INTERNAL AUDITING AND CORPORATE MANAGEMENT A CASE STUDY OF PZ INDUSTRIES NIGERIA PLC ABA

CHAPTER ONE

1.0 INTRODUCTION

1.1 BACKGROUND OF THE STUDY

The term audit is defined from the Latin word “audio” meaning to hear. The origin of an audit dated back from ancient times when the land owners allowed tenants farmers to work on their farm while the land owners themselves does not involve in the business of farming. The land owners relied on an overseer who listened to the account of the stewardship given by the tenants of the farm. According to (Johnson 1002,63) an audit is the independent examination and expression of opinion on the financial statement of an enterprise by an appointed audition in pursuance of that with any relevant statutory obligation.

1. OBJECTIVE OF THE STUDY

The objective of the research work includes the following;

a. To find out the extents to which audit department affect Pz industries Nigeria Plc.

b. To know how lack of information in Pz industries Nigeria Plc affects the internal audit work.

c. To determine the extent to which the independent of the internal audit work is being impaired.

d. To ascertain whether internal auditing is an instrument for effective management.

1.3 RESEARCH QUESTIONS

To guide this project (six) research questions were generally formulated as follows:

a. Does lack of information in industries affects the internal audit work?

b. Is the internal auditor a qualified professional accountant?

c. Is internal auditing an instrument for effective management in industries?

d. Does the manager report consider the internal auditor?

e. Is the internal audit department given a free hand in terms of running of the activities of the department and responsibilities assigned to it?

f. Does inability to identify the function of internal audit department affect organization (industry)?