ABSTRACT
This research work deals with internal audit as an aid to management.
It aims at finding out the role of internal audit in management
decision making in organizations. It is a survey research. Data were
collected from primary and secondary sources which included using
questionnaires, personal observations, text book, journal and internet.
Sample of 92 were collected by random sample method. Three hypotheses
were formulated and tested using Z-test statistics, while questionnaires
were analyzed using simple percentages. We discovered among other
things that internal audit assists management in managerial decisions.
We recommended among other things that the auditors be trained in
forensic accounting to enable them to be more effective in their duties.
TABLE OF CONTENT Cover page Title page Certification Approval
page Dedication Acknowledgement Table of content CHAPTER ONE 1.0
INTRODUCTION 1.1 Background of the study 1.2 Statement of problem 1.3
Objective of the study 1.4 Research questions 1.5 Statement of
hypothesis 1.6 Purpose of the study 1.7 significance of the study 1.8
Slope and limitation of the study 1.9 Definition of terms References
CHAPTER TWO 2.0 LITERATURE REVIEW 2.1 Definition of internal audit
2.2 Objectives of internal audit 2.3 Characteristics of internal audit
2.4 Functions of an internal audit 2.5 Responsibility of an internal
auditor to management 2.6 Internal auditing as an aid to fraud
prevention 2.7 Internal audit as an internal part of internal control
2.8 Cooperation between internal and external 2.9 Problem of internal
audit 2.10 Historical background References
CHAPTER THREE 3.0 RESEARCH METHODOLOGY 3.1 Introduction and research
design 3.2 Data collection method 3.3 Research population and sample
size 3.4 Distribution of questionnaire 3.5 Validation and reliability of
the instrument 3.6 Method of data analysis 3.7 Decision criteria for
validation of hypotheses
CHAPTER FOUR 4.0 DATA ANALYSIS AND RESEARCH FINDINGS 4.1 Introduction 4.2 Data analysis 4.3 Test of hypotheses
CHAPTER FIVE 5.0 SUMMARY, CONCLUSION AND RECOMMENDATION 5.1 Summary 5.2 Conclusion 5.3 Recommendation Bibliography Appendix
CHAPTER ONE Chapter One of Internal Auditing As An Aid To Management
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1.1 BACKGROUND OF THE STUDY
At the beginning of the century, most businesses are small and
sole-operated. The owners/managers are overly involved with most of the
decision making. As business grows in size and complexity, professional
managers take position of the owners and the operators. Consequently,
they rely heavily upon streams of accounting and statistical report
which summarizes current happenings and conditions in the enterprise.
The information carried by these streams of report enables management to
control and direct the enterprise in order to assure management that
the information received are both reliable and accurate. A system of
internal audit is developed to monitor the activities of the company.
The need for maintaining the adequate efficient and effective internal
audit, therefore cannot be overemphasized especially in days when
Nigeria’s economy still is witnessing depression and every company is
making effort in ensuring that wastage, pilferage, misappropriation are
checked or avoided, and to ensure that assets are being secured. Some
problems were noticed during the cause of this research; problems within
the company, these problems necessitate this work. The researcher
noticed that there was ineffective co-operation between the internal
audit and management, audit reports were sometimes ignored by the
management. The relationship between the internal auditor and external
auditor was strained making work harder for the external auditor. The
lack of internal audit to prevent pilferage and fraud within the company
thereby preventing an error free working condition.
1.2 STATEMENT OF PROBLEM
Often, management and
internal audit department function were seen as contradictory rather
than complementary. Internal audit department is setup to ensure
adherence to management policy but this objective cannot be achieved
because of interference and undue influence by the top management. More
so, monthly or quarterly internal audit report as the case may be in an
organization is expected to provide information required by management
to determine how effective their policies and implementation are. It is
on this realization that this study will attempt to determine how
effective are those information to aid management in solving day to day
problems. It signifies defects or problems; the research will examine
number of them namely: a) There exists no relationship between the
internal audit and management. b) Co-operation does not exist between
the internal auditor and external auditor. c) Internal audit does not
assist in detection and prevention of fraud.
1.3 OBJECTIVES OF THE STUDY
Objectives of the study
include: ï To ascertain if the duties of the internal auditor assist
management in taking informed decision. ï To ascertain if there exist
co-operation between the internal auditor and external auditor. ï To
find out if internal audit assists in the detection and prevention of
fraud.
1.4 RESEARCH QUESTIONS
(i) Is there any relationship
between the internal audit and management? ii) Does co-operation exist
between the internal auditor and external auditor? iii) Does internal
audit assist in the detection and prevention of pilferage and fraud?
1.5 STATEMENT OF HYPOTHESIS
To justify the research
topic, internal audit as an aid to management and to enable the
researcher to draw a logical conclusion, there is need to make guesses
as solutions to the topic which are subject to acceptance and rejection
are based on the result of the test. HYPOTHESIS ONE ï¼ H0: There is no
relationship between the internal audit and management. ï¼ H1: There is a
relationship between the internal audit and management. HYPOTHESIS TWO
ï¼ H0: There is no co-operation between internal auditor and external
auditor. ï¼ H1: There is co-operation between internal auditor and
external auditor. HYPOTHESIS THREE ï¼ H0: Internal audit does not assist
in the defection and prevention of pilferage and fraud. ï¼ H1: Internal
audit assist in the detection and prevention of pilferage and fraud.
1.6 PURPOSE OF THE STUDY
ï· The purpose of the study
is to determine the extent of co-operation between the internal audit
and management. ï· To ascertain the extent of co-operation between the
internal auditor and external auditor. ï· To evaluate the extent to
which internal audit helps in preventing pilferage and fraud. ï· To find
out if internal audit is equipped enough to prevent an error proof
working condition.
1.7 SIGNIFICANCE OF THE STUDY
The benefits of the
study to: The Internal Audit- i) Internal audit within an organization
is effective for efficient work of the general staff. ii) The internal
audit in an organization will help detect, minimize or eliminate fraud
in an organization. iii) Internal audit assist the management in the
smooth running of the organization by complying with the policies, laws
and regulation. iv) Internal audit in an organization will help to
review and appraise the effectiveness, adequacy and application of
accounting, financial and other controls in order to promote effective
control at the lowest possible cost. v) Whether an internal audit
department could help to determine the reliability and integrity of
financial and other data produced within the organization, thereby
securing the jobs of employees. The management of the organization- i)
Management will experience an error free working environment maintained
by internal audit. ii) Management will enjoy the reduction or
elimination of pilferage and fraud within the organization. iii) The
general staff will be effective and dedicated. iv) Management will enjoy
a healthy relationship between it and internal auditors. The External
Auditors- i) Good internal audit by the internal auditor will save time
for the external auditor. ii) Co-operation will lead to easier and more
efficient work. iii) Assistance of internal auditor will lead to smooth
investigation.
1.8 SCOPE AND LIMITATION OF THE STUDY
This research
work is to evaluate internal auditing in an organization using soap,
detergent and household products company as a case study. The research
work particularly focuses on the internal audit as an aid to management
in the chosen company.
LIMITATION OF THE STUDY
There are constraints encountered in carrying
out this research work, this includes; 1. TIME FACTOR This research
work was conducted simultaneously with normal academic work within a
short period of time in which some valuable information could be
obtained. 2. FINANCIAL DIFFICULTY In an effort to have a sufficient
research material to be able to write extensively on the subject matter,
the researcher was faced with some financial predicament considering
high cost of not only education materials coupled with the high
transport fare.
1.9 DEFINITION OF TERMS
AUDITING It is defined as a
process of carrying out an independent examination and expression of
opinion on the financial statement of an enterprise by an appointed
auditor in pursuance of that appointment and in compliance with any
relevant Law and Regulation. INTERNAL AUDIT MILLICHAMP 1996, defined
internal audit as “An independent appraisal of an organization for the
view of the internal audit control system as a service to the
organization. It objectively examines, evaluates and reports on the
adequacy of internal audit control as a contribution to the proper
economic efficient and effective use of the resources”. Internal audit
reviews existing accounting system and related internal work. It assists
in the implementation of new accounting systems. It identifies and
draws attention to management weakness in control or measures which are
unsaid to the organization. To investigate and eliminate pilferage and
fraud, thereby ensuring the survival of the organization.
EXTERNAL AUDITOR They are independent firm or persons appointed from
outside an entity to audit the accounts and activities of that entity.
They are also referred to as statutory auditor whose appointment, duties
and other related matter are provided by law. INTERNAL AUDITOR He is an
employee of a particular firm as related to its operation. It is in
itself an internal control which reports the effectiveness of the other
controls. Its objective is to help manager in discharging their
responsibilities and to evaluate compliance with cooperate procedure
within the organization. MANAGEMENT It is a body charged with the
responsibility of planning, directing and controlling of all the
activities within the organization. Therefore management control is the
process by which managers assure that resources are obtained and used
effectively and efficiently in the accomplishment of the organizations
goals (Anthony and Welsch, 1974).
REFERENCES Adeniyi, A. Adeniji, (2010). Auditing and Assurance
Services, Value Analysis Consult Publishers, Lagos. Anthony and Welsch,
(1974). Fundamentals of Management Accounting, Richard D. Irwin, INC.
Chambers: Andrew D. et al, (1987). Internal Auditing 2nd edition, Pitman
Publishers. Millichamp, A. H. (1990). Auditing: A Complete Course Text,
5th edition, D. P. Publication.
CHAPTER TWO
Chapter two of this Internal Auditing As An Aid To
Management” research work is available. Order full work to download.
Chapter Two of “Internal Auditing As An Aid To Management Contains:
Literature Review, Definition Of Internal Audit, Objectives Of Internal
Audit, Characteristics Of Internal Audit, Functions Of An Internal
Audit, Responsibility Of An Internal Auditor To Management, Internal
Auditing As An Aid To Fraud Prevention, Internal Audit As An Internal
Part Of Internal Control, Cooperation Between Internal And External,
Problem Of Internal Audit, Historical Background And References. CHAPTER
THREE Chapter three of this Internal Auditing As An Aid To Management”
academic work is available. Order full work to download. Chapter Three
of “Internal Auditing As An Aid To Management ” Contains: Research
Methodology, Introduction And Research Design, Data Collection Method,
Research Population And Sample Size, Distribution Of Questionnaire,
Validation And Reliability Of The Instrument, Method Of Data Analysis
And Decision Criteria For Validation Of Hypotheses. CHAPTER FOUR Chapter
four of this Internal Auditing As An Aid To Management project work is
available. Order full work to download. Chapter Four of Internal
Auditing As An Aid To Management Contains: Data Analysis, Research
Findings, Introduction And Test Of Hypotheses. CHAPTER FIVE Chapter five
of this Internal Auditing As An Aid To Management material is
available. Order full work to download. Chapter Five of Internal
Auditing As An Aid To Management Contains: Summary, Conclusion,
Recommendation, Bibliography And Appendix. Order Full Work