ABSTRACT
This research work is on the internal audit as an Aid to management
control with reference to Enugu state University and technology (ESUT).
The main aim of this research work is to determine and to ascertain how
management administration can be more efficiently run, in order to creat
a conductive environment for business and to analyze the internal audit
functions to determine how it can realize management control. The
sources from which the necessary data were collected for the purpose of
this research work are from primary and secondary sources of data
collection. The primary data were gotten through the use of
questionnaires and oral interview. The secondary data were gotten
through newspaper, magazines, government Journals and also textbooks.
The data collected were analyzed using simple percentage analysis.
Hypothesis were formulated and tested using chi-square (X‑2) method.
From the data collected and analyzed, it was discovered that the
internal control system of the universities are weak owing to lack of
trained internal audit staff, lack of cordial relationship between the
Internal Auditors and the department staff. The management should ensure
that the internal audit department is staffed with enough skilled
personnel and management should adequately provide man power development
facilities for the internal Audit.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Controlling is a management monitoring function that deals with the
measuring and correction of the performance of subordinates with a view
to achieve organizational objectives with maximum efficiency and at a
minimum cost.
It check s to see that plans have been carried out, adhering to
deviations. If any it compares actual performance in the past periods.
A business grows, the detailed auditing of a growing number of
transactions produces a corresponding increase in the size of the
auditor’s bill for his service business mangers found them selves
looking for less expensive substitute for the increasingly costly annual
audits, preferably a substitute which might at the same time better
meet their needs. The solution which evolved was the development of
internal means security the desired control over accounting and
operations as a whole. Internal means of control are known as “internal
checks and internal audits”.
In anticipation of the manpower needs of an independent Nigeria, the
federal minister for Education appointed in 1959 the Ashby commission to
conduct an investigation into the Nigeria needs in the field of higher
education, the panel comprised three Britons, three Americans and three
Nigerians with Sir Eric Ashby as Chairman. The submission of the report
in 1960 brought about the establishment of the first generation
universities which include the University of Nigeria, Enugu Campus,
1979, the third generation university were created these include Anambra
State University of Science and Technology (ASUTECH), now Enugu State
University of Science and Technology (ESUT). The law which established
this was enacted in 1980. The government appreciates the invaluable
roles of these institutions in the over all development of the nation
via the provision of well trained middle and higher level man power for
various departments of the public and private sectors. In recent times,
several cases of arson, frauds, misappropriation of public funds, theft
of property and other types of malfeasance have been reported in the
government institution and establishment all over Nigeria in view of
this, the huge investment by government. In these concerns should be
controlled, monitored, safe-guarded and made result-oriented. The role
of internal audit department as the “watch dog” of these controls
established by the institutions becomes the only sure means to control
the institutions.
It is pertinent to note that report and government white paper on the
report of various board of enquiry instituted to investigate the cause
of non-performance in government establishment have indicated that
management/administration are responsible for improper state of things.
It is conceived however, that if they have complete control of the
activities of their staff an efficient administration would be
enshrined. It is also necessary to ensure that management policies and
directives are properly adhered to. As management is far from the scene
is not possible management must reply on various techniques and of
course the internal audit department to implement its directive decision
and goals.
1.2 STATEMENT OF PROBLEMS
The management control system of our organization is facing a lot
problem. There is inefficiency in administration, adequate attention is
not paid to internal auditing by management, funds and property are not
managed to ensure safety, harmonious work relationship does not exist
between internal auditor and other workers, and most of the internal
auditors lack the requisite skill.
1.3 OBJECTIVE OF THE STUDY
The objectives of this study include to ascertain how management
administration can be more efficiently run in order to create a
conducive environment for business.
Secondly, the aims to analyze the internal audit function to
ascertain the problems facing internal audit and seek ways to solving
them.
Finally, to ascertain the procedures and methods of internal audit in
an organization and evaluate its effectiveness in the realization of
management objectives.
1.4 RESEARCH HYPOTHESIS
Ho: The internal auditing do not help the organization to attain its objectives.
Hi: The internal auditing help the organization to attain its objectives
Ho: The internal auditing do not aid in efficient running of the universities
Hi: The internal auditing aid in efficient running of the universities.
1.5 RESEARCH QUESTIONS
The following questions were asked by the researcher:
1. To what extent has internal auditing aided efficient running of the universities?
2. To what extent was internal auditing helped the organization to attain its objectives?
3. To what extent has the university authorities paid adequate attention to internal control?
4. What is the degree of credibility of the internal auditors of the universities?
1.6 THE SIGNIFICANCE OF THE STUDY
The study is intended to highlight the extent that proper utilization
of internal audit science has contributed towards effective management
control.
It will also help the institution under study to see areas of
weakness and then help other institution in utilize its services
properly for effective internal control. The need for establishing a
viable internal audit department to be effectively used for control,
would emerge, even in organizations where it has not been installed.
Finally, this study will help readers from time to time on the topic of study, have a reference base.
1.7 THE SCOPE OF THE STUDY
The researcher will like to concentrate on the Enugu State University
of science and Technology (ESUT) with focus on the work boardering on
internal audit objective, procedures and problems.
1.8 LIMITATION OF THE STUDY
The researcher has not got enough resources to carry out this study
in all the university, therefore it is restricted to ESUT. The finding
may not reflect the entire situation in all the ESUT as a whole, but
averagely, what happen in ESUT, can be applicable to other area, the
researcher should have gone into discussion on the aid to management
control. Again the auditing should have include private individuals who
may engage in one project or the other. This may be a limitation to the
discussion of the aid to management control.