As a result of the tendency of business organization to
increase in size, scope and complexity, it is difficult for managers of
such organization to directly supervise all the units and hence direct
activities towards achievement of the organizational goals.
The management, therefore establish procedures, rule and
regulations, know as management control or internal control for the
purpose of safeguarding assets and maintenance of accruable and reliable
records in the organizations, internal control is designed to assist
management and monitor the activities to ensure that other control are
adequate in design and effective in operations.
The incidence of poor performance by government owned
establishment attributable to various irregularities has been on
increase in spite of internal control established by management the
Nigeria coal corporation is a Federal government owned establishment
institute to help to increase the in- economic status of the country.
The researcher investigated how internal audit function as an instrument
for effective control in Nigeria coal corporation, Enugu.
The sets of hypothesis were formulated as guide for
researcher work. Literature review was then undertaken to discover the
opinion of others on the subject of research.
The primary data gathered were analyzed and interpreted
while the chi-square (x2) was used to test the validity of the
hypothesis is which confirmed that internal and it is useful instrument
for effective management control.
The researcher discovered that internal audit is actively
functional in Nigeria Coal Corporation. However exists some internal
control lapses for which the researcher has made some necessary
recommendation for improvement so that internal audit will always live
up to its reputation as watch dog in the organization.