This study examines the impact of management audit on quality corporate financial reporting using Nigeria Bottling Company as a case study. Improving business performance through an effective and efficient internal control lies in the hand of the management of the particular organization. The main aim of this study is to ascertain if management audit is a means of evaluating quality corporate financial reporting. A good management auditor therefore needs to study the whole situation and project it into the future and forecast so that he can plan and take decision for all well being of the organization. The research survey design was adopted and a sample size of 40 was adopted. The chi-square statistical tool was used in the study and it was found that the society comprising of individuals of both private and public are rapidly recognizing the contribution of the management audit organizational development. The study concluded that management audit exercise will normally be carried out by a team comprising of accountants and other experts or professionals required for a thorough review of the operation for a particular organization. The study recommends among others that control should be simplified and lines of accountability made direct.            




Title Page                                                                                i

Certification                                                                            ii

Dedication                                                                    iii

Acknowledgements                                                                iv

Abstract                                                                                  v

Table of Contents                                                                   vi

Chapter One: Introduction                                        1

1.1    Background to the Study                                                      1

1.2    Statement of Problem                                                            3

1.3    Research Questions                                                               5

1.4    Objective of the Study                                                  5

1.5    Statement of Hypothesis (es)                                                 6

1.6    Significance of the Study                                                       7

1.7    Scope of the Study                                                                 8

1.8    Limitations of the Study                                                        8

1.9    Definition of Terms                                                                9

Chapter Two: Literature Review                                12

2.1    Introduction                                                                           12

2.2   Concept of Management Audit                                 12

2.3   Objective of Management Audit                               13

2.4   Advantages of Management Audit                            15

2.5   Examination of the Objectives and Structure of the Organization                                                           16

2.6   Detailed Examination of the Qualified Experience and Responsibilities of the Key Official of the Key Official

of the Organization                                                  18

2.7   Appraisal of Recruitment Techniques                      20

2.8   A Critical Review of Existing Sources of Income and Search for a Possible New Source of Income                22

2.9   Examination of All Expenditure Items                     24

2.10 Formation or Recommendation and Management

Audit Report Writing                                                26

2.11 Purpose of Management                                          29

2.12 Internal Control System                                           30

2.13 The Functions of Internal Audit                               34

2.14 Attributes required of Internal Auditor                     36

2.15 Factors that Determines the Effectiveness of the Internal Auditor                                                   37


Chapter Three: Research Method and Design             40

3.1    Introduction                                                                           40

3.2    Research Design                                                                    40

3.3    Description of Population of the Study                                41

3.4    Sample Size                                                                            41

3.5    Sampling Techniques                                                            41

3.6    Sources of Data Collection                                                    42

3.7    Method of Data Presentation                                                43

3.8    Method of Data Analysis                                                       43

Chapter Four: Data Presentation, Analysis and Interpretation                                                                  45

4.1    Introduction                                                                           45

4.2    Data Presentation                                                                  45

4.3    Data Analysis                                                                         46

4.4    Hypothesis Testing                                                                 60




Chapter Five: Summary of Findings, Conclusion and Recommendations                                                              66

5.1    Introduction                                                                           66

5.2    Summary of Findings                                                            66

5.3    Conclusion                                                                             67

5.4    Recommendations                                                                 68

References                                                                    69

Appendix I                                                                              71

Appendix II                                                                             72




1.1   Background to the Study

Both private and public sector organization of the economy are usually established to achieve some certain defined objectives. In public, while the private sectors, they are to provide social and welfare services to the public, while the private sector is geared towards making profit through the goods and services they offer. In most cases objectives to be achieved are obvious and expected result qualifiable and can be measured against predetermined standard.

On the other hand, particularly the public sector of the economy, objectives and goals may not be subjected to definitions and possibility of varied interpretations and the expected result may not be subjected to precise quantification and measurement against predetermined standard.

In an attempt to achieve various economic resources which can be translated into and quantified in monetary terms. The measure of the success of any organization is a reflection of the quality and effectiveness of its management.

Social process entailing responsibilities for the effective and economical planning and regulation of the operations of an enterprise in fulfillment of a given purpose such responsibilities involves; judging and taking decisions that will lead to the effective management of the business. The controlling, motivation, co-ordination and supervision of both man and material resources in attaining the objectives and goals of the organization. Some organizations do well than the other in the same environment with almost the same financial and economic resources.

Inefficiency and ineffectiveness of an organization results to many factors like bad management, fraudulent practice, lack of expression, planning and lack of good management skills. Management audit will reveal all these and recommend to the management the appropriate position and suggest solution to individual problems, when all these problems are stated in terms of reference to the management.

The exercise is designed to check all levels of the management from the Chief Executive Officer to the lowest rank officer of the organization. The independence of the management audit team have a very crucial way of affecting their report to the management and to crown it all, the attitude of the management to the management audit team report will also have a great role to play in measuring the management audit and quality corporate financial reporting.

1.2   Statement of Problem

It is a clear fact that this organization is established to make profit the worth of a firm is determined by the financial statement prepared by the management and an independent body (the external auditors) which is called up as to examine the accounts and report on the fieriness of the account opinion. In the establishment of the organizations the objectives and goals are spelt out in the memorandum and article of association which guide their activities internally and externally as the case may be. It is an often occurrence that in an attempt for an organization to work towards achieving their desired goods and objectives in the most effective and efficient manner, the Westford some resources and left untapped as a result of either inadequate technical know hoe, experience business acumen or mismanagement of fund.

This study therefore is aimed at establishing how management audit has affected the evaluation of performance in the NBC plc coca cola company and makes necessary recommendations in the area of weakness in the organization. With the data gathered so far, it crystal clear that this organization can never do well without a good system of internal control which in there hands of the management, and this is the main focus is the management audit which ensure that this system of this external control is well planned and prepared and ensure that management conform to it because this ahs a great effect in increasing performance.   





1.3   Research Questions

An interview was conducted in order to ascertain of the following;

i.            Is management audit a means of evaluating organizational performance and efficiency?

ii.          Does management audit have position change in an organization?

iii.        Are there significant difference between the role of management audit and evaluating performance in an organization? 

14.   Objective of the Study

The following objectives were to be achieved by the researcher during the course of this research;

i.            To ascertain if management audit is a means of evaluating organizational performance and efficiency.

ii.          To ascertain if management audit have position change in an organization.

iii.        To find out the significant difference between the role of management audit and evaluating performance in an organization.


1.5   Statement of Hypotheses

The hypotheses used for the purpose of this study have been divided into four;

Hypothesis One

HO:   Management audit is not a means of evaluating organization performance and efficiency.

HI:    Management audit is a means of evaluating organizational performance and efficiency.


Hypothesis Two

HO:   Management audit cannot have position change in an organization.

HI:    Management audit can have position change in an organization.


Hypothesis Three

HO:   Management audit does not enhance the overall efficiency of the organization.

HI:    Management audit enhance the overall efficiency of the organization.      



1.6   Significance of the Study

Management audit has been increasingly important in the model management. In the face of increasing cost of operation resulting from high cost of input, rising risk in international political economy, any responsible organization can no longer afford the luxury of either over staffing the best laid goals of an organization. irrespective of the planning expert can be frustrated, it would be seen as inadequate and well round staffing structure, hence the role of management audit.

The inviolability of management audit in less developed countries cannot be overemphasized. This research work will clearly and lucidity spell to all that is involved in management audit as well as the compelling need of such an exercise from time to time. Management audit is not only this organization but any other organization which wishes to continue in existence and remain competitive for both human and non-human resources.  



1.7   Scope of the Study

This research work covers all aspect of management audit in the coca-cola company it examine the doings and positions of every workers and see if there is need for a change in the management of the organization and for making and taking strategic and tactical plans and decision respectively. With reference to management, the underlying study is audit as it affects procedure for taking decisions, carrying out business and the goals and objectives of the organization. This study was basically carried in Benin City and a time frame of 5 years was used in the course of this study (2008 – 2013) with a sample of 40 respondents for easy clarification.

1.8   Limitations of the Study

This project work suffered several limitations, which vary in different stages and forms in the course of the research work. Briefly put the time allocated for the work of this magnitude was rather too short, distance was another constraint which militated against this work, and sources of information failure by some officers to keep their appointment are factors which also affected the research work.


1.9   Definition of Terms

1.          Management: This is a process which enables organization to achieve their objective by planning, organization, controlling their resources in order to achieve the organizational goals.

2.          Audit: This is an independent examination of an expression of opinion on the financial statement of an enterprise by an appointed auditor in pursuance of that appointed and in compliance with any relevant statutory obligation.

3.          Auditor: This is a professional man employed to carryout the audit exercise, he is responsible to the members or shareholders of the organization.

4.          Financial Audit: This is the strategic decisional choice in which the management finance an enterprise.

5.          Internal Audit: It is an element of internal control system set up by the management of an organization to examine, evaluate and report on accounting and other controls in operations.

6.          Internal Control: This is the whole system of control, financial and otherwise established by management in other to carry on the business of the enterprise in an orderly and efficient manner ensure adherence to management policies, safeguard the assets and secure as far as possible the completeness and the accuracy of the records.

7.          Organization: Organization is a social units that pursue specific goals, which they are structured to service under some social circumstances.

8.          Goal: This is defined as a future state of affairs which the organization strives to achieve.

9.          Fraud: Is an act which involves the use of deception to obtain unjust financial advantage. It is also an act of international misstatement in or omission of amounts in an entity’s accounting records or financial statement.

10.      Accounting: This is the process of identifying, measuring and communicating of economic information or permit information judgement and decision by user of such information.

11.      Policy: Is procedure or rules which an organization has decided to follow consistently in order to obtain defined goals.

12.      Policy Analysis: This is defined as the practical philosophy on how to assist decision, makers with complete problems of choice under conditions of uncertainty.   



Order Complete Project