This study on “The impact of internal auditing on corporate
management” was carried out with reference to Falcom Nig. Ltd. It was
discovered in this study that internal audit report most especially to
management poses a serious threat to their decision if improper and inaccurate
report is given to management.
Some problems gave rise to this research work and it
includes amongst others, misinterpretation of auditors report by management and
other company heads, hindrance to financial data, embezzlement of funds and
inadequate training of internal auditors which give rise to incompetence in the
discharge of auditors duties and mismanagement of funds by corporate
Questionnaire was computed in tabular form and analysis of
data was used in order to gather the necessary information needed.
The result of the analysis showed that internal auditing has
great benefit and impact on corporate management, it helps in minimization of
expenses, avoidance of fraud and accurate financial records that are inline
Adequate training of internal audit staff, non interference
in their (internal auditors) duties, free access to all financial books and
records can curb the problems of internal auditing and lastly management should
adhere to the advisory, reporting and testing role of internal auditors so that
the beneficial impact of internal audit would be greatly achieved.
TABLE OF CONTENTS
TABLE OF CONTENTS———————————vii
1.1Background of the Study———————————1
1.4 Statement of the Problem ——————————-3
1.2 Objectives of the Study———————————-1
1.3 Research Questions————————————–2
1.5 significance of the study
1.5 Scope of the Study—————————————4
1.6 Limitation of the Study———————————–4
1.7 Definition of Terms—————————————-5
Historical Background of Research Problem——8
Concept of the impact of Internal auditing on
Purpose of Internal Auditing———————-12
Problems associated with Internal auditing
Essential Features of Internal auditing ———-19
Areas Where Internal Auditing is Usually Useful-20
Research design and Methodology———————23
Research design ———————————-24
Sources/methods of Data collection————-26
Population and sample size———————-24
Sampling technique ——————————22
Presentation and analysis of Data———————-27
Analysis of Data according to Research Question28
Analysis of Data ———————————39
Interpretation of Results————————-41
Summary, Conclusion and Recommendation———43
Summary of Findings—————————–43
Area for Further Study—————————46
1.1 BACKGROUND OF THE
The term audit is defined from the Latin word “audio”
meaning to hear. The origin of an audit dated back from ancient times when the
land owners allowed tenants farmers to work on their farm while the land owners
themselves does not involve in the business of farming. The land owners relied
on an overseer who listened to the account of the stewardship given by the
tenants of the farm. According to (Johnson 1002,63) an audit is the independent
examination and expression of opinion on the financial statement of an
enterprise by an appointed auditor in pursuance of that with any relevant
OBJECTIVE OF THE STUDY
The objective of the research work includes the following;
a. To find out the impact of internal auditing on corporate
management of Falcom Nig. Ltd.
b. To know how lack of information in Falcom Nig. Ltd
affects the internal audit work.
c. To determine the extent to which the independent of the
internal audit work is being impaired.
d. To ascertain whether internal auditing is an instrument
for effective management.
1.3 RESEARCH QUESTIONS
To guide this project (six) research questions were
generally formulated as follows:
a. Does lack of information in industries affects the impact
internal audit work?
b. Is the internal auditor a qualified professional
c. Is internal auditing an instrument for effective
management in industries?
d. Does the manager report consider the internal auditor?
e. Is the internal audit department independent in terms of
running of the activities of the department and responsibilities assigned to
f. Does inability to identify the function of internal audit
department affect organization / industry?