TABLE OF CONTENTS
CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND
OF THE STUDY:
1.2 STATEMENT OF PROBLEM
1.3 PURPOSE OF THE STUDY
1.4 SIGNIFICANCE OF THE STUDY
1.5 RESEARCH QUESTION
1.6 SCOPE OF THE STUDY
1.7 DEFINITION
OF TERMS
CHAPTER TWO
LITERATURE
REVIEW
2.1 RESEARCH QUESTION /
HYPOTHESIS MODELS
2.2 CURRENT
LITERATURE ON THEORIES MODEL, HYPOTHESIS AND RESEARCH QUESTIONS
2.3 SUMMARY
OF LITERATURE REVIEW
CHAPTER
THREE
RESEARCH METHODOLOGY
3.1
DESIGN OF
THE STUDY
3.2 AREA OF THE STUDY
3.3 POPULATION OF THE STUDY
3.4 SAMPLE OF THE STUDY
3.5 INSTRUMENT FOR DATA
COLLECTION
3.6 VALIDATION OF THE INSTRUMENT
3.7 DISTRIBUTION AND RETRIEVAL
OF THE INSTRUMENT
3.8 METHOD OF
DATA ANALYSIS
CHAPTER
FOUR
4.1 DATA PRESENTATION AND
ANALYSIS
4.2 PRESENTATION AND
INTERPRETATION
4.4 DISCUSSION
OF FINDINGS
CHAPTER
FIVE
SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 SUMMARY OF FINDING
5.2 CONCLUSION
5.3 RECOMMENDATIONS
5.4 LIMITATION
OF THE STUDY
5.5 SUGGESTION
FOR FURTHER RESEARCH
REFERENCES
APPENDIX A
APPENDIX B
CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND
OF THE STUDY:
This
study seeks to enhance the understanding of the concept of management audit as
an aid for effective management. The management auditor’s role in the
evaluation of management performance cannot be over emphasized.
Just as change has compulsory
challenge to management, so also the problem of change gives new and
unparalleled opportunities to management auditors.
Today’s management auditors represent
almost top most valuable medium by which the management can extend decision
making and responsibility throughout the entity. This extension is feasible
because responsive management auditing is a tested mechanism for checking upon
and appraising the exercise of management authority and responsibility in every
level. Management audit is a total management unfortunately, however, many top
managers and business executives are not interested in any sound system of
management audit therefore does not place importance on its review on
appraisal.
The truth is that most successful
business enterprises in the world have dedicated managers who have appreciated
the importance of management audit and any business firm who wants to be
successful should place much importance and attention to management audit.
Management audit helps management to
achieve the following:
1 Maintaining the continuity of business
entity
2 Achievement
of corporate objective of profit maximization and efficient management of
resources.
3. Effective
information management and communication throughout the organization.
4 Evaluation
of pressure corporation policies in the area of planning and controlling
5 Formulation
of new management polices when existing ones tends to be absolute or not
workable.
The above results might have been
hindered because of the following constrains.
1. Top
managements are not interested in the resources and the use of management
audit.
2 The
concept, aim and purpose of management audit are not fully known.
3 In compliance and lack of integrity of
management audit staff.
1.2 STATEMENT OF PROBLEM
This
concept of management audit has been widely misunderstood, perhaps to poor
organizations and management orientation. Some directors, accountants,
corporate planners and top management executives occasionally undertakes
corporate planning without clearly setting the idea of management audit
appreciated by managers. It is therefore not surprising that management audit
has not been properly understood in many of our business enterprise even when
it is a reliable and dependable aid for effective management, other problems
for which solutions are sought for include:
1. The
effect of lack of management interest and management resistance application of
management audit staff.
2 Misunderstanding
the concept of management audit by the management audit staff.
3 Incompetence and lack of integrity of
management audit staff.
4 Pressure
within and outside the company which hinders the effective use of management
audit work.
1.3 PURPOSE OF THE STUDY
1. The
objective of this project is to study the importance of the use of management
audit as an aid for effective management.
2 It hopes
to find solution to the problems of understanding the concept and purpose of
management audit.
3 management
audit would be appreciated as an aid for effective management once its aim,
purpose and concept are understood by the top management and other functional
heads, staff, managers and management auditors themselves.
4 If
properly understood, management audit is one of the most reliable aid
management could use in achieving overall organizational corporate objectives
and goals.
1.4 SIGNIFICANCE OF THE STUDY
It
is the duty of the management to ensure at all items that the interests of
owners of the business are safe guarded. Management of all resources: man, machines, materials and money of the
organization. A proper application of management audit will help to achieve
these goals especially the management audit and operating resources. It is
responsible for preventing and detecting misuse of basic economic resources,
land, labor, capital and entrepreneur in the light of foregoing. There is need
for proper understanding of the concept of management audit.
1.5 RESEARCH QUESTION
1. Is there
any effect of lack of concept of management audit in the business firms?
2 Is there
any effect of lack of management interest and management resistance in the
application of management audit?
1.6 SCOPE OF THE STUDY
The
research work is limited to the study of the role of management auditor in any
business organization. The management auditor, his primary objectives and the
function of management will be reviewed and evaluated. The role played by some
selected firms in Nnewi will not be underestimated.
The
study will be directed at the management and senior staff of these firms and
questionnaires will be given to them.
1.7 DEFINITION
OF TERMS
Auditing
Auditing
standard defines it as the independent examination of an expression of opinion
on the financial statement of an enterprise by an appointed auditor in
accordance to the term of his engagement and in compliance with any relevant
statutory obligation and professional requirement. In order words, it is
independent examination of books of account and other records by an independent
expert called auditor.
Auditor
According
to Odion O.A (2002) an auditor is someone who is responsible for evaluating the
validity and reliability of a company’s financial statement.
In order words, is a person who is in
charge of the responsibilities of examining books of accounts.
Conceptualize
To form a
concept or a general idea, thought or understanding.
Investment
This is the
commitment of money or capital to purchase financial instrument or other assets
in order to gain profitable return in the form of interest, income or
appreciation of the value of the instrument. It is to use money ot make more
money out of something that will increase in value.
Management
This
is the utilization of human and natural resources to achieve a stated objective
or goals in other words, it is the direction of an enterprise through planning,
organizing, controlling and co-ordinating of its human and materials resources
towards the achievement of predetermined goal / objectives.
Additionally,
it is the act of getting things done through others (Freed Mund Malik).
Liquidity
Is a
measure of the extent to which a person or
organization has cash to met immediate and short term obligations or
assets that can be quickly converted into cash.
Production
It is
calculated rate of making goods. In other words, it is the creation of goods
and services for the satisfaction of
human want.
Profitability
This is the
ability of a business to earn profit. A profit is what is left of the revenue a
business generates after it pays all expenses directly related to the
generation of the revenue such as producing a product and other expenses
related to the conduct of such business activities
Profit Margin
The
difference between the cost of production and selling price.
Capital Budgeting
Is
the planning process used to determine whether an organization’s long term
investment such as new machinery new plant, replacement machinery, new product
and research development project are worth the finding of cash through the firm
capitalization structure (debt, equity or retained earnings). It is thee
process of allocating resources for capital or investment expenditure.
One
of the primary goals of capital budgeting investment is to increase the value of
the firm to shareholders. Capital budgeting is the planning of long-term
corporate financial project relating to investment funded through and affecting
the firm’s capital structure. Management must allocate the firm’s limited
resources between competing opportunities (project) which is one main forces of
capital budgeting (Joel Dean 1951)
The
owners of a company or business organization. In order words a shareholder is
any person, company or other institution
that own at least one share of a company stock.
Shareholders
are a company’s owners. They have he potential to profit if the company does
well, but that comes with the potential to lose if the company does poorly.
Unlike
the owners of sole-proprietorship or partnerships, corporate share holders are
not personally liable for the company’s debts and other obligations. Also
shareholders do not play major role in running the company. The board of
directors and executive management performs that function (J.C. AROH, 2013).
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