ABSTRACT
INTERNAL
AUDIT AND STOCK TALKING
Internal
auditing and stocktaking are characterized by paucity of literature mostly when
it involves having a focus on a particular establishment. Most at the work on auditing have been
centered on independent audit.
However, effort were made to scrape as
much as possible from the dired ground.
Internal auditing is this an independent appraisal activity within the
organization for the review of accounting, financial and other operation as a
basis for services to management.
The person who does the above job is
known as an internal auditor. While
stoking is the counting and checking of the price and physical quantities at
goods or items in the store by selected officials at the company.
In an establishment like the total
Nig. Limited is a company which concentrates much on the marketing of petroleum
products though diversification are being made towards such area like
agriculture.
In the view of different scholars and
has been established by the researcher in internal auditing is very important
in any organization, since they are eyes and ears of the management and stock
being one of goods or items that determines progress or failure of an producing
or marketing that should be taken care of.
TABLE OF
CONTENT
Approval page
Acknowledgement
Dedication
Abstract
Table of content
CHAPTER ONE
INTRODUCTION
1.1
Background of the study
1.2
Statement of problem
1.3
Purpose of the study
1.4
Significance of the study
1.5
Scope and limitation of the study
1.6
Definition of terms
CHAPTER TWO
REVIEW OF
LITERATURE
What is an audit
2.1
Types of audit
2.2
Internal audit
2.3
Function of internal audit
2.4
Internal audit department and others
2.5
Problems of the internal audit
2.6
Stock taking
CHAPTER THREE
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION
3.1
Findings
3.2
Recommendation
3.3
Conclusion
BIBLIOGRAPHY
CHAPTER ONE
INTRODUCTION
1.1
BACKGROUND OF THE STUDY
Internal
auditor has been described as “the review of operations and records sometimes
continues, undertaken within a business by specially assigned staff.
An internal audit or section is a part
of the organization headed by the chief internal audit who reports to the chief
of the executive of the organization.
Internal audit is a part of system of internal control and is undertaken
by the staff of the organization. The
work undertaken by the internal audit is decided by either the Board of
Directors or the management. The
responsibilities duties and power of internal audit are determined by the
director periodically these duties and responsibilities are reviewed by
revised.
As with internal check, the internal
audit system must be varied to suit each particlar business for instance the
type of internal audit that is applicable to total Nigeria limited company will differ
from that suitable for retail. In the
latter one of the most important point will be the safe-guarding of cash and
small articles of stock. As it is not
easy for an employee to remove a large heavy machine a different system of
internal audit may be applicable in a machine tool. Manufacturing firm
1.2
STATEMENT OF PROBLEM
The issue of the outside world regarding internal
auditors as fraud detector has to be corrected.
The auditor is only expected to express an opinion on the true and fair
view of the financial statement and not to detect fraud unless specified on the
letter of engagement.
He owes the management and
share holder a duty to report to them wherever he discover any in the course of
his normal audit.
1.3
PURPOSE OF THE STUDY
The objective of this study is to identify the need
for an organization to have an internal audit, it is also to stress the
important of an organization to be aware of its stock position of all times as
it could enhance management decision for intense, internal auditing in total
Nigeria limited has improved the management information system and the type of
activities performed by the internal auditors.
1.4
SIGNIFICANCE OF THE STUDY
The significant of this study are of two folds, for
instance the total Nigeria limited is commercial oil company, there is need to
know its interest auditing system and how it has helped the efficiency of his
accounting records secondly, the study will add to the advancement of knowledge
in the field of internal auditing in the company future researchers in this
area will also benefit from the study.
1.5
SCOPE AND LIMITATION OF THE STUDY
Through the
study reviewed the internal auditing in different companies the major problems
ranging from different companies are as follow.
1.
lack of direct literature
2.
Inadequate fund and time coupled with the different
attitude of source audit clerk to release certain information to
confidentiality purpose.
3.
Another problem centered on the absence of internal
auditors the office due to their four to their various brunches.
1.6
DEFINITION OF TERMS
To ensure a proper understanding of what the study
is all about some unfamiliar words to those who are not in the same field are
defined as follow.
INTERNAL
AUDITING: It is an independence appraisal activities within an
organization for the review of accounting, financial and other operation as a
basis for services rendered to management.
The person who does the above job is known as internal auditor.
INTERNAL
CONTROL:- This is the whole system of control financially and otherwise
established by the management in order to carry on the business of the
enterprises in an ordinary and efficient manner, ensuring adherence to
management polices, safe-guard of asset and as far as possible the completeness
and accuracy of the records.
STOCK
TAKING:- Is the counting and checking the prices and physical
quantities of goods or items in the store by selected officials of the company.
INTERNAL
CHECK:- This is segregation of duties where by no one person is
allowed to is responsible for the recording and processing of a complete
transaction.
WATCHDOG:- Is a do
trained and kept to guard property of various kinds, homes and offices. In this context the term watchdog is refers
to the internal auditor.
AN
INDEPENDENT AUDITOR:- This is used to describe a professional accountant who
offers services to the public and whose chief service is an audit of financial
statement.
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