THE ROLE OF AUDIT COMMITTEE FOR THE PROPER ACCOUNTABILITY OF COMPANY’S FUNDS (A CASE STUDY OF DEPARTMENT OF PETROLEUM RESOURCES (DPR).. A RESEARCH PROJECT MATERIAL ON ACCOUNTING
This research work was designed to study and investigate precisely the Role of Audit for the proper Accountability of Company’s Fund with special emphasis on Department of Petroleum Resources.Prudent fund management requires that available resources be equitable allocated to all activities or proposals such that each ill not suffer under over allocation of funds. How efficient a manager is can be determined by how effective he can account for funds entrusted to his care.It is expected that available management tools for the purpose of proper accountability be adopted or used by administrators in the discharge of their administrative responsibilities. Audit which is mostly used as the last resort of company’s managers need to be enforced by any organization to enable it evaluate performance and deviation.Data for the study was collected form both the primary and secondary sources. The questionnaire method was used to collect data. Forty-three (43) respondents were selected using the stratified random sampling techniques.The simple percentage was used in the presentation of data, while the chi-square was used to test the hypothesis.
The study revealed that:
(1) The internal control system is weak.
(2) The accounting system is weak.
(4) The occasional audits are mainly concentrated on financial matters.
The study finally proffered solution by recommending ways through which organization could achieve their audit objectives.
1.1 GENERAL BACKGROUND OF THE STUDY
The word “Audit” is from a Latin word “Audire”, which means to HEAR. The practice was known to have first existed in Egypt.
In medieval period, the stewards were responsible for the welfare of their masters, thereby demonstrating the responsibilities of good and efficient stewardships over financial resources provided and entrusted to them for the proper running of their transaction.
Accountability is therefore necessary for managers of company’s funds to ensure that money and other assets entrusted to them are adequately taken care of. How one is able to account for funds, assets and other valuables entrusted to his care will then determine his efficiency and good stewardship.