INTERNAL AUDIT AS AN AID TO MANAGEMENT CONTROL
ABSTRACTThis research work is on the internal audit as an Aid to management control with reference to Enugu State University and technology (ESUT). The main aim of this research work is to determine and to ascertain how management administration can be more efficiently run, in order to create a conducive environment for business and to analyze the internal audit functions to determine how it can realize management control. The sources from which the necessary data were collected for the purpose of this research work are from primary and secondary sources of data collection. The primary data were gotten through the use of questionnaires and oral interviews. The secondary data were gotten through newspapers, magazines, government Journals, and also textbooks. The data collected were analyzed using simple percentage analysis. Hypotheses were formulated and tested using the chi-square (X‑2) method. From the data collected and analyzed, it was discovered that the internal control system of the universities is weak owing to a lack of trained internal audit staff, lack of cordial relationship between the Internal Auditors and the department staff. The management should ensure that the internal audit department is staffed with enough skilled personnel and management should adequately provide manpower development facilities for the internal Audit.
TABLE OF CONTENT
Title page i
Approval page ii
Dedication iii
Acknowledgement iv
Abstract v
Table of content vi
CHAPTER ONE
INTRODUCTION
1.1 Background of the study 1
1.2 Statement of the problem 4
1.3 Objectives of the study 5
1.4 Research questions 5
1.5 Significance of the study 6
1.6 Scope of the study 7
1.7 Limitation of the study 7
CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1 Definition of foreign exchange 8
2.2 Foreign exchange in Nigeria 11
2.3 Structure of Nigeria’s foreign exchange market 15
2.4 Growth of the market exchange in Nigeria 16
2.5 Foreign exchange market and monetary manage in Nigeria 20
2.6 The structure of the country’s output 22
2.7 Overview of the Nigerian exchange rate policy 24
2.8 The efficacy of monetary policies in the management of firms 28
2.9 Foreign exchange management objectives and policy 33
2.10 Foreign exchange problems 37
2.11 Foreign exchange control 39
CHAPTER THREE
METHODOLOGY
3.1 Design of the study 41
3.2 Area of the study 42
3.3 Population of the study 42
3.4 Sampling Method 43
3.5 Research Instrumentation 44
3.6 Validity and Reliability of the Instrument 45
3.7 Sources of Data 46
3.8 Analytical Technique 48
CHAPTER FOUR
PRESENTATION AND ANALYSIS DATA
4.1Data analysis 49
CHAPTER FIVE
SUMMARY OF FINDINGS, RECOMMENDATION AND CONCLUSION
5.1 Summary of Findings 61
5.2 Conclusion 62
5.3 Recommendation 63
Bibliography 64
Appendix I 69
Appendix II 70
CHAPTER ONE
INTRODUCTION1.1 BACKGROUND OF THE STUDYControlling is a management monitoring function that deals with the measuring and correction of the performance of subordinates with a view to achieving organizational objectives with maximum efficiency and at a minimum cost.It check s to see that plans have been carried out, adhering to deviations. If any it compares actual performance in the past periods.A business grows, the detailed auditing of a growing number of transactions produces a corresponding increase in the size of the auditor’s bill for his service business managers found themselves looking for a less expensive substitute for the increasingly costly annual audits, preferably a substitute which might at the same time better meet their needs. The solution which evolved was the development of internal means security the desired control over accounting and operations as a whole. Internal means of control are known as “internal checks and internal audits”.In anticipation of the manpower needs of an independent Nigeria, the federal minister for Education appointed 1959 the Ashby commission to conduct an investigation into Nigeria's needs in the field of higher education, the panel comprised three Britons, three Americans, and three Nigerians with Sir Eric Ashby as Chairman. The submission of the report in 1960 brought about the establishment of the first generation universities which include the University of Nigeria, Enugu Campus, 1979, the third generation university were created these include Anambra State University of Science and Technology (ASUTECH), now Enugu State University of Science and Technology (ESUT). The law which established this was enacted in 1980. The government appreciates the invaluable roles of these institutions in the overall development of the nation via the provision of well-trained middle and higher-level manpower for various departments of the public and private sectors. In recent times, several cases of arson, frauds, misappropriation of public funds, theft of property, and other types of malfeasance have been reported in the government institution and establishment all over Nigeria in view of this, the huge investment by the government. These concerns should be controlled, monitored, safe-guarded, and made result-oriented. The role of the internal audit department as the “watchdog” of these controls established by the institutions becomes the only sure means to control the institutions.It is pertinent to note that the report and government white paper on the report of various boards of inquiry instituted to investigate the cause of non-performance in government establishment have indicated that management/administration is responsible for the improper state of things. It is conceived, however, that if they have complete control of the activities of their staff an efficient administration would be enshrined. It is also necessary to ensure that management policies and directives are properly adhered to. As management is far from the scene is not possible management must rely on various techniques and of course the internal audit department to implement its directive decision and goals.1.2 STATEMENT OF PROBLEMSThe management control system of our organization is facing a lot of problems. There is inefficiency in administration, adequate attention is not paid to internal auditing by management, funds and property are not managed to ensure safety, harmonious work relationship does not exist between the internal auditor and other workers, and most of the internal auditors lack the requisite skill.1.3 OBJECTIVE OF THE STUDYThe objectives of this study include ascertaining how management administration can be more efficiently run in order to create a conducive environment for business.Secondly, the aims to analyze the internal audit function to ascertain the problems facing an internal audit and seek ways to solving them.Finally, to ascertain the procedures and methods of internal audit in an organization and evaluate its effectiveness in the realization of management objectives.1.4 RESEARCH HYPOTHESISHo: Internal auditing does not help the organization to attain its objectives.Hi: Internal auditing helps the organization to attain its objectivesHo: The internal auditing do not aid the inefficient running of the universitiesHi: The internal auditing aid inefficient running of the universities.1.5 RESEARCH QUESTIONSThe following questions were asked by the researcher:1. To what extent has internal auditing aided the efficient running of the universities?2. To what extent was internal auditing helped the organization to attain its objectives?3. To what extent have the university authorities paid adequate attention to internal control?4. What is the degree of credibility of the internal auditors of the universities?1.6 THE SIGNIFICANCE OF THE STUDYThe study is intended to highlight the extent that proper utilization of internal audit science has contributed towards effective management control.It will also help the institution understudy to see areas of weakness and then help other institutions utilize its services properly for effective internal control. The need for establishing a viable internal audit department to be effectively used for control would emerge, even in organizations where it has not been installed.Finally, this study will help readers from time to time on the topic of study, have a reference base.1.7 THE SCOPE OF THE STUDYThe researcher will like to concentrate on the Enugu State University of Science and Technology (ESUT) with a focus on the work bordering on internal audit objectives, procedures, and problems.1.8 LIMITATION OF THE STUDYThe researcher has not got enough resources to carry out this study in all the universities, therefore it is restricted to ESUT. The finding may not reflect the entire situation in all the ESUT as a whole, but averagely, what happens in ESUT, can be applied to another area, the researcher should have gone into a discussion on the aid to management control. Again the auditing should have included private individuals who may engage in one project or the other. This may be a limitation to the discussion of the aid to management control.
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