ABSTRACT
In order to carryout any management functions effectively
the top management of an organization will need information to plan, organize,
direct, co-ordinate and control the activities of the organization.
The management
will generally not time or expertise to collect and analyze the pies of
information it needs for its management functions. Accordingly, the internal auditor is usually
appointed to do this on behalf of the management.
The internal
auditor does not only provide management with information but also give
management the necessary assurance that operations are being carried on in
accordance with plans and led down procedures.
Therefore, the
internal audit department gives necessary aids to management.
This study
examined the way in which the internal audit assist management in the discharge
of their responsibilities.
Based on the
conclusions, the work made some recommends, the research is of the opinion that
the work would be of help to the management.
TABLE OF
CONTENTS
Title page
Approval page
Dedication
Acknowledgement
Abstract
Table of contents
CHAPTER ONE:
1.0
Introduction
1.1 Purpose of
study
1.2
Significance of the study
1.3
Scope and limitation of study
1.4
Definition of terms
CHAPTER TWO:
2.0
Definition of internal auditing
2.1 Scope and
objective of internal audit
2.2
Essential elements of internal audit
2.3
Internal control system and internal check
2.4
Essential feature of internal control
2.5
Tool of effective management
2.6
System and procedure of internal audit
CHAPTER THREE:
3.0
Summary of findings, conclusion and recommendation
3.1 Summary of
findings
3.2
Conclusion
3.3
Recommendation
Bibliography
CHAPTER ONE
1.0
INTRODUCTION:
Internal audit
is a large and significant part of management control of both large and small
organization. The role of internal
auditor has evolved from concentration of the detection and prevention of
errors and fraud in the present day emphasis to reviewing system of internal
control.
The Chartered
Institute of Public Finance and Accountancy, define internal audit as an
independent appraisal activity within an organization for the review of
operation as a service to management. It
is a management control which functions by measuring and evaluating the
effectiveness of other controls.
The problems
which always exist between the managers/director to the owner of business, were
solved by appointing an independent person called “auditor†to investigate the
report on findings.
Internal
auditor is concerned with the implementation of social responsibility policies
adopted by top management.
Internal audit
that is established to provide a continuous and complete audit of the accounts
and records of the company with use of the following:
(i)
internal procedures system
(ii)
internal check
(iii)
pre-audit jobs
These would help in the
managerial control of the organization.
The overall
purpose of internal auditing is to assist management in achieving the most
effective administration of operation of the business.
1.1 PURPOSE OF THE STUDY:
The purpose of this research
work are as follows:
(i)
to evaluate the determinant for effective tools in
management control.
(ii)
To assess the effects of internal auditing on internal
control system of an organization.
(iii)
To investigate the type of responsibilities internal
audit has with the chief executive of the organization under which he operates.
(iv)
To examine the effect management interference on the
internal auditors functioning with the respect to errors and fraud in the
organization.
1.2
SIGNIFICANCE OF THE STUDY:
(i)
It helps in assessment of the effect of internal audit
on the internal control system of an organization.
(ii)
It helps to evaluate the determinants for effective
tools in the management control of organization.
(iii)
It helps to examine the effect of management
interference in the internal auditors functioning with respect to fraud and
error in the organization.
(iv)
It helps to evaluate the determined factor of kind or
skill required of internal auditor.
(v)
It helps to examine the effects of management
interference in the internal auditors functioning with respect to true and fair
view of the organization financial statement.
1.3
SCOPE AND LIMITATION OF STUDY:
The two main variables of this
research work which are:
INTERNAL AUDIT AND
MANAGEMENT:
Controls are
general phenomenon which are applicable in various organization both private
and public, commercial and non-commercial.
Therefore,
this work cannot exhort their various importance and uses in all the
organization.
But, due to
financial constraint, I intend to subject my research work to organizations,
which make use of internal audit.
1.4
DEFINITION OF TERMS:
AUDIT:
This is
defined as an independent examination and expression of an opinion on the financial
statement of an enterprise on organization by an appointed person called
“auditorâ€.
AUDITOR:
The person
auditor is a qualified professional accountant.
AUDIT WORKING PAPERS:
These are
records of audience gathered by the auditor before, during and after audit
work.
ENGAGEMENT LETTER:
Before an
auditor commences any professional work he should agree in writing the precise
nature and scope of the work to be carried out by him.
INTERNAL CONTROL:
This is
defined as “the whole system of controls, financial and otherwise, established
by the management in order to carry on the business of the enterprise in an
orderly and efficient manner, ensure adherence to management policies,
safeguard the asset and secure as far as possible the completeness and accuracy
of the records.
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