ABSTRACT
Internal audit as one of the four pillars of operations governance helps in providing reliable financial reporting on the activities of an organization coupled with other value – added service. This research study highlighted how internal audit affect the accountability and transparency of operations in an organization with first city monument bank plc being the case study. A sample size of twenty (20) is draw from a population of thirty two (32) for this study. Being a survey research information was obtained using questionnaire forms and personal interviews. Sample averages and percentages are used in analyzing data collected. Internal auditors must ensure that accountability and transparency are encapsulated in their internal audit function so as to instill a positive effect on operations of organization which will encourage investors and the public at large that their funds are efficiently utilized. Findings showed that the internal audit function is effective in the operation of financial statement of the bank for the fiscal year. They are able to provide assurance on financial reporting, compliance processes, capital planning, budgeting, mergers and acquisitions, evaluation of the correctness of records and review of accounting practices, having assessed how internal audit affect the accountability and transparency of operations in an organization. It is recommended that internal audit should have full and free access to the company, and audit committees and maintain a close working relationship with them.
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TABLE OF CONTENTS
Title Page – – – – – – – – – i
Certification – – – – – – – – ii
Dedication – – – – – – – – – iii
Acknowledgements – – – – – – – iv-v
Abstract – – – – – – – – – vi
Table of Contents – – – – – – – vii-ix
List of Tables – – – – – – – – – x
CHAPTER ONE
INTRODUCTION
- Background of Study – – – – – – 1-5
- Statement of the Problem – – – – – 5-6
- Objective of the Study – – – – – – 6
- Research Questions – – – – – – 7
- Significance of the Study – – – – – 7-8
- Scope/Limitations of the Study – – – – 8
- Organization of the Study – – – – – 9
- Definition of Terms – – – – – – 10-11
CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1 Introduction – – – – – – – 12
2.2 The Meaning and Concept of Internal Auditing – – 12-13
2.3 The Scope of Internal Auditing – – – – 14-18
2.4 Development of Internal Auditing – – – – 18-20
2.5 The Benefits of Internal Auditing in an
Organization Governance – – – – – 21-23
2.6 Authorities and Responsibilities of Internal Auditors – 23-24
2.7 Audit Committee Relationship with Internal Auditors – 25-26
2.8 The Rules of Conduct for Internal Auditors – 26-28
2.9 Accountability and Transparency in Internal Audit – 28-29
2.10 The Qualities of Internal Auditors – – – – 29-31
CHAPTER THREE
RESEARCH DESIGN AND METHODOLOGY
3.1 Introduction – – – – – – – 33
3.1.1 Re-Statement of Research Questions – – – 33
3.2 Design of Study – – – – – – – 34
3.3 Area of Study – – – – – – – 34
3.4 Population of Study – – – – – – 34
3.5 Sample and Sampling Techniques – – – 35
3.6 Instrument/Methods of Data Collection – – – 36
3.7 Data Analysis Techniques – – – – – 37
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND INTERPRETATION
4.1 Introduction – – – – – – – 37
4.2 Data Presentation, Analysis and Interpretation – 37
4.2 Data Analysis and Interpretation of Research Question – 38-44
CHAPTER FIVE
FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.1 Introduction – – – – – – – 45
5.2 Findings – – – – – – – – 45-46
5.3 Conclusion – – – – – – – – 47
5.4 Recommendations – – – – – – 48
References
Appendices
CHAPTER ONE
INTRODUCTION
- Background of the Study
The demand for both external and internal auditing are sorted with the need to have some mean’s of independent verification to reduce record keeping errors, asserts misappropriation and fraud within business and non-business organization.
Cascarino and Van Esch (2005) stated that “the profession of internal auditing as many others professions, has its roots in the industrial revolution of the nineteenth century”. In the recent years a lot of improvement have appeared on the function of the internal auditing with respect to the extent of the internal auditor especially after the emerging of the auditing committee and its responsibility in front of the board of directors and the shareholders that make this function worth investigation and researching. The word Audit was actually derived from the Latin word “qudile” meaning to hear.