INTERNAL AUDITING AND CORPORATE MANAGEMENT A CASE STUDY OF PZ INDUSTRIES NIGERIA PLC ABA
In an organization, the importance of internal auditing cannot be over emphasized, that is why I decided to research on the topic “Internal Auditing and Corporate Management”. This research work will help the research to find out that internal auditing is an important instrument for effective corporate management taking Pz industries Nigeria plc as a case study.It was observed that there are levels of management interference in duties of this unit.
Again, lack of information contributes to the embezzlement of funds and convention of organization properties to personal use. It serves as a management control which functions by measuring and evaluating the effectiveness of other controls.Furthermore, the researcher recommends that auditors can be persons who are properly trained, experienced and of good and high moral standard for a proper recognition and efficiency.
Severally, management should not interfere with the duties and functions of this unit’s effectiveness.
TABLE OF CONTENTS
TABLE OF CONTENTS———————————vii
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
- Literature Review—————————————-8
- Historical Background of Research Problem——8
- Concept of the Internal auditing and
- Purpose of Internal Auditing and
- Problems of Internal
auditing and Corporate Management ————–14
- Essential Features of Internal auditing ———-19
- Areas Where Internal Auditing is Usually Useful-20
- Theoretical Framework and Methodology————–23
- Area of study ————————————–24
- Population of the Study—————————24
- Instrument for Data Collection——————-24
- Sources of secondary Data.———————–26
- 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 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. 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 audition 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 extents to which audit department affect Pz industries Nigeria Plc.
b. To know how lack of information in Pz industries Nigeria Plc 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 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 given a free hand 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)?