INTERNAL AUDITING AS A TOOL OF CONTROL IN FEDERAL GOVERNMENT PARASTATALS A CASE STUDY OF AHMADU BELLO UNIVERSITY TEACHING HOSPITALS ZARIA (ABUTH). INSTITUTE OF HEALTH ZARIA – NIGERIA. A RESEARCH PROJECT MATERIAL ON ACCOUNTING
Auditing has been used by governments and Private Enterprises for a long period as a tool for efficient and effective management and control of their activities especially as it relates to their financial dealings.
This research work primarily discusses how the ABU teaching hospitals utilizes this all embracing technique in the management and control of its financial operations. It also focuses on identifying the inherent problems involved in adopting the technique and utilizing it accordingly and thus depriving the benefits therein.
The work is divided into four chapters, chapter one contains the general over review and consider the problems, objectives, scope and limitations of the survey methods.
Chapter two handles the literature review, while chapter three and four contain the operations, survey, data collection and analysis, conclusions and suggestions.
In Nigeria, successive governments, since independence have set up autonomous organizations with legal independence and powers, having the initiative of private enterprises to carry on developmental activities of commercial or industrial nature. Thus, the emergence of Ahmadu Bello University teaching Hospitals with headquarters in Samaru Zaria is charged with the responsibility of accounting properly all financial activities undertaken by its management.
The need to institute both internal and external audit systems within organizations for efficient and effective financial monitoring, management and control was further necessitated by some prevalent economic pressure like the recession in the privatization and commercialization of most of government owned organizations, keen competition in the Nigerian business environment, the Structural Adjustment Programme (SAP), Industrial unrest and the renewed call by the government through War Against Indiscipline and Corruption (WAI-C) foir financial prudence, action and accountability by government functions.
Internal auditing is of fundamental importance as an effective means of ensuring the reliability of internal records for information and use, through proper internal control systems within an organization without which such records will present chaos and the whole system may fail to succeed for lack of orderliness, accuracy, reliability of information, safety of its assets and the general security of records.
Effective internal control is necessary to be able to determine whether all transactions have been reflected within accounting record. It is therefore, important to recognize that the auditor concerns himself with internal control throughout the clients organization and not merely within the finance and supplies department alone. He ought to understand the organizational operations as a whole, ascertain and evaluate the whole system of control operating within the organizations. An important aspect about controls is the fat that it has to be timely otherwise the whole exercise will be futile.