INTERNAL AUDITING AS AN INSTRUMENT OF EFFECTIVE MANAGEMENT OF ORGANIZATION (A CASE STUDY OF NIGERIAN BREWERY ABA) ABSTRACT
Internal
Auditing are considered to be an instrument of effective management of an
organization. It is therefore the essential aim of this projects research work
to find out through the research hypothesis and questionnaire whether effective
use of internal auditing enables managements to achieve their organization
objectives or not. Hypothesis was formulated and tested using percentage and
statistical techniques.
The percentage
table tables were used to analyze the key questions and statement in the
questionnaire and also for easy comparison. The major findings of the research
were that adequate internal auditing system helps management make second
decision.
TABLE OF CONTENTS
Approval page
Dedication
Acknowledgement
Abstract
List of tables
Chapter one
Introduction
Background of the study
Statement of the problem
Purpose of the study
Research questions
Significance of the study
Scope of the study
Limitation of the study
Definition of terms
Chapter two
Review of related literature
Brief history of Nigeria brewery plc, Aba
The Roles And Importance Of Internal Audit Departments
AREA OF INTERNAL AUDIT
Chapter three
Research methodology
Research design
Area of study
Population of study
Method and data collection
Sampling method
Validity of the instrument
Method of data analysis
Chapter four
Presentation, Analysis and Interpretation of data
Presentation of data
Analysis of data
Chapter five
Summary, Conclusion and Recommendation
Summary of finding
Conclusion
Recommendation
Reference.
CHAPTER ONE
INTRODUCTION
BACKGROUND OF THE STUDY
Internal auditing can be defined as an independent appraisal
of activities within an organization for the review of operation as a service
to management. It is a managerial control function which functions by measuring
and evaluating the effectiveness of other controls. The internal auditor
objectively examines, evaluates and reports on the adequacy of internal control
as a contribution to the proper, economics, efficient and effective use of
resources.
Internal audit is the function of records appraising the
procedures and organization of a business and reviewing effectiveness of the
system of internal check. It is widely accepted that virtually nothing in the
society should be spared on independent review. The object is to promote the
utmost efficiency and security conducting a business. Attempts have been to
trace internal auditing back to ancient times.
Perhaps the greatest stimulus to the development in the U.K
was the establishment in the court of the principle that a local authority
treasurer is personally accounting funds this led to the appointment of an
internal auditor to the treasurer’s staff whose initial task was to perform a
pre-audit for the treasurer before the district audit arrived.
However, efficient an organization is set out to be,
procedural deadwoods is certain to accumulate unless conscious and regular
steps are taken to discard what is out modeled. Once this is appreciated, the
internal auditor can work amicably and advantageously as an instrument of
management control.
Contemporary internal audit provides a constructive service
to all branches of management. It is now concerned to appraise the
effectiveness of internal control in operational areas such as production or
marketing as well as in the traditional area of accounting and finance.
Internal auditor seeks for effectiveness, economy and
efficiency. This is because internal auditors intended to become a better
acquainted with the procedures and auditing activities could be carried on,
continuously, once a year when outsider auditing services were utilized.
As a further inducement to the development of internal
auditing, public accountant were about the same time finding to the expression
of an opinion that they could seldom perform the other types of detailed
verification as efficiently as could the company own specialist.
STATEMENT OF THE PROBLEM
The problems identified in this area of study include the
following:
The funds and properties of the organization entrusted to
certain individual employees of the organization in most cubes, these
individuals works are not brought under thorough surveillance.
The result is that much of these funds and properties are
diverted to personal use.
Measures that could be taken to address the problem arising
from these internal auditing, so that it can be effectiveness and reliable
tools to management in the performance of its functions.