ABSTRACT
This project work title assessed “The Scope of Internal Audit Function: Contemporary Issues and Challenges in Federal Road Maintenance Agency (FERMA)” For the purpose of this research work, a survey research was employed by the researcher. The researcher also used random sampling for its sampling techniques. Data collected were presented in a tabular form and analyzed using simple percentage. Two hypotheses formulated were tested using chi-square statistical tool. The study revealed that the Internal Control System or Measure are not enough to prevent of detect errors or omission. Major recommendations of the research study suggested that a frequent review of the system of Internal Control System be adopted so that lapses detected in the system can be corrected or ameliorated.
CHAPTER ONE
1.0 INTRODUCTION
1.1 Background of the Study
Produce financial management is a desire of every government. For this to be achieved, some internal control measures need to be put in place.
Robertson (1979:189) defines internal accounting control: “the means by which errors in accounting data are detect and corrected”
From the above definition, internal control could be said to comprise of the plant of an organization and all the co-ordinate methods and measures adopted within a business to safeguard assets, check the accuracy and reliability of its accounting data, promote operational efficiency and encourages adherence to prescribed managerial policies.
Adeniyi (2004:165) defines internal control system of control financial and otherwise established by the management company in an orderly and efficient manner, safeguard assets reliability of records. This definition recognize that a “system of internal control extend beyond the matter which relate directly to the function of the accounting and financial department”.
An important aspect of the definition worthy emphasis is financial management.
Obamuyi (1998) defines financial management as that managerial activity which is concerned with the planning and controlling of the firm’s financial resources. Financial management as that of total management which is concerned primarily with financial transaction of action, both past and proposed into meaningful and relevant information, for use in the management process. Account journal (195:3). From the foregoing we can equally say that financial management includes the following planning, programming, budgeting, and budget execution.
The audit unit carries out measure in evaluation of activities and account of the establishment so as to provide information about the effectiveness and efficiency of operation of programme and projects. In federal roads maintenance agency, two types of auditing activities are carried on, these are pre – payment and post – payment auditing. Internal auditing viewed the accounting and operating system of the financial reports to ensure their accuracy and adequacy.
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