financial accountability in this organization can be rated as satisfactory
How well is the organization’s financial reports designed to incorporate key issues
or changes derived from previous auditor’s report
The financial reports produced are clearly understood by the donors
How well does organization’s financial reports produced provide relevant
information to the stakeholders for decision making and planning
How well the organization’s financial reports contain all relevant material
information about debtor, creditors, etc.

Does organization’s financial reports produced provide relevant information to the

stakeholders for decision making and planning

SECTION C: FINANCIAL PERFORMANCE

11. To what extent does fraud affect the activities and performance of your organization?
Very great extent []

Great extent []

Moderate extent []

Little extent []

No extent []

12. Do you have the recent technology that can detect any fraud intended?
Yes [] No []

13. Does your organization have set measures of detecting and controlling fraud?
Yes [ ] No []

b) Briefly explain why? ………………………………………………………………………………………………………

……………………………………………………………………………………………………………………………………………………….
14. To what extent does your organization ensures the given in relation to financial performance.
Use a scale of 1-5 where 5 Very great extent, 4 Great extent, 3 Moderate extent, 2 Little extent
and 1 No extent

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Statements 1 2 3 4 5
How well does the organization’s officials and administrations always look forward
to maximize their output in relation to input

How well do staffs in the organization endeavor to optimally use resources on time
in the attainment of the organization’s objections

On all the organization Programmes/Projects the Officers always look out for the
impact which is the output of all these functions either contributes to or influences
organization performance as a whole

How is the satisfaction on all the organization Programmes/Projects which is

exhibited by how the service is perceived by both senior management and the
internal staff on these projects

Have there been a high level of modernization exhibited and to what extent has
organization adopted management practices that would be regarded as being
innovative and forward looking

THANK YOU FOR YOUR PARTICIPATION

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