IMPEDIMENT TO INTERNAL AUDIT EFFICIENCY IN PUBLIC ENTERPRISES

CHAPTER ONE

Introduction

Overview

The concept of auditing derived its origin from the need of some system of checks upon persons, whose business was to record the receipt and payment of money on behalf of others. In the early stage of civilization, the method of accounting were so crude and the number of transactions to be recorded so small, as a consequence, everybody was able to check for himself all his transactions, but as soon as the ancient states empires acquired some coherence organisations a system of checks was applied to their public accounts, as evidenced by extant records.

The word audit was gotten from a Latin word “AUDIRE“ meaning to hear, started when ownership was separated from the administration. These was first seen in Ancient Greece , where governmental accounting records for the monarchs, were certified true and fair only after a public hearing in which the accounts were read aloud to the hearing of the people based on the type of response given either affirmation or denial. The monarch either affirmed by saying I hear or reject by being silent in those days the prime qualification of an auditor was reputation men known for their integrity and independence.

From the medieval times, there was a great expansion in exploration and international trade involving Europe in dealings, with the east and the America. The entrepreneurs who undertook these venture rarely possessed the necessary financial means that consequently led to them depending on wealthy merchants, bankers and even royalty, as in the case of Christopher Columbus. In England, Queen Elizabeth 1, gave active financial support to those involved in the international trade. This grew i.e expanded into companies that led to;

The British companies Act of 1844, which provided for compulsory audit both internally and externally. This also led to a major event in the United States of America, the establishment of the American Institute of certified professional Accountants (AICPA) in 1896.

This development led to the issuance of a joint publication by the American Institute and the federal Trade Commission in 1918, “Approved method for preparation of the balance sheet” this document was the first formal declaration of “generally accepted accounting principles” which has been amended till date.

In the nineteenth century, the British also established the Institute of Chartered Accountants in England and Wales (ICAEW) in 1980, during The times, auditing was concerned primarily with the detection of fraud which was generally moved towards the goal of determining, whether the financial statement gives a true and fair view of the financial position operating results and changes in financial positing results. This shift was in emphasis as a response to the needs of the millions of new investors in the corporate society.

This latest shift was a result of the dramatic increase in the number of lawsuits charging management fraud that that has gone undetected by independent auditors. Which led to the introduction of the auditors right to examine the books and records to obtain all the information and explanation necessary for giving a report on the truth and correctness of the companies balance sheet.

Audit are of different types, there are of four broad types namely:

Statutory audits:

These are audits carried out by statutes, because the law requires it to be done like in the S.331 of companies and allied matters act 2004.

Private audits:

Is an audit conducted into a firm’s affairs by independent auditors because the owners desire it, not because the law requires it these includes audits of sole traders and partnership.

Internal audit:

Is an audit conducted by an employee of a business or an outside contractor into any aspect of its affairs.

Other:

They are specific or specialized audit of management environmental matters e.t.c.

1.2 Statement Of The Problem

It is crystal clear that management view an internal auditor as the watch dog who is out to protect and safeguard the assets and liabilities of the organization. Notwithstanding, the staff sees the internal auditor as an enemy who may want to prevent them from defrauding and carrying out obnoxious acts. They never want any correction from their mistakes or errors.

However, the internal auditor needs independence to be able to work more effectively and to form an opinion without interference.

To achieve this an auditor needs to be professionally qualified, that is a member of a professional body with knowledge of principle of accounts the body includes:

Institute of Chartered Accountants of Nigerian ICAN and Association of national Accountants of Nigeria (ANAN)

The auditor has come to stay because of the numerous services, he renders to the organization for instance, the auditor ensures that operations of the company are well controlled and effective ensuring at the same time that internal control systems are effective and efficient.

A good internal audit department will provide positive contribution to the fulfillment of organizational goals and objectives. Due to many impediments like lack of independence and management interference, internal audit has not been able to achieve these laudable objectives.

1.3 Objective Of The Study

The primary objective of an internal audit is to assure the management that the internal checks and control system are effective in design and operation.

The research objectives is aimed at a study on.

Nigerian Television Authority and
Nigeria Petroleum Development Company (NPDC) respectively. Both in Benin City, Edo State

1.4 Research Questions

The following research questions are hereby formulated to guide the study.

Does poor staffing of the internal audit affect the efficiency of the depart of the department?
In what ways does, undue influence under the efficiency of internal audit?
Are auditors responsible for the hindrance in of internal audits?

1.5 Research Hypothesis

In order to be able to achieve the objectives of this study the following hypothesis is hereby formulated and present for testing.

H0: Non-recognition of the internal audit independence is not an impediment to its efficiency

H0: The large size of public enterprise is not an impediment to its efficiency

H0: Poor staffing of the internal audit department is not an impediment to its efficiency.

1.6 Limitations To The Study

An ideal research work is one which is capable of attaining an overall and thorough coverage of the entire areas of study however, this will not be possible due to some limitations thus:

Time:

The major constraint on this study is the time allowed for the completion of the study the short nature of the semester will actually affect the project.

Finance:

Another limitation is finance because not much work has been done in this area. There are few journal and book in the libraries. However the cost of getting this few journals and books is high.

Surfing the internet for materials is quite expensive as well, thus the research was done on a limited budge.

It is a general consensus that is was against management policy to give out internal document to outsider for any reason unless under special circumstance. Therefore the analysis would be made based on the questionnaire results, facts gathered during interview, discussion global criticles on the internet, as well as personal observations made during the work.

1.7 Definition Of Terms

Audit:

It can be defined as the examination of books, accounts, vouchers for business to enable the auditor confirm that the information presented show the true and fair view of the financial statement.

Internal Auditor:

Is a type of audit carried out by the employees, which is intended to prevent fraud and ensure compliance with board directives and management policies.

An Auditor:

Is a independent person that performs an audit, who is also a professional accountant.

External Auditor:

Are chartered accountants who has passed their professional exams and are members of an independent body, contracted to perform audit in organizations.

Internal Control:

This is the whole system of control set-up by organisations to safeguard their assets, liabilities and financial records.

Internal check:

This is the daily or routine work of the organisation to ensure that errors are reduced to the barest minimum.

…

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

Impediment to Internal Audit Efficiency in Public Enterprises 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

Complete Material Chapters of Impediment to Internal Audit Efficiency in Public Enterprises

Click here to request the Complete Material via WhatsApp including;

Preliminary Pages,
Chapter 1-5,
References and Appendix.

TABLE OF CONTENTS
PRELIMINARY PAGES

Title page
Approval page
Dedication
Acknowledgement
Table of Contents
Abstract
CHAPTER ONE
INTRODUCTION
⋮
CHAPTER TWO
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 "Impediment to Internal Audit Efficiency in Public Enterprises" 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 this topic “The Importance of Improving Agricultural Production Through Co-Operative Societies” be used for Agricultural Business Project?

Yes it can be utilized for research — Agriculture is a science or practice of cultivating the land the keeping or breeding animal for food and for the promotion of the countries economy. The importance of improving Agricultural production through Co-operative Society especially in Anambra State, is their source of earning food and money for their survival, both man and animal around. It is also provision of raw materials for the Agro-based Industries, which helps in the production facilities programmes. Co-operative society is the coming together of different people in order to achieve a common goals and objectives of the society. They teamed up in Anambra State to cultivate and supply masses with food and also to feed themselves with their families. …

Can the material for “Impact of Industrial Training Scheme on the Academic Performance of Business Education Students” be used as a guide for Business Education Project?

Yes it can be used — Students Industrial Work Experience (SIWES) is a skill development programme designed to prepare students of Nigeria tertiary institutions for transition from the college environment to work environment. The study was carried out to examine the Impact of Industrial Training Scheme on the Academic Performance of Business Education Students. In achieving this aim, the following specific objectives were laid out to investigate the relevance of the Business Education student’s Industrial Work Experience scheme and ascertain the responsibilities of the employer to the Business Education Students. Investigation revealed that students on their own part have discovered that what most of the supervisors are after is how you can defend your SIWES report rather than how to make use of the scheme and …

Is the topic “The Role of Financial Institution in Enhancing Business Activities” recommended for Business Administration and Management (BAM) Project?

Yes it is highly recommended — 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 this topic “Public Policy Implementation in Nigeria and Economic Development” be used for Public Administration (PA) Project?

Yes it can be utilized for research — A study of Public Policy under Olusegun Obasanjo Administration, A study of National policy on population for sustainable south Eastern Nigeria. Data included a survey of 263 respondents aged between 20-60 years drawn from the National population commission Enugu, Doctors on ESUT Teaching Hospital Parklane Enugu, Academic staff of University of Nigeria, Enugu campus, and Honourable members of Enugu state House of Assembly. The study evaluate the effective implementation of the National policy on population for sustainable development particularly the conduct of year 2006. It was designed to measure how the conduct of census 2006 met item “19” of the objective of the population policy. Research findings indicated that the following factors were largely responsible for poor monitoring of the …

Can the material for “The Implication of Universal Basic Education (UBE) on Business Education Curriculum” be used as a guide for Education Project?

Yes it can be used — This study work investigated the implication of Business studies curriculum for Universal basic education (UBE). (A case study of some selected secondary schools in Oshodi local education district of Lagos state). A total sample of one hundred (100) teaching and non-teaching staff were chosen from the secondary schools in Oshodi local education area by simple random sampling. Data collected through questionnaire were analyzed using charts and chi-square analysis. Three research questions/hypothesis were raised and tested. The findings of this study showed that; there was significance difference in the established of UBE and Business education in schools. And also there was a significance effect of UBE on Business Education. Finally some recommendations were made, relative to the findings from this study. …

Is the topic “Broken Homes and It’s Effects on Student’s Academic Performance in Some Selected Secondary Schools” recommended for Education Project?

Yes it is highly recommended — The project deals with the Broken Home and its effects on academic performance in some selected secondary school in Odeda local government area of ogun state. The chapter one comprises of introduction, the chapter two based on review of related literature, and causes of broken home, while chapter three based on research methodology and method of data collection, chapter four emphasise on data analysis, tables, and the final chapter which is chapter five deals with the summary, conclusion and recommendation of the topic. …

Can this topic “Economic Impact of Agri Tourism in Nigeria” be used for Agricultural Economics and Extension Project?

Yes it can be utilized for research — Agricultural Tourism is any commercial enterprise that combines agriculture and tourism on a working farm, ranch, or other agribusiness operation. The study was carried out to investigate the Economic Impact of Agri Tourism in Nigeria. In achieving this aim, the following objectives were set out to examine the impact of agricultural tourism in Afe Babalola University Farms on the host community and investigate the socio-economic effect of agricultural tourism in Afe Babalola University Farms on the host community. Investigation revealed that the problem of tourism is the fact that tourism development can often come at a price and that the social gains are rarely balanced against the social and environmental costs. Also, bad rural infrastructure is a leading reason it’s …

Can the material for “Design and Implementation of Online Student Admission and Document Verification System” be used as a guide for Computer Science (CS) Project?

Yes it can be used — Student Admission and Document verification system is a system designed to computerize the process verifying and expunging invalid studentship, invalid document and invalid certificate yielding to authenticity of certificate and documents. The aim of the study is to design and implement an online student admission and document verification system using the University of Nigeria as a case study. In achieving this aim, the following objectives were set out as follows to design and develop an application software that will prove the authenticity of students’ admission status thereby expunging forged and counterfeit admission status and document from circulation and show the valid and legally registered student of University of Nigeria. The motivation that led to the implementation of the proposed system …

Can this topic “Geoelectric Mapping of Groundwater Potential in the Sports Complex” be used for Geology Project?

Yes it can be utilized for research — Geo-electrical survey using Vertical Electrical Sounding (VES) was carried out in the Sports Complex of Federal University of Petroleum Resources, Effurun Delta State (FUPRE) in order to determine the groundwater potential of the area and the aquifer distribution. The Schlumberger electrode configuration was used with a maximum current electrode separation of 120m. A total of three (3) VES points were used where at VES1we had 23 measurements, 14 at VES2 and 22 at VES3. The data were analysed by computer aided iteration techniques using the resistivity modelling software (IPI2Win+IP). The geo-electric model parameters and curves were obtained from the software. The result of the analysis shows six geo-electric layers. The result of the survey has allowed the delineation of ground …

Can the material for “The Impact of Production Strategies on Profitability of an Organization” be used as a guide for Business Administration and Management (BAM) Project?

Yes it can be used — This study investigates the impact of production planning on productivity in Ibom Power Company Ikot Abasi. In achieving this aim, the following specific objectives were laid out to explore the meaning of production strategy and evaluate the relevance of production strategy concept. Investigation revealed that planning and scheduling the production process in the most efficient and profitable manner has been a major challenge to most manufacturing firms in Nigeria. The research design used in this report is descriptive design, utilizing questionnaire method to obtain information from the respondents for this project. Primary data were collected from the primary source which questionnaire was used as an instrument of data collection while secondary data were sources from textbooks, journals, newspapers and the internet …