EFFECT OF THE INTERNAL AUDIT FUNCTIONS ON CORPORATE EFFICIENCY
ABSTRACT
The aim of this research work is to examine the effect of internal audit function on corporate efficiency with particular reference to First Bank Nig Plc. The researcher evaluated the impact of internal audit function on the profitability of First Bank Nig Plc. Determined the types and causes of fraudulent practices in First Bank Nig Plc. Determined the impact of internal audit function in the development of Nigerian banking industry. Data for the study were sourced from two main sources which include Primary and Secondary sources of data Collection. Primary data: questionnaires and oral interviews were used to collect information from the respondents. Secondary data: journals, and other relevant materials relating to the area of my investigation will be review. Extensive literature review was carried out on the direct literature and indirect literature on books, journals and past works. The research instrument used in this study includes oral interview and questionnaire. The questionnaire is structural as to contain both close and open ended question. Simple tables and percentages were used in treatment of data. Chi-square was used in testing the hypotheses. At the end the researcher found out that Internal auditing has significant impact on the profitability of bank in Nigeria. It was also observed that internal auditor has significant impact on the profitability of First Bank Nig Plc.
The researcher also discovered that there are different types of fraudulent practices in First Bank Nig Plc. It was observed that internal auditor has significant impact on the development of Nigerian banking industry. The researcher equally observed that there are so many problems hindering the service provided by internal auditors in Nigeria Banking industry. Based on the findings the researcher recommends that officer that post entry should not be responsible for the checking Movement of cashiers and clerks especially those that handle sensitive transactions. There should be development of a good organization structure and career opportunity for staff for staff so as to have dedicated loyal staff and contented with force. Staff of the organization should be competent, honest and high moral character. Good training programme is important for staff at all levels. Supervision method should be developed. All transaction should have authorization by appropriate offices.
CHAPTER ONE
Introduction
1.1 Background of the study
The function and the Existence of Internal audit department in an organization cannot be over emphasized considering the enormity of trust and responsibility attached to this department of an organization. This brings to mind why the writer chose to research on the subject, Internal auditing as an Instrument for Effective management.
Internal auditing (IA) serves as an important link in the business and financial reporting processes of corporations and not for profit provides (Reynolds 2000). Internal auditors play a key role in monitoring a company’s risk profile and identifying areas to improve risk management (Goodwin-steward and kent 2006). The aim of internal auditing is to improve organizational Efficiency and Effectiveness through constructive criticism. IA has four main components:
- Verification of written records
- Analysis of policy
- Evaluation of logic and completeness of procedures, internal services and staffing to assure they are efficient and appropriate for the organization’s policies; and
- Reporting recommendations for Improvements to management (Eden and Moriah 2006).
Internal auditing becomes necessary as a result of the extended span of control faced by the management concerning the employment of men and material in the conduct of organizational affairs. The work of the internal audit are very important In the most modern organization and have trust of responsibility to advice the management and enforce the operations of internal control, and the internal checks in the organization. The inefficiency in the organization during day to day activities are controlled.
Internal audit is an independent appraisal activity in the organization as a service to the management.
The duties are usually define by management and these include:
- Measurement of the adequacy and effectiveness of the internal control system on a continuous basis;
- Routine checks to prevent and detect errors and frauds;
- Provision of hireling advice to management on internal control matters;
- Investigation of reported cases of all practices;
- Provision of statistical data for management information and decision making; Other special assignment such as disposal of asset, staff audits.
Inspite of this being a seemingly exacting and challenging function of the internal audit department. In some organization, the management starves the internal auditors of funds, staffing and training. It is necessary for internal audit to have credibility by having an internal auditors persons of integrity.
The above qualities of internal auditors contributed to the inefficient of the internal audits of the organization world-wide.
As regards, the problems which usually affects the internal audit departments, the staff of some organization treats the internal audit as “blood hound” and not “watch dogs”. The fraudulent staff would will not normally corporate with the internal auditors as regard to the supply of information which should be used for the effective checks of the works in the organizational activities.
In our society where the business culture has been overridden in recent times with fraudulent practices penetrated by management and employees, the lack of clear understanding of the duties of an auditor in relation to fraud detection has often led to unjustifiable criticisms of his role. Auditors are known to be competent, honest and independent professionals who express unbiased opinion on the truth and fairness of the financial statement as presented by management to members of the company. The accounting profession has over the years built a reputation, which encourages others to rely upon the opinions auditors express. If these opinions are unclear or even unreliable, serious consequences may and indeed have resulted.
The auditor’s duty is to examine the financial records of the company and to take reasonable care to ascertain that the financial records show the company’s true position. The auditor is expected to prepare a detailed report to the company members and the report shall state the matters set out in schedule six to this act. The auditor is also to consider whether the information given in the director’s report for the year for which the accounts are prepared is consistent with those accounts; and if they are of opinion that it is not, they shall state that fact in their report. If the subsiding company and its auditors fail to provide this information, every other officer who is in default shall be guilty of an offence and liable to fine. That an auditor has the responsibility for the prevention, detection and reporting of fraud, other illegal acts and errors is one of the most controversial issues in auditing, and has been one of the most frequently debated areas amongst auditors, politicians, media, regulators and the public (Gay et al 2007). This debate has been especially highlighted by the collapse of both small and big corporations across the globe. The auditing profession in Nigeria has caught the media’s attention following financial scandals in some of the Nigerian banks such as Intercontinental Bank, Oceanic Bank, Afribank, and Bank PHB among others.
There seems presently to be a misconception that auditors’ duties are largely the preventing, detecting and reporting of fraud, for example, Idris (2009). Financial report users’ perceptions of the extent of fraud in Nigeria, and to determine their perceptions of the auditor’s responsibilities in detecting fraud and the performance of related audit procedures. The paper also aims to ascertain whether the report users’ perceptions of auditors’ responsibilities on fraud are consistent with those of the auditing profession as expressed in auditing standards in Nigeria.
Fraud, according to Adeniji (2004) and ICAN (2006), is an intentional act by one or more individuals among management, employees or third parties, which results in a misrepresentation of financial statements. Fraud can also be seen as the intentional misrepresentation, concealment, or omission of the truth for the purpose of deception/manipulation to the financial detriment of an individual or an organization which also includes embezzlement, theft or any attempt to steal or unlawfully obtain, misuse or harm the asset of the organization, (Adeduro, 2008 and, Bostley and Drover 2002). Fraud has increased considerably over the recent years and professionals believe this trend is likely to continue. According to Brink and Witt (2002), fraud is an ever present threat to the effective utilization of resources and it will always be an important concern of management. ISA 240 ‘The Auditor’s Responsibilities to Consider Fraud in an Audit of Financial Statement (Revised)’ refers to fraud as “an intentional act by one or more individuals among management, those charged with governance, employees or third parties, involving the use of deception to obtain an unjust or illegal advantage”. Aderibigbe and Dada (2007) define fraud as a deliberate deceit planned and executed with the intent to deprive another person of his property or rights directly or indirectly, regardless of whether the perpetrator benefits from his/her actions.
Weirich and Reinstein (2000 cited in Allyne & Howard 2005), define fraud as “intentional deception, cheating and stealing”. Some common types of fraud include creating fictitious creditors, “ghosts” on the payroll, falsifying cash sales, undeclared stock, making unauthorized “write-offs”, and claiming excessive or never-incurred expenses. Pollick (2006) regards fraud as a “deliberate misrepresentation, which causes one to suffer damages, usually monetary losses”. Albrecht et al (2005 cited in Allyne & Howard, 2005) classified fraud into employee embezzlement, management fraud, investment scams, vendor fraud, customer fraud, and miscellaneous fraud. Fraud also involves complicated financial transactions conducted by white collar criminals, business professionals with specialized knowledge and criminal intent (Pollick 2006).
The terms fraud, waste and abuse are often used interchangeably, even though they are conceptually and legally distinct. They nevertheless often coexist, frequently arise from the same underlying factors, and, in terms of prevention, they are often amenable to the same countermeasures. Fraud against the government is more easily accomplished in an environment of administrative and fiscal laxity. Indeed, it may well be that a significant proportion of revenue loss flows less from deceit than from careless or inefficient management of public resources. In any event, the appearance of carelessness and inefficiency can be an invitation to perpetrators of fraud.
CHAPTER TWO
2.0 Literature Review
2.1 Introduction
The review of relevant literature is the main topic of this chapter. A literature review covers theoretical and methodological contributions to a certain issue in addition to the state of knowledge at the time of writing. It provides information about the state of the art in relation to the subject you are writing about. It examines the body of work on the chosen subject. The literature evaluation in this study comprises the …
Procedure for Downloading the PDF (Docx) Material
Effect of the Internal Audit Functions on Corporate Efficiency can be downloaded by requesting the full set of materials at the project or seminar cost. The document will be sent via Microsoft Word (MS-Word) format via WhatsApp (e-mail) following payment confirmation.
| Seminar Material Cost ₦3,000 | Project Material Cost ₦5,000 |
Request Complete Material
 | Click here to request the Complete Material via WhatsApp including;
|
TABLE OF CONTENTSPRELIMINARY PAGES
- Title page
- Approval page
- Dedication
- Acknowledgement
- Table of Contents
- Abstract
INTRODUCTION
- 1.1 Background …
- ⋮
LITERATURE REVIEW
- 2.1 Introduction
- 2.2 Conceptual Review
- 2.3 Theoretical Framework
- ⋮
- 2.4 Empirical Studies
- 2.5 Research Gaps
- 2.6 Summary of Literature Review
CHAPTER THREE
RESEARCH METHODOLOGY
- 3.1 Introduction
- 3.2 Research Design
- 3.3 Population of Study
- 3.4 Sampling and Sampling Technique
- 3.5 Validation of Research Instrument
- 3.6 Method of Data Collection
- 3.7 Method of Data Analysis
- 3.8 Questionnaire Administration
- 3.9 Ethical Consideration
- 3.10 Statistical Analysis
CHAPTER FOUR
DATA ANALYSIS, RESULT AND DISCUSSION
- 4.1 Introduction
- 4.2 Presentation and Analysis of Data
- 4.3 Re-statement of Research Questions
- 4.4 Test of Hypotheses
- 4.5 Discussion of Findings
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
- 5.1 Introduction
- 5.2 Summary of Findings
- 5.3 Conclusion
- 5.4 Recommendation
- 5.5 Suggestion for Further Study
REFERENCES
APPENDIX A - “QUESTIONNAIRE”
Disclaimer for Complete Material Utilization
The displayed research work titled "Effect of the Internal Audit Functions on Corporate Efficiency" is stated as a research guideline towards accomplishing your assigned project / seminar research work. All the research materials on this website are ONLY for research purposes and should be used as a guideline in developing your research work. For no reason should you copy word for word as projectlist.com.ng will not be liable for any who copied the material. By ordering the complete research guideline, it signifies that you've accepted our terms of service.
PRELIMINARY PAGES
- Title page
- Approval page
- Dedication
- Acknowledgement
- Table of Contents
- Abstract
INTRODUCTION
- 1.1 Background …
- ⋮
LITERATURE REVIEW
- 2.1 Introduction
- 2.2 Conceptual Review
- 2.3 Theoretical Framework
- ⋮
- 2.4 Empirical Studies
- 2.5 Research Gaps
- 2.6 Summary of Literature Review
CHAPTER THREE
RESEARCH METHODOLOGY
- 3.1 Introduction
- 3.2 Research Design
- 3.3 Population of Study
- 3.4 Sampling and Sampling Technique
- 3.5 Validation of Research Instrument
- 3.6 Method of Data Collection
- 3.7 Method of Data Analysis
- 3.8 Questionnaire Administration
- 3.9 Ethical Consideration
- 3.10 Statistical Analysis
CHAPTER FOUR
DATA ANALYSIS, RESULT AND DISCUSSION
- 4.1 Introduction
- 4.2 Presentation and Analysis of Data
- 4.3 Re-statement of Research Questions
- 4.4 Test of Hypotheses
- 4.5 Discussion of Findings
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
- 5.1 Introduction
- 5.2 Summary of Findings
- 5.3 Conclusion
- 5.4 Recommendation
- 5.5 Suggestion for Further Study
REFERENCES
APPENDIX A - “QUESTIONNAIRE”
Disclaimer for Complete Material Utilization
The displayed research work titled "Effect of the Internal Audit Functions on Corporate Efficiency" is stated as a research guideline towards accomplishing your assigned project / seminar research work. All the research materials on this website are ONLY for research purposes and should be used as a guideline in developing your research work. For no reason should you copy word for word as projectlist.com.ng will not be liable for any who copied the material. By ordering the complete research guideline, it signifies that you've accepted our terms of service.
Frequently Asked Questions (FAQ)
Can the material for “The Role of Financial Institution in Enhancing Business Activities” be used as a guide for Business Administration and Management (BAM) Project?
Yes it can be used — Financial institution has contributed immensely to the development of the economy of Nigeria by enhancing and playing a significant role in the activities of business in the economy and also contributing to the different sectors of the economy. In recognition of the important role of financial institutions in development of economy, this project work has been designed to enlighten all interested individuals who may not want to go into one business line or other on the availability of funds for them in any financial institution such as commercial banks like First Bank Nigeria Plc. The more individual’s ventures into business line, the more developed the nations economy becomes because the development of any given nation is measured by the numerous business activities …
Can the material for “The Impact of Monetary Policies on Nigeria Commercial Bank” be used as a guide for Banking and Finance (BF) Project?
Yes it can be used — The economic policies or interpretation of such policies has always left a key question unanswered, how much authorities do such policies allow the banks to use their powers to lend, to made remarkable impact in the overall economic situation in the country. Like in banks in most developing economic (Nigeria inclusive) the role of providing advice and issuing financial directives lies in the ministry of finance, the Nigeria deposit insurance corporation and the central bank of Nigeria. The federal government relies on these institution for the proper functioning of banks through their monetary policies, which could be concretionary or expansionary. This invariably affects the commercial banks etc. hence the need for this study. The Zenith Bank Plc has been chosen in this …
Can the material for “The Effect of Training and Development on Employee Commitment” be used as a guide for Business Administration and Management (BAM) Project?
Yes it can be used — The study examined the training and development on employee commitment in Zenith Bank Plc, Nigeria. The study employed the survey design and the purposive sampling technique to select 450 staff across management, senior and junior level. A well-constructed questionnaire, which was adjudged valid and reliable, was used for collection of data from the respondents. The data obtained through the administration of the questionnaires was analyzed using the Pearson correlation analysis. The results showed that there is a positive and significant relationship between Mentoring has significant effect on employee commitment (r=0.772; p<0.05)., Also, a positive and significant relationship exists between Job Delegation and employee commitment (r=.896; p<0.05)., Furthermore, a positive and significant relationship exists between Job Empowerment and employee commitment (r=.896; …
Can the material for “The Impact of Motivation in Achieving Organizational Goals” be used as a guide for Public Administration (PA) Project?
Yes it can be used — This project work is designed to take a close look at the function of motivation in achieving organizational goals with a particular reference to Ministry of Finance, Asaba, Delta State. This research is carried out in order to identify whether the workers at the Ministry of Finance are properly motivated and whether job satisfaction is derived. In fact, it is generally accepted that when employees are sufficiently motivated, they put in more efforts in their jobs to increase output and performance. To identify whether the employees are properly motivated in ensuring greater productivity and job satisfaction, questionnaire were distributed and analysis. The method of analyzing the data include percentage and chi-square (X2) statistics and the findings was that the ministry …
Can the material for “Computerized Crime Tracking Information System” be used as a guide for Information System Project?
Yes it can be used — Computerized Crime Tracking Information System allows police personnel to plan effectively for emergency response, determine mitigation priorities, analyze historical events, and predict future events. The aim of the study is to develop a database for security information storage and retrieval. In achieving this aim, the following specific objectives were laid out to build a database system for crime tracking information, develop a software for managing security information, and determine the effectiveness of Nigerian police in managing signal. The methodology adopted in this study is the structured system analysis and design methodology (SSADM) which is a technical approach for analyzing and designing an application or system by applying object throughout the software development process. The programming language used is HTML, CSS, …
Can the material for “Investigative Journalism as a Means of Conflict Resolution in Cross River Newspaper Corporation (CHRONICLE)” be used as a guide for Linguistics and Communication Project?
Yes it can be used — This research on Investigative journalism: A means of conflict resolution is conducted to determine the role of investigative journalism in conflict resolution. The purpose of the study is to establish the role of investigative journalism in conflict resolution. The research design used in this study is the survey research design. Samples were made from the population through the random sampling techniques. This technique was used in selecting Cross River Newspaper corporation (CHRONICLE) Calabar among all media houses in Nigeria. Both primary and secondary data were used in the study. Findings made from the data analysis carried out reveals that, there is a major difference between investigative reporting and hard news reportage, investigative journalism is a means of conflict resolution. Therefore, …
Can the material for “An Appraisal of Inmates’ Rehabilitation Facilities in Delta and Warri Prisons” be used as a guide for Estate Management (EM) Project?
Yes it can be used — This central thrust of this research is to appraise the inmates’ rehabilitation facilities in Nigerian Prisons using Kaduna and Zaria prison as a case study. Against this backdrop, this study attempts to empirically appraise the inmates’ rehabilitation facilities in Nigeria prison with Kaduna and Zaria Prisons as the case study. To achieve this, sample size of 145 inmates, 37 staff was selected through simple random sampling by the use of prison register. Qualitative and Quantitative data were collected through the use of questionnaire and interview method. Also the analysis of data was through the combination of qualitative and quantitative analysis. This result of the data analysis showed that the respondents varied in socio-demographic characteristic such as age, sex, marital status, educational …
Can the material for “Design and Implementation of Computerised Student Id Card” be used as a guide for Computer Science (CS) Project?
Yes it can be used — Student identification card processing system is an application software packaged with all of the components needed to be up-and-running and printing Identification Cards within a stipulated period of time. The aim of the study is to design and develop a Computerised Student ID Card System. In achieving this aim, the following specific objectives were laid out to examine the recent procedures employed in IMT Enugu with regards to ID-card processing, design a system with the capability of providing a wait-and-take processed ID-card and design an ID-card processing system that ensures timely processing. The motivation that led to the implementation of the proposed system is as a result of the manual processed involved in handling the students ID-card process, most of …
Can the material for “Investigation Into the Attitude of Students Towards Business Studies” be used as a guide for Business Education Project?
Yes it can be used — Business Studies is that aspect of vocational education that focuses on the development of the students with the acquisition of skills needed to satisfy human wants, the attitude of students towards the subject should be studied both by the school counselors and business teachers in our secondary schools in order to help them to have right disposition towards those Business Studies subjects. The study was carried out to investigate the attitude of students towards business studies. In achieving this aim, the following specific objectives were laid out to examine the method teachers used in teaching students Business Studies, determine the student’s attitudes towards learning of Business Studies and investigate the necessary qualifications for teaching Business Studies. The problems in teaching …
Is the topic “The Impacts of Poor Revenue Generation on the Development of Local Government Areas” recommended for Public Administration (PA) Project?
Yes it is highly recommended — Revenue generation is the nucleus and the path to modern development. Thus, the study was to assess the impact of poor revenue generation on the development of Local Government Areas. This is because local government as the third tier of government and the closest to the people especially in the rural areas needed revenue to provide basic social amenities to the people. But it is unfortunate to note that the local government management have not lived up to expectation especially to provide basic social amenities to the rural people. Thus, the objective of the research was to analyze the extent to which poor revenue generation had affected the development of those areas. The researcher used primary and secondary methods of …