THE NATURE OF INTERNAL AUDIT SYSTEM IN EDUCATIONAL INSTITUTION REGULATORY ORGANIZATION
1.1. BACKGROUND OF STUDY
Given today complex and rapidly changing management climate, most large companies, major institution and governmental agencies are implementing
continuous improvements to achieve eiciency
and assure all concerned parties of solid corporate governance.
The nature of interval audit system simply means explaining some of the key terms in the project topic, the internal system.
According to the Institute of Internal Auditors (IIA) definition of internal auditing the internal audit system should provide independent, thoroughly timely
and objective result of quantitative and qualitative testing to senor management and in essence, help evaluate organizational risk management.
Auditing is an independent checking and investigation of the books of accounts and vouchers of a business with a view to enabling the audit to report
whether the balance sheet and profit and loss account are properly drawn up so as to show a true and fair view of the state of the arias and the best of the
information and explanations obtained by the Auditors and that they comply with the rules laid down by SSAP (Statements of Standard Accounting Practice)
and other statutory regulations. Audit is of two types, namely.
Internal audit is a review of the operation procedures and records of the business internal auditing is itself an internal control which operates by appraising
and reporting on the eectiveness
of the other controls. Thus, its main objectives is to assist management in discharging its responsibilities and to evaluate
compliance with corporate procedures. The role of internal auditors therefore, is to provide an overall assurance to management that all key risk within an
organization are managed eectively
so that the organization can achieve its strategic objective.
External Audit: The external auditors are oicers
from supervisor agency or independent firm to examine accounts, document independently. However, this
project topic is restricted to internal audit system, taken the National Board for technical education as a case study.