Beruflich Dokumente
Kultur Dokumente
BY
MACAULAY ONYEKA J.
MATRIC NO: 10/0419
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1.0 BACKGROUND OF THE STUDY
appointment and in compliance with any relevant statutory obligation. It aims at providing
solution to the inevitable problem of credibility in report and accounts. It prevents and detects
errors and frauds and also produces a report of the true and fairness of the financial statement.
The impact of internal audit has grown tremendously in most organizations in the recent
past. This can be attributed partly to the growth of the organizations, which entails widely
extended operations and the need to ensure that the organizations policies and basic
accounting controls are observed at every facet of the organization. Again it can be observed
operations of organizations, both public and private are duly complied with so as to guard
against conflicts and inconsistence with the law. As the organization expands and supervisory
responsibility broadens, the head can no longer have personal knowledge of every aspect of
the organization. It becomes impossible for him to control or monitor the continuing
effectiveness of all controls. This calls for the delegation of this responsibility to a separate
department called the internal audit department. Internal Audit Department is a department
358 of the companies Act 1976, to receive the activities of other employees thereby
The problem in many organizations is that funds and properties are entrusted to certain
individual employees in the organization and in most cases these individual workers are
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not brought under thorough surveillance. The result is that much of their funds and
properties are directed to personal use. To arrest this ugly phenomenon, the management
of the organization has to set up internal audit department. This department will be
charged with the objective of monitoring the activities of these employees and effecting
management control. The question however is if the internal audit improves bottom line
financial organizations,
activities.
preventing frauds.
What are the reasons why auditors fail to detect frauds in Nigeria banks?
How does lack of internal control show the existence of fraud in Nigeria banks?
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1.4 Scope of the Study
Scope, here refers to the length of capacity to which the research work can be
studied. However, the scope of this study is designed to cover management function
Here, this means what can make the researcher’s work slow or in other case affect the
Time Restraints
Finance
1.6 METHODOLOGY
Primary data would be used in the assessment of data while conducting this research i.e.
the one which the researcher collects personally and directly on the field. Also,
secondary data would be used in the aspects of Journals, textbooks from other authors
Hypothesis 1
HO: Internal audit have not played a significant role in the overall performance in an
organization.
H1: Internal audit have played a significant role in the overall performance in an
organization.
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Hypothesis 2
HO: Effective internal audit does not help to detect errors and prevent frauds in an
organization
HI: Effective internal audit helps to detect errors and prevent frauds in an organization.
INTERNAL AUDITING
and evaluate its activities, as a service to the organisation. It assists members of the
INTERNAL CONTROL
order to carry on the business of the enterprise in an orderly and efficient manner, ensure
adherence to management policy, safeguard the assets and secure as far possible the
INTERNAL CHECK
Internal check is the checking imposed on the day to day transaction whereby the work of
one person is proved by an independent person’s(auditor) to ensure that the laid down
procedures are followed, the objective prevention and detection of errors and frauds.
SUBSTANTIVE TEST
These are tests of transactions and balances and other procedures such as an analytical
review, which provide audit evidence as to completeness, accuracy and validity of the
FRAUD
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Believe that is true.
REFERENCES
Chuke, N. (2001) “Basic principles of financial management,” Enugu, El’ Denmark
publishers.