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
TABLE OF CONTENTS vi
- 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
- 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
- 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
- Presentation and analysis of Data 25
- Introduction 25
- Presentation of data 25
- Analysis of Data 26
- Interpretation of Results 35
- Summary, Conclusion and Recommendation 37
- Summary of Findings 37
- Conclusion 37
- Recommendation 39
- Area for Further Study 40
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.