INTERNAL AUDIT AS A TOOL FOR ENSURING EFFECTIVE MANAGEMENT OF AN ORGANIZATION (A CASE STUDY OF SOME SELECTED FIRMS IN IMO STATE)

INTERNAL AUDIT AS A TOOL FOR ENSURING EFFECTIVE MANAGEMENT OF AN ORGANIZATION (A CASE STUDY OF SOME SELECTED FIRMS IN IMO STATE)

ABSTRACT

This study seeks to evaluate the internal audit system, it aims at identifying the necessary measures, introduced by the organization to ensure the duties are carried out in orderly and efficient manner, ensure adherence to management policies. Strategy and assets and ensure completeness and accuracy of records.

The aims of the study among others

• To find out if there is an internal auditor and internal audit section in the firm.
• To find out how effective the internal audit section  is
• To find out if appropriate records is kept.

The findings:

There were, however, various discoveries that were made in the course of ht research work and these include:

1. Most of the staff do not go on leave due to too many pilled up job
2. The company sends their worker to training in order to improve their knowledge on their field of specialization.

In writing this research project, I have drawn intensively form a number o f authors whether named in the bibliography or not, I am therefore deeply indebted to such authorities.

TABLE OF CONTENTS

TITLE PAGE-      –        –        –        –        –        –        –        I

APPROVAL PAGE-      –        –        –        –        –        –        II

DEDICATION–   –        –        –        –        –        –        –        III

ACKNOWLEDGEMENT-      –        –        –        –        –        IV

ABSTRACT-       –        –        –        –        –        –        –        VI

TABLE OF CONTENTS-       –        –        –        –        –        VII

CHAPTER ONE

• INTRODUCTION- –        –        –        –        –        –        1

1.1     BACKGROUND OF THE STUDY- —      –        –        –        1

1.2     STATEMENT OF THE PROBLEM-         –        –        –        –        2

1.3     OBJECTIVES OF THE STUDY-     –        –        –        –        3

1.4     RESEARCH QUESTION-      –        –        –        –        –        3

1.5     SIGNIFICANCE OF THE STUDY- –        –        –        –        4

1.6     SCOPE OF THE STUDY-      –        –        –        –        –        5

1.7     LIMITATION OF THE STUDY-     —       –        –        –        6

1.8     DEFINITION OF TERMS-     –        –        –        –        –        7

CHAPTER TWO

• LITERATURE REVIEW- –        –        –        –        –        -9

2.1     INTRODUCTION-        –        –        –        –        –        –        -9

2.2     HISTORICAL DEVELOPMENT OF INTERNAL AUDIT-   11

2.3     THE NATURE OF INTERNAL AUDIT-  –        –        –        13

2.4     THE SCOPE OF INTERNAL AUDIT-      –        –        –        14

2.5     QUALITIES OF AN INTERNAL AUDIT-          –        –        –        15

2.6     IMPORTANCE OF INTERNAL AUDIT IN AN    ORGANIZATION–        –          –        –        –        –        17

2.7     INTERNAL AUDIT AS ATOOL FOR EFFECTIVE MANAGEMENT-   –        –        –          –        –        –        –        18

2.8     SUMMARY OF THE CHAPTER-   –        –        –        –        19

CHAPTER THREE

• RESEARCH DESIGN AND METHODOLOGY- –        –        20

3.1     INTRODUCTION–       –        –        –        –        –        –        20

3.2     RESEARCH DESIGN-  –        –        –        –        —       –        20

3.3     METHOD OF DATA COLLECTION/SOURCE OF DATA- 21

3.4     POLULATION AND SAMPLE SIZE-       –        –        –        21

3.5     SAMPLE TECHNIQUE-        –        –        –        –        –        –        22

3.6     VALIDITY AND RELIABILITY OF MEASURING INSTRUMNT-        –        —       –          –        –        –        –        –        –                  22

3.7     METHOD OF DATA ANALYSIS-  –        —       –        –        23

CHAPTER FOUR

• PRESENTATION AND ANALYSIS OF DATA-        –        –        26

4.1     INTRODUCTION-        –        –        –        –        –        –        26

4.2     PRESENTATION OF DATA-          –        –        –        –        –        27

4.3     ANALYSIS OF DATA- –        –        –        –        –        –        28

4.4     INTERPRETATION OF RESULTS-         –        –        –        –        39

CHAPTER FIVE

• SUMMARY,CONCLUSION AND RECOMMENDATION- 40

5.1     INTRODUCTION-        –        –        –        –        –        –        40

5.2     SUMMARY OF FINDINGS-  –        –        –        –        –        40

5.3     CONCLUSION-   –        –        –        –        –        –        –        41

5.4     RECOMMENDATION-          –        –        –        –        –        –        42

REFERENCES-   –        –        –        –        –        –        –        44

CHAPTER ONE

• INTRODUCTION

1. I BACKGROUND OF THE STUDY

There has been an increasing attention in the system of internal audit in the recent past. This is due mainly to the increasing size of most business units and the complexity of most modern business unit which have encouraged the adoption of different system.

The development of these different systems leads to the efficiency of management and subsequently the output of the management process. Systems such as internal audit, accounting control, electronic data processing system among others are adopted in management for the sole purpose of achieving target goals and objectives ensuring the safeguarding  or  organizations and the completeness and accuracy of records.

Internal audit is a component of the internal control system set up by management. The history of internal audit system could be traced back to the time when human beings began to form organization to achieve goals which they could not achieve themselves as single individuals. The question of management and co-ordination of effort become essential immediately two individuals or more come together to achieve a common goal.

Over the years, these organizations have grown in physical size and expand vastly in operations and because of this various kinds of irregularities have cropped in ranging form unintentional errors, to frauds.

• STATEMENT OF PROBLEM

An English adage says that “knowing to problems is half the cure” some o f the problems of internal audit are:

• Many companies do not maintain internal audit section at all
• Many workers do not co-operate with the internal audit.
• The workers do not understand their jobs well and this causes ineffectiveness.
• The internal audit sections do not perform routine checks of day to day financial transactions of the firm.
• The internal audit does not review existing procedure form time to time with a view of reporting on non-compliance.
• The internal audit section is usually under staffed.

• OBJECTIVES OF THE STUDY

The purpose and objectives are outlined below:

• To find out if  there  is an  internal audit section  in  the firm
• To find out if routine checks are carried  out
• To find out if the internal auditor and the workers  do co-operate, and to what extent
• To find out if the internal auditor reviews from time to time existing procedures.
• To find out if the workers or staff understand their function correctly.
• To find out if the internal audit sections have adequate number of staff.
• RESEARCH QUESTION

To conduct an adequate research work and to help in ensuring effective management in an organization through internal auditing, the following research questions will guide this research work.

1. Does internal audit department aid management in the effective use of resources?
2. How effective is the use of internal audit to avoid the degree of inadequate management ineffective discharge of it duties?
3. Does the existence of an effective internal audit department reduce the frequent cases of mismanagement, fraud, embezzlement of fund and non-challant attitude of workers in an organization

• SIGNIFICANCE OF THE STUDY

Internal audit has become so imperative that auditors now call for its existence in every organization. This is because a good system of internal audit facilitates the detection of frauds, errors and other irregularities that could manifest in an organizations accounting system.

In recent times, a good system of  internal  audit  has  been  recognized by  management as a valuable tool for effective carrying out of  its responsibilities and auditors  have  pressed for  improvement in internal audit system in their effort to  be  of assistance to their clients.

It is hoped that this work will be if immense benefit not only to the management of the organization but also the auditors. This research will also be  of a great use to those intending to write on similar topics especially students writing  projects, to who it  will serve as a material for reference if  kept in  the  library.

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