Professional Documents
Culture Documents
CHAPTER ONE
INTRODUCTION
conduct of business. Auditing took the entire stage after the industrial
maximization for the owners Mill champ (1996) defines internal audit
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organization.
the internal audit in the private sector of the Nigerian economy, while
the private sector of the economy is studied at large; the case study
Mansoor 1987).
Despite this enormous role, the sector has been beclouded with
guide lines.
financial records.
private sector
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are formulated.
(i) Ho: internal audit has not significantly affected Private sector
performance.
(iii) Ho: Inefficient internal audit and internal control has hampered
audit reports.
have contributed the funds for the business and needs a reward
in form of dividends.
iii) Since a virile private sector is noted for the economy will be of
The researcher in the course of carrying out the research was faced
was indeed very short considering the enormity of the research work.
and other vital information. Libraries are either out of stock or scanty
research since the available fund was not enough to sustain the vast
(A) Audit:
(B) Auditor:
transaction.
Private sector includes the part of the economy that is fully controlled
CHAPTER TWO
processes.
The world private firm or sector and audit had undergone frequent
usage in the country that for this research by deserve special mention
and explanation.
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However private firm includes the part of the economy that is fully
as audit.
done by other.
on which the auditor is reporting and which have been prepared from
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their records display a true and fair view of the financial results for the
year under review and true and fair view of the affairs at the end.
into the evidence from which the final revenue accounts and balance
in order to ascertain that they present a little and fair view of the
the physical assets where possible, as will enable the auditor to form
the company (who are not the owners) for the use by the owners of
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etc) whereby the auditors express his opinion as to the true and fair
Eze (2005) stated that the term audit was derived from the Latin verb
of the land done by these tenant farmers while the supervision of the
clubs, student union bodies, transport unions, trade unions, profit and
constitution, deeds etc the elution of union officials who collect and
In the recent time, most large firm (where ownership is divorce from
shares holders)
The bare for huge and large corporation, firms, establishments and
and the owners of the business are distinct from managers of the
business. The need arises for the managers to give account of their
directors of the company (who are not actually the contributors of the
The auditor express his opinion as to the true and fair view of the
the management.
4 Private Audit: Audit carried out the request of the owner of the
Every organization has the need to establish internal audit for the
PRINCIPLES OF AUDITING
behave the way round then the auditing report will tend to be
biased any may be ignored by the public and hitherto the entire
source.
interest.
judgment is required.
assess the risks and dangers involved and should obtain sufficient
public.
management.
Adeniyi (2004) observed that the scope and objective of internal audit
as varying widely
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areas.
functioning in the firm are attributed to the level of skill of audit staff.
The firm employed so many mediocre who are not equipped with
by management.
audit standard.
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reported upon.
improvements.
touch with all activities. As the size of the business increases, this
task would become more and more difficult. In the relatively small
management guideline.
business.
L.G Campbel (1990: 88) identified three reasons why internal audit is
required
Eze (2005:35) stated that apart from the various benefits internal
does not have any basic knowledge in book keeping and accounting.
Onovo (2011:110) Stated some merits that are derived from internal
these demerits.
(a) Independence
(e) Relationship
(h) Evidence
(a) Independence:
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enterprise.
immediate superior.
- He should be objective
busy too busy to look into every part of the auditing function. Training
An internal auditor must at all times exercise care ,skill and judgment
(d) Relationship:
agencies etc.
the organization
- Investigation
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- Recording
(f) Evidence
In the same way as the external auditor, the internal auditor will
reliability.
(g) Reporting
organization.
The world wide body: the institute of internal Auditors stated some of
his business .External auditors and review panel often rely on the
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clients organization.
(Statutory Auditors)
-Scope
-Approach
-Responsibility
-Objectives
-Legal basis
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plans. directors.
of internal controls to protect the provides the true and fair view.
From the above chart, the researcher observed that the head of
these instructions to his supervisor who will make draft plans of work
The private sector includes the part of the economy that is fully
Succinctly put, the private sector is that part of the economy who
internal audit.
The internal audit ensures that the internal control systems are
adhered to and strictly carried out. The aim and objective of the
If this is the case, the economy will benefit and hence the stimulation
annual financial statements. The Act also requires all privately firms
reporting.
controls.
CHAPTER THREE
RESEARCH METHOLODOLGY
3.1. Introduction
only make it simpler for the reader to understand the analysis done
The research design for this study provides for the collection,
The research design used for the collection of data was the survey
related literature.
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For the purpose of this study, the researcher used two basic sources
PRIMARY DATA
to the concerned staff that falls within the survey range .some key
expedient
SECONDARY DATA
holders 9 OND holers,13 GCE holder. Which brings them to total the
whose position falls within the management, middle and other cadres.
n = N
I + N(e)
e = error of margin
N = Population
l =Constant
n = 40
1 + 40 (0.05)
40
1+40 (0.0025)
40
1 .1 =36
questionnaire.
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NX = n (Nr)
Where N=population
n =sample size
instrument will yield the same result under the same conditions that is
For reliability of the instrument a pilot survey was carried out to test
and experts in the field to ensure that the research work was in line
with what is actually taking about and this was done by going through
CHAPTER FOUR
(Enns 2005:166).
administered.
QUESTION 1
Table 4.2
Total 40 100
B.SC,17.5% holds HND, the holder of OND and GCE were 22.5 %
QUESTION 3
PRIVATE SECTOR?
Table 4.3
Response A B Total %
Not significant 3 4 7 19
Significantly 8 12 20 56
Other specify 7 2 9 25
Total 18 17 36 100
QUESTION 4
PRIVATE SECTOR?
Table 4.4
Responses A B Total %
No Relationship 1 1 2 5.6
Total 19 17 36 100
QUESTION 5
PRIVATE FIRM?
Table 4.5
Response Number %
Total 36 100
factors.
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QUESTION 6
Table 4.6
Options Response %
Total 36 100
The table 4.6 above, shows that the opinion of respondents shows
the private sector, while 15 % or 41.7% are of the opinion that lack of
QUESTION 7
Table 4.7
Category Number %
Yes 9 25.8
No 27 75.2
Total 36 100
of their duties in the private firm, while 27 or 75.2 % are of the opinion
sector.
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QUESTION 8
Table 4.8
Options Response %
Poor 6 16.6
Total 36 100
Chi-square (x ) = (Fo-Fe) Fe
Where;
Fo =observed Frequency
Fe =expected Frequency
(Fo-Fe) = the sum total of all the deviation square and weight (the
chi-square)
Hypothesis One
Ho= the internal Audit has not significantly Affected private sector
performance
performance.
To test hypothesis ,we shall use the table which evaluated the
public sector .The table will recast for the chi-square purpose to give
QUESTION 8
PRIVATE FIRM?
Table 4.8
system
Independence
Poor 1 3 2 6
Total 36
R1C2 4 4 0 0 0
R2C2 7 6 1 1 0.1167
R3C2 3 4 -1 1 0.25
POOR
R4C2 2 2 0 0 0
Therefore, x = 1.4334
COMPUTATION OF X TABLES
Decision Rule
is 16.812.
x table =16.812
4.3 Summary
The data collected have been analyzed in the chapter for the purpose
The hypothesis which was analyzed and tested was done using chi-
CHAPTER FIVE
RECOMMENDATIONS
This is the conclusion chapter of this study. The finding and the
internal audit.
auditing officer was those within the establishment other than the
posses.
In other words, the non auditing officers are those persons within the
system under who are not involved directly in the audit but hold or
examination.
auditors and so they are accountable for the assignment. Their work
of the non auditing officers refuse to discharge their moral and legal
to audit work may not be their primary roles but the same they are
(b) (CAMA) 1990 gave them auditors the right to have access at all
and vouchers, ensure that they are well kept and made available
third parties where necessary .At times the auditor may need
unavailability or confidentially
that know would be useful for the audit and even where the auditors
made requests they would still deny having such information. By this,
time consuming.
importance of that unit; this will definitely lead to poor funding and
staffing of that unit. This has been the case for many internal audit
departments that are given due recognition and so they are poorly
authority.
are under examination often resort to threats and the giving gifts as
the case maybe in order to dissuade the auditors from giving opinion
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internal audits while gifts often used to dissuade the external auditors
,though the external auditors can be threaded with non auditors fees
legacy secured.
believe that every behavior must have at least a cause. The following
are some of the cause of the attitude of these non auditing officers in
importantly, the internal auditor. Some believe that the private sector
many have seen it as an enemy a watch dog for the owners and
ignorant of the fact that the law empowers the auditor to get whatever
information he requires.
attitude just to cover up the fraud and intentional errors they have
5.2 Conclusions
From this study it could be observed that the internal auditor occupies
system.
department. And this is why in daily news lithe huge sums of money
audit department in their offices, they fail to take the advice of internal
department in their offices, they fail to take the advice of the internal
auditors. The implication of refusal to take advice will not be for better
or control excesses. These are the reason why in some areas, the
Also from the foregoing, it can be seen that the purpose of internal
someone also through direct) of some sort for fear of being detected,
such as theft of cash, theft of materials and suppliers. This paper has
management control.
5.3 Recommendations
effect of non auditing officers, the ways they had been performing
these roles and why they are behaving the way they do, the task
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best is to obtained by the auditors from the non auditing officers. The
effectively; more staff should be engaged. This will facilitate the audit
stations to check the activities of the workers and report their finding
to the management.
benefit them and this would enable them to give more attention to
observed that they are pushed away from the main building and are
establishments.
available to staff of this office .It is very important that internal audit
staff should provided with vehicles. The nature of their work warrants
most of the places which I visited during research work, there was a
their productivity.
and allied matters decree 1990, (CAMA) made it mandatory for all
.
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BIBLIOGRAGPHY
APPENDIX
Dear Respondent,
I will ensure that any information you give will be confidential and will
be for the purpose of this study. Thanks for your co-operation.
Yours faithfully,
Iheke Patricia
ACC/2009/580
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QUESTIONNAIRE
SECTION B:
accounting system?
auditor?
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