THE EXAMINATION ROLE OF INTERNAL AUDITOR IN GOVERNMENT OWNED ESTABLISHMENT
This study is concerned with the appraisal of the examination role of internal auditor in government owned establishment. A case study of Nigeria Railway Corporate Enugu.
The studies commence with the need for probity and accountabilities in public corporation whose poor performances and near collapse of such institution is linked with financial indiscipline and lack of accountabilities despite the extended of internal audit department in such organization. This assertion gave rise to the question whether internal audit activities of the establishment is effective enough to ensure financial accountability.
With this question in mind, the researcher decide to embark on the present study with the major objective of assessing and evaluating the effectiveness of the internal audit department of the corporation with a view to determining its relevance in ensuring accountability.
To achieve this, data were collected from two main sources, primary and secondary source.
The primary source provided the main data, which was achieve through appropriate design and Administration of questionnaires to 100 staff and management of Nigeria Railway corporate out of a total population of 953.
Based on the analyses and the test carried out, the following major findings were made.
Arising from the above findings, the following recommendations were suggested in the study
INTRODUCTION
References
References
RESEARCH DESIGN AND METHODOLOGY
CHAPTER FOUR
SUMMARY, RECOMMENDATION AND CONCLUSION
INTRODUCTION
1.1 BACKGROUNF OF THE STUDY
A logical consequence of the inception of limited liabilities form of business in the 117th century for trading and other purpose was the unprecedented need for the stewardship and financial accountability in business. The company form of business and made it possible for the people to invest in a business without engaging in its management.
Further development led to a complete split between management, now recognized in law as the board of directors, and the shareholders who are the owners of the business.
The essence of this development was that the management had the responsibility for putting to use the resources provided by shareholders who owns the business but managed by the directors.
According to Meckling (1976) “whenever one person employs another to perform some tasks on his behalf an agency problem arises as a resourceful, evaluative and maximizing agent will seek to maximize his personal welfare at the expenses of the principal”
The relationship between management and shareholders give rise to an agency problem for example, management can resort to such activities as high consumption of perquisites, shirking, leisure manipulation and other forms of financial abuses.
On the other hand, a resourceful, evaluation and maximizing principal will want a monitoring system designed to ensure that the agent does not in an unholy financial activities.
In a company form of business, the logic of the agency theory dictates the need for a means by which financially to the shareholders. The=is need is met by the preparation of annual reports and account the major part consisting of profit and loss account and the balance sheet of the company by the management
Thus accounting may be seen essential as a monitoring system to ensure the truth from the management. This arrangement has been made compulsory by law and especially section 334 companies and Allied matters Decree 1990 make it compulsory for the directors for companies to prepare financial statement for each year a stewardship function
It is obvious that the story of accountability as narrated by management in the accounts presented to the shareholders could be doubtful to the latter (if not incredible) unless he is assured that there was no financial regularizes fraud and mass –mismanagement or application of funds.
This assurance came to be probity by Audit. Auditing could be defined as the independent examination of and expression of opinion on the financial statement of an enterprise by appointed auditor in pursuance of the appointment and in compliance with any relevant statutory obligation.
During an audit, an independent and competent account throw an investigative “search light” on the financial activities of the company over the period under review and issue a report informing the share holders as to whether the accounts presented to them is a reflection of what happened to the resources put into the business.
This it can be argued that auditing is a logical appendage of the process of accountability in business. The agency problems give rise to accountability, which is incomplete without an audit
An audit assumes accountability through the deterrent effect, the detection of the existing malpractices, errors and fraudulent practices and tendencies.
What has been said so far equally applied to the public sector organization, of which the Nigeria Railway Corporation is being used as a case study.
In a period of economic crisis, the need for financial accountability becomes more produced, with huge government financial investments. This is moreso, considering the habitual financial recklessness to which our public office holders “cant” away meager public resource- the stocking testimonies in the Oputa commission of enquiry is a clear statement of facts.
The question of effective audit as a means of ensuring financial accountability is therefore worth examining in relation to our public sector organizations. However, the nature and the essence of an audit are such that the person performing it (the auditor, internal and external) must be independent. By this, it is meant that the Auditor is impartial, and free from all direct and indirect influencing this will impel his work. According to Wolf (1986), the independence of the auditor is a major attribute enabling him to ensure accountability
Generally speaking, probity and accountability is a product of and is dependent on the existence of efficient and effective auditing system whether internal or external auditing so as to lend creditability to financial statement / reports prepared by those who occupied position of thrust.
The poor performance of our public sector organizations and the near collapse of the public institutions can be rightly attributed to the of effective mechanism for ensuring financial accountability
As slow moving economy, there is a large prepondence of governmental presence in all the facts of the economy in Nigeria. Leakages in public funds are numerous but largely due to the preference for non-accountability and probity
This is further enhanced by the loose mature of regulatory. Mechanism inherent in the public sector. As a result of this, there is light propensity for scrabble of public funds in public corporations without real need to spend them prudently. The rate of misappropriate of funds and corruption in public corporations, with particular reference to the Nigerian Railway Corporate has been on the increase .
Infant, the Nigeria Railway Corporate have failed to encourage and promote the efficient utilization of funds as well as ensuring proper accountability of the large sums released to the corporation for its effective and efficient transportation operations throughout the country.
As a result, financial indiscipline become the order of the day it is the aim of this research to examine the issues of financial accountability in our public sector organizations and see how the duration of these concepts have contributed to the poor performances of the Nigeria Railway corporation and how effective internal auditing can ensure effective and judicious utilization of public funds by blocking loop- holes which could be exploited to cant away meargre public resources.
The research is poised to probity into the financial accountability and probity in our public sector organizations, with particular reference to the Nigeria Railway Corporation, Eastern District, and Enugu.
Specially, the objectives of this study includes:
1.4 RESEARCH QUESTION
The following questions have been selected as a general guide for this research work
1.5 RESEARCH HYPOTHESIS
In view of the problem stated, the hypothesis of this project, which will guide the researcher, his investigation includes:
This work is significant because most of the previous research work on Nigeria Railway Corporation bordered on the matters relating to condition of service, motivation, recruitment, structuring and restricting as well as re-organizations. Much have not been written about financial accountability which is more crucial to the corporation survival
This work would be of immense guide and of practical benefit to financial administration in both public and private sector organizations.
This research work is concerned with financial accountability and the examination of the internal auditor in the public corporation in ensuring probity and accountability. A case study of Nigeria railway corporation, Eastern District, Enugu.
1n carrying out this research, a lot of constraints were encountered which include:
The above factors taking into consideration affected the limiting of the research work to Enugn
It is essential that unfamiliar terms and phrases used purely in the context of this study be expressly defined to ensure proper understanding. Consequently, the following terms are concepts are explained.
1) ACCOUNTABILITY:
The process of rendering an account of stewardship in term of financial resources given or received by a person to perform certain responsibilities.
2) BUDGET:
A planned estimation of revenue and expenditure for a specific period of time
3) BUDGETARY CONTROL
The establishment of budget relating to a function and ensuring that performance (Expenditure) conforms to plan expenditure and calculation of variances for the purpose of tasking appropriate corrective measures.
4) AUDIT
An independent examination of, and expression of opinion on, the financial statement of the enterprises and whether the accounting records shows true and fair view of the enterprise financial position.
5) INTERNAL AUDITING
Internal auditing is an independent appraisal function with an organization for the review of control and the study of programme as a service to the organization
6) DISTRESS
Unhealthy situation or the state of inability or weakness, which prevents the achievement, set goals and aspirations.
7) FRAUD
All acts of dishonest or deceitful, object of which is to deprive sole persons or corporations of property without knowledge or consent of owner.
8) PROBITY
Uprightness, honesty of an account of a firm
New York, DPP LTD.
Ogili (1993) SEMINAR HANDWORK
Oshisanmi (1994) SEMINAR HANDWORK
Download our android mobile app for more materials
ORDER NOW
COMPLETE MATERIAL COST N2,500 Or $10. FRESH PROJECT MATERIAL COST 50,000 NAIRA FOR UNDERGRADUATE, OTHERS 100,000 -200,000 NAIRA.
THE NATURE AND CONSEQUENCES OF JUVENILE DELINQUENCY IN NIGERIA: A STUDY OF ENUGU NORTH LGA, ENUGU STATE
Foreign Transaction For Dollars Payment :
Bank Name: GTBank
Branch Location: Enugu State,Nigeria.
Account Name: Chi E-Concept Int’l
Account Number: 0117780667.
Swift Code: GTBINGLA
Dollar conversion rate for Naira is 175 per dollar.
ATM CARD: YOU CAN ALSO MAKE PAYMENT USING YOUR ATM CARD OR ONLINE TRANSFER. PLEASE CONTACT YOUR BANK SECURITY FOR GUIDE ON HOW TO TRANSFER MONEY TO OTHER BANKS USING YOUR ATM CARD. ATM CARD OR ONLINE BANK TRANSFER IS FASTER FOR QUICK DELIVERY TO YOUR EMAIL . OUR MARKETER WILL RESPOND TO YOU ANY TIME OF THE DAY. WE SUPPORT CBN CASHLESS SOCIETY.
OR
PAY ONLINE USING YOUR ATM CARD. IT IS SECURED AND RELIABLE.
form>DELIVERY PERIOD FOR BANK PAYMENT IS LESS THAN 24 HOURS
CALL OUR CUSTOMERS CARE OKEKE CHIDI C ON : 08074466939,08063386834.
AFTER PAYMENT SEND YOUR PAYMENT DETAILS TO
08074466939 or 08063386834, YOUR PROJECT TITLE YOU WANT US TO SEND TO YOU, AMOUNT PAID, DEPOSITOR NAME, UR EMAIL ADDRESS,PAYMENT DATE. YOU WILL RECEIVE YOUR MATERIAL IN LESS THAN 2 HOURS ONCE WILL CONFIRM YOUR PAYMENT.
WE HAVE SECURITY IN OUR BUSINESS.
PROPOSAL
This study is concerned with the appraisal of the examination role of internal auditor in government owned establishment. A case study of Nigeria Railway Corporate Enugu.
The studies commence with the need for probity and accountabilities in public corporation whose poor performances and near collapse of such institution is linked with financial indiscipline and lack of accountabilities despite the extended of internal audit department in such organization. This assertion gave rise to the question whether internal audit activities of the establishment is effective enough to ensure financial accountability.
With this question in mind, the researcher decide to embark on the present study with the major objective of assessing and evaluating the effectiveness of the internal audit department of the corporation with a view to determining its relevance in ensuring accountability.
To achieve this, data were collected from two main sources, primary and secondary source.
The primary source provided the main data, which was achieve through appropriate design and Administration of questionnaires to 100 staff and management of Nigeria Railway corporate out of a total population of 953.
Based on the analyses and the test carried out, the following major findings were made.
- Poor performance and near collapse of Nigeria Railway Corporation is due to lack of financial discipline which calls for probity and accountabilities.
- The internal audit unit is an important activities in an organization that can ensure financial accountability that can ensure financial accountability.
- The internal audit department of Nigeria Railway Corporation is weak and inefficient and independent of management control.
- The internal audit department is not sufficiently staff with qualified audit person
- Audit staffs are not sent on course training.
Arising from the above findings, the following recommendations were suggested in the study
- Strengthening of the terms of numbers and qualification
- Internal audit report and recommendations should be given prompt and adequate attention by management of the corporations
- Internal audit department should independent reporting system, and should no be subjected to management control. The study concludes that financial indiscipline; errors, fraud and other financial malpractice would be curtailed, minimized or eliminated in an origination with effective internal audit function.
CHAPTER ONE
INTRODUCTION
Background of the study
- Statement of the problem
- Objectives of the study
- Research questions
- Significance of the study
- Scope and limitation of the study
- Definition of term and concepts
References
CHAPTER TWO
LITERATURE REVIEW
- INTRODUCTION
- Definitions and concepts of Accountabilities
- Tools of financial Accountability
- Objectives and purpose of internal Audit
- Perceptions of internal Audit unit
- Internal control system and Accountability
References
CHAPTER THREE
RESEARCH DESIGN AND METHODOLOGY
- Introduction research design and areas of study
- Sources of data
- Population description
- Sample and sampling procedures
- Description of instrument
- Validation of instrument
- Reliability of the instrument
- Method of data presentation
- Method of data Analysis
CHAPTER FOUR
PRESENTATION AND ANALYSIS OF DATA
- Data presentation
- Analysis of data responses from management and staff of Nigeria Railway corporation
- Analysis of responses to research questions
CHAPTER FIVE
SUMMARY, RECOMMENDATION AND CONCLUSION
- Summary of findings
- Implication
- Conclusion
- Recommendations
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUNF OF THE STUDY
A logical consequence of the inception of limited liabilities form of business in the 117th century for trading and other purpose was the unprecedented need for the stewardship and financial accountability in business. The company form of business and made it possible for the people to invest in a business without engaging in its management.
Further development led to a complete split between management, now recognized in law as the board of directors, and the shareholders who are the owners of the business.
The essence of this development was that the management had the responsibility for putting to use the resources provided by shareholders who owns the business but managed by the directors.
According to Meckling (1976) “whenever one person employs another to perform some tasks on his behalf an agency problem arises as a resourceful, evaluative and maximizing agent will seek to maximize his personal welfare at the expenses of the principal”
The relationship between management and shareholders give rise to an agency problem for example, management can resort to such activities as high consumption of perquisites, shirking, leisure manipulation and other forms of financial abuses.
On the other hand, a resourceful, evaluation and maximizing principal will want a monitoring system designed to ensure that the agent does not in an unholy financial activities.
In a company form of business, the logic of the agency theory dictates the need for a means by which financially to the shareholders. The=is need is met by the preparation of annual reports and account the major part consisting of profit and loss account and the balance sheet of the company by the management
Thus accounting may be seen essential as a monitoring system to ensure the truth from the management. This arrangement has been made compulsory by law and especially section 334 companies and Allied matters Decree 1990 make it compulsory for the directors for companies to prepare financial statement for each year a stewardship function
It is obvious that the story of accountability as narrated by management in the accounts presented to the shareholders could be doubtful to the latter (if not incredible) unless he is assured that there was no financial regularizes fraud and mass –mismanagement or application of funds.
This assurance came to be probity by Audit. Auditing could be defined as the independent examination of and expression of opinion on the financial statement of an enterprise by appointed auditor in pursuance of the appointment and in compliance with any relevant statutory obligation.
During an audit, an independent and competent account throw an investigative “search light” on the financial activities of the company over the period under review and issue a report informing the share holders as to whether the accounts presented to them is a reflection of what happened to the resources put into the business.
This it can be argued that auditing is a logical appendage of the process of accountability in business. The agency problems give rise to accountability, which is incomplete without an audit
An audit assumes accountability through the deterrent effect, the detection of the existing malpractices, errors and fraudulent practices and tendencies.
What has been said so far equally applied to the public sector organization, of which the Nigeria Railway Corporation is being used as a case study.
In a period of economic crisis, the need for financial accountability becomes more produced, with huge government financial investments. This is moreso, considering the habitual financial recklessness to which our public office holders “cant” away meager public resource- the stocking testimonies in the Oputa commission of enquiry is a clear statement of facts.
The question of effective audit as a means of ensuring financial accountability is therefore worth examining in relation to our public sector organizations. However, the nature and the essence of an audit are such that the person performing it (the auditor, internal and external) must be independent. By this, it is meant that the Auditor is impartial, and free from all direct and indirect influencing this will impel his work. According to Wolf (1986), the independence of the auditor is a major attribute enabling him to ensure accountability
Generally speaking, probity and accountability is a product of and is dependent on the existence of efficient and effective auditing system whether internal or external auditing so as to lend creditability to financial statement / reports prepared by those who occupied position of thrust.
- STATEMENT OF THE PROBLEM
The poor performance of our public sector organizations and the near collapse of the public institutions can be rightly attributed to the of effective mechanism for ensuring financial accountability
As slow moving economy, there is a large prepondence of governmental presence in all the facts of the economy in Nigeria. Leakages in public funds are numerous but largely due to the preference for non-accountability and probity
This is further enhanced by the loose mature of regulatory. Mechanism inherent in the public sector. As a result of this, there is light propensity for scrabble of public funds in public corporations without real need to spend them prudently. The rate of misappropriate of funds and corruption in public corporations, with particular reference to the Nigerian Railway Corporate has been on the increase .
Infant, the Nigeria Railway Corporate have failed to encourage and promote the efficient utilization of funds as well as ensuring proper accountability of the large sums released to the corporation for its effective and efficient transportation operations throughout the country.
As a result, financial indiscipline become the order of the day it is the aim of this research to examine the issues of financial accountability in our public sector organizations and see how the duration of these concepts have contributed to the poor performances of the Nigeria Railway corporation and how effective internal auditing can ensure effective and judicious utilization of public funds by blocking loop- holes which could be exploited to cant away meargre public resources.
- PURPOSE/OBJECTIVES OF THE STUDY
The research is poised to probity into the financial accountability and probity in our public sector organizations, with particular reference to the Nigeria Railway Corporation, Eastern District, and Enugu.
Specially, the objectives of this study includes:
- To examine the revenue and expenditure profiles of the corporation
- To ascertain whether financial regulations and instructions in carrying out financial transaction in the corporate is adhered strictly to.
- To ascertain whether there is instrument or mechanism for ensuring accountability and probity bys all categories of workers and department of the corporation
- To assess and evaluate the effectiveness the internal audit of the corporate with a view to determining its relevance in ensuring accountability and probity
- To make recommendation as regards the case study.
1.4 RESEARCH QUESTION
The following questions have been selected as a general guide for this research work
- What are the causes of poor performance of the public sector organizations as compared the private sectors.
- Are public officer holders responsive to probity and accountability?
- To what extent has the internal audit department of the Nigeria Railway Corporation ensure financial accountability?
- Are the internal control systems existing in the corporation effective enough to ensure accountability?
- Are the internal auditors truly independent in discharging its economic accountabilities in the Nigeria railway corporation?
- Are funds appropriated or otherwise disbursed been expended and applied judiciously for the purpose for which the grants were made and that the expenditure confirms to the authority which governs it?
- What are the measures necessary to ensure that the auditing of financial statements would ensure proper accountability
1.5 RESEARCH HYPOTHESIS
In view of the problem stated, the hypothesis of this project, which will guide the researcher, his investigation includes:
- Poor performances of public own corporations is not due to absence of probity and accountability
- Internal auditing in the Nigeria railway corporation has been effective enough to ensure probity and accountability
- Ineffectiveness of internal auditing is not due to dependency on management control
- There is no adequate staffing of audit department of the Nigeria railway corporation with qualified Accountants to ensure its effectiveness
- There is adherence to internal control procedures in the Nigeria railway corporation
- SIGNIFICANT OF THE STUDY
This work is significant because most of the previous research work on Nigeria Railway Corporation bordered on the matters relating to condition of service, motivation, recruitment, structuring and restricting as well as re-organizations. Much have not been written about financial accountability which is more crucial to the corporation survival
This work would be of immense guide and of practical benefit to financial administration in both public and private sector organizations.
- SCOPE AND LIMITATION OF THE STUDY
This research work is concerned with financial accountability and the examination of the internal auditor in the public corporation in ensuring probity and accountability. A case study of Nigeria railway corporation, Eastern District, Enugu.
1n carrying out this research, a lot of constraints were encountered which include:
- Unavoidable programme arising from the combination of this project work with other obligations such as office and family programmes.
- Financial constraints as a sizeable amount of money are required for effective project wok. The high cost of living and the recent adjustment in school fees has contributed financially in limiting the scope of this study.
- Un co-operative attitudes of the respondents also hindered the research efforts.
The above factors taking into consideration affected the limiting of the research work to Enugn
- DEFINITION OF TERMS AND CONCEPTS
It is essential that unfamiliar terms and phrases used purely in the context of this study be expressly defined to ensure proper understanding. Consequently, the following terms are concepts are explained.
1) ACCOUNTABILITY:
The process of rendering an account of stewardship in term of financial resources given or received by a person to perform certain responsibilities.
2) BUDGET:
A planned estimation of revenue and expenditure for a specific period of time
3) BUDGETARY CONTROL
The establishment of budget relating to a function and ensuring that performance (Expenditure) conforms to plan expenditure and calculation of variances for the purpose of tasking appropriate corrective measures.
4) AUDIT
An independent examination of, and expression of opinion on, the financial statement of the enterprises and whether the accounting records shows true and fair view of the enterprise financial position.
5) INTERNAL AUDITING
Internal auditing is an independent appraisal function with an organization for the review of control and the study of programme as a service to the organization
6) DISTRESS
Unhealthy situation or the state of inability or weakness, which prevents the achievement, set goals and aspirations.
7) FRAUD
All acts of dishonest or deceitful, object of which is to deprive sole persons or corporations of property without knowledge or consent of owner.
8) PROBITY
Uprightness, honesty of an account of a firm
REFERENCES
MECKLING, J (1976): Accountability in public Life
New York, DPP LTD.
Ogili (1993) SEMINAR HANDWORK
Oshisanmi (1994) SEMINAR HANDWORK
Download our android mobile app for more materials
ORDER NOW
COMPLETE MATERIAL COST N2,500 Or $10. FRESH PROJECT MATERIAL COST 50,000 NAIRA FOR UNDERGRADUATE, OTHERS 100,000 -200,000 NAIRA.
THE NATURE AND CONSEQUENCES OF JUVENILE DELINQUENCY IN NIGERIA: A STUDY OF ENUGU NORTH LGA, ENUGU STATE
MAKE YOUR PAYMENT INTO ANY OF THE FOLLOWING BANKS:
GTBANK
Account Name : Host Link Global Services Ltd
ACCOUNT NUMBER: 0138924237
Account Name : Host Link Global Services Ltd
ACCOUNT NUMBER: 0138924237
First Bank:
Account Name: Chi E-Concept Int’l
Account Name: 3059320631
Account Name: Chi E-Concept Int’l
Account Name: 3059320631
Foreign Transaction For Dollars Payment :
Bank Name: GTBank
Branch Location: Enugu State,Nigeria.
Account Name: Chi E-Concept Int’l
Account Number: 0117780667.
Swift Code: GTBINGLA
Dollar conversion rate for Naira is 175 per dollar.
ATM CARD: YOU CAN ALSO MAKE PAYMENT USING YOUR ATM CARD OR ONLINE TRANSFER. PLEASE CONTACT YOUR BANK SECURITY FOR GUIDE ON HOW TO TRANSFER MONEY TO OTHER BANKS USING YOUR ATM CARD. ATM CARD OR ONLINE BANK TRANSFER IS FASTER FOR QUICK DELIVERY TO YOUR EMAIL . OUR MARKETER WILL RESPOND TO YOU ANY TIME OF THE DAY. WE SUPPORT CBN CASHLESS SOCIETY.
OR
PAY ONLINE USING YOUR ATM CARD. IT IS SECURED AND RELIABLE.
form>DELIVERY PERIOD FOR BANK PAYMENT IS LESS THAN 24 HOURS
CALL OUR CUSTOMERS CARE OKEKE CHIDI C ON : 08074466939,08063386834.
AFTER PAYMENT SEND YOUR PAYMENT DETAILS TO
08074466939 or 08063386834, YOUR PROJECT TITLE YOU WANT US TO SEND TO YOU, AMOUNT PAID, DEPOSITOR NAME, UR EMAIL ADDRESS,PAYMENT DATE. YOU WILL RECEIVE YOUR MATERIAL IN LESS THAN 2 HOURS ONCE WILL CONFIRM YOUR PAYMENT.
WE HAVE SECURITY IN OUR BUSINESS.
Comments
Post a Comment