INTERNAL AUDITING AS A TOOL FOR EFFECTIVE MANAGEMENT
ABSTRACT
Internal control is a variable instrument for controlling organizational resources, with internal audit as its instrument. This significant father influences the researcher’s choice of “internal auditing as an instrument for effective management.”
The researcher used both primary and secondary data for this project, which used the institution of management and technology (IMT) Enugu as a case study. For the collection of primary data, structured questionnaires were used. Secondary data were also gathered from textbooks and libraries. Chi-squares was used as a statistical tool for data analysis.
The research revealed that internal auditing is an essential tool for effective management, but it interferes with the function of internal audit duties in the institution. In addition, a lack of information contributes to the misappropriation of the organization’s funds and properties.
For proper recognition, the researcher recommends that internal auditors be well-trained, experienced, and of high moral standing.
On that note, management should not interfere with the internal audit unit’s duties or proper operation.
TABLE OF MATERIALS
CHAPTER ONE
1.1 Background of the research
1.2 Definition of the problem
1.3 Study Goal
1.4 The scope of the research
1.5 Investigational questions
1.6 Is there a null hypothesis? (ho)
1.7 The Importance of the Research
CHAPTER TWO
2.0 A review of the related literature
CHAPTER THREE
3.0 Research Methodology
3.1 Research strategy
3.2 Subject of the investigation
3.3 Study Subjects
3.4 The sample and the sampling procedure
3.5 Instrument for data collection
3.6 Validation of the instrument
The instrument’s dependability is 3.7.
3.8 Administration of the instrument
3.9 Data Analysis Methodology
CHAPTER FOUR
4.0 Data presentation and outcome
CHAPTER FIVE
5.0 Discussion of findings
5.1 Points to Consider
5.2 Concluding Remarks
5.3 Implications of the study
Recommendation No. 5.4
5.5 Suggestions for further investigation
5.6 Restrictions of the study
APPENDIX
REFERENCES
CHAPTER ONE
1.1.1 INTRODUCTION
The function and existence of an internal audit department in an organization cannot be overstated, given the magnitude of trust and responsibility placed in this department. This brings to mind why the authors chose to conduct research on the topic: internal auditing as a tool for effective management.
Internal auditing becomes necessary as a result of the management’s extended span of control over the employment of men and material in the conduct of organizational affairs. Internal audit work is very important in most modern organizations and has the trust of responsibility to advise management and enforce internal control and internal checks in the organization. The organization’s inefficiency during day-to-day operations is managed.
Internal auditing is the activity of evaluating independence in an organization as a service to management. Management typically defines the duties, which include:
Continuous assessment of the adequacy and effectiveness of the internal control system;
Routine checks are performed to prevent and detect errors and fraud.
Providing hiring advice to management on internal control issues;
All reported cases of all practices will be investigated.
Statistical data for management information and decision making;
Other special assignments include asset disposal and staff audits.
Despite the fact that this appears to be a demanding and difficult function of the internal audit department. Some organizations deprive the internal auditor of funds, staffing, and training.
Internal audit must be credible by employing people of integrity as internal auditors.
Internal auditors with the qualities listed above have contributed to the inefficiency of internal audits in organizations around the world.
Concerning the issues that frequently affect internal audit departments, some organizations treat internal audit as “bloodhounds” rather than “watch dogs.” The fraudulent employees would not normally collaborate with the internal auditors in terms of the supply of information that should be used for effective checks of the organization’s activities.
The project focuses on the Enugu Institute of Management and Technology (IMT). In 1972, the former East Central State College of Technology and the East Central State Institute of Administration merged to form the school.
The Institute of Management and Technology (IMT) Enugu was established on July 1, 1973, as a result of the then East Central State Government’s edict No. 10 of 1973.
Campus II and III of the Institute of Management and Technology have been taken over by the Enugu State University of Science and Technology (ESUT) Enugu Nigeria.
The Institute of Management and Technology (IMT) Enugu offers pre-university programs such as full-time, part-time, and poly-air. The institute has a head of establishment, a rector, a registrar, accounts, and student affairs, among other things.
The institute of management and technology (IMT) Enugu offers the following programs:
Business and administration school;
Engineering Department
General Studies College;
Technical Teacher Education School and;
Continuing Education School.
1.2 THE PROBLEM STATEMENT
The study, titled internal auditing as an instrument of effective management, seeks to identify the methods used by some institutions, such as the Institute of Management and Technology (IMT) in Enugu, to use internal audit as an instrument of effective management. Some of these issues include:
I Inability to recognize the functions of the internal audit department;
(ii) Inadequate information for internal audit work;
(iii) Non-independent of the institute’s internal audit work and
(iv) Inability to recognize internal audit as an effective and dependable tool for management in carrying out its functions.
1.3 OBJECTIVES OF THE STUDIES
The following is the work’s goal:
I Determine the extent to which the institute of management and technology (IMT), Enugu is impacted by the inability to identify the function of the internal audit department.
(ii) Determine how a lack of information in this institute affects internal audit work.
(iii) To ascertain the extent to which the independence of internal audit work is hampered; and
(iv) Determine whether internal audit is a useful tool for effective management.
1.4 THE STUDY’S OBJECTIVE AND LIMITATIONS
The scope of this research focuses on internal auditing as a tool for effective management, with the Institute of Management and Technology (IMT) in Enugu serving as a case study.
1.5 QUESTIONS FOR RESEARCH
To guide these projects, the following four research questions were developed:
I To what extent does the institute of management and technology (IMT), Enugu’s inability to identify the function of the internal audit department affect its activities?
(ii) To what extent does a lack of information at the Institute of Management and Technology (IMT) in Enugu affect internal audit work?
(iii) To what extent is the independence of internal audit work hampered; and
(iv) To what extent does internal auditing serve as a tool for effective management at the Institute of Management and Technology (IMT), Enugu?
1.6 HYPOTHESIS OF NULL (Ho)
The following are the work’s hypotheses:
Ho1: The management of the Institute of Management and Technology (IMT), Enugu is unaffected by the inability to identify the functions of the internal audit department.
Ho2: A lack of information at the Institute of Management and Technology (IMT) in Enugu has no effect on its management’s internal audit work; and
1.7 THE IMPORTANCE OF THE STUDY
This work will be very useful to the management of any institute or firm that requires effective internal control, not just the institute of management and technology (IMT), Enugu.
Internal auditing is beneficial because it detects, controls, and prevents waste and fraud in the organization. This researcher provides moral support to protect efficiency and assists management in dealing with issues that would have caused problems if left to linger until they were brought to the attention of higher management.
The work may be of interest to students of business, research, business execution, and the public institute.
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INTERNAL AUDITING AS A TOOL FOR EFFECTIVE MANAGEMENT