In the yearly of period of scientific management in the days of Fredrick
Taylor, the use of management techniques known to them to improve the
organization to improve the condition of the management could be linked to care
of a disease which are partly known while other more serious ailment ravaging
the body has not been diagnosed at all.
Infact management techniques and principle like the principle of
management, management by objective (MBO), management by the expected, minimum
and maximum great criterion, decision techniques and expected value etc., were
all used as a way to enhance the organizational performance through good
decision making. All this was like first aid in treating organizational
Efficiency in auditing provides means of appraising companies performance
and diagnosing ill or weakness of the company more effectively and
The research will
conduct a comprehensive and a more critical on the topic: INTERNAL AYDITING AS
A TOOL FOR IMPROVING COMPANIES PERFROMANCE, with the earning finding out how
far has the EMENITE LIMITED ENUGU has carried out the efficiency required with
a view to identifying the inefficient and deficiencies which are presumably
believed to be non-existence and ahs the company used as a case of study been
efficient as it ought to be.
A research work will be carried out on the coursed of low company
performance and how o correct this abnormal using efficient auditing process.
The research work is divided into five chapters. The first chapters’
center on the introduction, the background of the study, statement of the
study, objective of the study, hypothesis testing, scope and definition of
Chapter two deal on the view of some authors on the topic while the
chapter three deals with the research design and methodology, furthermore,
chapter four focuses on the data analysis and lastly, the chapter five is
concern with the findings, summary of the findings, interpretation of data
collected, conclusion and recommendation. Written data source of questionnaire
and interviews will make use of by the research library and that will form the
part of the secondary data formation collection and testing of the hypothesis
will be done using;
Null hypothesis: Ho – the company’s internal auditing
process is not efficient.
(Hi) – the companies auditing process is
efficient. Finally, various attempt will be made on how best Emenite Nigeria
should be improved by applying efficiency in the auditing process, by carrying
out the under mention objective;
Analysis of the company in general
Reviewing and approving the
soundness, adequately, use of operational research and other accounting control
like the inventory control, process costing, job costing control etc.
Assembling ascertaining, reviewing
the extent of compliance with the established laws.
TABLE OF CONTENTS
Table of content
1.2 STATEMENT OF THE PROBLEM
1.3 OBJECTIVE OF STUDY
1.4 SIGNIFICANCE OF STUDY
1.5 SCOPE OF THE STUDY
1.6 IMITATIONS OF THIS STUDY
1.7 DEFINITIONS OF TERMS
2.1 REVIEWS RELATED TO LITERATURE
BACKGROUND OF AUDITING
2.3 HISTORY OF
2.4 PURPOSE OF AUDITING
2.5 SELECTION OF AUDITING
2.6 EFFICIENCY PROCEDURE IN
2.7 IMPORTANCE OF THE INTERNAL
2.8 ROLE OF INTERNAL AUDITING IN A
2.9 THE EXTENT OF MANAGEMENT OF
2.11 THE LEVEL OF ACCOUNTING
2.12 THE ROLES OF AN INTERNAL
AUDITOR IN ASSISTING
2.13 EXTERNAL AUDITOR IN THE
MANAGEMENT OF AUDIT
2.14 RELIANCE BY THE EXTERNAL
AUDITOR ON THE ROLE OF INTERNAL AUDITOR
2.15 EDUCATION OF INTERNAL CONTROL
IN AN ORGANIZATION
2.17 COLLECTION AND EDUCATION OF
2.18 AUDIT QUERIES
3.2 SOURCE OF DATA
3.3 INTERVIEW QUESTIONS
3.4 SAMPLE USED
3.5 METHOD OF INVESTIGATION
4.1 DATA ANALYSIS AND
4.2 DATA PRESENTATION AND ANALYSIS
4.3 TEST OF HYPOTHESIS
SUMMARY, FINDINGS, CONCLUSION AND
5.1 SUMMARY OF THE FINDINGS
Since the creation of Enugu state on
the 17 of august 1991 till date, many of the government owned company e.g.
Niger gas limited, Emene flour mill limited Emene, Anambra vegetable refinery
oil Nachi, Nigeria cement company Nkalagu located at Eboyi state which is
jointly owned by Enugu Eboyi and other state – Imo are at the point of
collapse. Many of the company if they are working are performing below 40% as
optimum utilization as statistic on that will reveal latter. The above issue is
not peculiar with Enugu state alone. Recently, there has been a drastic change
in the business trends in Nigeria. Many reasons has been giving for the
anomalies in the business which has resulted in many companies down – fall,
ranging from lack of accountability, company crisis, misappropriation of funds,
fraud, excess expenditure that are usually not compactable with the real budget.
In this maiden broadcast to the state government, Dr, Chimeroke Nnamani raveled
that the account of Enugu state public service has not been audited since the
state was created while chief Egbogu, the chairman of the panel constituted
(among other things) find the best way of making the civil service more
functional to increase the in the state. In the interim report submitted to the
deputy governor of Enugu state on Wednesday, 28 July 1999, that the fraud,
overbroad wage bill, ghost workers syndrome were the factor militating against
the efficient performance of the civil service and reported that the civil
service will not be having above twelve thousand workers (12,000) while here
has Ben speculation that payment \re been made to up to thirty thousand worker
in Enugu state.
The above shows categorically in all
ramifications that of the state civil service and their minitry – extra minitry
department and other parastatals have been audited efficiently, such anomalies
could not have crept up.
In a related development it has
been believed that efficiency in discovering the management inefficiency has
been the root cause of many companies poor performance. Both companies in
private and public limited sector in Nigeria. Improvement can only follow when
what is honestly followed in been recognized and how such wrong could be
remedied. In view of this point effort will be made to painstakingly highlight
the improvement however taking auditing efficiency in respect of private
companies, volume of transaction may not be substantial and hence a book keeper
can record transaction more effectively with ease. On the contrary, the case of
the public enterprise and transaction show that there are numerous of
transaction and so each companies may have subsidiaries and investor investing
in a companies having a control investment of the 20 – 50% share in associate
company and as such, the service of a qualified accountant who is knowledgeable
in accounting to be able to record business transaction of such greater
magnitude are needed.
1.2 STATEMENT OF PROBLEM
A company may be classified under small
medium or large depending on the size, feature of number share authorized calls
issue and fully paid etc. many companies face the problem of auditing efficiency
such as non-compliance with the accounting standard that the auditing
guidelines non- disclosure of some which will enable either the external;
auditor to form opinion. Other cooperate crime may pose a problem in the
auditing efficiency. This cooperate crime may be a serious issue, for example
in the news watch 5th July 1999, Lucky Igbenedion governor of Edo
state reported that cheque were flying up and down as formal governor
Onearugbulem awarded indiscriminately and Igbenedion reported that there is an
inherent debt of 5 million. There is many more looting in all the state in
government offices, companies etc. the research work will attempt to highlight
on these problem areas that basically undermine auditing efficiency in a
company and give a possible solution.
1.3 PURPOSE OF THE STUDY
The work was fundamentally
undertaking to study internal auditing efficiency as a tool to improve
cosmogonies performance (using Emenite Enugu as a case of study). The main
purpose of this study is find out some of the reason for deficiency and
inefficiency in the company which is usually believed as not existing but in
fact they exist and to find some way of eradicating it using auditing
efficiency. Findings will be don to know the extent to which the management has
appraised their own operation and how competent they have been in determining
operational ills and weak points.
1.4 SIGNIFICANT OF THE STUDY
The research work is aimed at having
many important to the readers and to those who may be using the study for a
reference purpose. Beside the above, it will also form part of the external
examination. For me, the researcher, it is a major preliquisite for the actual
completion of the course of study. Apart from being necessary for the award of
national higher diploma (H.N.D.) in accountancy, it is significant to undertake
this study because a thorough and fuller comprehension of the subject matter
which is tested; INTERNAL AUDITING EFFICEINCY AS A TOOL FOR IMPROVING COMPANIES
PERFORMANCE. Moreover, other future readers will find the research work more
1.5 STATEMENT OF HYPOTHESIS
The efficiency of companies auditing:
Ho; the company (Emenite Enugu) auditing process is not
Hi: the companies auditing process is efficient
Ho: The internal auditing indolence is efficient to
embark on the internal auditing work.
Hi: The internal auditing indecency is not efficient to
embark on effective and efficient audit work.
1.6 SCOPE AND LIMITATION OF THE STUDY
For the purpose of the research work,
the researcher will focus his attention to the internal; auditing effeminacy as
a tool for improving the company’s performance using Emenite Enugu as a case of
The researcher in carrying out the
research work encountered many problems, ranging from time constraint, poor
response, financial constraint etc.
Financial constraint: the
researcher having considered the financial involvement and other problems and
bearing in mind that the work was singled handedly sponsored plus the need to
meet up with the standard set for the working to its logically and exhaustive
conclusion, he faced a lot of financial predicament with the merger financial
resources. The researcher virtualized the fear that the study will be adversely
constrained due to financial transport involved in running around to get the
needed information and other incidental express.
Poor response: most of the research
work are characterized with poor response from various respondent and having
taking into consideration some of the misguided beliefs and expression by many
respondent, they are usually faced with problem like;
of been exposed and fear of been retrenched or dismissed for revealing official
apathy, indifference towards the question being put to the potential respondent
Time constraint: other factors like
the time factor militates against the progress of the project. The time
allocated to carry out this research was too short plus other logistics
problems. The time for work done, compilation, completing, and submission for
assessment irrespective of the fact that there are other academic engagement
were too small.
Furthermore, as the interview
necessary to carry out this research have to be conducted during the official
working hours and days of the weeks with a view t get the respondent in the
office, the researcher has occasionally forfeited his lectures in order to get
the researcher successfully executed.
1.7 DEFINITION OF TERM
Audit: in general is the
mechanism within the process of accountability whereby the performer of those
in control of the research of the organization is check or monitored by or on
the behalf of the interested persons. The statutory audit of limited companies
is the commonest example.
Internal audited: an element of the
internal control system set up by the management of an enterprise in order to
review accounting, financial, and operating and determine whether the prescribe
policies are being adhered to. External auditors take account of the work done
by an eternal auditor letters independence, staff resource, test mode, and
influence by the management action.
Efficiency: the is referred to the
ability to perform a duty well and produce a statistical result
Tool: it is an instrument used in
doing a certain work or producing a certain result especially such that require
accountancy or precision
Company; an association of persons
for a business purpose in particular which incorporated in the united kingdom
under the companies Act or by the Act of parliament or by royal charter. In
Nigeria, company is registered by a cooperate affairs commission Abuja and
regulated by the companies and allied matter decree 1990. There are companies
limited by share and those limited by guarantee.
Companies can be divided into
Improvement: this means to make or
become better or addition or alteration, form of repaired to better the face of
an asset or to enhance the value of anything.
Diagnosis: ascertaining, analyzing,
or determine the cause of nature of problem, situation from observation.
Performance evaluation: the easement
by a superior or a subordinate and an important part of any management control
system. To evaluate performance is necessary to decide which measure are to
represent organizational goal, how qualify, what standard is to be used, what
step back is to be taking.
PERFORMANCE REPORT: A REPOT COMPILING
OF THE BUDGETED PERFORMANCE
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stein and Lawrence Urdang. The random house dictionary of English language
Cambridge edition P.455.
and allied matters. Vol. 45,357,358,359,360.
Milliamp, Auditing, an instructional manual accounting studies 4ht edition.