The effect of internal audit on the financial control of government parastatals

Abstract

The study has examined the effect of internal auditon the financial control of government parastatals(NigerianPortAuthority).Asurvey research design was adopted for the study and a simple size was selected using taro-yamane sampling technique as data used were obtained from primary and secondary sources.Three research questions were formulated out of which two hypotheses were formulated.Related literatures and theories were reviewed.The survey research design was adopted.Data was collected from 140 respondents.The data collected were presented using simple percentage and analyzed by the use of simple linear regression model with the aid of SPSS and 0.05% level of significance.The percentage was used to draw inference from data allocated from the field and it was found from among other that internal audit has effect on the financial control of government parastatals.The study further revealed that there is independence in the internal audit unit and this independence has effect on the financial control of the parastatal.From the findings,it was commended that the internal audit department should maintain the independence of its member so that they can carry out their duties effectively.

TABLEOFCONTENTS

Titlepage

Certification . . . . . . . i

Dedication . . . . . . . . ii

Acknowledgments . . . . . . iii

Abstract . . . . . . . . v

Tableofcontents. . . . . . . vi

CHAPTER ONE

1.1 Background of the study. . . . . 1

1.2 Statement of the problem. . . . . 3

1.3 Objectives of the study . . . . . 4

1.4 Research questions . . . . . 5

1.5 Research hypothesis . . . . . 6

1.6 Scope of the study. . . . . . 6

1.7 Significance of the study. . . . . 7

1.8 Organization of the study . . . . 8

1.9 Definition of terms . . . . . 9

1.10 Historical background of the organization under study...10

CHAPTER TWO:LITERATURE REVIEW

2.1 Theoretical framework . . . . . 12

2.2 Meaning of internal audit. . . . . 21

2.3 Scope and objective of internal audit. . . 22

2.4 Benefit of internal audit. . . . . 25

2.5 Internal audit and management. . . . 26

2.6 Independence of internal audit. . . . 29

2.7 Characteristics of internal auditing . . . 30

2.8 Internal audit department . . . . 33

2.9 The role of internal audit. . . . . 35

2.10 Effects of efficient internal audit in government parastatals 36

2.11 The concept of financial control . . . . 38

2.12 Empirical review . . . . . . 46

CHAPTER THREE:RESEARCH METHODOLOGY

3.1 Research design . . . . . . 48

3.2 Population of the study and method of population . 48

3.3 Sample size and sample size determination . . 49

3.4 Sampling procedure and sampling technique . 50

3.5 Method of data collection and data source . . 50

3.6 Instrument development. . . . . 51

3.7 Instrument validation . . . . . 51

3.8 Instrument reliability . . . . . 52

3.9 Model specification . . . . . 52

CHAPTER FOUR:DATA PRESENTATION,ANALYSIS AND

 DECISION OF FINDINGS

4.1 Data presentation . . . . . . 54

4.2 Data analysis . . . . . . 61

4.3 Test of hypothesis. . . . . . 64

4.4 Discussion of findings . . . . . 67

CHAPTER FIVE:SUMMARY OF FINDINGS,CONCLUSION AND RECOMMENDATIONS

5.1 Summary of major findings . . . . 69

5.2 Conclusion. . . . . . . 71

5.3 Recommendation. . . . . . 72

5.4 Suggestion for further studies . . . . 73

References. . . . . . . 74

Appendix . . . . . . . 76