THE IMPORTANCE OF INTERNAL AUDIT OF PUBLIC SECTOR MANAGEMENT A CASE STUDY OF MINISTRY OF FINANCE, IMO STATE TABLE OF CONTENTS
Title page
Approval page
Dedication
Declaration page
Acknowledgement
Abstract
Table of contents
CHAPTER ONE
Introduction
Background of the
study
Statement of research problems
Purpose and objectives of the study
Research questions
Hypothesis
Significance of the
study
Scope of the study
Limitation of the
study
Definition of term
CHAPTER TWO
Literature review
Historical background
Conceptual framework
Theoretical consideration
Review of current literature
CHAPTER THREE
Methodology
Design of the study
Population of the study
Sample size of the study
Sampling techniques
Instrumentation
Instrument validation
Reliability of the instrument
Procedure of data collection
CHAPTER FOUR
Data presentation, analysis and interpretation
Result and data analysis
Test of hypothesis
Discussion of findings
CHAPTER FIVE
5.0 Summary,
conclusions and recommendation
5.1 Summary
5.2 Conclusion
5.3 Recommendations
5.4 Suggestion for
further research
Bibliography
Appendices – Research questionnaires workings
CHAPTER ONE
INTRODUCTION
There is a general awareness all over the world of the need
to pay greater attention to the improvement of public sector management. The
reason is obvious government in most if not all nations, constitutes the
largest single business entity and in many places the care of the economy. It’s
pattern of expenditure through various parastatals, agencies and commissions or
manners of resources allocation determines the extent to which accountability
for economy, efficiency and effectiveness can be achieved. Hence, initiative is
being taken all over the world towards improvement of the standards of
accounting and auditing in government. The United Nations department for
technical co-operation for development and international consortium on
government (1987) has also joined in a world wide crusade for more effective
management functions in public sector of which the key ingredients is
“AUDITING”.
The development of modern accounting and auditing should be
credited to great organization in commerce and industry which ahs taken place
since the industrial resolution. At the time when there were small business
transactions and properties took active part in the management of their
business, it was perhaps felt that there
was little or no need for auditing. But as business transaction increased and
investment in public sector came along, the need for accountability for find
and properties of the business became necessary. On this note, government made
provision for the account of public sector to be examined and reported on by
persons other than the people managing the business. Thus, auditing and
internal audit continue to grow with the increasing complexity in the modern
business and accounting systems.
In the public sector management, internal audit serves as a
good instrument, internal audit cannot be discussed without discussing internal
control and it’s nature. Internal control is defined according to the auditing
guidelines as the “whole system of control financial and otherwise established
by the management in order to carry on the business of the enterprise in an
orderly and efficient manner, ensures adherence to management policies,
safeguard the asets and secure as fara s possible the completeness and accuracy
of records”. Internal control extends beyond accounting and financial
functions. It includes method adopted by management to delegate authority and
assign responsibilities for various functions. Apart from internal audit, it
comprises also of internal checks, accounting controls and other forms of
control.
According to Okezie
(1995:46) internal audit is therefore defined as an independent appraisal
function within an organization for the review of systems of control and
quality of performance, as a service to the organization. It objectively
examine, evaluate and reports on the adequacy of internal control as a
contribution to the proper economic, efficient and effective sue of resources.
Internal audit department is responsible to the accounting officer. The public
sector accounts and records are audited by the internal auditor and a report to
that effect is submitted to the accounting officer.
According to Ogbonna (1938:20) public sector accounting
deals with the account of government institutions or organization and as an
information tool that provides management with primary data which can be sued
with other data generated else where in the system to develop analytical device
for purposes of preparing economic development plans. Public sector auditing on
the other hand means an independent examination of an expression of opinion on
the financial statement of government establishment and in compliance with the
enabling decree. The public sector auditor has to satisfy himself that the account
have been prepared in accordance to statutory and constitutional requirements
and regulations and that proper accounting practices have been observes in
their complication. The duties of an external auditor in relation to internal
audit in government establishments are similar to those applied other business
organizations. The external auditor should consider to which extent he should
rely on the work of the internal auditor.
Since modern internal auditing began to flourish as
organizations rapidly expanded, the problems of widespread operations posed
serious challenges to management control and hence the need to delegate
responsibility and authority to many levels, supervision to become
necessary.
In view of the delegation, management had to turn to
internal auditors for assistance in maintaining surveillance over management
control network. Hence, internal audit has direct bearing on public sector
management.
1.1 BACKGROUND OF THE
STUDY
The ministry of
finance is one of the twelve ministries of the Imo state government. It came to
being on creation of Imo state in 1976. The ministry has the ultimate goal of
working towards the attainment of health economic growth. It’s basic objective
is to formulate and execute ideas designed to facilitate the effective
management of the financial resources of the state. The chief executive of the
ministry is an honourable commissioner in the person of chief Ekwegh. A
permanent secretary in the person of Mr. C. Okoye and the accountant general
Dr. Emeka Adinmadu are assisting him.
There are six
functional departments in the ministry, these departments are:
Department of administration and finance
Department of accounts
Departments of planning research and statistics
Investment and loan department
Department of planning operations
Department of accounts operations
This is the historical evolution of the topic which is seen
and explained briefly above with the permanent secretary and the accountant
general who is also assisting him in the Imo state ministry of finance.
A Research proposal for the importance of internal audit of public sector management a case study of ministry of finance, imo state:
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There is a general awareness all over the world of the need to pay greater attention to the improvement of public sector management. The reason is obvious government in most if not all nations, constitutes the largest single business entity and in many places the care of the economy. It’s pattern of expenditure through various parastatals, agencies and commissions or manners of resources allocation determines the extent to which accountability for economy, efficiency and effectiveness can be achieved. Hence, initiative is being taken all over the world towards improvement of the standards of accounting and auditing in government. The United Nations department for technical co-operation for development and international consortium on government (1987) has also joined in a world wide crusade for more effective management functions in public sector of which the key ingredients is “AUDITING”.
The development of modern accounting and auditing should be credited to great organization in commerce and industry which ahs taken place since the industrial resolution. At the time when there were small business transactions and properties took active part in the management of their business, it was perhaps felt that there was little or no need for auditing. But as business transaction increased and investment in public sector came along, the need for accountability for find and properties of the business became necessary. On this note, government made provision for the account of pub.. accounting project topics
THE IMPORTANCE OF INTERNAL AUDIT OF PUBLIC SECTOR MANAGEMENT A CASE STUDY OF MINISTRY OF FINANCE, IMO STATE