Download the complete Accounting project topic and material (chapter 1-5) titled INTERNAL AUDIT AS A TOOLS IN ACHIEVING ORGANIZATIONAL OBJECTIVES . (A CASE STUDY OF FIRST BANK PLC, AGBARA) here on PROJECTS.ng. See below for the abstract, table of contents, list of figures, list of tables, list of appendices, list of abbreviations and chapter one. Click the DOWNLOAD NOW button to get the complete project work instantly.
The Project File Details
The notion of the auditor being bound or a watchdog is gradually changing for the better as internal auditing has undergone tremendous changes in recent past.
The actual functions of the auditor is often surrounded in secrecy or held in some kind of awe.
Major notes of internal auditing have not been clear to the majority of people in the society. In view of numerous corrupt practice, frauds and embezzlement often uncovered by probe tool has often been questioned.
It is the realization of this that I have set out to look critically into internal audit department of First Bank Plc, Agbara Branch with a view to finding whether effective internal auditing practices ensure effective control. The mode of appointment, independence and duties of the internal Auditor was looked into an determining whether the internal audit department is being operated as a management or efficiency audit.
The finding shows that internal auditor is not completely independent and mode of operation has a combination of characteristics of various types of auditing especially the operation type of audit.
Nevertheless a high degree of internal control exists in the organization. In consideration of improvement in some area, recommendations are proposed.
TITLE PAGE i
1.0 INTRODUCTION 1
1.1 BACKGROUND OF THE STUDY 1
1.2 STATEMENT OF THE PROBLEM 3
1.3 OBJECTIVE OF THE STUDY 4
1.4 SIGNIFICANCE OF THE STUDY 4
1.5 RESEARCH QUESTIONS 5
1.6 HYPOTHESIS OF THE STUDY 5
1.7 SCOPE AND LIMITATION OF THE STUDY 5
1.8 DEFINITION OF TERMS 7
2.0 LITERATURE REVIEW 13
2.1 DEFINITION 13
2.2 SCOPE OF MANAGEMENT AUDIT 14
2.3 AUDIT PERSONNEL 15
2.4 PURPOSE OF MANAGEMENT 15
2.5 WHEN TO AUDIT MANAGEMENT 16
2.6 ISSUE IN THE MANAGEMENT AUDIT 16
2.7 PROCEDURE OF MANAGEMENT AUDIT 17
2.8 PROBLEMS OF MANAGEMENT AUDIT 18
2.9 PROPOSED SOLUTIONS 19
2.10 DEFINITION OF INTERNAL AUDIT 19
2.11 COMPONENTS OF INTERNAL CONTROL 23
2.12 INFORMATION AND COMMUNICATION 24
2.13 THE ROLES OF INTERNAL AUDIT 27
2.14 MERIT AND DEMERIT OF INTERNAL AUDIT 28
3.0 RESEARCH METHODOLOGY 34
3.2 RESEARCH DESIGN 34
3.3 POPULATION 34
3.4 SAMPLE SIZE 35
3.5 NATURE AND SOURCE OF DATA 35
3.6 METHOD OF DATA ANALYSIS 36
3.7 DATA COLLECTION INSTRUMENT 36
3.8 VALIDITY TEST AND RELIABILITY OF THE STUDY 36
4.0 DATA ANALYSIS AND PRESENTATION OF RESULT 37
4.1 INTRODUCTION 37
4.2 PRESENTATION OF DATA 38
4.3 ANALYSIS OF RESPONSE 39
4.4 HYPOTHESIS TESTING 40
5.0 SUMMARY, CONCLUSION AND RECOMMENDATION 46
5.1 SUMMARY 46
5.2 CONCLUSION 47
5.3 RECOMMENDATION 48
REFERENCES 49 QUESTIONNAIRE 52
1.1 BACKGROUND OF THE STUDY
The system of controls adopted in any economy greatly determines the development and growth of that economy. To ensure optimization in money, materials machine, time, resource and management of men, controls are essentials.
These controls are installed by many organizations including banks to check how effective and efficient they maximize their resource. One of such controls commonly used to minimize wastage and guide plans to their eventual accomplishment is internal auditing. Auditing has been in existence for many years, it was in ancient Egypt and the great mercantile establishment of the middle ages. This shows that internal auditing can neither be neglected nor under rated in our modern economy for it was borne out of the complexities of modern business climate and transaction involved. In that other management of various large business organizations and government concern recognized internal auditing as a valuable machinery in achieving and objective deemed accurate at a given point in time.
The term “Audit” is from a Latin word “Audire” which means hr hears. This is because the account of an estate domain was checked by having them called out of those who complied them to those in authority. With the growth of trade and commerce the need for more accurate method of recording business activities arose. This, auditing is more a question of he hears but a whole process whereby the books of account and vouchers of business entities (including charities, trusts) are subjected to critical examinations by professionally qualified and independent account (Auditors) on such a detail as will enable them from an option as to their truth and fairness. The Auditing is the bridge across the creditability gap created by the separation of management from ownership.
The complexity of the art of management extents to increasing ware of business fraud, embezzlement and the cash squeeze which often cripple many companies. The management has to look inward in order to uphold the space of activities and keep abreast with the changes in their immediate and external environment, and this can only be achieved a good and effective internal control system of which internal auditing is a major section. A writer maintained that the existence of an efficient and effective system of internal control both in design and operation which is the responsibility of management with best to prevent fraud or at worst help to detect such fraud at the earliest opportunity.
It is a function carried out by an independent staff in audit department with the sole aim of reporting on the fairness and truly of financial statements. However since the internal auditors are employee of the firm or the establishment concern, independence is not always achieved.
The comprehensive coverage of an internal audit upon several factors. A general rule is that department should of course have as much freedom as possible without interference from the management. In such circumstances the internal auditor will have a greatly enhanced share in recommending a new and conducting investigations where appropriate. The terms of references should be defined as lack of this may lead the department and those in another.
To avert this ugly incident and ensure greater coverage during investigations, management issues guidelines to heads of division to always make necessary documents/records/files available to audit staff as may be demanded by them while performing their duties.
A proper audit work should be able to:
Internal Audit functions can help to spot out deficiencies in the systems so as to evolve corrective measure at the earliest opportunity. Internal auditor appraise, analyses and report upon the policies and methods employed in the bank.
The duties of internal Auditor to the general performance of the whole organizations can not qualified which makes it very importance for all organization to maintain a good internal control system maintained by qualified chartered accountants.
1.2 STATEMENT OF PROBLEM
Internal control system may be insufficient based on some predicaments. These may include lack of segregation and assignment of duties to accounting staff. Also the scope of duties of internal audit unit are so wide and their scales of operations so low as well as the shortage of qualified staff to carry out internal auditing and accounting duties. Independence of Accounting officer can easily be maneuvered by management which can affect the internal audit system of an organization clearly defined as a result of two or more dishonest staff can collide to override the efficiency of the internal control system. The criticisms of the internal control system have been extended to the banking industry hence this study of internal audit as a tool for effective management.
1.3 SIGNIFICANT OF STUDY.
The ignorance of the public as to efficient contribution of internal audit department to efficient management makes this study essential. It is the believe of some people that internal audit is not necessary as it delays jobs, while some think it is only to detect frauds and misappropriate on, so this project will makes clear the merits of having a source of internal audit.
Secondly, inability of workers to efficiently and effectively utilize resources and lack of proper control mechanisms has led to wastage of human resources, time financial and materials resources. This study will help management in bringing about greater efficiency and effective use of resources and this same management cost. E.H Woo if (1988) (FCA) maintained that a great deal of the work of an internal auditor is curled with the evaluation of systems of internal cheek, conservations with officials (the result of when was later conformed by examination of records) and general seripling of records.
Though many researchers have been conducted system, one can say that this study will contribute in no small way to the available interactive.
This study makes more, insight into the deficiencies in current internal audit practices in the higher institution section and suggests useful innovation for making necessary changes in both the institution and implementation into internal audit function as it obtains in ogun state institute of technology igbesa.
Lastly. This study will at most expose the benefit of this great department to other institution who do not have such, so that they can establish this control department without delay.
1.4 OBJECTIVES OF STUDY
Internal audit is a tool, and a way in helping organization achieve their set goals or objectives. The main objectives of the study are as follows:
iii. To show how organizational hierarchy has influenced internal audit department.
1.5 SCOPE OF THE STUDY
Various measures of internal control systems are considered in ogun state institute of technology igbesa, but more concentration world be made on internal audit aspect for the purpose of this study.
Accounting systems and related internal control measure, the position, the independence of the auditor as well as the slope of his works is the areas to be studied.
1.6 RESEARCH QUESTION
1.7 RESEARCH HYPOTHESIS
In this section the hypothesis selected in the chapter one is tested relevant question from the question for, and the questionnaire aroused to the test of the hypothesis
H1: There no significant relationship between internal audit department and management operation
H1: There is significant relationship between internal audit department and money audit
H1: There is significant different between the internal audit department and the accounting department
1.8 LIMITATIONS OF THE STUDY
In carrying out this study, it is important to have a set of assumption to base the study
Certain problems and limitations are expected to face study like this, such problems are lack of resources or time to study or go ground another division of the bank.
Also, some staff may not like to reveal information, which they regard as classified, deputes the fact that the manager of the bank has given the manager of the bank approval.
A case study approach will be adopted which will be extensively and intensively carried out by personal calls on the bank. The main method of data and information collection will include both primary and secondary sources. The primary sources will be through personal interview with the intense Audit department’s staffs. Questionnaire will also be designed and distributed.
The secondary sources are textbooks and journals.
1.9 DEFINITION OF TERMS
It is necessary that clear definition of some technical terms and words are given to avoid any possible confusion that may arise because of their usage.
Also the consultative council of Accountant defines Audit as “The independent examination and expression of opinion on the financial statement of an enterprise by an appointed auditor in pursuance of that appointment and in compliance with an relevant statutory obligation.
It is a vital part of internal control and forms the eyes and ears of the board in the enterprises. It is also a series of process and techniques through which an organization own employee ascertain for the management, by means of first hand on the job observations, whether established management controls are adequate the effectively maintained, records and reports financial, accounting and other wise reflect actual operation and results accurately an promptly and each division in carrying out the plans, policies and procedure for which it is possible.
But the definitions given by a special committee report of the American institute of corporate Accountant (A.I.C.A) is more impressive. It said that “internal control comprises the plan of organizations and all of the co-ordinate methods and measures adopted within a business to safeguard its asset, check the accuracy and reliability of its accounting data promote operational efficiency and encourage adherence to prescribed managerial policies.
In this paragraph, we will consider the definition in detail.
Another example might be the selling prices of the enterprises products being kid down by the management and controls existing to ensure that these prices are adhered to
1.10 HISTORICAL BACKGROUND OF THE STUDY
At First Bank, we recognize the immutable merits of maintaining a “You first” mindset and culture, as a critical component of our business strategy. Our brand has evolved over the years, with strengthened brand muscles to match the constantly evolving expectations of our customers.
Since launching in 1894, First Bank has established itself as a brand of strength and dynamism, with the vision to be the leading international banking group in Sub Saharan Africa. Our brand is at the heart of the holistic experience we seek to deliver to our stakeholders perpetually, which is essential to retaining patronage and the competitive edge that keeps us at the coveted position of the market leader.
Our brand interacts with our stakeholders and demonstrates an understanding of their busy modern lives or businesses, to support their aspirations. Hence, we have evolved over 120 years by respecting and upholding the shared heritage relevant not only to today’s modern Nigerians but also today’s modern world.
We live by our beliefs and consistently strive to Inspire Understanding, Drive Collaboration, and Build a Better Way to unify and strengthen our brand to delight all stakeholders. Consequently, we work daily to implement best practices through our culture and ultimately enable our employees to understand our customers’ lives and be driven to meet their needs appropriately.
Our brand purpose is to always put our stakeholders, customers and partners at the heart of our business, even as we are poised to standardize customer experience and excellence in financial solutions across Sub Saharan Africa, in consonance with our brand vision “To be the partner of first choice in building your future”.
With total assets of N3.3 trillion, customer deposits of N2.6 trillion and a strong capital adequacy ratio of 18.9%, well above the CBN mandated minimum of 10% First Bank is the largest bank in Nigeria, and amongst the largest corporate and retail financial institutions in sub-Saharan Africa (excluding South Africa). There is no doubt that the bank has consolidated its position in Nigeria and sits in a very strong position from which to grow, both domestically and outside Nigeria. Not only is First Bank the largest Nigerian bank by assets, but it has also consolidated its reputation for world class corporate governance and a conservative approach to risk management. All built on a platform of 120 years heritage of national development.
Our brand promise is thus to always deliver the ultimate “gold standard” of value and excellence. Our financial services knowledge and practices lead the market in ensuring that we understand our customers and surpass expectations by seeking for a better way of delivering first class service – The “You First” experience.
This dedication to delivering the gold standard is anchored on our inherent values of passion, partnership and people, to position “You First” in every respect.
In putting “You First” we promise to be:
The Bank has been named “The Best Bank Brand in Nigeria” four times in a row – 2011, 2012, 2013, 2014 – by the globally renowned “The Banker Magazine” of the Financial Times Group. Winning this award four times in a row is a further affirmation of our brand promise – which we will continue to put YOU FIRST at the heart of our business.
All project works, files and documents posted on this website, projects.ng are the property/copyright of their respective owners. They are for research reference/guidance purposes only and the works are crowd-sourced. Please don’t submit someone’s work as your own to avoid plagiarism and its consequences. Use it as a guidance purpose only and not copy the work word for word (verbatim). Projects.ng is a repository of research works just like academia.edu, researchgate.net, scribd.com, docsity.com, coursehero and many other platforms where users upload works. The paid subscription on projects.ng is a means by which the website is maintained to support Open Education. If you see your work posted here, and you want it to be removed/credited, please call us on +2348159154070 or send us a mail together with the web address link to the work, to [email protected] We will reply to and honor every request. Please notice it may take up to 24 – 48 hours to process your request.