INTERNAL AUDIT AS A TOOL FOR MANAGEMENT CONTROL

ABSTRACT

This research work has investigated “ the internal audit as a tool for management control” (A case study of project development institute PRODA)which is located in Enugu East Local Government area in Enugu State. The major objective of this project or research was to find out those objectives that made the internal audit as a tool for management control at PRODA in Enugu . To accomplish the above objective therefore, the work has to be divided the following conclusion have drawn  from the major finding of the study. There is a misconception of the internal audit function by non-auditing personnel. This state of affairs, from information is due to ignorance or attempt to cover up fraud are errors. The existences of standard internal audit produce promotes efficient internal audit. The internal audit provides an economical a measure for safeguarding company funds and property. The objective of internal audit is to aid in management control of government enterprise. The internal auditor therefore, aids efficient control of organization activities. Other findings includes:

i.                   Internal auditor issues periodic report the management for conservation and decision-making. The internal audit have helped to:

ii.                 Minimise fraud and extravagant use of frauds.

iii.              Ensuring that all money due to the institute are collected and properly recorded

CHAPTER ONE

1.0            INTRODUCTION

1.1            BACKGROUND OF THE STUDY

Annual budgets by the federal state and local government are generally incorporated into government accounting system and financial reports. These budget estimates are central to the process of making and executing public sectors polices among which is the proper allocation of available resources and reduction in inequality of incomes of individuals. In order to achieve these public sector policies goals mentioned above, there is the need for an internal audit operations within our ministries. The growing recognition by management of the benefits of a good internal control and the complexities in a large organization led to the development of internal auditing as an important component of the internal control system. The emergency of the internal auditor as a specialist in internal control is the result of an evolutionary process that is similar in some ways to the evolution of the independent audit (Howard 1976). The principal factor in its emergency was the extended span of control faced by management as concerns employing thousands of people and conducting operation from widespread locations. Defalcations and improperly maintained. Accounting records were obvious problem under these  circumstances. The growth in the volume of transactions meant a substantial bill for public accounting service for the business that endeavored to solve the problem by containing the traditional form of audit by public accountants. This solution according to Howard (1976) was to provide the needed auditing services on an internal basic particularly as the genitures of the problem made it possible their one or more persons to specializes in such auditing services and devote their full time to the needs of the enterprise. Other advantage that resulted from this internal approach to the problem was that the internal auditor tended to be problems of the company and the auditing activity could be carried on costively, rather than, once year when outside auditing of government ministries departments and extra ministerial department entrusted with public resources and the authority for applying them have a responsibly to render a full accounting of their activities. This accountability is inherent in the management process and which the public resources have been devoted nut also the manner and effort on their application.

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