The aim of this research work is to discuss an appraisal
of an Auditor and Auditing in Nigeria Economy with reference to Union Bank of
Chapter one deals with introduction of the study,
Historical background of the study, Statement of the problem, purpose of the
Chapter two, literature review of the historical
background of an Audit inspection department in the Banking industry and it
Chapter three dealt with research method, of an Appraisal
of an Auditor as a vital management tool in the banking industry.
Chapter four looked at the findings and repossess of the
respondent in terms of table and percentage.
Chapter five dealt with; summary, finding, conclusion and
TABLE OF CONTENTS
1.2 Purpose of the Study
1.3 The duties
performed and the Extent of independence of the audit (Inspection Department)
1.4. Brief History of Union Bank of Nigeria
1. 5 Research Question
1.6 Scope and Limitation of the study
2.0 Literature Reviews
2.1 Historical Background of an Auditor
2.2 The objective responsibilities and Duties of
2.3 Relationship between the Internal and
2.4 Advantages and Disadvantages of an Auditor
2.5 Functions of
Inspection Department with Respect to Union Bank of Nigeria Limited
2.6 Perception of the various units and people
3.0 Research Methodology
3.2 Personal Observation
3.3 Oral Interview
3.4 Sampling Techniques
3.5 Distribution of questionnaire
3.6 Administrative of Questionnaire
4.0 Data Analysis and Interpretation
4.2 Sex of Respondents
4.3 Marital Status
4.4 Educational qualifications
4.5 Branches of the Respondents
4.6 Workers Experience
5.0 Summary, Conclusions and Recommendations
5.1 Summary and Findings
An auditor of the evidence may describe an audit as an
examination from which final revenue accounts and balance sheet of an
organization have been prepared. In order to ascertain that they present a true
and fair view of the summarized transaction for the period under review and of
the financial state of the organization at the end date this enable the auditor
to report their on.
Therefore an auditor which is part of internal control
assists all level of management of the Union bank of Nigeria limited (or any
organization) of in performing periodic accounting and administrative
procedures and other activities of the organization, including identifying
possible means of resources.
Improving the efficiency and economy of operations and
use of resources the unit independent of all other department within the bank
is direct responsible to the managing director of chief executive. In carrying
out assignments, the head and as appropriate, members of the audits state have
unrestricted access to all Union banks records, document and personal relative
to the subject under review.
1.2 PURPOSE OF THE STUDIES
The objectives of this study are to determine and
performed by the audit (inspection) department of Union bank of Nigeria limited
and how these fairly with the management's needs and requirement.
The perception of
the various departments and the state of the departments being audited.
The contribution by
the audit (inspection) departments towards the overall objective of Union bank
of Nigeria limited.
The management of an organization has the primary
responsibility of running the business efficiently and effectively. This is
achieved by the installation of a good audit control line the organizational
setup. The controls include physical as well as administrative techniques. An
auditor is an importance aspect of those controls the effectiveness and
competencies of the inspection department limited are functions of the
(qualification, experience and maturity) of state in the department.
B. Nature of the
duties, performed and the extent of their independent.
C. The objective
of their report.
The audit (inspection) department contributes as great
deal to the development of Union bank of Nigeria limited. It is therefore very
important that the person should be capable of understanding and interpreting
the system in operation its effectiveness can be measure in term of the extent
of which fraud and error are controlled and minimized and the level of
compliance with the management policies and gaudiness.
With reference to Union bank of Nigeria Limited, on which
the research is based, the inspection unit is a big department of about 150
staff strength most of whom are of high integrity and matured these qualities
are manifested in the inspection report issued by the department.
1.3 THE DUTIES
PERFORMED AND THE EXTENT OF AUDIT (INSPECTION) INDEPENDENT OF THE DEPARTMENT
The duties of the inspection department are to:
(a) Review and
verify that the policy of Union Bank of Nigeria Limited are carried out
properly and consistently all department.
(b) Review and
verify that all department proceed user are carried out consistently and in a
(c) Review and
verify the soundness, and equacy and application of System procedures and
interval controls, including computer, installations and recommend and
improvement where necessary.
(d) Review and
determine the extension, which the bank's assets are accounted for and safe
guarded from loses of all kinds.
Ensure that there is an adequate and effective system of controls over
loans and overdrafts.
capital and administration expenditure of the Bank and Propose possible savings
or more effective use of expenditure incurred.
branches in order to verify the correct application of the Bank's policies and
accuracy of accounting and records and ensure the effective utilization of
(h) Provide a
source of qualified staff to assist other departments if and when required to
do so, enter by advising on system or by supplying personnel.
The inspection department is being treated with respect
and given free hand to operate. The degree of independence allows the
department to discharge its duty accordingly.
The activities performed by the inspection department are
perceived by the management as worthwhile because they are described as the
"Watch Dog" of the organization.
Hence, the degree of reliance on the reports issued by
the department by management is very high. Management views their reports as an
essential measure in correcting the lapses within the organization.
On the other hand, the various departments and the staff
being audited sometimes perceived the inspection department as a unit that is
out to victimize, as such, in most cases the degree of cooperation is very
especially with the middle and junior staff cadres.
However, with different perception of the inspection
department in the bank, the department still contributed to the realization of
individual departments objectives through recommendations contained in their
reports to management. The implementation of this recommendation leads to
improvement in the bank.
BRIEF HISTORY OF UNION BANK OF NIGERIA LIMITED
The colonial Bank was granted in 1916 to operate in
Nigeria. It first office was opened in Lagos in 1917 and subsequently expended
into the up-country where it established offices in Jos, Kano and Port
In 1925, Barclays Bank concluded an agreement with the
well-known Colonial Bank and result gave birth to the Barclays bank (Nigeria
Limited). It continued under the name until March 12, 1979 when the name Union
Bank of Nigeria Limited was adopted.
The federal government now owns substantial par to the
equity share capital of the bank amounting to 5.67% whilst Nigeria shareholders
have equity holding of 28.33%, Barclays Bank International holds an equity of
20% and loans policy has also been carried into the management this the
executive management of the Bank is now finally in the hands of Nigeria.
1.3.1 ORGANIZATION STRUCTURE
The Bank is divided
into four divisions for ease of control and monitoring of performance. These
administrative divisions are administration and services operations - Lagos
district, operations up country and finance and planning each of these
divisions are handed by an executive director who is directly responsible to
this managing director. The managing director is the chief executive and also
an ex-officio member of the board of directors, in the bank. In view of his
load of responsibilities a special assistant is aiding him.
Major policies are established and important decisions
are taking by the executive committee but where necessary they are referred to
the board of director for ramification. The committee comprises the managing
director, the executive director; all the assistant general managers, the chief
inspector and the advance controllers policies and decision which are passed
down the line for implementation include advances, representation, business
development capital and recurrent expenditure, remune rations and services
conduction's and appointment of staff to mention a few.
Four official are directly responsible to the executive
director (administration and services). They are the assistant general
managers, local (company secretary/Legal adviser). Assistant general manager
premises, the assistant general manager (Staff) who takes charge of all staff
matters and finally the general manager's assistant, administration.
The executive director operation (Lagos) has an assistant
general manager (Lagos) reporting to him and same applies to the executive director,
up country operations.
The advances controllers, however, reports directly to
the managing director and other executive directors depending on the issue at
stake. The work of the chief inspector and assistant general manager, financial
and planning are coordinated by the executive director for financial and
Under the head officer general management there are ten
area offices each of which is headed by the area management his responsibility
is to ensure that executive decisions are carried out in his area. They have
authorities over their areas and can make basic decisions regarding staff and
their movements and others daily operations within the area. Where the need
arises they are responsible to their line assistant general manager be it for
Lagos or up country.
The branches, 204 in numbers are headed by branch
managers who are responsible for the daily running of their branches and maintenance
of staff under them.
Following the acquisition of majority shares of equity
capital of the bank by the federal government of Nigeria attempts are being
made to make loans investment and other management policies of the bank comfort
with borrowing requirements of the Nigeria Economy.
The banks see up in 1917 a business advisory service to
assist company in improving the management and financial control of their
Profit wise, the bank has shown continuous and steady
growth as could be seen from the computation form the annual report (1984 -
MEASURE OF GROWTH (N 000S)
EARNING PER SHARE
1.4 RESEARCH QUESTIONS
i. What are the
functions of the inspections department?
ii. How often
does the staff of the inspection department visit your branch per annum?
iii. Is the visit
of the inspection department useful to the branch? iv. Does their review of your branch work cover all the operation
of the branch?
What is your
opinion of the inspection reports? VI. Is
the inspection department adequately staffed?
vii. Does the inspection department undertake investigation only when there is
viii. Is there any possibility of collusion between the
inspection department staff and any member of staff?
1.5 SCOPE AND LIMITATION OF STUDY
1.5.1 There are about fifty- four (54) banks in Nigeria.
Out of these banks there are thirty-six (36) commercial banks, thirteen (13)
Merchant banks and five (5) development banks the study was restricted to union
bank of Nigeria Limited which is one of the largest there commercial banks in
The greatest obstacle of this study is the ignorance of a
change number of staff of union bank of Nigeria Limited about the purposes of
research work, as a result many of the staff members were unwilling to assist
while a good number had to be persuaded to answer oral questions. It is hoped
that as time goes by bankers will become aware of the purpose of research
projects and be ready to render assistance to the researcher.
1.6 SIGNIFICANT OF STUDY
It is hoped that this study, will be of importance to students
(of Accounting, Banking and Finance) staff and management of union bank of
Nigeria Limited in particular and the Banking profession and the union bank of
Nigeria Limited shareholders the students are made to be aware of the important
role being played by an auditor in the banking profession by instilling
financial discipline in both management and staff.
The study will make staff and management of Union Bank of
Nigeria Limited to be alert to their responsibilities and accept the fact that
the auditor (inspection) department’s functions are independent and objective
appraisals of the work performed by all sections of the bank so as to reduce
wastage, curtail fraud as well as introduce better and
modem system to assist both staff and management in the better performance of
The banking profession is kept by consistent checks
carried out by the inspection department, which sometimes detects fraudulent
practices, which promptly reported to the managing director who thereafter
takes appropriate steps to rid the bank of dishonest staff members.
Furthermore, through the study, shareholders of the bank
are assured that there is a "watch dog" department, which is all out
to ensure that there is adequate and effective control over all the operation
of the bank