INTERNAL AUDTING EFFICINECY AS A TOOL FOR IMPROVING THE COMPANIES PERFORMANCE (A CASE STUDY OF EMENITE LIMITED ENUGU)
Since the creation of Enugu state on the 17 of august 1991
till date, many of the government owned company e.g. Niger gas limited,
Emene flour mill limited Emene, Anambra vegetable refinery oil Nachi,
Nigeria cement company Nkalagu located at Eboyi state which is jointly
owned by Enugu Eboyi and other state – Imo are at the point of collapse.
Many of the company if they are working are performing below 40% as
optimum utilization as statistic on that will reveal latter. The above
issue is not peculiar with Enugu state alone. Recently, there has been a
drastic change in the business trends in Nigeria. Many reasons has been
giving for the anomalies in the business which has resulted in many
companies down – fall, ranging from lack of accountability, company
crisis, misappropriation of funds, fraud, excess expenditure that are
usually not compactable with the real budget. In this maiden broadcast
to the state government, Dr, Chimeroke Nnamani raveled that the account
of Enugu state public service has not been audited since the state was
created while chief Egbogu, the chairman of the panel constituted (among
other things) find the best way of making the civil service more
functional to increase the in the state. In the interim report submitted
to the deputy governor of Enugu state on Wednesday, 28 July 1999, that
the fraud, overbroad wage bill, ghost workers syndrome were the factor
militating against the efficient performance of the civil service and
reported that the civil service will not be having above twelve thousand
workers (12,000) while here has Ben speculation that payment e been
made to up to thirty thousand worker in Enugu state.
The above shows categorically in all ramifications that of the state
civil service and their minitry – extra minitry department and other
parastatals have been audited efficiently, such anomalies could not have
In a related development it has been believed that
efficiency in discovering the management inefficiency has been the root
cause of many companies poor performance. Both companies in private and
public limited sector in Nigeria. Improvement can only follow when what
is honestly followed in been recognized and how such wrong could be
remedied. In view of this point effort will be made to painstakingly
highlight the improvement however taking auditing efficiency in respect
of private companies, volume of transaction may not be substantial and
hence a book keeper can record transaction more effectively with ease.
On the contrary, the case of the public enterprise and transaction show
that there are numerous of transaction and so each companies may have
subsidiaries and investor investing in a companies having a control
investment of the 20 – 50% share in associate company and as such, the
service of a qualified accountant who is knowledgeable in accounting to
be able to record business transaction of such greater magnitude are
STATEMENT OF PROBLEM
A company may be classified under small medium or large
depending on the size, feature of number share authorized calls issue
and fully paid etc. many companies face the problem of auditing
efficiency such as non-compliance with the accounting standard that the
auditing guidelines non- disclosure of some which will enable either the
external; auditor to form opinion. Other cooperate crime may pose a
problem in the auditing efficiency. This cooperate crime may be a
serious issue, for example in the news watch 5th July 1999, Lucky
Igbenedion governor of Edo state reported that cheque were flying up and
down as formal governor Onearugbulem awarded indiscriminately and
Igbenedion reported that there is an inherent debt of 5 million. There
is many more looting in all the state in government offices, companies
etc. the research work will attempt to highlight on these problem areas
that basically undermine auditing efficiency in a company and give a
PURPOSE OF THE STUDY
The work was fundamentally undertaking to study internal
auditing efficiency as a tool to improve cosmogonies performance (using
Emenite Enugu as a case of study). The main purpose of this study is
find out some of the reason for deficiency and inefficiency in the
company which is usually believed as not existing but in fact they exist
and to find some way of eradicating it using auditing efficiency.
Findings will be don to know the extent to which the management has
appraised their own operation and how competent they have been in
determining operational ills and weak points.
SIGNIFICANT OF THE STUDY
The research work is aimed at having many important to the
readers and to those who may be using the study for a reference purpose.
Beside the above, it will also form part of the external examination.
For me, the researcher, it is a major preliquisite for the actual
completion of the course of study. Apart from being necessary for the
award of national higher diploma (H.N.D.) in accountancy, it is
significant to undertake this study because a thorough and fuller
comprehension of the subject matter which is tested; INTERNAL AUDITING
EFFICEINCY AS A TOOL FOR IMPROVING COMPANIES PERFORMANCE. Moreover,
other future readers will find the research work more beneficial.
STATEMENT OF HYPOTHESIS
The efficiency of companies auditing:
Ho; the company (Emenite Enugu) auditing process is not efficient
Hi: the companies auditing process is efficient
Ho: The internal auditing indolence is efficient to embark on the internal auditing work.
Hi: The internal auditing indecency is not efficient to embark on effective and efficient audit work.
SCOPE AND LIMITATION OF THE STUDY
For the purpose of the research work, the researcher will focus his
attention to the internal; auditing effeminacy as a tool for improving
the company’s performance using Emenite Enugu as a case of study.
The researcher in carrying out the research work encountered many
problems, ranging from time constraint, poor response, financial
Financial constraint: the researcher having considered
the financial involvement and other problems and bearing in mind that
the work was singled handedly sponsored plus the need to meet up with
the standard set for the working to its logically and exhaustive
conclusion, he faced a lot of financial predicament with the merger
financial resources. The researcher virtualized the fear that the study
will be adversely constrained due to financial transport involved in
running around to get the needed information and other incidental
Poor response: most of the research work are characterized with poor
response from various respondent and having taking into consideration
some of the misguided beliefs and expression by many respondent, they
are usually faced with problem like;
(a) Fear of been exposed and fear of been retrenched or dismissed for revealing official information
(b) General apathy, indifference towards the question being put to the potential respondent
Time constraint: other factors like the time factor militates against
the progress of the project. The time allocated to carry out this
research was too short plus other logistics problems. The time for work
done, compilation, completing, and submission for assessment
irrespective of the fact that there are other academic engagement were
Furthermore, as the interview necessary to carry out this research
have to be conducted during the official working hours and days of the
weeks with a view t get the respondent in the office, the researcher has
occasionally forfeited his lectures in order to get the researcher
DEFINITION OF TERM
Audit: in general is the mechanism within the process of
accountability whereby the performer of those in control of the research
of the organization is check or monitored by or on the behalf of the
interested persons. The statutory audit of limited companies is the
Internal audited: an element of the internal control system set up by
the management of an enterprise in order to review accounting,
financial, and operating and determine whether the prescribe policies
are being adhered to. External auditors take account of the work done by
an eternal auditor letters independence, staff resource, test mode, and
influence by the management action.
Efficiency: the is referred to the ability to perform a duty well and produce a statistical result
Tool: it is an instrument used in doing a certain work or producing a
certain result especially such that require accountancy or precision
Company; an association of persons for a business purpose in
particular which incorporated in the united kingdom under the companies
Act or by the Act of parliament or by royal charter. In Nigeria, company
is registered by a cooperate affairs commission Abuja and regulated by
the companies and allied matter decree 1990. There are companies limited
by share and those limited by guarantee.
Companies can be divided into
(a) Private limited companies
(b) Public company
Improvement: this means to make or become better or addition or
alteration, form of repaired to better the face of an asset or to
enhance the value of anything.
Diagnosis: ascertaining, analyzing, or determine the cause of nature of problem, situation from observation.
Performance evaluation: the easement by a superior or a subordinate
and an important part of any management control system. To evaluate
performance is necessary to decide which measure are to represent
organizational goal, how qualify, what standard is to be used, what step
back is to be taking.
PERFORMANCE REPORT: A REPOT COMPILING OF THE BUDGETED PERFORMANCE
- Macmillan dictionary of accounting: second Edition.R.A.H peter.
- Jesse stein and Lawrence Urdang. The random house dictionary of English language Cambridge edition P.455.
- Companies and allied matters. Vol. 45,357,358,359,360.
- A.H Milliamp, Auditing, an instructional manual accounting studies 4ht edition