INTERNAL AUDITING AS A TOOL FOR CONTROL IN FEDERAL GOVERNMENT PARASTATALS
TABLE OF CONTENTS
Table of contents
CHAPTER ONE: The General Overview
1.1 Statements of the problems
1.3 Scope and Limitations of the research
1.5 Research methodology
CHAPTER TWO: Review of the Related Literature
- Historical Evaluation of Auditing
- Definition of Auditing
- Classification of an Auditing
- Internal Auditing and Internal Control
- Internal Auditing
- Internal Control
- Definition of Internal Control
- Types of Audit in the Public Sector
- Internal Audit Control
- Internal Control in Government Organization
CHAPTER THREE: Methodology, Data collection & Analysis
- Historical Background of Ahmadu Bello University Teaching
Hospitals and Internal Audit Dept.
- Position of the Internal Control Audit Department
- Functions of the Internal Audit Department
- Sections in the Internal Audit Department and their
- The Internal Audit Report
- The Control System of Ahmadu Bello University
- Key Control Areas
- The responsibility of Enforcing Internal Audit
reports and advises
- The need for computer based auditing system
- The Development of computer systems specialized topics
CHAPTER FIVE: Summary, Recommendations & Conclusions
- Summary, Recommendations and Conclusion
In Nigeria, successive governments, since independence have set up
autonomous organizations with legal independence and powers, having the
initiative of private enterprises to carry on developmental activities
of commercial or industrial nature. Thus, the emergence of Ahmadu Bello
University teaching Hospitals with headquarters in Samaru Zaria is
charged with the responsibility of accounting properly all financial
activities undertaken by its management.
The need to institute both internal and external audit systems within
organizations for efficient and effective financial monitoring,
management and control was further necessitated by some prevalent
economic pressure like the recession in the privatization and
commercialization of most of government owned organizations, keen
competition in the Nigerian business environment, the Structural
Adjustment Programme (SAP), Industrial unrest and the renewed call by
the government through War Against Indiscipline and Corruption (WAI-C)
foir financial prudence, action and accountability by government
Internal auditing is of fundamental importance as an effective means
of ensuring the reliability of internal records for information and use,
through proper internal control systems within an organization without
which such records will present chaos and the whole system may fail to
succeed for lack of orderliness, accuracy, reliability of information,
safety of its assets and the general security of records.
Effective internal control is necessary to be able to determine
whether all transactions have been reflected within accounting record.
It is therefore, important to recognize that the auditor concerns
himself with internal control throughout the clients organization and
not merely within the finance and supplies department alone. He ought to
understand the organizational operations as a whole, ascertain and
evaluate the whole system of control operating within the organizations.
An important aspect about controls is the fat that it has to be timely
otherwise the whole exercise will be futile.
The internal auditor helps management to achieve organizational
objectives effectively through his report. Such reports have to contain
express opinion of the auditor on the areas he undertakes to audit. The
nature and extent of the internal control system and internal auditing,
appropriate to anyone organization is the management’s responsibility
and depends on the organizations typology and geographical distribution.
The importance of internal control for internal audit purposes will
be appreciated most in an organization like the Ahmadu Bello University
Teaching Hospitals, whose activities are spread over various branches at
different locations both within and outside Kaduna State.
1.1 STATEMENT OF THE PROBLEMS
A problem represents an unhealthy organizational atmosphere or a
puzzle a phenomenon, event or happening. Having defined a problem, an
insight is given as to the major problems that could be said to bedevil
the internal auditing and control systems in Ahamdu Bello University
Teaching Hpsitals. As is the tradition with government parastatals and
organizations, the Ahmadu Bello University Teaching Hospitals have some
of its problems as follows:
1. Lack of a good system if financial monitoring and control.
2. Lack of sufficient audit staff and other professional services to aid and effective audit conduct.
3. Lack of sufficient transport, financing and suit accommodation.
4. Non issuance of internal audit reports prior to statutory audit thus increasing the audit fees and costs.
5. Insensitivity of audit inspection reports and queries.
6. Loss of funds through misappropriation or abscondment of accounts staff.
1.2 OBJECTIVES OF THE RESEARCH
With the above list of problems and many others yet unmentioned
bedeviling the internal control system of the Internal Auditor
Department in A.B.U. Teaching Hospitals, it will be unfair if no step is
taken even as effected by one’s academic pursuance to look at the
problems and causes critically and suggest possible solutions that could
improve the situation for the organizations continued effective
In a nutshell, the aim of this study is to find a possible shorten
and long term solutions to the problems thereby pacing the way for
efficient operation in the organization in order to achieve the purposes
for its existence.
1.3 SCOPE AND LIMITATIONS OF THE RESEARCH
The study is limited to A.B.U. Teaching Hospitals activities,
especially its internal audit system and financial dealings as it
relates to the management of its financial resources.
The A.B.U. teaching Hospitals are selected as a sample to be studied
for the fact that it is likely to offer free access to relevant
financial and audit information and documents that will be required for
this research. The study centres largely on the Internal Audit
Department of the Ahmadu Bello University Teaching Hospitals,
Headquarters in Samaru Zaria.
The Departmental functions as per responsibilities assigned to it by
management which is mainly to operate within the broad areas of
reviewing of accounting system and other related internal control,
examinations of financial and operating information for management,
review economic efficiency and effectiveness of operations, and
implementation of organizational policies, plans and procedures. The
external audit concerns itself with making necessary information
available with express opinion to outside users to third parties.
As normal researches involving case studies of Government
organizations in Nigeria, the issue of confidentiality really hindered
the flow of necessary information for this write-up. Moreso, to somebody
completely outside the organization like myself, the fear of leaking
Governmental secrets due to the government secrecy acts and decrees,
further aggravated lack of adequate materials for this work. Therefore, I
had to rely on the materials that were made available to me by some
personal friends in the organizational under discussion.
Finally, the issue of financial constraints also becomes an important
factor that hindered the adequacy of resources (materials) on this
1.5 RESEARCH METHODOLOGY
For the purpose of this project, both primary and secondary methods
of data collection have been used. The primary was based on my personal
interactions with my friends that are working there and the questioning
techniques being used during my discussions with them any time I met
some of them.
The secondary includes the accounting manuals of the organization and
other relevant related audit files, other data used includes texts and
journals that relate to the subject matter under discussion, and
accounting data, lecture motes and all other relevant financial data
necessary for this project write-up.