INVESTIGATION OF ACCOUNTING SYSTEM OF SMALL SCALE INDUSTRIES (A STUDY OF SELECTED SMALL SCALE INDUSTRIES IN ABA)

The work deals with the INVESTIGATION OF ACCOUNTING SYSTEM OF SMALL SCALE INDUSTRIES IN ABIA STATE using selected small scale industries in Aba as a case study. Accounting system is a set of records, procedure and requirement that routinely deals with the event effecting finance performance and position of the entity; it has been observed that most small scale industries do not keep a proper accounting system in their organization. They do not have qualified accountants in their accounting department and their accounting system is not up to the standard of double entry book keeping. Hypothesis was carried out on this subject matter, based on these problems the researcher made a thorough research in this project work. During the investigation a total of 20 questionnaire were randomly distributed to manager, directors, and employees of selected small scale industries and were necessary oral interview conducted, and out of the 20 questionnaire distributed, 18 were completed and retained. It was also observed that their accounting records do not measure up to the standard of double entry because they don't adhere to its rules and they do not have a strong internal control measure as a result, they have been suffering loss and misappropriation of their business stock and money. The researcher, in his findings observed that small scale industries in Aba do not keep complete and appropriate books of account majority of them does not invite external auditors to check their account record. The researcher recommend that small scale industries should employ qualified accountant in their account sections for proper keeping of accounting records, and should adhere to the standard of accounting principles in the preparation of books of account in other to provide accurate information for manager to work effectively.