ABSTRACT
The vital instrument for the control of the organizational resources is the internal control which has internal audit as its instrument. This important father makes the researcher to choose “internal auditing as an instrument of effective management.” For this project, the institute of Management and Technology (IMT), Enugu has been used as a case study. The researcher made use of both primary and secondary data, structured questionnaires were the methods used for the collection of primary data, and secondary data were also collected from textbook and various research materials. Chi-square was used as a statistical tool for analyzing the data. From the findings of this research it was discovered that internal auditing is an indispensable instrument for effective management. Management’s interference with the functions of the internal audit duties in the institution and also lack of information contribute to the misappropriation of funds and prosperities of the organization. Every unit of the establishments should acknowledge the importance of internal audit to enable it achieve its organizational goals. The researcher recommends that internal auditors should be persons who are well trained, experienced and of good moral standing for proper recognition. The internal auditor should not be seen as blood grounds but as watch dogs and should be allowed to operate freely according to their schedule. Moreover, an unhindered flow of information is very necessary and the presence of good internal control system and internal audit has led to accountability, reduction in fraud, and safeguarding of assets in the institution. So, internal audit is an important unit in any establishment. Internal auditing is an instrument of effective management.
TABLE OF CONTENTS
Title Page i
Approval Page ii
Dedication iii
Acknowledgement iv
Abstract ix
Table of Contents x
CHAPTER ONE:
INTRODUCTION
1.1 Background of the study 1
1.2 Statement of the Problem 6
1.3 Objective of the study 7
1.4 Research Questions 8
1.5 Formulation of Hypotheses 9
1.6 Significance of the Study 10
1.7 Scope/ Delimitation of the Study 11
1.8 Limitation of the study 11
1.9 Definition of Terms 12
CHAPTER TWO:
REVIEW OF RELATED LITERATURE
2.1 Definition of Internal Auditing 14
2.2 Internal Audit Process 17
2.3 The Appointment of Internal Audit 26
2.4 Objectives and Scopes of Internal Audit 30
2.5 Objectives of the Internal Auditor 42
2.6 The Components of Internal Controls 47
2.7 Management Control 55
2.8 Detection of Frauds and Errors 62
2.9 Audit Report and Relevance 75
2.10 The Difference Between Internal and External Auditor 78
2.11 The Roles and Functions of Internal Auditors 81
2.12 Economic Implications of Ineffective Internal Auditing System 85
References
CHAPTER THREE:
METHODOLOGY
3.1 Research Design 92
3.2 Area of the Study 92
3.3 Population of the study 93
3.4 Sample and sampling Procedure 93
3.5 Instrument for Data Collection 94
3.6 Validation of the Instrument 94
3.7 Reliability of the Instrument 94
3.8 Administration of the Instrument 95
3.9 Method of Data Analysis 96
CHAPTER FOUR:
DATA PRESENTATION AND RESULT
4.1 Data Presentation and findings 97
4.2 Discussion of Findings 112
4.3 Summary of Findings 115
CHAPTER FIVE:
CONCLUSIONS AND RECOMMENDATIONS
1.1 Conclusion 116
1.2 Recommendation 117
1.3 Suggestions for Further Research 119
Bibliography
Appendix