TABLE OF CONTENTS
CHAPTER ONE
1.1 Background
1.2 Statement
Of The Problem
1.3 Justification
For The Study
1.4 Objective
Of The Study
1.5 Scope
Of The Study
1.6 Limitation
Of The Study
1.7 Plan Of
The Study
1.8 Definition
Of Terms
CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1 Introduction
2.2 The Historical Background Of Auditing
2.3 Qualities Of An Auditor
2.4 Objectives And Function Of Internal Auditing
2.5 Internal Audit Effectiveness Areas
2.6 Duties
And Responsibilities Of An Internal Auditing
2.7 Responsibility For Detecting And Prevention
2.8 Internal Audit And Fraud Prevention
2.9 The
Roles Of Internal Audit Department In Internal Control
2.10 Internal
Control And The Scope Of Audit
2.11 Guideline
For Effective Internal Control
2.12 Internal
Control And The Auditor
2.13 Relationship
Between Internal And External Auditor
2.14 Distinction
Between Internal And External Auditor
CHAPTER THREE
DATA ANALYSIS PRESENTATION
3.0 Introduction
3.1 Analysis
Of The Personal Data Part (Section A)
3.2 Presentation And Analysis Of Data According To
Research Question In Section B Part Of The Questionnaire
CHAPTER FOUR
CONCLUSION AND RECOMMENDATION
4.1 Introduction
4.2 Data Presentation
4.3 Data Analysis
4.4 Data Summary
CHAPTER FIVE
5.0 Summary
5.1 Conclusion
5.2 Recommendation
References
CHAPTER ONE
1.1 BACK GROUND OF THE STUDY
Auditing came into existence as a result of demanding for reliable
report on the stewardship account that will be present by the management to the
wealth provider a third party.
Information is essential to the very existence of the society. The
investor making decision to buy or sell securities the Banker decide whether to
approve a loan the Government in obtaining revenue based on income tax rapture,
are relying on information produced by others. In many of this situation above
the goal of the provider of information run directly counter to those of the
user. Implicit in this line of reasoning is recognition of the social need for
an independent auditor. Individual of professional, competence and integrity
who can see the plank to tell us whether the information which we want to rely
on constitute a fair picture of what is really going on in an organization.
The passing of the companies act in Britain, introduce by Glad store in
1844 set the scene. It required the registered company’s solvency to creditors
similarly the company and allied matter act of 1990 (CAMA) in Nigeria also
stated in section 395 (1) that the auditor of a company shall make a report to
its member on the accounts examined by them and on all group financial
statement copies of which are to be laid before the company in a general
meeting during the auditor tenure of office the basic reason for appointing an
auditor is just to express an opinion on the financial which he has examined
whether it show true and fair situation the growth of auditing recent past has
been such phenomenal that management of business assist in the efficient
running of the business enterprise.
Phrase like management of auditor committee has surfaced to broaden the
significance of work auditors this also resulted in many vita publication on
auditing. However this study is an attempt to bring into view the challenging
roles that the internal of the business enterprises to a layman the word audit
is mainly to detect fraud but it means more than preventing it within the
business organization. There are other reasons for having audit work conducted
especially the internal audit. Internal audit main function is to assist the
management in safeguarding the assets ensuring correctness of financial
statement, proper handling of book and records. Internal audit also help to
confirm the validity of the transaction that take place in the business and is
mainly used by the management but also for the share holder, the inland revenue
member of the public and ministerial agencies here it must be clearly stated that
the internal auditor serve in an advisory capacity to the management but the
management is not duly bound to accept the advice or recommendation. The
internal audit work can also aim of providing a basis for up dating of
financial and accounting years for up dating of financial and accounting a
basis for updating of financial and accounting years thereby building a vivid
and healthy accounting department with itself is a check on the excesses of the
accounting department staff, as well as other staff e.g. the organization store
officers. When people are aware that one time or one day within the accounting
year or of all time they may be called upon to explain any ambiguity in the
process of records, receipt any fortification or will be discipline, careful
and used all their skill in serving the enterprises and make it to utilized the
limited available resources. For the owner of wealth to be satisfied the
limited available resources for the owners of wealth to be satisfied the
limited available resources for the owners of wealth to be satisfied and
manager to be justified in establishing and maintaining the integrity potential
share holder prospective investor and Government agencies it became necessary
to invite an independent person or body who is not involve with either of the
parties (management and owners) to examine the steward report. The independent
party’s duty is not just more examination of the account from which the
financial statement were prepared rather it includes collection all relevant
information thought necessary to satisfy him in information of opinion.
Section 30 sub section (3) of the company and allied matter decree 1990
(CAMA).
1.2 STATEMENT OF THE PROBLEM
The main hindrance against the principle of internal and external
auditing a non audit officer, some of those problem are highlighted below:
A. The
fact external audit work depend to some extent on the internal control system
put in place by the organization and the reliability of auditor report depends
on the degree of accuracy of the records.
B. Difficulty
of an internal auditor to have a reasonable degree to independent in main and
attitude due to management influence in their term of references and scope of
work.
C. Lack of
cooperation which served as an obstacle because in a situation where staff
fails to co-operate the internal audit department in gluing reliable reports,
it make the work of internal audit department in effective which automatically
affect the smoothness of the work of external auditors.
1.3 JUSTIFICATION FOR THE STUDY
Some
researchers have discussed widely and extensively on this topic perhaps because
of concept of auditing is of great importance to an enterprise. This present
study well focus on enlightenment of the stock of share holder on the
advantages of auditing and now of great importance a sound internal auditing
department is this work will give the true image of an internal auditor as a
sound internal of other staff not as an enemy. Also this research will be of
great benefit to any manufacturing company and assist the management of the
bottling company Ilorin plant to adequately effectively and efficiently use
their resources by means of a sound internal audit.
Finally, this study will assist fellow colleague who might also share in
the priviledge of undergoing a synonymous course or research in the same field
of study.
1.4 OBJECTIVE OF THE STUDY
The main objective of this project work is
to examine the impact of internal and external auditing in Nigeria business organization.
1.5 SCOPE OF THE STUDY
The concept of internal and external auditing is very broad one however
the research work wills majority focus of the effect of internal and external
auditing on organization objective using Nigeria Bottling Company (plc) Ilorin
plant and examine the internal control.
1.6 LIMITATION OF THE STUDY
A number of difficulties were encounter during the course of writing
this project. Firstly, some of the respondent were reluctant to return the
questionnaire given them consider the confidentiality at the completion which
almost lead to delay in completion of this work.
1.7 PLAN OF THE STUDY
The research work divided into four chapters. One will include the
statement of the problem, justification for the study, objective of the study
scope of the study and definition of terms. In chapter two a review of the
relevant literature on the topic is being carried the rules, definition of both
internal and external auditor, objective and function of an internal auditing
internal an auditor objective and function of an internal auditing internal
audit and fraud prevention guideline for effective internal control, internal
control and the auditor, relationship between internal and external auditor
chapter three deal with data analysis and presentation analysis of the personal
data parts presentation and analysis of data according.
Chapter four covers conclusion.
1.8 DEFINITION OF TERMS
To arrive at the essentials of internal and external. The statement
constitute true and fair affairs of the company in his opinion and according to
the best of the information and explanation obtained by them.
B. Internal Control System:- This is the whole system of control,
financial and otherwise established by the management of an organization is an
orderly manner to safeguard its asset and secure as for as possible the
completeness and accuracy of the records. It ensure adherence to management
policies and organization objectives.
C. Financial Statement:- In the specific case and of a limited
company, is an annual report and account which include a profit an loss account
and balance sheet and also other statement including the director report and
statement including the director report and a cash flow statement.
D. Internal Audits:- This is a style of investigation conducted by an
employee of a business into any aspect of its affairs. The internal auditor is
in most cases accountable to the company management.
E. Business Organization:-
According to the random house dictionary business and finance business
organization is a company or cooperation (Registered Companies) which is
concern purchase, manufacturing or sale of goods and or services in order to
make profit auditing, it is highly important to know the definition of some
important words incorporated from time to time in this work such term are
define below
a. Auditing:- This is the independent
examination and investigation of the evidence from which the financial
statement has been prepare with a view to enabling the independence examination
to report whether the statement constitute true and fair of the company in his
opinion and according to the best of the information and explanation obtained
by him.
b. Internal control system:- This
is the whole system of control, financial and otherwise established by the
management of an organization is an orderly manner to safe guard its assets and
secure as for as possible the
completeness and accuracy of the records, it ensure adherence to management
policies and organization objectives.
c. Financial statement:- In the
specific case and of s limited company, is an annual report and account which
include a profit and loss account and balance sheet and also other statements
including the director report and a cash flow statement.
F. External Audits:- This
is a kind of audit conducted into a firm affair by independent auditor i.e. Non
member of the organization
G. Business organization:-
According to the random house dictionary of business and finance business
organization is a company or cooperate (Registered Companies) which is concern
with purchase manufacturing or sales of good and or service in order to make
profits.
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