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 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
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
- Literature Review—————————————-8
- Historical Background of Research Problem——8
- Concept of the impact of Internal auditing on
- Purpose of Internal Auditing———————-12
- Problems associated with Internal auditing
on Corporate Management ———————–14
- 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 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 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 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 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?