THE ROLE OF INTERNAL AUDIT IN THE MANAGEMENT OF HOTELS AND RESTAURANTS. A RESEARCH PROJECT MATERIAL ON ACCOUNTING
The question as to whether or not internal audit has an important role to play, has been generating a lot of controversies over years, especially, among hotel and restaurant owners. This question that seemed to be yet half way answered, gave rise to carrying out this study. The work is designed in such a way as to help readers understand the roles of internal audit in management of hotels and restaurants. The project deals extensively with the roles of internal audit in the management of hotels and restaurants the importance of these roles, the hindrances, advantages and disadvantages, effect and possible solutions to these problems. Chapter one was designed to give an overview of the study. This chapter dealt with the background of the study, relevant research questions, statement of hypothesis, significance of study, scope and limitations. Also covered were the definitions of technical jargons employed in the work. Chapter two was a review of previous work on the definition and meaning of internal audit, importance of internal audit, advantage and disadvantage of internal audit, scope, roles of internal audit among others. This chapter in a nutshell gave a clue of the need for an internal audit. Chapter three of this work was all about the summary of findings, conclusion and recommendations. This chapter suggested new findings as regards internal audit activities and recommendations. Finally, this work was made to assist many people in various aspect of life including student’s lectures, hotel and restaurant owners and other alike.
1.1 BACKGROUND OF STUDY:
Internal auditing has become a very important tool of the management and directors of companies since the drift of business activities from sole proprietorship to larger public enterprises.
Experts rank it, the number one instrument of internal control and internal check. It forms the bedrock of reviewing the operations and records sometimes continuous, undertaken within a business.
Management of companies interested on the protection or security of their jobs. The directors of business are always looking forward to getting an answer of improved performance from the management. Their ultimate aim is to receive as much returns as possible from the capital they invested in the business.
Through the work of internal auditors, management is given reasonable assurance of staff competence and safeguard of company’s assets. The external auditors and the directors companies also make use of the internal audit report to form an opinion after carrying out some tests and appraise the performance of the management team respectively.