ABSTRACT
This study on “The impact of internal auditing on corporate
management” was carried out with reference to Ikenga Plaza 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 management. 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 with standard. 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
TITLE PAGE
i
APPROVAL PAGE ii
DEDICATION
iii
ACKNOWLEDGEMENT iv
ABSTRACT
v
TABLE OF CONTENTS vi
CHAPTER ONE
Introduction 1
1.1Background of the Study 1
1.2 Objectives of the Study 1
1.3 Research Questions 2
1.4 Statement of the
problem 3
1.5 Scope of the Study 4
1.6 Limitation of the Study 4
1.7 Definition of Terms 5
CHAPTER TWO
Literature Review 7
Historical Background of Research Problem 7
2.2 Meaning and
Definition of internal Auditing 8
2.3 Purpose of
Internal Auditing
10
2.4 Problems
associated with Internal auditing
on Corporate
Management 11
Essential Features of Internal auditing 15
Areas Where Internal Auditing is Usually Useful 17
CHAPTER THREE
Research design and Methodology 20
Introduction 20
Research design 21
Population of the study 21
Instrument for data collection 21
Methodology
22
Sources of Secondary data 23
Method of data analysis 24
CHAPTER FOUR
Presentation and analysis of Data 25
Introduction 25
Presentation of data 25
Analysis of Data 26
Interpretation of Results 35
CHAPTER FIVE
Summary, Conclusion and Recommendation 37
Summary of Findings 37
Conclusion
37
Recommendation 39
Area for Further Study 40
Bibliography 41
Appendix
42
Questionnaires 43
CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
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. It is According to (Eze 1003, 64) 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
statutory obligation.
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 Ikenga Plaza Nig. Ltd.
b. To know how lack of information in Ikenga Plaza 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
accountant?
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
it?
f. Does inability to identify the function of internal audit
department affect organization / industry?
1.4 STATEMENT OF THE PROBLEM
The study titled “the impact of internal auditing on
corporate management” attempts to determine the ways by which internal auditing
has impacted corporate management.
The internal auditor by the nature of his job is often
treated with suspicion by members of staff. This places the burden on his
shoulder to show his colleagues after all he is not a blood hound but one who
is implementing management procedures in a manner that he will help achieve the
target goals and objectives of the organization. In lack of information, the
internal audit has a task of receiving an authenticating financial decision
taken by management. His (auditor) attempt to make enquiry, have in many cases
placed him in a collusion course with his supervision. It is usually observed
by the auditors that there is always reliance on the part of the employed
especially those concerned with recording and documentation of financial
transaction and accounting for custody to assets of the business organization,
to discuss freely with auditors or make disclosure to the auditors without
reservation, this is because employees are totally ignorant or have little
knowledge of the duties of the auditors during normal audit exercise at this,
the internal auditor is not given free hand in terms of independence in the
running of the activities of the department and responsibility assigned to it
1.5 SCOPE OF THE STUDY
The scope of this study focuses on the impact of internal
auditing on corporate management using Ikenga Plaza Nig. Ltd. as a case study.
The study is meant to cover the whole Ikenga PLaza Nig. Ltd since studying the
organization as a whole would entail sampling data from both their head office
and other collected from the chosen branch would form good representation of
the whole company. Also factory of the company was chosen because of nearness
and easy collection of data.