INTERNAL AUDIT EFFICIENCY IN BENUE STATE (2)
INTERNAL AUDIT EFFICIENCY IN BENUE STATE
UNIVERSITY: A GENERAL APPRAISAL
TABLE OF CONTENTS
Title Page -
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i
Declaration
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ii
Approval Page -
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iii
Dedication
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iv
Acknowledgements -
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v
Table of Contents
viii
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Abstract -
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xi
1.1 Background of the Study -
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1
1.2 Statement of Problem
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4
1.3 Objectives of the Study
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6
1.4 Research Questions -
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7
1.5 Research Hypotheses
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8
1.6 Significance of Study
8
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-
1.7 Scope of the Study -
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9
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11
2.2 Historical Development of Internal Auditing
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11
2.3 Conceptual Framework
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-
-
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15
2.4 Classification of Fraud
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19
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CHAPTER ONE: INTRODUCTION
CHAPTER TWO: REVIEW OF RELATED LITERATURE
2.1 Introduction
-
-
-
-
-
-
2.5 Internal Auditors’ Role in Detecting Fraud
22
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-
-
2.6 Nature and Purpose of Public Sector
37
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-
-
45
-
2.7 Basic Procedures Authority and Responsibility of
Internal Audit Institution -
-
-
-
2.8 Internal Audit Trend to Corporate Performance
Improvement -
-
2.9 Review of Prior Studies
CHAPTER
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-
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54
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-
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-
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-
56
THREE: RESEARCH METHODOLOGY
3.1 Introduction
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-
-
-
-
-
-
69
3.2 Research Design
-
-
-
-
-
-
-
69
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-
-
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-
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70
3.4 Sample Size Determination
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-
-
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70
3.5 Sampling Technique -
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71
3.6 Sources of Data
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71
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73
3.8 Data Analysis Techniques -
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-
-
-
-
74
3.3 Population of the Study
-
3.7 Validity and Reliability
CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND
INTERPRETATION OF FINDINGS
4.1 Introduction
-
-
-
-
-
-
-
-
76
4.2 Data Presentation and Analysis
77
-
-
-
-
-
4.3 Test of Research Hypotheses- -
-
-
-
-
87
4.4 Discussion of Findings
-
-
-
-
90
-
-
CHAPTER FIVE: SUMMARY, CONCLUSION AND
RECOMMENDATIONS
5.1 Summary of Findings -
-
-
-
-
-
-
93
5.2 Conclusions
-
-
-
-
-
-
-
94
5.3 Recommendations -
-
-
-
-
-
-
94
-
-
-
-
-
-
96
References
Appendices
-
-
-
100
CHAPTER ONE
INTRODUCTION
1.1 Background to the study
Public Accountability is the hallmark of modern democratic
governance. Democracy remains a paper procedure if those in
power cannot be held accountable in the public for their acts
and
omissions,
for
their
decisions,
policies,
and
their
expenditures. Public Accountability is the basic tenet of
democracy (Cook, 1998).
Accountability in the public sector throughout the world is
being given serious attention in view of the fact that the
government is the highest spender of public fund. Those in
authorities
assume
fiduciary
status
with
the
attendant
responsibilities requiring them to render their stewardship
accounts to those for whom the authority is held in trust
(Syvester, 2013). The general public is increasingly requiring
public officers to be accountable by demonstrating effective
use of public assets and funds in the delivery of services and
pursuit of government objectives (Obazee, 2006). One the
mechanism that ensures public accountability is the internal
audit unit.
Internal audit system is the whole system of control
financial and otherwise established by the management in
order to carry on the business of the enterprise in an orderly
and efficient manner, ensure adherence of management
policies safeguard the assets and secure as far as possible the
completeness and accuracy on the records.
A company’s and organization accounts control practices
such as internal auditing is widely believed to be crucial to the
success of an enterprise as it acts as a powerful brake on the
possible deviations from the predetermined objectives and
policies. This means that an organization that put in place an
appropriate and adequate system of accounting controls is
likely to perform better in financial terms than those that do
not. Okezie (2004) states that an enterprises internal audit
functions
can
significantly
affect
the
operations
of
the
enterprise and many have impact on the ability of the entity to
remain a going concern.
Internal audit is a long standing function and an effective
tool of management in much organization’s it has been a
recognized component of organizations in both the private and
public sectors. Internal auditing is often seen as an overall
monitoring activity with responsibility to management for
assessing the effectiveness of control procedures which are the
responsibility of other functional managers.
Internal auditing which is often seen as constituting a
large and significant aspect of an organizations financial control
system is a vehicle to success and survival. Rittenberg and
schivieger (1997) state that internal auditing is making
increased importance in many today’s global organizations by
assisting management in evaluating controls and operations
and thereby providing an important element of global control.
Some types of internal audits date back thousands of
years. The Greeks, Romans, and Egyptians were conducting
audits before the birth of Christ. Interestingly, the scope of
these early audits was in many ways akin to that of the modern
internal audit, both included an examination of the correctness
of the accounting records and an evaluation of the propriety of
activities reflected in the accounts.
Emphasis was on improving management control over the
activities of the organization. Such broad emphasis was not to
reappear on the wide scale until after World War II. In the
United States, there was little need for internal auditing in the
colonial period because there was little in the way of large
industry. Infact, accounting textbooks of the period never
referred to the subjects of internal auditing or internal control.
In government, however, the need for an audit function was
recognized; the first U.S congress in 1789 approved an act that
includes a provision for the appointment of the treasury, a
controller, and an auditor. The auditor’s job, basically a clerical
function, was to receive all public accounts, examine them, and
clarify the balances.
1.2 Statement of the Problem
Concerned about the negative financial performance of
majority of government owned companies in Nigeria, Fubara
(1982)
examined
performance
and
the
reason
established
for
that
prolonged
government
abysmal
owned
companies perform very poorly in terms of profitability criteria
set for them. He attributed the poor performance to inept
management insufficient funds, paucity of technology and
incongruent management organization-government objectives.
Dogo
(1990)
had
alleged
that
government
owned
enterprises in Nigeria do not seemed to guarantee proper and
up to date record thus making auditing difficult, if not
impossible. A company’s accounting control practices such as
internal audit is widely believed to be crucial to the success of
an enterprise as it acts as a powerful brake on the possible
deviation from the predetermined objectives and policies. This
means that an organization that put in place an appropriate
and adequate system of accounting controls is likely to perform
better in financial terms than those that do not.
As Okezie (2004) puts it “an enterprise internal audit
function
can
significantly
affects
the
operations
of
the
enterprises and may have an impact on the ability of the entity
to remain a going-concern. Conrad (2003) had portray Enron’s
demise as a consequence of a “few unethical ‘rogues’ or ‘bad
eggs’ acting in absence of any control”. Thus inadequate
control system may negatively affect an organization’s success.
According to Hermanson and Rittenberg (2003) the existence of
an effective internal audit function is associated with superior
organizational performance…………………………………………..
PLEASE, print the following instructions and information if you will
like to order/buy our complete written material(s).
HOW TO RECEIVE PROJECT MATERIAL(S)
After paying the appropriate amount (N3500 for Nigerians/ $20 outside
Nigeria) into our bank Account below, send the following information to
08061272709 or email: sammyceaser1@gmail.com
(1)Your project topics
(2) Email Address
(3) Payment Name
We will send your material(s) immediately we receive notification of
payment.
BANK ACCOUNTS
MAIN BANK ACCOUNT
Account Name: JULIUS SAMUEL A.
Account Number: 4004603017
Bank: FCMB.
PayPal: sammyceaser1@gmail.com
However, if what you want is something different or a new work entirely
using some other case study; you can contact us on the number/email
address above for details as we assure you of the best.
HOW TO IDENTIFY SCAM/FRAUD
As a result of fraud in Nigeria, people don’t believe there are good
online businesses in Nigeria.
But on this site, we have provided “table of content and part of
chapter one” of all our project topics and materials in order to
convince you that we have the complete materials.
Secondly, we have provided our Bank Account on this site. Our Bank
Account contains all information about the owner of this website. For
your own security, all payment should be made in the bank.
No Fraudulent company uses Bank Account as a means of payment,
because Bank Account contains the overall information of the owner.
CAUTION/WARNING
Please, DO NOT COPY any of our materials on this website WORD-TOWORD. These materials are to assist, direct you during your project.
Study the materials carefully and use the information in them to develop
your own new copy. Copying these materials word-to-word is
CHEATING/ ILLEGAL because it affects Educational standard, and we
will not be held responsible for it. If you must copy word-to-word please
do not order/buy.
That you ordered this material shows you have agreed not to copy wordto-word.
UNIVERSITY: A GENERAL APPRAISAL
TABLE OF CONTENTS
Title Page -
-
-
-
-
-
-
-
-
-
i
Declaration
-
-
-
-
-
-
-
-
-
ii
Approval Page -
-
-
-
-
-
-
-
-
iii
Dedication
-
-
-
-
-
-
-
-
iv
Acknowledgements -
-
-
-
-
-
-
-
v
Table of Contents
viii
-
-
-
-
-
-
-
-
Abstract -
-
-
-
-
-
-
-
-
xi
1.1 Background of the Study -
-
-
-
-
-
1
1.2 Statement of Problem
-
-
-
-
-
-
4
1.3 Objectives of the Study
-
-
-
-
-
-
6
1.4 Research Questions -
-
-
-
-
-
-
7
1.5 Research Hypotheses
-
-
-
-
-
-
8
1.6 Significance of Study
8
-
-
-
-
-
-
-
1.7 Scope of the Study -
-
-
-
-
-
-
9
-
-
11
2.2 Historical Development of Internal Auditing
-
-
11
2.3 Conceptual Framework
-
-
-
-
-
-
15
2.4 Classification of Fraud
-
-
-
-
-
-
19
-
-
CHAPTER ONE: INTRODUCTION
CHAPTER TWO: REVIEW OF RELATED LITERATURE
2.1 Introduction
-
-
-
-
-
-
2.5 Internal Auditors’ Role in Detecting Fraud
22
-
-
-
2.6 Nature and Purpose of Public Sector
37
-
-
-
-
-
45
-
2.7 Basic Procedures Authority and Responsibility of
Internal Audit Institution -
-
-
-
2.8 Internal Audit Trend to Corporate Performance
Improvement -
-
2.9 Review of Prior Studies
CHAPTER
-
-
-
-
-
-
54
-
-
-
-
-
-
56
THREE: RESEARCH METHODOLOGY
3.1 Introduction
-
-
-
-
-
-
-
-
69
3.2 Research Design
-
-
-
-
-
-
-
69
-
-
-
-
-
-
70
3.4 Sample Size Determination
-
-
-
-
-
70
3.5 Sampling Technique -
-
-
-
-
-
-
71
3.6 Sources of Data
-
-
-
-
-
-
71
-
-
-
-
-
-
73
3.8 Data Analysis Techniques -
-
-
-
-
-
74
3.3 Population of the Study
-
3.7 Validity and Reliability
CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND
INTERPRETATION OF FINDINGS
4.1 Introduction
-
-
-
-
-
-
-
-
76
4.2 Data Presentation and Analysis
77
-
-
-
-
-
4.3 Test of Research Hypotheses- -
-
-
-
-
87
4.4 Discussion of Findings
-
-
-
-
90
-
-
CHAPTER FIVE: SUMMARY, CONCLUSION AND
RECOMMENDATIONS
5.1 Summary of Findings -
-
-
-
-
-
-
93
5.2 Conclusions
-
-
-
-
-
-
-
94
5.3 Recommendations -
-
-
-
-
-
-
94
-
-
-
-
-
-
96
References
Appendices
-
-
-
100
CHAPTER ONE
INTRODUCTION
1.1 Background to the study
Public Accountability is the hallmark of modern democratic
governance. Democracy remains a paper procedure if those in
power cannot be held accountable in the public for their acts
and
omissions,
for
their
decisions,
policies,
and
their
expenditures. Public Accountability is the basic tenet of
democracy (Cook, 1998).
Accountability in the public sector throughout the world is
being given serious attention in view of the fact that the
government is the highest spender of public fund. Those in
authorities
assume
fiduciary
status
with
the
attendant
responsibilities requiring them to render their stewardship
accounts to those for whom the authority is held in trust
(Syvester, 2013). The general public is increasingly requiring
public officers to be accountable by demonstrating effective
use of public assets and funds in the delivery of services and
pursuit of government objectives (Obazee, 2006). One the
mechanism that ensures public accountability is the internal
audit unit.
Internal audit system is the whole system of control
financial and otherwise established by the management in
order to carry on the business of the enterprise in an orderly
and efficient manner, ensure adherence of management
policies safeguard the assets and secure as far as possible the
completeness and accuracy on the records.
A company’s and organization accounts control practices
such as internal auditing is widely believed to be crucial to the
success of an enterprise as it acts as a powerful brake on the
possible deviations from the predetermined objectives and
policies. This means that an organization that put in place an
appropriate and adequate system of accounting controls is
likely to perform better in financial terms than those that do
not. Okezie (2004) states that an enterprises internal audit
functions
can
significantly
affect
the
operations
of
the
enterprise and many have impact on the ability of the entity to
remain a going concern.
Internal audit is a long standing function and an effective
tool of management in much organization’s it has been a
recognized component of organizations in both the private and
public sectors. Internal auditing is often seen as an overall
monitoring activity with responsibility to management for
assessing the effectiveness of control procedures which are the
responsibility of other functional managers.
Internal auditing which is often seen as constituting a
large and significant aspect of an organizations financial control
system is a vehicle to success and survival. Rittenberg and
schivieger (1997) state that internal auditing is making
increased importance in many today’s global organizations by
assisting management in evaluating controls and operations
and thereby providing an important element of global control.
Some types of internal audits date back thousands of
years. The Greeks, Romans, and Egyptians were conducting
audits before the birth of Christ. Interestingly, the scope of
these early audits was in many ways akin to that of the modern
internal audit, both included an examination of the correctness
of the accounting records and an evaluation of the propriety of
activities reflected in the accounts.
Emphasis was on improving management control over the
activities of the organization. Such broad emphasis was not to
reappear on the wide scale until after World War II. In the
United States, there was little need for internal auditing in the
colonial period because there was little in the way of large
industry. Infact, accounting textbooks of the period never
referred to the subjects of internal auditing or internal control.
In government, however, the need for an audit function was
recognized; the first U.S congress in 1789 approved an act that
includes a provision for the appointment of the treasury, a
controller, and an auditor. The auditor’s job, basically a clerical
function, was to receive all public accounts, examine them, and
clarify the balances.
1.2 Statement of the Problem
Concerned about the negative financial performance of
majority of government owned companies in Nigeria, Fubara
(1982)
examined
performance
and
the
reason
established
for
that
prolonged
government
abysmal
owned
companies perform very poorly in terms of profitability criteria
set for them. He attributed the poor performance to inept
management insufficient funds, paucity of technology and
incongruent management organization-government objectives.
Dogo
(1990)
had
alleged
that
government
owned
enterprises in Nigeria do not seemed to guarantee proper and
up to date record thus making auditing difficult, if not
impossible. A company’s accounting control practices such as
internal audit is widely believed to be crucial to the success of
an enterprise as it acts as a powerful brake on the possible
deviation from the predetermined objectives and policies. This
means that an organization that put in place an appropriate
and adequate system of accounting controls is likely to perform
better in financial terms than those that do not.
As Okezie (2004) puts it “an enterprise internal audit
function
can
significantly
affects
the
operations
of
the
enterprises and may have an impact on the ability of the entity
to remain a going-concern. Conrad (2003) had portray Enron’s
demise as a consequence of a “few unethical ‘rogues’ or ‘bad
eggs’ acting in absence of any control”. Thus inadequate
control system may negatively affect an organization’s success.
According to Hermanson and Rittenberg (2003) the existence of
an effective internal audit function is associated with superior
organizational performance…………………………………………..
PLEASE, print the following instructions and information if you will
like to order/buy our complete written material(s).
HOW TO RECEIVE PROJECT MATERIAL(S)
After paying the appropriate amount (N3500 for Nigerians/ $20 outside
Nigeria) into our bank Account below, send the following information to
08061272709 or email: sammyceaser1@gmail.com
(1)Your project topics
(2) Email Address
(3) Payment Name
We will send your material(s) immediately we receive notification of
payment.
BANK ACCOUNTS
MAIN BANK ACCOUNT
Account Name: JULIUS SAMUEL A.
Account Number: 4004603017
Bank: FCMB.
PayPal: sammyceaser1@gmail.com
However, if what you want is something different or a new work entirely
using some other case study; you can contact us on the number/email
address above for details as we assure you of the best.
HOW TO IDENTIFY SCAM/FRAUD
As a result of fraud in Nigeria, people don’t believe there are good
online businesses in Nigeria.
But on this site, we have provided “table of content and part of
chapter one” of all our project topics and materials in order to
convince you that we have the complete materials.
Secondly, we have provided our Bank Account on this site. Our Bank
Account contains all information about the owner of this website. For
your own security, all payment should be made in the bank.
No Fraudulent company uses Bank Account as a means of payment,
because Bank Account contains the overall information of the owner.
CAUTION/WARNING
Please, DO NOT COPY any of our materials on this website WORD-TOWORD. These materials are to assist, direct you during your project.
Study the materials carefully and use the information in them to develop
your own new copy. Copying these materials word-to-word is
CHEATING/ ILLEGAL because it affects Educational standard, and we
will not be held responsible for it. If you must copy word-to-word please
do not order/buy.
That you ordered this material shows you have agreed not to copy wordto-word.