AUDITING PROCEDURE AND INTERNAL CONTROL SYSTEM {A case Study of Union Bank of Nigeria Plc}

ABSTRACT

This research study has examined all possible areas of the study was conducted on Auditing procedure and internal control system with reference to Union Bank of Nigeria Plc. However, the areas where the research revolves around are not limited to the scope of the study.  Audition procedure and internal control system is very important in every organization to identify the loopholes and lapses to proffer lasting solution. Data was analyzed using descriptive and chi-square statistics for test of hypotheses.  The five point likert scale will be used analyze the data for the study.  The research questions will be analyzed using the percentage analysis.  For hypotheses testing, chi-square statistics will be used to test the individual hypothesis formulated.  Its also important to posit that internal audit ensure detention of financial fraud and irregularities. In the course of the research work, its discovered that organization with effective internal audit system are more likely to affect fraud than organizations with no such system and function. Adequate internal audit system must be established in the organization to ensure that activities of the organization are carried out effectively and should be provision of adequate training programme to the staff of Lagos State University. Also, qualified and competent staff should be employed in other to ensure efficient operation.

CHAPTER ONE

INTRODUCTION

1.1      BACKGROUND TO THE STUDY

An audit involves the independent examination of an expression person in accordance with the terms of engagement and the observance of statutory regulations and professional requirement (Okolie, 2008).  According to Milichamp (2003) the primary objective of an audit is to produce a report by the auditor of his opinion of the truth and fairness of financial statement, so that any person reading and using them can have belief in them.

Corporate management is a genetic term used to describe the way by which big and established companies with large networks are controlled of the purpose of achieving set goals.  Management is a universally acceptable and necessary concept irrespective of whether or not an organization exists to make profit.  It takes place at all levels in an organization and easy manager performs essentially the same function whether he belongs to top or middle or first line management.  The difference lies in magnitude of the task and the scope and degree of the authority.  American Institute of Certified Public Accountant, Chicago clearing House (1982) defined management as a process by which scarce resources are combined to achieve given objective.  It refers to the people that carry out the activities that are the manager.

Put different by Alter (1996), management may be described as the achievement of organization goals through people and after resources.  The Manager’s job is to combined and co-ordinate human, material and technical resources in the best way to achieve these goals.  Managers may not be directly involved in production; they produce to achieve the organization’s set goals.  Management indeed is a critical ingredient in the five MS.  Management, manpower, machinery, money and materials; which are the basic resources of any organization.

Corporate management has become complex in recent times.  The emphasis on decentralization, increasing use of delegation of authority and even in volume of trade has made the art of management so complex and intriguing that only managers who master the modern scientific method of management can cope with the increasing demands scientific method of management can cope with the increasing demand required by the poison.  To asses the complexity of the art of management, in the current increasing wake of business fraud, embezzlement and the cash squeezes which has crippled many companies because of the Structural Adjustment Programmes (SAP) and its attended foreign exchange and raw materials security.