This research work deals with the challenges of internal audit function in the Nigerian public sector with reference to Kaduna state ministry of finance. Internal auditing is a process generally adopted towards ensuring and safeguarding of resources and promoting operational efficiency in organization. The objective of this study has been to evaluate the internal control system in the Nigerian public sectors, to ascertain the non- implementation of routine audit report and the lack of proper segregation and assignment of duties. In recent times, a combination of forces has led to a quiet revolution in the profession. Government moving towards democracy must demonstrate accountability in the use of public money and efficiency in the delivery of service. In many cases internal control system are weak, staffs are poorly paid making them unmotivated, coupled with non-implementation of routine audit report by appropriate authorities. The Responses from staffs were analyzed using relevant statistical tools from which three hypothesis were formulated and tested using Z-test statistics, while questionnaire were analyzed in tabular form using simple percentage. It was discovered that the internal audit is facing a lot of challenges which includes inadequate staffing, lack of independence, lack of facilities to carry out audit function and also poor funding. As a result of some of these challenges the effectiveness of the internal audit in the Nigerian public sectors, has been hindered as well as the organizational change it can bring to its environment. I recommend that for internal audit to be effective, it must be a completely independent group, adequately funded and equipped with qualified internal auditors as well as sufficient opportunities for internal auditors to become qualified.
TABLE OF CONTENTS
Approval page iiCertification iiiDedication ivAcknowledgment vAbstract viiList of tables’ xi
CHAPTER ONE: INTRODUCTION
1.1 Background of the study 41.2 Statement of the study 51.3 Statement of the objectives 61.4 Research questions 61.5 Research hypotheses 71.6 Significance of the study 81.7 Scope of the study 91.8 Limitations of the study 91.9 Definition of terms 9
CHAPTER TWO: REVIEW OF RELATED LITERATURE
2.1 Introduction 122.2 Organizational structure of ministry of finance 142.3 Definition of auditing 152.4 Types of auditing 162.5 Meaning of internal audits 172.6 Meaning of internal control 182.7 Meaning of internal check 202.8 Objective and purpose of internal audit 212.9 Qualities required of an auditor 232.10 Elements of internal audit 252.11 Scope of internal audit 272.12 Duties and responsibilities 282.13 Role of internal audit in the Nigerian public sector 292.14 Challenges of internal audit 302.15 Factors responsible for the problem of internal 32
CHAPTER THREE: RESEARCH METHODLOGY
3.1 Research design 343.2 Sources of data 353.3 Area of the study 363.4 Population of the study 363.5 Determination of population size 373.6 Reliability Test 393.7 Validity test 393.8 Method of data collection 393.9 Techniques for data analysis 40
CHAPTER FOUR: PRESENTATION OF DATA, INTERPRETATIONAND ANALYSIS OF DATA
4.1 Presentation of data 424.2 Test of hypotheses 554.3 Discussion of findings 68
CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.1 Summary of findings 705.2 Conclusion 715.3 Recommendations 71Bibliography 73Appendix 75
LIST OF TABLES
Table 4.1 Shows questionnaire administeredTable 4.1.2 Analysis to know if the internal auditunit exists in the ministryTable 4.1.3 Analysis to show the degree of independenceof the auditorTable 4.1.4 Analysis to show in impact of internal audit function in the ministryTable 4.1.5 Analysis to know the challenges internal audit unit facesTable 4.1.6 Analysis to show that sound academic knowledge in accounting is essential for effective performanceTable 4.1.7 Analysis to know the level of efficient performance on financial audit in the public sectorTable 4.1.8 Analysis to show the performance on quality assuranceTable 4.1.9 Analysis to show the inadequacy of internal control systemTable 4.1.10 Analysis to know the level of co-operation between internal audit unit and other departmentsTable 4.1.11 Analysis to show lack of proper segregation of dutiesTable 4.1.12 Analysis to show the non-implementation of routine audit reportTable 4.2.1 Table showing computed value of Z Hypothesis 1Table 4.2.2 Table showing computed value of Z Hypothesis 2Table 4.2.3 Table showing computed value of Z Hypothesis 3
The Kaduna state ministry of finance started when the country was pre-independent in 1958 during the northern region, the ministry of finance is the custodian of public fund and stores and is therefore essentially a controlling ministry as opposed to other executing agencies of the government. The ministry is headed by a commissioner as the chief executive officer and deputized by the permanent secretary who is a carrier and servant and is the chief officer of 145 staff including accounting officers on monthly basis.