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Internal Auditing As An Aid To Management

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Description

– Internal Auditing As An Aid To Management –

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Abstract

This research work deals with internal audit as an aid to management. It aims at finding out the role of internal audit in management decision making in organizations. It is a survey research.

Data were collected from primary and secondary sources which included using questionnaires, personal observations, text book, journal and internet. Sample of 92 were collected by random sample method.

Three hypotheses were formulated and tested using Z-test statistics, while questionnaires were analyzed using simple percentages. We discovered among other things that internal audit assists management in managerial decisions.

We recommended among other things that the auditors be trained in forensic accounting to enable them to be more effective in their duties.

Introduction

1.1 Background of the Study

At the beginning of the century, most businesses are small and sole-operated. The owners/managers are overly involved with most of the decision making.

As business grows in size and complexity, professional managers take position of the owners and the operators. Consequently, they rely heavily upon streams of accounting and statistical report which summarizes current happenings and conditions in the enterprise.

The information carried by these streams of report enables management to control and direct the enterprise in order to assure management that the information received are both reliable and accurate. A system of internal audit is developed to monitor the activities of the company.

The need for maintaining the adequate efficient and effective internal audit, therefore cannot be overemphasized especially in days when Nigeria’s economy still is witnessing depression

and every company is making effort in ensuring that wastage, pilferage, misappropriation are checked or avoided, and to ensure that assets are being secured.

Some problems were noticed during the cause of this research; problems within the company, these problems necessitate this work. The pg. 12 researcher noticed that there was ineffective co-operation between the internal audit and management, audit reports were sometimes ignored by the management.

The relationship between the internal auditor and external auditor was strained making work harder for the external auditor. The lack of internal audit to prevent pilferage and fraud within the company thereby preventing an error free working condition.

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