INTERNAL AUDITING AS AN AID TO MANAGEMENT

ABSTRACT
This research work deals with internal audit as an aid to management. It aims
at finding out the role of internal audit in management decision making in
organizations. It is a survey research. Data were collected from primary and
secondary sources which included using questionnaires, personal observations,
text book, journal and internet. Sample of 92 were collected by random sample
method. Three hypotheses were formulated and tested using Z-test statistics,
while questionnaires were analyzed using simple percentages. We discovered
among other things that internal audit assists management in managerial
decisions. We recommended among other things that the auditors be trained
in forensic accounting to enable them to be more effective in their duties. 

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TABLE OF CONTENTS
Cover page ………………………………………………………………………………. i
Title page …………………………………………………………………………………. ii
Certification ……………………………………………………………………………… iii
Approval page …………………………………………………………………………… iv
Dedication ………………………………………………………………………………… v
Acknowledgement ……………………………………………………………………. vi
Table of content ………………………………………………………………………… vii
CHAPTER ONE Introduction
1.1 Background of the study ……………………………………………………… 1
1.2 Statement of problem …………………………………………………………. 2
1.3 Objective of the study …………………………………………………………. 3
1.4 Research questions ……………………………………………………………… 3
1.5 Statement of hypothesis ……………………………………………………… 4
1.6 Purpose of the study ……………………………………………………………. 5
1.7 significance of the study ………………………………………………………. 5
1.8 Slope and limitation of the study ………………………………………….. 7
1.9 Definition of terms ……………………………………………………………….. 8
References
CHAPTER TWO Literature review
2.1 Definition of internal audit ………………………………………………… 11
2.2 Objectives of internal audit ……………………………………………….. 12
2.3 Characteristics of internal audit ………………………………………….. 14
2.4 Functions of an internal audit ……………………………………………... 15
2.5 Responsibility of an internal auditor to management …………… 19
2.6 Internal auditing as an aid to fraud prevention …………………….. 21
2.7 Internal audit as an internal part of internal control …………….. 23
2.8 Cooperation between internal and external …………………………. 27
2.9 Problem of internal audit ……………………………………………………… 38
2.10 Historical background ………………………………………………………… 29
References
CHAPTER THREE Research methodology
3.1 Introduction and research design ……………………………………….. 33
3.2 Data collection method ………………………………………………………. 33
3.3 Research population and sample size ………………………………….. 35
3.4 Distribution of questionnaire ………………………………………………. 36
3.5 Validation and reliability of the instrument …………………………. 37
3.6 Method of data analysis ……………………………………………………… 37
3.7 Decision criteria for validation of hypotheses ………………………. 38
CHAPTER FOUR Data analysis and research findings
4.1 Introduction ………………………………………………………………………. 39
4.2 Data analysis ……………………………………………………………………… 39
4.3 Test of hypotheses ……………………………………………………………… 45
CHAPTER FIVE Summary, conclusion and recommendation
5.1 Summary ……………………………………………………………………………. 53
5.2 Conclusion ………………………………………………………………………….. 54
5.3 Recommendation ……………………………………………………………….. 54
Bibliography ……………………………………………………………………….. 56
Appendix …………………………………………………………………………….. 58