All accountants and organization believed that process of accountability is not complete without an audit or internal audit in an organization. But for an audit to be meaningful the one performing it must be seen to be the more the confidence reposed in him by the users of his reports.
The project discusses the event to which the internal auditors can perform their roles in public organization. In conducting this research, oral interview, questionnaire as well as personal observation were used.
The structure of this work is fairly simple; there are five chapters altogether.
Chapter one gives out the introduction, which contains background of the study, identification of problems, objectives of the study, significance of the study.
Chapter two, deals with literature aspect of the project.
Chapter three explore the research and methodology by taking the source of data and others.
Chapter four is mainly concerned with the presentation and analysis of the findings based on the data collected, then chapter five will give the conclusion of the research work, summary of the major finding and recommendation.
TABLE OF CONTENTS
CHAPTER ONE
1.1 Background of the study
CHAPTER TWO
2.1 Historical development
CHAPTER THREE
3.1 Types and sources of data
CHAPTER FOUR
4.1 Testing of hypothesis
CHAPTER FIVE
References/Bibliography
Questionnaire
PROPOSAL
In view of different scholars and as has been established by the research, internal Auditors is very important in any organization since they can be described as the eye and ears of management. All accountability and organization believe that process of accountability is not complete without an audit or internal auditor in an organization. But for an audit to be meaningful the one performing it must be seen to be the more the confidence reposed in him by the users of his reports.
The project discusses the extent to which the internal auditors can perform their roles in public organizations. In conducting this research, oral interviews, questionnaires as well as personal observations were used. The structure of this work is fairly simple, there are five chapters altogether.
Chapter one will give out the introduction which contain background of the study, identification of the problems, objectives of the study, significance of the study, oral hypothesis, limitation of the study
Chapter two deals with literature aspect of the project.
Chapter three will explore the source of data and others.
Chapter four will mainly concern with the presentation and analysis of the findings based on the data collected, then chapter five will give the conclusion of the research work, summary of major findings and recommendations.
Finally, I tried to look at the problems auditors encounter and their possible solution.
Also the findings from the interviews given were stated out of which conclusion and recommendation was drawn.
The statement of auditing standards, number includes the following definition of internal control
Meanwhile, internal control has been defined by the institute of chartered Accountants of England and Wales as “All forms of control both financially and otherwise established by management in order to carry on the business of an enterprise in an orderly and efficient manner, to safeguard its assets, to ensure adherence to management policies and to secure as far possible the accuracy and reliability of its records. In the same vein, internal control is defined as the means employed within an organization’s policies, plans , and procedures and remedy, so far as possible , any errant performance.
These brief comments should suggest that a system of internal control consist of all measure employed by a business for the purpose of: -
Thus, very large organizations (and some small ones) have found a need for internal audit in addition to an external audit. Internal auditors are employees of the organizations and work exclusively for the organization. Their functions partly overlap those of the external auditors and in part are quite different.
The premises functions of external auditors are either laid town by status or embodies in a letter of engagement. The functions (which are rarely precisely laid down) of internal auditors are determined by management and very greatly from organization to organization.
There is an auditing guideline- guideline for internal auditors issued in June 1990 where internal audit was defined as a service to the organization.
It objectively examines, evaluates and report on the adequacy of internal control as a contribution to the proper, economics, efficient and effective use of resources.
Internal auditors are employees of the firm and thus independences is not always every to achieve. However, it can be assisted by having the scope to arrange its own priorities and activities, having restricted access to records, assets and personnel.
Freedom to report to higher management and where it exists to an audit committee.
Internal control in present day escape embark all department and all activities of a business concern. It includes the methods by which top management delegates’ authority ends assipin responsibility for such functions as selling, purchasing accounting and production. It also includes the programme for preparing, verifying and distributing the various levels of supervision. Those current reports and analysis which enable executives to maintain control over the variety of activities and function which constitute a large corporate enterprise.
This definition possibly is boarder than the meaning sometimes attributed to the term. It recognizes that a “system” of internal control extends beyond those matters which relate to the functions of the accounting and financial department.
The broad definition of internal control may be conveniently summaries by stating that internal control is the means by which management obtains the information, protection and control that are vital to the successful operations of a business
Control is necessary to ensure that management policies and directives are properly adhered to. Management is far removed from the scene of operation in the typical large business, and personal supervision of employee is impossibility. As a substitute, management must rely on various control techniques to implement its decisions and goals.
These brief comments suggest that good internal control is a key factor in the effective management of business enterprises. Internal control is also the means by which management can discharge its primary responsibility for the reporting of adequate and accurate financial and operating information to which interest parties as stockholders and creditors. Management has recognized internal control as a valuable tool in effective carrying out it responsibilities and auditors have pressed for improvement in internal control of their efforts to be of assistance to management, as well as to permit reduction in audit work made possible by the concomitant increase in the credibility of the accounting records. The effect of auditing has been to reduce the need for routine, mechanical , verification of book- keeping accuracy , permitting substitution of a less time consuming approach that involves reasoning and judgments and stressing such activities as review , analysis, evaluation , and statistical sampling.
A part from the work which the internal auditors should do themselves if they encounter weakness in the system of internal control, it is good practice for them to advise management, proffer the management in the discharge of its obligations and control and safeguard the assets of the company.
SAS 300, requires auditors, to obtain an understanding of the accounting and internal control system sufficient to plan the audit and develop an effective audit approach.
In planning the audit, to obtain and document an understanding of the accounting system and control environment sufficient to determine their audit approach.
If after obtaining and understanding of the accounting systems and control in an accounting balance or class of transaction and that could be immaterial either individually or when aggregated with misstatement in other balances or detect and connected on a timely basis by the accounting and internal control system.
A satiable point from SAS 300, that regardless of the assessed levels of inherent and control risks, auditors should perform some substantive procedures for financial statements assertions of material account balance and transactions class “in this case possible omission of sales is a material matter and the auditor will need to perform some substantive tests as well as testing the controls.
Often times, management of public organizations via UNTH have problems with internal control and maintenance of discipline. This brought about by low level of management education and willingness to adhere to the theories and practices of management .most organization are not well structured . there is overlapping of junctions and definitions of functions
This study intends to achieve the following aims and objectives
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