Internal Auditing As An Instrument For Effective Management (a Case Study Of Institute Of Management And Technology I.m.t.) Enugu

The vital instrument for the control of the organizational resources is the internal control which has internal audit as its instrument. This important father makes the researcher to choose “internal auditing as an instrument of effective management.” For this project, the institute of Management and Technology (IMT), Enugu has been used as a case study.  The researcher made use of both primary and secondary data, structured questionnaires were the methods used for the collection of primary data, and secondary data were also collected from textbook and various research materials.  Chi-square was used as a statistical tool for analyzing the data.  From the findings of this research it was discovered that internal auditing is an indispensable instrument for effective management. Management’s interference with the functions of the internal audit duties in the institution and also lack of information contribute to the misappropriation of funds and prosperities of the organization. Every unit of the establishments should acknowledge the importance of internal audit to enable it achieve its organizational goals.  The researcher recommends that internal auditors should be persons who are well trained, experienced and of good moral standing for proper recognition.  The internal auditor should not be seen as blood grounds but as watch dogs and should be allowed to operate freely according to their schedule. Moreover, an unhindered flow of information is very necessary and the presence of good internal control system and internal audit has led to accountability, reduction in fraud, and safeguarding of assets in the institution. So, internal audit is an important unit in any establishment. Internal auditing is an instrument of effective management. 

Title Page          i

Approval Page         ii

Dedication         iii

Acknowledgement        iv

Abstract          ix

Table of Contents        x

CHAPTER ONE: 

INTRODUCTION

1.1 Background of the study      1

1.2 Statement of the Problem     6

1.3 Objective of the study      7

1.4 Research Questions       8

1.5 Formulation of Hypotheses      9

1.6 Significance of the Study      10

1.7 Scope/ Delimitation of the Study    11

1.8 Limitation of the study       11

1.9 Definition of Terms        12

CHAPTER TWO: 

REVIEW OF RELATED LITERATURE

2.1 Definition of Internal Auditing     14

2.2 Internal Audit Process      17

2.3 The Appointment of Internal Audit    26

2.4 Objectives and Scopes of Internal Audit   30

2.5 Objectives of the Internal Auditor    42

2.6 The Components of Internal Controls   47

2.7 Management Control      55

2.8 Detection of Frauds and Errors    62

2.9 Audit Report and Relevance     75

2.10 The Difference Between Internal and External Auditor          78

2.11 The Roles and Functions of Internal Auditors 81

2.12 Economic Implications of Ineffective Internal Auditing System       85

References

 

CHAPTER THREE: 

METHODOLOGY

3.1 Research Design       92

3.2 Area of the Study       92

3.3 Population of the study      93

3.4 Sample and sampling Procedure    93

3.5 Instrument for Data Collection     94

3.6 Validation of the Instrument     94

3.7 Reliability of the Instrument     94

3.8 Administration of the Instrument    95

3.9 Method of Data Analysis      96

CHAPTER FOUR: 

DATA PRESENTATION AND RESULT

4.1 Data Presentation and findings     97

4.2 Discussion of Findings          112 

4.3  Summary of Findings          115

CHAPTER FIVE: 

CONCLUSIONS AND RECOMMENDATIONS 

1.1 Conclusion       116

1.2 Recommendation      117

1.3 Suggestions for Further Research  119

Bibliography

Appendix