THE ROLE OF AUDITING AS AN INSTRUMENT FOR EFFECTIVE

ACCOUNTABILITY OF FUNDS (A CASE STUDY OF OSHIMILI-SOUTH

LOCAL GOVERNMENT AREA OF DELTA STATE)

BY

UGORUME MOSES
NOU166088660

B.Sc ACCOUNTING

FACULTY OF MANAGEMENT SCIENCES

NATIONAL OPEN UNIVERSITY OF NIGERIA

ABUJA, NIGERIA

(ASABA STUDY CENTRE)

SEPTEMBER, 2019
 THE ROLE OF AUDITING AS AN INSTRUMENT FOR EFFECTIVE
ACCOUNTABILITY OF FUNDS (A CASE STUDY OF OSHIMILI-SOUTH
LOCAL GOVERNMENT AREA OF DELTA STATE)

BY

UGORUME MOSES
NOU166088660

A PROJECT WORK PRESENTED TO THE DEPARTMENT OF

ACCOUNTING, FACULTY OFMANAGEMENT SCIENCES

NATIONAL OPEN UNIVERSITY OFNIGERIA,

ABUJA, NIGERIA

IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE

AWARD OF BARCHELOR OF SCIENCE
(B.SC) DEGREE IN ACCOUNTING
NATIONAL OPEN UNIVERSITYY OF NIGERIA,
ABUJA, NIGERIA
(ASABA STUDY CENTRE)

SEPTEMBER, 2019

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 DECLARATION

I UGORUME MOSES, humbly declare that this project,entitledThe Role Of

Auditing as an Instrument For Effective Accountability of Funds (A Case
Study of Oshimili-south Local Government Area of Delta State)is carried out in
the Faculty of Management Sciences, National Open University of Nigeria under
the supervision of Dr. Odeyile Lucky.

______________________ _______________
UGORUME MOSES DATE

CERTIFICATION

This is to certify that this project work The Role Of Auditing as an Instrument
For Effective Accountability of Funds (A Case Study of Oshimili-south Local
Government Area of Delta State)was carried out in the Department of
Accounting,Faculty of Management Sciences, National Open University of

iii
Nigeria, (Asaba Study Centre) Abuja Nigeria for the award of Bachelor of Science
(B.Sc) Degree in Accounting.

_________________________ ___________________
DR. ODEYILE LUCKY DATE
Project Supervision

______________________________ ___________________
PROF. CHIBUOGWU V. NNAKA DATE
Director, Asaba Study Centre

________________________ ___________________
Dean, Faculty of Management Sciences DATE

DEDICATION

This project is dedicated to GOD Almighty who kept me alive, substained and

provided for me throughout in the course of this project. He who rides upon the

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wings of the winds and clothed in honour and majesty forever for the wisdom and

knowledge bestowed on me and seeing me through this programme.

ACKNOWLEDGEMENTS

v
My greatest gratitude goes to God Almighty for giving me the wisdom and good

health during my study. I wish to express my profound gratitude to my supervisor

Dr. Odeyile Lucky for his patience, encouragement, and direction, who also

painstakingly read through this work.

And also my regard to Actor Press Umukoro is the PS Deputy Governor's office ,

Delta state government, he encouraged me to go back to school despite I was not

employed into the civil service with my BSC in industrial mathematics from

UNIBEN , then my lovely wife Mrs. Ugorume Akpevwe , who stand by me

throughout the struggle

Thank you all and God bless.

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 ABSTACT

Over the years, there has been continuing need to strength then the role of
auditing as a tool for effective accountability of funds of the Local Government.
This is to prevent various problem militating against the realization of objective
for which there local government were created with this in mind, the researcher is
aimed at ascertaining the role of auditing as a tool for effective acceptability of
oshimili-south Questionnaires were distributed at the secretariat couple with
discussion and observation for the collection of data. Three hypotheses were tested
using chi-square (X²) and table. The result of the test shows that audit function of
the council as always had for making positive impact on the role of auditing as for
effective accountability of fund. The research has also shown that audit cannot be
properly conducted if done in isolation of management and employee. Based on
the fact that, some recommendations has been advanced which involves employee
implements of auditors recommendations etc. it is auditor belief that those
recommendation would help to adhere the designed objective, if properly applied
and complied with, by the parties concerned. In conclusion, this work has helped
auditors faces in the course if their audit exercise and than to provide possible
solution to makes recommendation if which implement would eliminated the road
check on “proper accountability.

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 TABLE OF CONTENTS

Cover - - - - - - - - - - i

Title Page - - - - - - - - - - ii

Declaration - - - - - - - - - - iii

Certification- - - - - - - - - - iv

Dedication - - - - - - - - - - v

Acknowledgement - - - - - - - - - vi

Abstract - - - - - - - - - vii

Table of content - - - - - - - - - viii

CHAPTER ONE: INTRODUCTION

1.1 Background of the Study - - - - - - - 1

1.2 Statement of Problem - - - - - - - 2

1.3 Scope of the Study - - - - - - - - 2

1.4 The Objective of the Study - - - - - - 2

1.5 Research Hypothesis - - - - - - - 3

1.6 Purpose of the Study - - - - - - - 4

1.7 Significance of the Study - - - - - - 4

1.8 Research Questions - - - - - - - 5

1.9 The Scope of Delimitation of the Study - - - - 5

1.10 Limitation of the Study - - - - - - 6

1.11 Brief History of oshimili-south Local Government Area of

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 Delta State - - - - - - - - - 6

1.12 Definition of Terms - - - - - - - 8

CHAPTER TWO: LITERATURE REVIEW

2.1 The Origin of Auditing - - - - - - - 10

2.1.1 The Need to Audit - - - - - - - - 11

2.2 Historical Background of Auditing in America - - - 13

2.3 Purpose of General Accounting Officer - - - - 14

2.4 Development of General Accounting Officer - - - 14

2.5 Statutory Authority for Auditing in Nigeria: The Audit

Act of 1956 - - - - - - - - 15

2.6 Origin of Public Accountability - - - - - 16

2.7 FGN and Accountability in the Civil Service - - - 16

2.8 Accountant General of Federation (AGF) - - - - 17

2.9 Public Accounts Committee (PAC) - - - - - 18

2.9.1 Functions of Public Accounts Committee (PAC) - - - 19

2.9.2 Audit Standards - - - - - - - - 19

2.9.3 Auditing - - - - - - - - - 20

2.10 Internal Audit - - - - - - - - 21

2.10.1 Responsibility of Internal Auditor - - - - - 22

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2.10.2 System Auditing - - - - - - - - 24

2.11 Factors Affecting Efficient Fund Management Cost

Benefit - - - - - - - - - 25

2.12 Management - - - - - - - - 26

2.12.1 System Management - - - - - - - 27

2.12.2 Financial Management - - - - - - - 27

2.13 Aid to Proper Accountability of Fund Internal Control- - 30

2.13.1 Need for Internal Control - - - - - - 31

2.13.2 Objective - - - - - - - - - 31

2.14 Budgetary Control - - - - - - - 32

2.15.1 Advantages of Budgeting - - - - - - 32

2.16 Planning - - - - - - - - - 33

2.17 Controlling - - - - - - - - - 34

CHAPTER THREE: INTRODUCTION

3.1 Method of Data Collection Population - - - - - 36
3.2 Sampling Size - - - - - - - - 36
3.3 Sampling Method Used - - - - - - - 37
3.4 Sources of Data - - - - - - - - 37
3.5 Questionnaire Design - - - - - - - 38
3.6 Method of Investigation Analysis - - - - - 38
3.7 Description of Respondents - - - - - - 39
3.8 Questionnaire Distribution and Statistical Presentation - - 39
3.9 Presentation of Analysis - - - - - - - 39

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CHAPTER FOUR: PRESENTATION AND ANALYSIS OF DATA
4.0 Introduction - - - - - - - - 40
4.1 Data Analysis - - - - - - - - 40
4.2 Test of Hypothesis - - - - - - - 45
4.3 Discussion and Summary- - - - - - - 49

CHAPTER FIVE: SUMMARY, FINDINGS, CONCLUSION AND

RECOMMENDATION
5.1 Summary - - - - - - - - - 50
5.2 Findings - - - - - - - - - 50
5.3 Conclusion - - - - - - - - - 51
5.4 Recommendation - - - - - - - - 51
BIBLIOGRAPHY - - - - - - - 53
APPENDIX - - - - - - - - 54

CHAPTER ONE

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 INTRODUCTION

1.1 Background of the Study

The study has two key words, which are auditing and accountability. The research is one on how auditing enhances the

accountability of fund in the government sector with special emphasis on local government.

There is a popular synonym for accountability and its stewardship. This is a process of being responsible for use of resources

entrusted in one hand. Our leaders in government are representative of the people, and as such they are expected to present an account on

how the resources entrusted in their hands have been utilized. By one way or the other, the government guarantees revenues. The citizens

whoa re being represented would want the officials to give an account of how the funds have been used.

On the other hand, the citizen would also want situation were there is an acceptable standard of accountability of funds used by

the representative. And so auditing as it were is said to give some level of confidence to the citizens on the accountability of earned

resources. It is based on this, that this study is embarked upon to see whether auditing aids and enhances accountability of public fund. The

use of public fund by the government official is expected to be presented in the form of financial statement; and as it is popularly known of

financial statement, whether they reflect a true and fair view of the financial activities of the concern organization. This is because; the

opinion of the auditor is relied upon by the stakeholders concerned. Therefore, the reasons on the above are whether auditing is an aid to

effective accountability of fund in a local government.

1.2 Statement of Problem

It is evident that there has been poor accountability of fund in our local government council, due to poorly trained personnel who

probably are not fully equipped with the technical skills required for the discharge of their duties. This gave rise to what is known as auditing

in order to have acceptable opinion on the truth and fairness view of the prepared financial statement when there is a representation of the

financial statement of the government officials. The study gap therefore, is to ascertain whether auditing enhances the effective

accountability of funds in the local government.

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 This research study in summary is aimed at examining the main causes of problem of effective accountability, and how to

investigate whether auditing enhances effective accountability of fund.

1.3 Scope of the Study

The study places emphasis on the role of auditing as an instrument for effective accountability of funds, using Oshimili-South Local

Government Area of Delta State as case study.

1.4 The Objective of the Study

The main objective of this study is to examine the level of accountability that result from auditing, the financial statements in the

local government. other objectives include:

1. To examine the factor that has militated against the practice of auditing in the local government council.

2. To find out whether the auditors recommendations are applied after the appraisal of the auditors report.

3. To determine the level of effective accountability as a result of the practice of auditing.

4. To ascertain the difference on accountability of fund before and after practice.

1.5 Research Hypothesis

The following hypothesis will be tested in order to enable the researcher make acceptable and logical conclusion.

1. HO: The job of the auditor does not affect the management of fund in the local government.

H1: The job of the auditor affects the management of fund in the local government.

2. H0: The auditor’s report does not represent true and fair view of the performance of the local government council really

needs auditors.

H1: The auditors report does not represent true and fair view of the performance of the local government council really

needs auditors.

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3. HO: The local government council does not need auditors for effective accountability.

HO: The local government council needs auditors for effective accountability.

4. H0: The level of accountability has not improved as a result of practice of auditing of financial statement of the local

government.

H1: The level of accountability has improved as a result of practice of auditing of financial statement of the local

government.

5. H0: The recommendations contained in the audit report are not being applied and where to by the council executive.

H1: The recommendations contained in the audit report are being applied and where to by the council executive.

1.6 Purpose of the Study

Below are some of the reasons why we are embarking on the study: “auditing as an enhancement to accountability in the local

government”:

1. To find out the roles played by auditing in protecting the funds of the local government.

2. To find out problems experienced by the auditors in the discharge of their duties.

3. To restore report and recommendation.

4. To establish the purpose of the auditing is not primary to detect fraud but to ensure accountability based on the opinion on the

true and fair view or the financial statement and the activity of the Local Government Council.

5. To articulate the auditing could bring about an effective accountability of funds in the Local Government Council.

6. The study will help the student of auditing to appreciate the work of the auditors and the problems encountered and also ascertain

why accountability is yet to achieved in the Local Government Council.

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1.7 Significance of the Study

Any research embarked upon should be of significance, both to the researcher and to those who will refer to the research study.

The research is focused on the role of enhancing accountability of Ukwuani Local Government Council by auditing.

Some of the points below are considered to be of significance to the researcher:

1. To highlight and illuminate the role of auditing in the enhancing of effective accountability of fund in the Local Government.

2. To emphasis the need for the worker of the Local Government Council to comply with recommendation of auditors as contained in

their report.

3. To also discover the effectiveness of audit report and it implementation vis-à-vis the enhancement of effective accountability of

funds.

4. The study will help student of auditing to see the problems of auditing in the Local Government Council in the course of carrying

out their duties, so that they, when the time come.

5. To restore citizens confidence, trust and reliance on the opinion of auditors and their recommendation in their report.

1.8 Research Questions

1. To what extent has the Local Government of Oshimili-South been engaged in the practice of auditing financial report?

2. Is the auditor’s recommendation as contained in audit report being applied and adhered to by the council executive?

3. Has the level of accountability improved as a result of practice of auditing the financial statement of the Local Government?

4. Does the council really need auditor for effective accountability of fund?

5. Does the report of the auditors represent the true and fair view of the performance of this Local Government?

6. Does the job of the auditors affect the management of fund in the Local Government?

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1.9 The Scope of the Study

This study focused on the role of auditing as an instrument for effective accountability of fund and it is believed to be graphically

restricted to Oshimili- South Local Government Area of Delta State. The study is not being carried out with the purpose of fraud detection and

with intention to expose the Local Council. But rather the study is intended to illuminate the positive contribution of accountability through

time practice of auditing and its benefits to the proper generation and disbursement of Local Government fund.

1.10 Limitation of the Study

During the course of the research, there are some constraint of weakness that could lead to a non-absolute on the level of

accuracy and reliability on my final conclusion, some of them are mention below:

1. Financial problems during the cause of research.

2. Problem of locating book for the interactive review.

3. Stress cause by management from not meeting the relevant staff on site for interview.

4. Problem of combining academic stress with project work.

5. Problem of how responses and indifference on the part of some of the council worker for fear of revealing their misappropriation.

1.11 Brief History of Oshimili South Local Government Area of Delta State

Preamble:

Oshimili South Local Government Area is one of the twenty-five Local Government Areas making up Delta state. It is situated in

the Niger Delta Region/the South-South geo-political zone of Nigeria. It was part of the Asaba Division of the Southern Protectorate in

colonial Nigeria and later a part of the Western Region following the delineation of the country into three Regions through the Richard’s

Constitution of 1946. It later became part of the Mid-Western Region in 1963, and Mid-Western State in 1967. It became part of Bendel State

xvi
and was carved out of the old Asaba Division in 1976 as part of Oshimili Local Government. It became Oshimili South Local Government in

1996 after the creation of Delta State from the defunct Bendel State in 1991.

CULTURE

The Local Government is rural in nature. The people are predominantly peasant farmers. Their main agricultural product are

cassava, yam, plantain and vegetable etc. as earlier mentioned above, the nine clans with exception of Amai are handed by Okpala-Uku while

Amai is governed by Monarch known as the IGWETE OF AMAI KINGDOM, Umuebu is governed by moarch known as EBU OF UMUEBU

KINGDOM and Ezhionum is also governed by monarch known as the EZHI OF EZHIONUM KINGDOM.

Economic/Social Activities

Apart from agriculture, the people also engaged in cash crop farming, such as the cultivation of rubber and palm produce. These

two crops together with lumbering and trading from the major source of income earning to the people of the community. Oil wells abound in

Umutu, Ebedei has potential for tourist attraction. The source of river Ethiope at Umuaja, clay and poultry of Amai and the Delta State stretch

for both recreation and training activities for swimmers.

It is not, that if these tourist potentials are fully harnessed they will further boost for the internally generated revenue not only of

the Local Government Area in particular but the state in general.

1.12 Definition of Terms

With the intention of not encouraging ambiguity, misconception and misinterpretation some terms, which may likely be

miscontracted, are given their meaning as used context of this research work.

Auditing: This means an independent era mention of the financial statement of an organization, to determine the compliance of its

preparation to the general accepted accounting principles (GAAP) and expression of qualified or unqualified report on the true and fair view

of the financial statement according to the generally accepted auditing standard (GAAS).

Accountability: Being obliged to explain one actions to justify what one does. It is a requirement for government to answer to its

citizenry, such as justifying the raising of public revenue and expenditure of those revenue or resources.

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Audit Report: This is the document containing the observation and recommendation of the auditor in the course of his duties.

Financial Statement: This term is used to refer to document containing the financial statement of an organization as prepared by the

management; it includes the income statement and the balance sheet.

Local Government Council: This is the third tires of government. This is the nearest to the people.

Official: This refers to the staff and workers of the Local Government.

Stakeholders: The term in this context is used to refers to citizens of the Local Government who are been represented by

the elected executive of the Local Government. The elected executive are the chairman who is the chief

executive and counselors from various ward.

Mono-linguistic: This is use to refer to community that speak only one language.

Oshimili-south: This is the name of the Local Government that is case study of the WONS.

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 CHAPTER TWO

LITERATURE REVIEW

Conceptual Framework

2.1 The Origin of Auditing

History has said that, in those days, the ancient Egyptians, the Greeks, and the Romans use to get the public account audited.

In earlier times, there was dominance of private ownership of business, such that much of the business was carried out on small

basis. This situation led to the report of these small business being easily checked and cross, referenced for its accuracy. But today, however,

the situation has changed tremendously in that there is now large scale method of production arising from the industrial revolution on the

th
18 century. This subsequently leads to the management of big organization resources being managed by persons, different from the

owners. As a result of the auditor were then appointed to audit the financial report reliability and accountability.

Milli Champ (1980) explains further why auditing now exists as a discipline and its concept of stewardship accountability in his

book titled: “An Instructional Manual for Accounting Students”.

This term stewardship is a nomenclature and it is used to the practice by which productive resources owned by another person’s

one entrusted and managed by another person, or group of persons. History indicated that the situation has always been the case example

abounds in the Middle Ages during which big land owners would entrust their land to be managed by another person known as stewards. This

was during the practice of federation.

Auditing implies a written report about the accuracy and reliability of account, by a qualified auditor. In Nigeria, the Companies

and Allied Matter Decree 1990 Section 331 made it mandatory and compulsory for all corporate bodies to have their account audited by

professional accountant since management is responsible for the day running of the organization for the shareholders. It becomes imperative

for the directors and managers to give accounts of their stewardship.

The shareholders (i.e. the owners) who appointed managers to look after the owners’ property will be concerned to know what

has happened to their property.

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 A very good example of this is recorded in the book of St. Mathew Chapter were a rich man went on a journey and delivered his

servant to look after, while he came back from his journey, he asked each of his servant to account for their goods that he has entrusted in

their hands. He rewarded the good servant very well, but was not happy with his servants that have not done well. The same applied are

made to account or report to the owners of business and it is known as stewardship accounting.

2.1.1 The Need to Audit

The problems that have always been are whether, the owners of the business will believe the report of managers. The report may

contain the following; error, fraud and misappropriation of facts etc. The solution of this problem is creditability, reports and accounts which

lies in the appointment of auditors to investigate and report on their findings. Those days, modern companies can be large with mutational

activities. The preparation of the account of such is a very complex operation involving the bringing together and summarization of accounts

of its subsidiaries with different conventions legal systems, and accounting and control system.

The examination of such accounting by independent report trained in the assessment of financial records is of benefit to those

who control and operate such organization as well as to owners and outsiders.

Financial statement is required to the very detail and complex requirement of the company of 1990 and to the requirement of

many statement of standard accounting practice. It is essential that an audit should be carried on the financial statement to ensure that they

conform to those requirement.

One paluca pacilio was the first to publish a written was such that would enable them to carry out exhaustive examination ort the

document and book, arising through the transaction of the business, mainly with the objective of ensuring that all was in order and fraud was

not perpetrated. Modern audit has stretched the objective furthermore, the requirement of the skill and engagement to carry out

investigation and examination are necessary assume the probability of probing a business in-depth.

This necessitate the ability to access the reliability and sustainability of system but whether the ultimate presentation of the

information arising does give true and fair view of the organization at a certain date and its transactions, over a period as to qualify the

auditor in giving his report with all the responsibility this entails.

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 Monigomeny a leading American accountant and auditor has defined auditing as a systematic examination of books and records of

business or other organization in other to ascertain or verify and report upon the facts regarding the financial operation on the result

therefore.

According to Lawrence B. Sawyer (1979) auditing stated in the year 300BC when were prepared to check against the original list.

The checking of prepared summary list may not be rightly called auditing, sometimes, it may control and internal audit was introduced.

Due to the role of internal control once played, one may tempted to say that internal was in existence before auditing itself.

Exchange of goods with money, land to the keeping of financial records which turn resulted to accounting. In order to ascertain the

correctness of this financial records and the effectiveness of the operations of the operation of staff. An independent body that never took

part in the operation is needed, because of some of these accounting knowledge, were used as audit staff.

2.2 Historical Background of Auditing in America

In America, auditing was first introduced in 1917, when some employee with knowledge of accounting were deployed to act as

audit clerk to come out examination of accounting records and other operation as well as basic service of management so as to prevent error.

From this, practicing accountant assumed the post of auditors.

The General Accounting Officer (GAO) was established by the budget and accounting act of 1921 under the control and direction of

the count mother general of United State, appointed by the President, the broad power of (EAO) include:

1. The authority to decide most question involving payment made by the government agencies.

2. The auditing and setting of all public accounts.

3. Setting, adjudicating and adjusting all claims for and against the government.

4. Describing system and procedure for administration apportion and fund accounting.

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5. The investigation or all matters relating or receipt and disbursement of public funds including the right to examine certain

document, papers and records of government contractors to who negotiated contract awarded.

In addition, the office of the controller general assists congress by making studies and analysis of expenditure administration by various

government agencies. This enables the G.A.O. to challenge irregularities associated with contractors such as excessive profit

making, substandard performance, kicks backs etc.

2.3 Purpose of General Accounting Officer

(a) To carry out legal accounting, auditing and claim statements, functions in respect to the federal government programmes and

operations as assigned by the congress, its committee.

(b) To assist congress, its communities and its members in carrying out the legislature and oversight responsibilities consistence with

its role as independent non-political agency in the legislative branch.

(c) To make recommendation designed to provide for more efficient and effective government operations in effects the G.A.O. seeks

to establish and maintain.

(i) Fiscal promptly, which include fescue integrity disclosure and compliance with law and regulation.

(ii) Management properly which is concern with efficient and economical were of personal and resources.

(iii) Programmes properly, concerned with benefits being attained with programmes objective being achieved.

2.4 Development of General Accounting Officer

The exchequer and audit department of 1866 as it operates today from which the federal audit department office was first opened

in Lagos in October 1980 by Mr. A.E. Stephenson from the Aceru office of the Gold Coast from were the local office of Lagos economy has

previously been conducted.

This was followed by the British exchequer and audit department act of 1921, the act extended the controller and auditor general

(C&A.G.S.) interest into store accounts, fact my accounts dockyard account and visualizing accounts.

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 More important from out point of view it evolved the principle of the statutory audit of the account which made inevitable, the

separation of the colonial auditor general department of which it was a branch from 1877 to 1906.

2.5 Statutory Authority for Auditing in Nigeria: The Audit Act of 1956

The first statutory authority for audit in Nigeria came in 1956 with the publication of the audit ordinance passed by parliament on

st
1 April 1957 now audit Act, which purpose is to give the necessary statutory basis for Nigerians audit on the achievement of internal self

government.

It was a reflection of the particular exchequer and audit department Act and basically provided and supervisor was that he should

satisfy audit.

The only defunct mandate for the director of federal government was that he should satisfy himself that:

1. All reasonable precautions have been taken to safeguard that collections if public monies and the law rejecting there to (i.e. the

finance control and management act) as been duly observed and that all directions and instructions relating there have been

obeyed.

2. All monies appropriated for other wise disbursed have been expanded and applied for the purpose for which the grant made by

the legislature were intended to provide and that expenditure confirms to the authority which govern it.

3. Adequate regulation exists for the guidance of store keeper and store accountants and that they have been duly observed, with

regard to the auditor general by accountant general (AG). The audit act stipulates that within 8 months of the close of each

financial year, the auditor general should transmits to the minister of finance compiles of the accounts signed and presented to the

AGF with the certificate of audit report upon examination and audit of all accounts relating to the public money, stamp security

stores and other government properly.

This act was amended subsequent to the achievement of independence in 1960 to remove the lost estimate of UK

control. By the 1977 constitution however, the auditor general now transmits that account and reports to the national assembly.

2.6 Origin of Public Accountability

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 The public accountability is as old as the existence of human being in the social form. As it is there remain problems as to what

should constitutes accountability in general and from age old tradition implies stewardship as discuss earlier.

One of the earliest record or steward could be seen in St. Matthew Chapter 25 verses 27 as stated by Jesus expectation of the

stewardship. “Though oughtest therefore to have put my money to the exchange and then on my own with assumption (interest)”

Accountability in general however, goes beyond the stewardship function. This is so because in government there is the added

dimension of complexity which is one of the significant of the management in the government.

2.7 FGN and Accountability in the Civil Service

Auditors are continuously monitoring accounts, store and inventories of federal ministries. The auditor work around the clock

voting operations of financial transaction in various formation of the ministry.

Prominent among these investigation of accounts are staff or office of auditor general who perform sample audit from time to

time, on payment and receipt vouchers accounts, store records and inventories final accounts etc.

Their finding is reported to the auditor general. Queries raised by those auditors which are not satisfactory replied, generally form

bone of contention at the public account committee (PAC) to facilitate their duty, each ministry now have resident in their state auditor at

least at the head-quarter.

2.8 Accountant General of Federation (AGF)

In order to appraise management of fund in the ministry, AGF maintains a body of internal auditors. These staff co-ordinates

activities of internal auditors in self accounting ministries and render reports to the A.G.F., the influence of these brands of auditors is felt at

the level where they assume the responsibility of the pre-audit of pay-roll, overhead and capital expenditure payment vouchers at the federal

ministries in the state through the federal pay officers. AGF maintain group of inspectors of accounts under the spices of federal inspectorate

division of the ministry of finance.

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 These inspectorates from time to time, conduct surprise checks on ministries accounts etc. Federal inspectorate of the office of

account. Federal inspectorate of the office of accountant every financial view and submitted to the accounting officer i.e. director general for

approval.

Internal Auditors

Every self-accounting civil service commission in the state has internal audit in which the local government fall under accordance

with the provision of the financial regulation (FR) 2001.

The function of the internal audit is continues audit of accounting books record of revenue, expenditure, plants allocated and

unallocated stores.

The exercise covers 100% of full audit, the unit also makes objective analysis of the accounting system in operation and reading

pertinent comment on the activity of the main civil service commission and the ministry.

In essence, the duties of the internal auditors are prevention and detection of frauds and embezzlement.

It assume that various government regulations contain in financial regulations, treasury circular etc. are judiciously adhering to

when revenue are collected, funds disbursed and inventories acquires. In order to achieve its objectives and ensure the coverage of various

aspects of its functions, Internal audit programme is prepared at the commencement of every financial year and submitted to the accounting

office i.e. Director General for approved.

2.9 Public Accounts Committee (PAC)

The legislation organ performing a post modern function is the public account committee of each of the national Assembly/Armed

Forces Ruling Council (AFRC) who function is to consider the auditor report submitted to the national assembly.

The need for public accounts is necessary because there has to be a system of ensuring that public trust is betrayed since it is

known that not all are judicious in the management of our private affairs and much less, the public affairs entrusted to us, it is to discourage

from erring and expose those who erred in the management of public funds that the PAC become relevant in the act of governance in

essence, the PAC is the custodian of accountability in any government it is a method of audit devised by the legislature to ascertain whether

xxv
the money appropriated by them has been spent on the services for which it was voted. In the United Kingdom, the PAC is selected

committee of the house of communions to examine the accounts showing the appropriation of sum granted by parliament to meet public

expenditure and such other account laid before parliament as the committee think fit. It is against this background that one would like the

examine the provisions of the 1979 constitution as it affects accountability.

Decree 8 of 1987 established the PAC and Decree 34 of 1990 establishing account implementation tribunal, but time and space will

not permit such elaborate analysis.

2.9.1 Functions of Public Accounts Committee (PAC)

i. To examine any officer on oath (if need be).

ii. To enforce the audit sanction as requirement by decree 43.

iii. To deliberate an audit-general report.

iv. To summon accounting officer to appear before the committee.

v. To carry out any duly as required by the National Assembly.

vi. To recommend to the president any action to be taken on any offending officer.

vii. To serve as a vital link between the auditor-general and the National Assembly. This arrangement makes it impossible for the

administration to totally ignore the auditor-general report without it being accused of disregard for public accountability.

viii. To provide a form of in accounting officers are called upon, to explain in the public matter on which their department has been

queried by the auditor-general.

2.9.2 Audit Standards

It has already been mention earlier on that auditing is the major key control in government financial control system.

xxvi
 Firstly, it introduces descriptor line into teat system, by confirming the accurate and secondly availability of information provided

in financial statement. Thirdly, it assesses the internal control standard in various agencies and fourthly, it assess the report on the cut of

event accruing within it as a result of the budgeting cycle.

As a control function, it also has it own internal devices. Those various devices aim at ensuring consistency in operation,

thoroughness in coverage, in dependence of opinion and reduction of bias. Within the last two decades, professional accounting bodies have

either (5) collectively attempted to codify these device into a body of principles and guidance and in the form of auditing standard.

In the USA, the American Institute of Certified Public Accountant (AICPA) issues from time to time statements on standards.

Also in Britain, the auditing practice committee of all professional accounting bodies of that country also issue the guidance for use

by member accountant (AICPA) is a new body of public accountant mainly constituted by graduates of executive management accountant

(EMAS).

2.9.3 Auditing

Auditing may be defined as the examination of certain statement covering the transaction over a period and the financial position

of an organization or a certain date in order that the auditors may issue a report on them.

The organizational set-up is faced with interrelated operation designed in such a way that various department carrying out their

assigned task with a view to achieving the organizational goal. These departments are co-ordinated by top management to ensure that

performance is carried out in accordance with laid down plans. It is expected however, that were this condition apply finance and other

resources must be involved to ensure effective performance. All those are put together.

For organizational goal achievement to compensate its input cost plus on added value (profit). Whether the organization or unit is

operating well or not, people would always expect that those who are resources or fund, they would want to assured of the true presentation

of the organization financial position.

Though management may provide such data or information, but the expected for reasonable reliance hence he seeks for

examination and investigate the records of management and then express on opinion.

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 The act of carrying out this survey investigation is what is referred to as auditing, and the person who conducts the survey is called

the auditor.

Verification of correction and reliability of accounting information is an essential process of lending creditability of accounts. This

function is performed by both external and internal audit system.

2.10 Internal Audit

The continued expansion of modern business has added to the problems of an already heavily burdened company management in

maintain control over independent operation.

The increase in regular activities, the trend toward decentralization and greater geographical dispersion in themselves does serious

challenges to management control.

When these are added, a new dimension of problems involved with mergers and acquisition, diversification of product, computer

and other technologies and controlling and reporting for conglomerates, the degree of complexity call for outstanding performance by all

level of management.

In the past, it was possible for management to control through constant personal contract with company operation with other

level or management and even with individual employee. The new problems have it necessary to delegate responsibility and authority to

many level of supervisor. However, management responsibility or its accountability with such wide delegation of duties, management has to

turn to the control specialist the internal auditor for assistance in maintaining surveillance over the management control network. A

systematic programme of review and appraisal become necessary to determine that delegated responsibilities were being carried out as

expected. Furthermore, if there could be regular review by qualified staff to determine that the system of control was adequate and through

constant task to determine that the system was operating effectively, then the integrity of the foundation for all control and reporting could

be assured.

Without such an internal control, without increasing greatly the number of his tests and the extent of his auditing procedures.

xxviii
 The special concern of the public accountant is expressed in the American Institutes of Certified Public Accountant (AICPA)

statement on auditing procedure No. 33 as follows.

The system of internal control must be hinder continuing supervisor to determine whether:

1. Prescribed polices are being carried out.

2. Changes in operating conditions have not made the procedure cumber some, obsolete or headquarter.

3. Defective corrective measure is taken promptly where breakdown in the system appear.

2.10.1 Responsibility of Internal Auditor

The institute of internal auditors, the professional society of internals auditors has officially set for the parameter of internal

auditing in its statements of responsibilities of internal auditor.

The present edition is the second such release and was designed to emphasize the development of the profession and the

continually broadening responsibility that has been accorded to the current and probate future responsibilities is now under active

consideration.

The responsibilities in the current edition are classified as follows:

1. Nature of the internal auditor.

2. Objective and scope of internal auditing.

3. Authority and responsibility.

4. Independence.

The internal audit is an independent appraisal activity within an organization for the review of the operation as service to

management. It +is a management control which functions by measuring and evaluating the effectiveness of other control. How much the

auditor will be able to take at the work the internal auditor will depend on his assessment of the effectiveness of internal audit function.

xxix
 It is mainly concerned with the reliability band adequate of accounting system through:

 Protect of assets

 Evaluation of compliance

 Cost control

 Waste detection

 Preventing fraud

In making the assessment, the internal auditor will be concerned with:

 The degree of independence of the internal auditor from those whose responsibility use is reviewing.

 The number of suitably qualified and experience staff employed in the internal auditors.

 The evidence available to the work done by the internal auditor and of the review, direction and timing of test made by the

internal auditor.

 The extent to which management task action based upon the reports of the internal audit functions.

 The system if external audit is purely an independent assessment of financial operations.

 It is the objective examination of the account with the view to ascertaining whether or not the show of true and fair state of

affairs.

 It is an important investigation to confirm that transaction is supported by relevant and reliable documentary evidence.

 Conducting test, comparing result and reporting the final opinion. It is this which makes auditing a social responsibility assessing,

the quality of utilizing resources in financial operation with a view to ensuring that the financial management of the unit is from

error and fraud.

2.10.2 System Auditing

Contemporary auditing has to be carryout with scientific and efficient method whereby the auditor can give his report with

confidence, while at the same time he can undertake his work on relation and time saving basis system base on auditing has been born out of

the necessary for the auditor to be able to give his report on his investigation into business which has now increased in both complexity and

size.

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 The auditing standard required that an operational standard has to be carried out to achieve the objective of the system such

operation procedures include:

 Planning

 Controlling

 Recording

Accounting System

The auditor should ascertain the enterprise system of recording and processing transaction and assessing its adequacy as a basis

for the preparation of financial statement.

Audit Evidence

Relevant, adequate, reliable and sufficient evidence should be controlled in the course of auditing.

The Internal Control

The internal control system should be checked before reliance, reviewing of financial statement of adult will explore all

information is gathered to enhance prudent judgment of the unit or organization. The procedure lends to sequentially investigate into

organization unit and it financial records.

2.11 Factors Affecting Efficient Fund Management Cost Benefit

As indicated earlier, the process or decision making in respect of allocation of public resources is largely influenced by priority and

it is a choice between more urgent and less urgent alternative.

It also entails the assessment of economic viability of public investment through calculation of cost benefit, this there is continuing

need to discuss and explain the cost and benefit of difference lines of action and to see that open social control system help resources to flow

into the proposed project by calculating values of the resources to be employed in them, the cost and company it with the value of goods or

services to be produced (the benefits) cost benefit in instrument to achieving proper accountability of public fund and appraisal of auditing

based on investigations.

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2.12 Management

Every functional organization or units requires managerial organization or units and effective management will enhance the

accomplishment of organizational task and objective management is a process of responsibility for deploying resources to the

accomplishment of a given objective or purpose i.e. for obtaining and arranging the resource and regulating their application through the

medium of the personnel employed to accomplish the objective. To ensure an adequate accountability of resources, therefore the

management of public funds should be entrusted into the hands of efficient capable manager who will carry out the managerial demands and

activities effectively. The not waiting force behind management should be to achieve those factors which will contribute immensely to

achieving the main objective. Certain functions need to be effectively performed before a manager can attain a high degree of success in

achieving managerial task and top management cannot involve at all level of production. He is expected to delegate powers and play mainly

supervisory roles.

Figure 1: Planning and Control Function and Three Level of Management

TOP

MIDDLE

LOWER
Controlling

MANAGEMENT

Policy St of performance Allocation Leaders

Programme

Plan

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Cost

Organisation

2.12.1 System Management

This seems to ensure that various element and activities are effectively carried out since it ensures that utilization of resources as it

is primary responsibility, machine and money to achieve this. If inadequate in the resources available appears to be divaricating performing

from expected goals. For this, management is also considered as “The process were by there unrelated resources are integrated into a total

system for objective accomplishment and termed system management”.

It is in the coordination and integration of physical financial and human resources therefore, that management has to display it

effectiveness. Thus, the major advantage of this approach is the decentralization of decision making and the more effective utilization of

allocation resources to the individual project system providing accountability for performance through the measurability of individual system

of operation.

Now, in considering what management it will be ideal to further review and evaluated the objective and function of financial

management.

2.12.2 Financial Management

This has been changing at rapid rate and it is significant for the day to day finance decision making. This, it stress the analytical

approach for solving the financial problems. According to Pandey, it is management activity with the planning and controlling of the firms

financial resources. It’s fundamentally an effort towards maximization of value on aid to sound financial decision based upon the analysis of

financial consequences of action taken or to be taken. Traditionally, it involves some book keeping, cash management and acquisition of

funds for an audit operation. However, effective financial management of public fund of resources is not only a minimization of returns from

expenditure, but also a valuable contribution to the process or economic development. Effective utilization of funds should not only benefit

the organization or unit but should be able to provide proper and adequate accountability. If the set up is profit oriented, it will be easier to

evaluate the result, but evaluate those of the public unit (non-profit oriented) is not easy, thus it will take a long time to determine whether

xxxiii
public funds has been efficiently managed. Perhaps, thus is because one cannot with a short time conclusion because of the changing nature

of public leadership, which adversely affects the development plan in this country. The objective however, the executive finance function is

considered responsible for the following:

1. Determine operation result.

2. Formulating suitable policies for the management of asset and control of cash, flows planning of financial requirement and cash

management.

3. Evaluating performance to judge or check deviations.

These functions perform a vital role in ensuring that certain activities and duties are effectively carried out. They include:

 The safety or cash

 Implementation of plan

 Supervision

 Adequate keeping of record

 Investigation and examination (internal and auditing)

It is the effort of the financial function that governs the management of public funds.

This invariably promotes adequate efficient, effective operations and also helps in the proper use of funds.

When there is proper financial management, the problem of accountability becomes easier, hence made to compensate for

suitable programme. Moreover, an ideal financial plan is characterized by simplicity foresight, flexibility, liquidity and utility.

Although, traditional economist has identified the making of profit as arterial of success only in competitive industry under sector

to minimize the cost of the development project control and plan for a parallel review. The major source of government fund is granted from

individual (the public) among whom are many who are unwilling to make contribution (tax and other levies) again, it is also obvious that not

all who makes these contribution can be appointed into the managerial position of these funds.

xxxiv
 Also the expected returns of these amount paid by the citizen are numerous. These factors and others makes it essential that

those fund so entrusted to the few hands, should be accounted for. This demand from the public could ensure that people who are entrusted

with such can prudently utilize the fund with efficient application.

Knowing also the public entities are not profit oriented, it implies that resources available to them are scarce, the resources are

limited to government grant and bonds.

To determine the best method of optimization in the use of limited to resources however, is a relatively new are of operational

research. Multiplication of choice does not allow a correction evaluation of all possible alternatives the basis approach is to define a set

feasible solution to select one feasible fund. These will enable management to properly allocate sufficient fund that would hopefully

complete the execution of the better selected feasible solution.

The management, which adopts the file above strategies, may consider it efficient enough and may claim that it is making

luxurious utilization, but this may not be the view or an outsider.

The public will not want to be satisfied by their cultists. This, they would want quantity investigation into the final management.

The view of their party wills more satisfying to the public than draining of those in whose hand the responsibility.

2.13 Aid to Proper Accountability of Fund Internal Control

This provides assurance to managing of the dependability of accounting data used in making decision. Decision made by the

management becomes company policy. The auditing standard of defining internal control system as the whole system of control and other

wise established by the business of the enterprises in an orderly and efficient manner, ensure adherence to management policies. Safeguard

the asset and source as for possible the competence and accuracy of the record.

Internal control is an indispensable aid to efficient management, particularly in large scale business it extends beyond accounting

and financial function.

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 It scope is company wide and embrace such carried activities as employee. Training programme, internal auditing statistical

analysis quality control and production schedule.

In summary, we can say that internal control is present day using embrace all department and effect all activities of business

concern, delegates, authority and assign responsibilities for function as selling, purchase accounting and production. It also includes the as

selling, purchase accounting and production. It also includes the programme for preparing verifies and distributing to various level of

supervisor current report and analysis with enable executive to plan for a company future.

2.13.1 Need for Internal Control

Corporation has evolved into organization of gigantic size and scope. This has made impossible for corporate executive to exercise

personal, first hand supervision of operation.

They are no longer able to rely upon personal observation as a means of appraising operating result and finance position. The

corporate manager has of necessity come to depend upon a stream of accounting and statistical reports.

These reports summarizes current happening stream of reports enable management to control and direct the enterprise and also

aid to evaluate performance for proper accountability with the system.

It keeps management informed as to whether government policies and regulations being observed and whether financial position

is sound, operation profitable and interdepartmental relations harmonies.

2.13.2 Objective

The objective of this system includes:

1. To keep the property of the establishment.

2. To prevent property from being misapplied by effort or intent.

3. To prevent expenditure without proper authorization.

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4. Proper accounting for expenditure all revenue must be properly accounted for and received in due course.

2.14 Budgetary Control

This is very important in government entities, since they are faced with problems of forecasting their future expenses against an

anticipated income. Budgeting is a financial and a quantitative statement prepared prior to a define period of time of the policy to be pursed

during that period for the purpose of attaining a given objective for the fact that this forecast is made in time of a coming period, it will

however require adherence to plan to attain or achieve the desired goal of such budget. An auditing element ensures that there is a

deviation, budgeting enable planned out will and the efficient utilization of fund, which is useful for proper accountability.

Budgeting control is means of control, in which the actual state of affairs is compared with that planned for, so that appropriate

may be taken with regard to any deviation before it is too late.

The matter budget is a summary of all phase of an organizational plans and goals for the future, if the set specific target for

financial and other activities and generally communicates in a projected cash position.

2.15.1 Advantages of Budgeting

One of the great values of budgeting is that it does require manager to bring planning of the forefront of their minds.

Moreover, it provides as vehicles in communicating these plan in an orderly way throughout an entire organization. No one in all

thousand (000) have any doubt what manager what to accomplish or how to think ahead of requiring tam to formulize their planning. It

provides definite goals and objective which serves as bench-mark for evaluating subsequent performance.

It uncovers potential battle neck before they occur, coordinates the activities of the entire organization by integrating the plans

and objectives of the various parts.

2.16 Planning

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 Planning involves selecting objective and the strategies, policies programme and procedures for achieving their programme, either

for the enterprise or for an organizational part therefore. The responsibility of planning cannot be completely separated for managerial

performance, because all managers plan, whether they are at the top, middle or bottom of the organizational structure.

Planning ensures that the personal work is sequentially arranged adequate adherence to plan will also requires proper control.

2.17 Controlling

Controlling is a measure and correction that events confirm to plans. Although, planning must process controlling, plans are not

self-achieving; the plans guide manager in the use of resources to accomplish specific goals. Then activities are monitors to determine

whether the confirmed to planned action. Coordinate is the essence of management, for achieving of harmony of individual efforts towards

the accomplishment of goals, and each of the management action is an exercise in co-ordination. Thus, it is necessary to synchronize

individual or department action arising from difference in opinion in achieving the main organizational goals or objectives. This act therefore

is coordination.

EMPIRICAL REVIEW

Severino & Paulo (2013) investigated the Role of internal audit in managerial practice in organisations with the aim of providing answers to

the questions concerning: what is the perception of the

management about the role of Internal Audit Function (IAF) in the managerial practice and decision making process in business entities and

organisations at large? The study was restricted to non financial institutions of the State of São Paulo with shares traded at Bovespa Stock Market. As

primary data have been gathered through structured questionnaire, we adopted the descriptive approach for the treatment of the data. Based on our

analysis, taking the perception of the management, IAF is a managerial enhancing tool, supporting the organisations to meet up with objectives, thus

implying a contributively source of information derived from continuous assessment of strategic risks to strengthen the internal control systems for

decision making.

In a related study by Olga (2017), using descriptive case study of a company. The research examines the role and importance that internal

audit and internal controls have in an organization. The main research question is “What is the role and importance of internal audit and

xxxviii
internal control in an organization” Additional sub-questions relating to the case company that will allow for better understanding of both

concepts and the case company are: “How internal audit and internal control are implemented in the case company?”; “How the

implementation of internal audit and internal control influences the case company?”; “What are the internal audit and internal control

regulations that the case company must

comply with?” To answer the main and sub-research questions, this thesis has a theoretical part about both research concepts. The theory is

mainly based on the internal auditing and internal control literature. Data concerning the case company was collected by interviews and

secondary sources in the form of annual reviews, financial statements and the company’s website. It is later analyzed through a theoretical

prism. The findings of this research show that both the theory and the case company assume internal audit and internal control as important.

The role of both concepts is allowing the organization to achieve its goals and objectives, through more effective organizational operations,

risk management, and decision making.

In another study, Maji, Roberto & Aleša (2016) posited an overview of these changes, the trends leading to internal audit’s enhanced role in

corporate governance, the expected benefits of internal audit’s organizational independence, and future challenges. Interviews were used to

support the theoretical findings with observations from key stakeholders in Slovenia.

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 CHAPTER THREE
INTRODUCTION
This chapter contains in detail, the method and procedures employed by the
researcher to obtain both primary and secondary data.
Also contained in this chapter is research population, sampling methods
used, questionnaire designed and other instrument geared toward, the development
of answer to their research project.
3.1 Method of Data Collection Population
The population of the council is restricted to Oshimili-south Local
Government Council of Delta State. It was the top, middle members of the staff of
the Local Government that where randomly sampled in the end it stores and also in
the personal sections in gathering primary information.
3.2 Sampling Size
A goal survey with sample size of 118 (one Hundred and earthen) was put
into consideration, among the target audience or respondent, and these are the top
and middle staff of Oshimili-south Local Government are of Delta State.
Below is the formula for calculating the sample size.
N=2xP
Where N = sample size to be calculated.
2 = (1.97) desired confidence
P = 95% of required of public
9 = 8% of people not be affected
E = 5% assumed to tolerate error.
N = 1. 97 x 95 x 8
I decided to chose the about class of respondent in order for me to be able to
get the desired answers to the research question.

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3.3 Sampling Method Used
In order to avoid a drop in standard and competence that may be occasioned
by a large sampling size, the researcher use stratified sampling method to ensure
that a relevant targeted staffs were evenly represented. And in the researcher guest
for discovery the appropriate class for this study, the following were considered:
1. The level of exposure that they have management information system.
2. Qualification
3. Judgment abilities and
4. Their position in hierarchy as regards decision making.
3.4 Sources of Data
The research conducted, relied heavenly on primary and secondary sources
of data collection which are questionnaires, interview, journals, and inspection,
observation and textbooks from renounced authors in the field of public sector
auditing.
Some of the instruments are explained below:
1. Primary Sources of Data
Primary data were gotten from questionnaires that were administered
to the top and middle level management staff. It is important at this juncture
to quickly point out the substructure to this research work has been
extensively used to test validity of the hypothesis already originated.
2. Secondary Sources of Data
These are data that were gotten from textbooks, newspapers, journals
and published research materials. The information altered from these sources
was used in formulating the hypothesis and designing the questionnaire.
3. Inspection

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 Apart from glancing through the records containing policies and
internal control system the researcher also inspects some accounting auditing
manuals and documents.
4. Observation
The researcher also applied the method of oral and personal interview
to address information and issues that were not properly dealt with in the
questionnaire.
3.5 Questionnaire Design
There were different structured questions that were designed which
compress the major sources of primary data. They were question involving two
alternative answer of “YES” and “NO” for respondent to chose from open ended
questions when give the respondent the opportunity of making suggestion and
answering question unaided.
A rectangular box is provided in which respondents are expected to tick their
Yes or No answer on them.
There were some multiple choice questions when provided the respondent
opportunity of selection of answers from a range of possibilities.
3.6 Method of Investigation Analysis
In this research work, the historical and descriptive method of investigation,
were of immense benefit. This historical research method was of great assistance in
comprehensive background of research investigation helped.
This explains the explanation of events and procedures that proved the
relevance of auditing accountability of fund in the local government.

3.7 Description of Respondents

xlii
 The targeted audience respondents of the research work are the workers of
the Oshimili-south Local Government Council.
The staff/responses targeted are the top and middle level staff of the council
areas especially those in the audit and account and treasury department.

3.8 Questionnaire Distribution and Statistical Presentation

The data/information that was generated through questionnaire, oral
interview and others were analysed using tables and subsequently percentages and
pie chart were used to evaluate them.
Out of the 118 questionnaires that was administered, 112 questionnaire were
returned and reared by the researcher represented a response rate of 94%.
3.9 Presentation of Analysis
Effective use of descriptive method of investigation and analysis shall be
extensively used. This will also be the application of quantitative techniques in
making conclusion of finding, which be of a good guide in the recommendations
form the finding in the research work.

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 CHAPTER FOUR
PRESENTATION AND ANALYSIS OF DATA
4.0 Introduction
This chapter focuses on data analysis and discussion of finding. Effort will
be make to test the hypothesis in order for the researcher to conclude on whether
the researcher findings and the hypothesis agree.
4.1 Data Analysis
Following the researcher’s methodology, copies of questionnaire were
distributed among the top and middle level workers of Oshimili-south Local
Government Area. A total of 118 copies were distributed out of which 112 were
returned. This of course constitutes the sample size of the enter population of the
local council area.
The researcher has earlier stated in the research methodology adopted and
made use of the cross tabulation techniques simple percentages, method and pie
chart in analyzing his data that have been collected.
This method of data analysis is better being illustrated this:
Number of variable responses x 100
Total number of variable responses 1
i.e. the frequency of the responses in order to obtain the percentage.
Data About the Respondents
Table 4.1 Age
Variable Responses Frequency Percentage
25 – 35 26 23
36 – 45 30 27
46 – 55 22 20
56 and above 34 30
Total 112 100

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 Going by the table on age of the workers in the Local Government, 26
people who represented 23% said their age fell between 25 – 30, 30 people
representing 27% of the total workers said their age fell between 36 – 45, 22
workers in the Local Government said their age fell within 46 – 55 and finally 34
workers whose percentage is 30% of the total workers said their age fell within 56
and above.
Table 4.2 Sex
Variable Responses Frequency Percentage
Male 80 72%
Female 32 28%
Total 112 100

On the sex of the Local Government workers, 80 of them representing 72%

of the whole workers are male, while 32 representing 28% are females.
Table 4.3 Marital Status
Variable Responses Frequency Percentage
Married 90 80%
Single 18 16%
Separated 4 4%
Total 112 100

The above table shows that out of the 112 respondent, 90 workers representing 80% are married, 18 representing 16% are single,

where just 4 workers representing 4% of the workers are separated.

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Table 4.4 Grade Level
Variable Responses Frequency Percentage
GL 05 – 07 50 44.6%
GL 08 – 09 30 26.7%
GL 10 – 12 20 17.9%
GL 13 – 15 12 10.7%
Total 112 100

50 workers representing 44.6% are of grade level; 08 – 09, and 20 workers representing 17.9% are at the grade level 10 – 12 of the

workers representing 10.7% of the workers at grade level 13 – 15.

Question Number One: Does the job of the auditors affect the management of funds in this Local Government?

Table 4.5
Variable Responses Yes No Percentage
Top Level 25 - 22%
Middle 87 - 78%
Total 112 0 100%

25 top level respondents representing 22% of the sample size says yes, that
the job of the auditors does affect the management, 87 of the respondent
representing 78% says yes also that aiding affecting the job of auditors in the Local
Government.
Question Number Two: Does the report of the auditors represent of true and fair
view of the performance of the Local Government?

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Table 4.6
Variable Yes No % of Yes % of No Total
Responses
Top Level 23 2 22.32% - 25
Middle Level 60 27 77.68% - 87
Total 83 29 100% - 112

Out of 112 workers in the Local Government 23 respondents who are top
level staff said yes to question number 2 in the questionnaire and 2 said No.
Middle level workers with total workers in the Local Government 60 respondents
said yes to question while 27 said “No”. we could decide from the above that
majority of the workers agrees to question that the report of auditors represents true
and fair view of the performance of the Local Government.
Question Number Three
Does the council really need auditor for accountability of fund?
Table 4.7
Variable Yes No Percentage Total
Respondent
Top Level Staff 23 2 22.32% 25
Middle Level Staff 82 5 77.68% 87
Total 105 7 100% 112

Out of the total 25 top level staff, 23 representing 20.5% of the respondents
said “Yes” while 2 did not say anything among middle level staff workers, 82
representing 73.2% said “Yes” 5 and “No” we could as well conclude that the
council really need auditor for effective accountably of fund.
Question Number Four
Has the level of accountability improved as a result of the practice?
Has moral auditing the financial statement of the Local Government?

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Table 4.8
Variable Yes No Percentage Total
Respondent
Top Level Staff 20 5 22.32% 25
Middle Level Staff 85 8 77.68% 87
Total 105 7 100% 112

20 top staff representing 22.32% of the respondent said “Yes” but 5 said
“No” middle level staff representing 77.68% of the total respondent also aid “Yes”
while 9 respondent of middle level staff “No” in the whole, it could be said the
more of the staff said “Yes” to the question.
Question Five
Is the auditing recommendation contained in the auditing report being
applied and adhered to by the council executives?
Table 4.9
Variable Yes No Percentage Total
Respondent
Top Level Staff 24 1 22.32% 25
Middle Staff 54 33 77.68% 87
Total 105 7 100% 112

Out of 25 level staff representing 22.32% said “Yes” to the question while 1 said
“No” in the middle level cadre of staff of 87 workers representing 77.78% of the
total workers 54 said “Yes” while 33 said No to the question. This means that it is
top level workers that know more about the relevance of auditing and the impact it
is making in the rural areas.
4.2 Test of Hypothesis

xlviii
 The researcher intends to use some question in the questionnaire to test the
hypothesis.
The technique to be employed in the testing of the four importances is the
Chi-square (X2).
The formula is represented as follows.
X2 = (Fo – Fe)2
Fe
Where X2 = Chi-square
Fo = Observed frequency
Fe = Expected Frequency
To calculate, the formula used is expected frequency
= Total of roll x Total of column
Grand Total
The volume of the Chi-square (X2) derive from the calculation is compared
with the value from the Chi-square table for a given significant level and numbers
of degree of freedom.
The degree of freedom is represented by (r – 1) (e – 1)
Where r = rows
c = columns
Note that he can be tested at alpha 0.01 or 0.05 which are called the level of
significant. The decision rule is that, if the computed value at appropriate level of
significant of the degree of freedom. We reject the rule hypothesis (Ho).
Effective accountability
Hypothesis Three
H0 – The level of accountability has not improved as a result of the practices of
auditing.
H1 – The level of accountability has improved as a result of practice of auditing.
xlix
Presentation of Response
Table 4.14
Responses Yes No Total
Male 67 13 80
Female 32 - 32
Total 92 13 112

R1C1 = 99 x 80 R1C2 = 80 x 13
112 112
= 70.71 = 9.29
R2C1 = 99 x 32 R2C2 = 13 x 32
112 112
= 28.29 = 3.71
Hypothesis One
H0: The auditor report does not represent a true and fair view of the financial
statement of the Local Government.
H1: The auditor report represents a true and fair view of the financial statement of
the Local Government.

l
Presentation of Responses
Table 4.15
Responses Yes No Total
Male 53 27 80
Female 30 2 32
Total 83 29 112

RC = rxc
Grand Total
R1C1 = 80 x 83 R1C2 = 80 x 23
112 112
= 59.29 = 16.43
R2C1 = 32 x 83 R2C2 = 32 x 29
112 112
= 23.71 = 8.29
Analysis of Responses
Table 4.16
Cell Fo Fe Fo – Fe (Fo – Fe)2 Fo – Fe)/ Fe
R1C1 67 70.71 -3.71 13.7641 0.1947
R1C2 13 9.29 3.71 13.7641 1.4816
R2C1 32 28.29 3.71 13.7641 0.4865
R2C2 - 3.71 -3.71 13.7641 3.71
X2C 5.8728

Decision Rule
Degree of Freedom = (2 – 1) (2 – 1) = 1 at 5% level of significant, therefore
tabulated value = 3.84.

li
Accept H1 (Alternative) since 5.8728 is hypothesis and conclude therefore that
“The level of accountability has improved as a result of practices of auditing”.
4.3 Discussion and Summary
It would be seen in the whole of the hypothesis tested that findings
correlated to the hypothesis as stated in chapter one, because all the three tested
hypothesis out of the 5 hypothesis stated in chapter one agrees to affirmation.

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 CHAPTER FIVE
SUMMARY, FINDINGS, CONCLUSION AND RECOMMENDATION
5.1 Summary
This project work based on the role of auditing as an instrument for effective
accountability funds (a case study of Oshimili-south Local Government Area,
Delta State) was carried to find out the role of auditing plays as an instrument for
effective accountability of public funds. This scope is limited to top and middle
level workers in the local government council.
The procedure (Primary Data).
The primary instrument of data collection was used to obtain finding and
thus the null hypothesis were rejected while the alternative hypothesis were
accepted.
In conclusion, these result pointed to the position impact of auditing on the
accountability of public funds of Oshimili-south Local Government Council of
Delta State.

5.2 Findings
Having this find it is as important to mention the finings, the research came
about the course of the research. These findings were manly obtained through the
primary instrument of data collection.
Response to questions in the questionnaire, and the oral discussion indicated
that audit functions of Oshimili-south Local Government has had tremendous
impact of the accountability of funds of the councils sharp practices such of fund
and conversion of assets have been reduced to the barest minimum.
Result of the data analysis showed that the auditing function of the council
helps a great deal in evincing the strength of the council accountability of fund.

liii
 However, certain weakness was also reveals in the work prominent among
them is the management non-challant attitude towards proposal made by analysis
on way to enhance the adequacy of the pontages by the view of respondent to
question number five in the questionnaire. Such attitude could have gracious
consequence on the accountability of public fund for putting in place a functional
system of accountability control has with the management auditors can only make
suggestion in this regard.
5.3 Conclusion
From the foregoing and with particular regard to research finings, it can be
concluded that auditing serves a veritable accountability control tool in local
government council. Oshimili-south Government Council being a case study
therefore holds true. There is however the need to improve the audit function of the
council in order to adequately strengths the control accountability of fund.
5.4 Recommendation
After all said and done, it is worthwhile to make some recommendations to
Oshimili-south Local Government Council, as well as other local government areas
in the state and in the country as adequate of their accountability of public fund
auditing practices. Some of them are outlined below:
1. The auditor should regularly evaluate the council accountability of public
fund and weakness, if fund connected.
2. Effort should be made to maintain the auditing strength and possibly to
improve on them.
3. Continuous audit is recommended to the local government.
4. Independence of the audit department should be ensured and maintained.
5. Variation/variances from established standard should be immediately
investigated and reports for proper reactions.

liv
 REFERENCES
Asika, N. (2000). Research Methodology in Behaviour Science. Lagos: Longman
Nigeria Plc.
Auditing Practice Committee (APC) (2000). Draft auditing Guideline: Application
to the Public Sector of Auditing Standard and Guideline.
Etuk, A.I. and Ajobok, J. (1992). Unpublished Executive Management Accounting
(EMA) Lecture handout on introduction to public sector auditing.
FACT ACCA Auditing, (1981). London Hut-Chimson Education.
Hardwood, R. (1981). Principle of Auditing, 20th edition (Donald and Evans),
London and Plymouth.
Johnson, L.I.E. (FCA) (1979). Public Sector Manual for Accounting Student.
Nwadozie, B.M. and Akuezekwo, R.D. (1995). Research Method and statistic
Awka Nue Centi (Nig.) Publisher.
Oshisami, K. (1992).Government Accounting and Financial Control Spicer and
Pegler (1978) Practical Auditing 16th Edition London HFL Publisher Ltd.

lv
 APPENDIX
Department of Accounting
Faculty of Management Sciences

Dear Sir,

REQUEST FOR INFORMATION

I am an undergraduate student of National Open University of Nigeria, (Asaba

Study Centre) Abuja. I am presently under taken a research on the topic: the role of
auditing as an instrument for effective accountability of fund.

A case study of Oshimili-south Local Government Area of Delta State for the
partial fulfillment of the requirement for the award of Bachelor of Science (B.Sc)
Degree in Accounting.

I shall be glad, if you kindly let the enclose questionnaire be answered and returned
to me and any other information which cloud be of assistance to the researcher as
regards this project.

Any information given to me, would be strictly used for this research alone. I am
glad to have your prompt respond.

Thanks for your co-operation

Yours Faithfully,

UGORUME MOSES

lvi
 Personal Data

Please tick (√) as your respond to the following question

a. Occupation
b. Sex Male ( ) Female ( )
c. Marital Status: Single ( ) Married ( ) Separated ( )
Widow ( )
d. Your age group
20-25 ( )
26-30 ( )
31-35 ( )
36- 40 ( )
41-45 ( )
46-50 ( )
51 and above ( )
e. length of years in service
1-5 ( )
6-10 ( )
11-15 ( )
16-20 ( )
21 and above ( )

f. Level of Education
Post Primary ( )
Polytechnic ( )
University ( )

lvii
 Professional Qualification ( )

f. Salary Grade Level Distribution

G1 O5-07 ( )
G1 08-09 ( )
G110-12 ( )
G112-14 ( )
G115-16 ( )

g. What is your field of specialization! Specify in detail

Question About the Discuss

1. Does the job of auditing effects the management of fund in the Local
Government? Yes ( ) No ( )

2. Does the reports of auditors represent the true and fail view of the4
performance of the Local Government? Yes ( ) No ( )

3. Does the council really need auditors for effect accountability of fund? Yes (
) No ( )

4. Has the level of accountability improved as a result of the practices of new

auditing the financial statement of the Local Government? Yes ( ) No (
)

5. Is the auditors recommendations contained in the auditor report being

applied and adhere to by the council executives Yes ( ) No ( )
lviii
6. Who is the auditor responsible to, in the Local Government?
i. Chairman and Chief Executive ( )
ii. Head of personnel Management( )
iii. Treasure of the LG ( )
iv Not at All ( )

7. When last did you notice fraud in the Local Government

i Six months ago ( )
ii less than one year ( )
iii. Two year ago ( )
iv. Not at all ( )

8. If the question above is affirmative, who detached it?

i. The Internal Auditor ( )
ii. The External Auditor ( )
iii. Chairman of Local Government ( )
iv Chairman of Local Government ( )
v. Other Persons ( )
9. What control defects have been observed in the Local
Government?.......................................................................

10. Can you say that the internal control system has resulted to effective
accountability Yes ( ) No ( )

11. Does internal control in a place in a Local Government provides enough

checks and balances…………………...............
lix
12. What are the control measure note to place? ……………………..
………………………………………………………………………….
………………………………………………………………………….

13. Does the Local Government have the graduate to handle the accounting
information system in this Local Government?
Yes ( ) No ( )

14. Does the internal auditor have supportive staff we would delegate
responsibility to? Yes ( ) No ( )

15. How effective are these officer?

Effective ( )
Very effective ( )
Not effective ( )
Fairly effective ( )

16. Does the auditor have a programmer? Yes ( ) No ( )

17. Who draws the audit programme? ……………………………….

…………………………………………………………………………
…………………………………………………………………………

18. Does the programme have effective mechanism?

Yes ( )
No ( )
lx
19. Is the auditor job judgment or accurate?
i. Judgment ( )
ii Accurate ( )

lxi