TABLE OF CONTENTS
Table of content
ONE: GENERAL INTRODUCTION
Background of the study
Statement of the problem
Aims and objective of the study
Scope and limitation
Plan of the study
Definition of terms
TWO: LITERATURE REVIEW
The Role of Internal Auditing and Monitoring
Purpose of Internal Auditing
and status of internal Audit Department.
Management role in Internal Auditing
Relationship with various units in internal
Organization of the Department Determining
the Internal Auditing Role
THREE: RESEARCH METHODOLOGY
Brief History of Niger River Basin
Data Collection Instrument
Method of Data Analysis
FOUR: DATA PRESENTATION AND ANALYSIS
The Audit Department in Niger River Basin
Development Authority. (N.R.B.D.A)
on Receipt and Payment
Control of Wages and Salaries
Stores and other record
Interview with Audit Staff of Nigeria River Basin Development Authority
Tests of Hypothesis
FIVE: SUMMARY, CONCLUSION AND RECOMMENDATION
OF THE STUDY
fact that early days most business were run by one man. In a one man operation, there is less of an
internal control problem because the proprietor is constantly in contact with
all phases of the operation, he makes sales, sign cheque, does the buying and
pay all taxes in fact he is his own internal auditor.
business activities have grown from this stages and with continuously expansion
in the business activities, management are faced with more managerial problems.
In the past it was possible for the management to maintain control through
constant personal contact with the company operation, also contract with the
other level of management and ever individual employees. The new problem made it necessary to delegate
responsibilities and authority to many levels of supervision with such wide
delegation of duties, management had to the control specialist that is the
internal Auditor for assistance in maintain surveillance over the managerial
internal auditing can be define as an independent appraisal activity within an
organization for the review of accounting, financial and other operation as a
basis for service to management. It is
managerial control when functions by measuring and evaluation the effectiveness
of other control.
auditing can also be define as a review of operation and records something
continuously, undertaken within a business by specially assigned staff with a
view to ensure that the system of operation is adhered to, that the internal
control is as effective as possible and the economics consistent with
efficiency are applied to the business.
National Industrial Conference Board of Internal auditors give a more detailed
definition which also emphasized the management control aspect of internal
auditing as follows:
auditing is a series of process and techniques through which an organizations
own employees ascertain for the management by means of first hands on – the –
job observation whether establishment management controls are adequate and are
effectively and promptly and that each division department or other unit is
carrying out the plans, policies and procedures for which it responsible.
widening job between management and action has made it necessary to develop
series of control by means of which the organization may be administered efficiency. The internal auditors perfects and complete
each of these activities by providing on the science appraised of each form of
control. Internal auditing this emerges
as a segment of the bound field of accounting utilizing the basic techniques
and method of auditing in helping management to attain its objectives. In addition, the internal auditor, being a
company man has a more vital interest in all types of company operations and is
quite naturally more deeply interested in helping to make these operations as
successfully as possible. Thus to a
great extent management services come to influence the internal auditors
thinking and general approach.
purpose of any kind of audit to add some degree of validity to the object of
the review management policies are carried out more effectively of procedures
governed by the policies are subject to constant review.
In any presentation of financial information as in the operation of
internal control activities. Individuals
could be guilty of:
principal objective of an audit is to eliminate these four causes of an
distortion of the fact.
OF THE PROBLEM
brief analysis of some problems faced by some audit staff of the authority are
major problems of the department is lack of adequate independence. Although this independence is theoretically
pronounced but not well practiced. Interference
by senior staff of other department, an activity of Junior audit staff affects
their ability to perform effectively and this gives room for work control.
of victimization is another major problem faced by most staff of the department
where fate of audit staff in such area such as official recognition, training
and course a staff determine promotion e.t.c the above mentioned benefits might
elude the auditor this might force the auditor to adjust the audit program as
well as report and the propose of the audit Jeopardize.
is also the problem of insufficient equipment such as care to perform effectively. This is on the case where am audit assignment
has to be carried out an out station and transport is required and where
vehicles are available, requisition for such transport might be deliberate turn
down in an attempt to prostrate audit department. Lack of adequate training in the field of
auditing is another problems that come to light during the interview. Some audit staff are changed with duties
which they don’t know how to perform and such desired result cannot be
achieved. Other problems include in
ability of management to act promptly as report submitted, lack of adequate
management backing, appreciation of achievement in terms of promotion and
official recognition etc. With the above mentioned problem effectively
performance of internal auditing might be a very difficult goal to achieve.
AND OBJECTIVES OF THE STUDY
main purpose of this project is to give users the basic knowledge of the roles
the internal audit department plays in aiding management of limited resources
will be required, if the organization objective and policies are to be properly
and effectively carried out and implemented, their there is to need for
internal audit department in such organization to serve as a watch and the
activities and operation of the organization.
project provide the most important areas where internal auditor of an
organization can be of increase help to management in achieving its objectives.
an organization where the internal auditing department is very effective, most
staff of such organization regards the internal auditor as NUISANCE. They often feel the auditors pock noses too
much unto their affairs. This might be
due to the fact that these staff are ignorance of the roles of internal
auditors in the establishment or that the roles, duties and responsibilities of
the internal audit department is not well defined or properly communicated by
the management top the various sections thereby bringing conflict between internal
audit department and other department in the organization.
this project however, the objectives, roles and duties and significant of the
internal audit or development are closely to carry so as to help users appraise
the importance of internal audit department in an organization.
scope of this project is limited to internal auditing in the Niger River Basin
Development Authority. The roles of the
internal auditing department independence and status of internal auditing etc
were enumerated in the write up.
internal auditing staff of Niger River Basin Development Authority were
interview as regards their duties problem encountered and ways in their
problems are been solved. This project
also attempt to review the significance of internal auditing and how the
department helps management in achieving it goals and objectives.
OF THE STUDY
importance of this kind of write up is in the fact that many people can benefit
for using it. Students can make
reference to it in order to have a clear understanding of the concept of
internal and auditing and its importance to management. The study can also enlighten readers on the
roles played by internal auditors for the overall achievement of organization
policy and objectives and the important position occupied by internal auditor
project will e of help top management on how to have an effective internal
auditing department and the existence of independence required by the internal
auditors in order to have effective performance, it will also help internal
auditor understanding their roles and duties in the organization.
is need for cooperation between internal audit department and other department
in the organization, this cannot be achieve of the other department are not
aware of the roles of the internal auditors as partners toward achieving the
overall objectives of the organization.
project tries to define the role or the internal auditors, the purpose and
significance and how it helps management in achieving its goals and objectives.
this write up, the primary source of data such as interview, questionnaire, etc
are employed, similarly, secondary sources of data are also used in the
collection of data.
a result of some limitation of the study, the secondary data were mainly used
in this research work.
This study is concentrated on the importance of the internal auditing in the
government establishment and other organization. More so, the role of internal auditing in an
organization and it is also concentrated on the objective, duties and
significance of the internal auditor department that helps users appraise the
significance of internal audit department in an organization.
However, this write up limits itself to the role of internal auditor and the
monitory effective management in Niger River Basin Development Authority including
the purpose and the independence of internal auditor department, it also covers
the historical background of the Niger River Basin Development Authority that
is believed to be the choice of the case study of this project.
to the constraint, the researcher was unable to source for more information
necessary for this project. Another
factor is that financial capability that made it impossible for the researcher
to search for more materials that would have this project more materials that
would have made this project more vital and effective for future reference and
as a guide for organization that make use of internal audit.
OF THE STUDY
research work is broadly divided into five main chapter
one continents the general introduction, background of the stud, aims and
objective f the problem, research methodology, as well as the definition of
two of this research work consist of literature review, purpose of internal
auditing, managements role in internal auditing relationship with various unit
and also organization of the department determining the internal auditing role.
three contain research methodology, population, data collection as well as
method of data analysis.
four is basically on the analysis of data and presentation, control on receipt
and payments, controls on wages and salaries as well as test of hypothesis.
five which is the last contains the summary conclusion and recommendation. There is no internal auditors, how does internal
auditors help an organization to have an effective management of the resources,
what extent can this be achieved.
is also generally believed that it is difficult to entrust human beings with
money or money without being properly mentioned. Why do people have the conception am dos the
and other questions are gradually answered ion the course of analyzing the
roles of internal auditing and its aids to management in every organization.
the purpose of clear and understanding of some terms used in this write up the
following terms are defined.
Authority incurred Experience, this is an extract of management, meeting where
certain expenditure are approved.
Local Purchase Order, this is used for the purpose into the store. The L.P.O is used to centre actor as supplier
when suppliers are to be made. This
specified the items needed, the quantity as well as the price of which it s
J.O: Job order, this is used for awarding
contractors such as land clearing transportation of items, repairs to
re-equipments, printing of stationeries.
Cash Advanced Vouchers; this is used for receiving supplier into the stores any
items taken into the store clerk and will issue on SRC. This items supplied are listed in the store
received voucher and necessary ledger.
Store Issue Vouchers, this is opposite of the stiore received vouchers it is
used for receuiving items from the store after necessary store requisitions
form has been filled and dully approved by appropriate office.
Transfer Issue Vouchers: this is used to raise payment for any expenditure to
be made in the organization. Relevant
document such as L.O.P, J.O, S.R.V, A.J.E, etc are to be attached before such
as P.V can be approved.\
The Niger River Basin Development Authority has various projects scattered over
its area of coverage, these project are allocated codes and money to be spent
on each of the project are allocated under the codes. P.A.V.E: Pass As You Earn: this is tax
deduction at sources on behalf of the government.