ABSTRACT
The
study focused on the “Challenges and Prospects of Internal Audit in Diamond
Bank PLC. The main purpose of this study is to determine the challenges and
prospects of internal auditors in Nigerian Banks. This work made use of two
specific objective, two research question and also two hypotheses. The study
conducted a survey research design .Questionnaires was self-distributed among
the senior managers and auditors. The population was made up of eight (8)
senior managers and internal auditors in Diamond Bank PLC. Simple percentage
and T-test were used to run my data analysis ,the finding is that internal
auditing as a profession faces significant challenges that makes them not to
have enthusiasm towards their profession. From the study, the following recommendations
were made: Management should have quality technology and materials available
for internal auditors. Management should
provide training ground for internal auditors.
CHAPTER ONE
INTRODUCTION
1.1
Background to the Study
It is said that finance is the mainstay of an economy
without finance there will be no investment and capital to start up a business
and also no meaningful development could be done without finance and proper
management, as a result of that diamond bank has a system of control which
ensures smooth running of their bank of which internal auditing is an integral
part.
Internal auditing ensures that all activities of the
organization are carried out employee according to laid down procedures, the
introduction of new technologies e.g. the invention of computerized internal
audit system which posed challenges to the internal audit system and internal
audit staff and their duties the prospect of this challenges is to update their
knowledge and adjust to the current practice and also to overcome those
challenges in the face of manipulation and also to perpetrate fraud is
desirable, more so the requirement of new auditing standards will make staff of internal audit
to update their knowledge and adjust to the current practice. Auditing is a key
factor in controlling every kind of organization with financial and economic
aspect serve as a sort of check and balances and administrative procedure of
any organizational set up.
The need to maintain effective and efficient
internal audit system, cannot be over emphasized especially in a period like
this, when Nigeria government is making effort towards ensuring that wastage,
privilege, misappropriation and checked or avoided to ensure that asset are
being secured.
As one of the cornerstone of a career in accounting
internal auditor gives strong understanding of the financial faces and processes,
many may view it as a mundane and repetitive job but what they do not realize
is the challenges and complexity that comes with job which are: shortage of
talent, distinguishing yourself from the crowd, developing your career and
market outlook.
Diamond bank plc as a private ltd liability company
on March 21 1991 was incorporated on December 20 1990.Ten years later, in February
2001 it became a universal bank. In January 2005 following a highly successful
private placement share offer which substantially raised the bank equity base
diamond bank became a public LTD company. Since then 1990, diamond bank has
challenged the market environment by introducing and setting new bench mark
through international standard.
They bank also have a strong cooperate banking
ethics that is helping fuel the growth across Nigeria through supporting many businesses.
It serves over 150000 business including cooperate client as well as Micro
Small and Medium Scale (MSME).it is also the first Nigerian bank to operate in
francophone west Africa
The Carlyle group, the global alternative asset
manager became a significant share holder in November 2014 following its 1.47
investment in bank. The auditor came across many challenges while carrying out
their duties but with some prospect that can be able to carry out their duties
effectively and efficiently.
1.2
Statement of problem:
Robert
(2016) observed that there are several big challenges facing the internal audit
as a whole some of them represent opportunities as well as obstacles to
overcome. The difficulty in filling internal audit positions with talented
candidates for example has led to increase in pay to many internal auditors the
internal auditors perform their duties successfully also enhance good internal
audit control as well as maintain some standard of good services which their
client have engaged their services, there is need for utilization of effective
management functions, However this internal auditors face some challenges while
carrying out their duties such a Robert 2016 noted this challenges.
Proper document are not given to them on time.
They are not adequately equipped.
lack of requisite system
inability
to adequately recommend and establish production method
It should be noted that a lot of studies have been
conducted on the challenges of internal auditors in diamond bank as a whole but
It is hoped that this study will contribute to debate and perhaps shed further
light on the impact of reducing the challenges audit faces in diamond bank so
as to make the working environment conducive for them while carrying out their
duties and also to reduce the challenges auditors faces while carrying out
their duties in an efficient and orderly manner.
1.3 Objectives of the Study:
The main objective of this study is to find out the
challenges and prospect of internal audit in Nigerian banks. The specific
objectives are to ascertain the challenges faced by internal auditors in
Nigerian Banks. To ascertain the prospect of internal audit in Nigerian Banks.
1.4 Research Question
What are the challenges faced by internal auditors
in Nigerian Banks.
What are the prospect of internal audit in Nigerian
Bank comply with banks complies with bank management policies and regulation.
1.5
Research Hypotheses:
H0 There is no significant challenges faced by
internal auditor in Nigerian Banks.
H1 There is significant challenges faced by internal
auditor in Nigerian Banks
H0 There is no significant prospect of internal
audit in Nigerian Banks
H1 There is significant prospect of internal audit in
Nigerian Banks
1.6
Significance of the Study:
They significance of the study form the contribution
it will add to knowledge on the often debated topic of evaluation challenges
and prospect of internal audit. This work will be of great benefit to:
Researchers and student:
because it reveals the relevance of auditors and for student it also
contributes significantly to the internal auditing debate.
Auditors:
it will be useful to auditors because it tells them about their challenges and
how to face them and also prospect toward them carrying their duties.
Management
of Banks: the study is to help management appreciate auditors
and understand the challenges the face in carrying out their duties, so also to
provide prospect for auditors so that they can help to improve audit facilities
or technology and so that they will make
the work enjoyable and they wouldn’t want to risk losing billions of money.
Government:
agencies, companies, bankers researchers student who might be interested in
knowing about the concept challenges and prospect of internal auditors it will
cover the whole aspect of internal audit the objectives, types, reliance and
prospect etc this huge amount of information will be an indispensable material
to the above mentioned beneficiaries.
Public:It
will also help the public in the sense that they will able to know the statues
of the company so that they can make decision on either to invest in the
company or not so as to avoid risk.
1.7 Scope of the Study:
It was the wish of the researcher to cover many
areas of the banking sector but for the purpose of this study the researcher is
only restricted to the role of auditors in detection, prevention and control of
fraud in banking sector with the case study of diamond bank plc.
1.8
Limitations of the Study:
The researcher encountered a lot of hindrances and
problems while carrying out this work. The major limitation was pressure of
time in terms of academic work and demand of the research. The researcher was
combining academic work with activities relating the research. Finance to
source relevant materials was also a major hindrance. However these problems
did not affect the quality of the research
1.9
Definition of Terms:
Auditor: An auditor is a person usually professional, appointed by banks to audit
its financial statement and therefore make an opinion on the truth and fairness
of the financial statement Auditor in this study refers to the internal
auditors
Bank:
A organization or place that provide financial services Bank in this work
refers to as diamond bank
Financial
Statement: This is a form of annual report and accounts that
includes a statement of comprehensive income and loss, statement of financial
position and also other statement including directors report and cash flow
statement, finance statement in this work refers bank financial statement.
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Item Type: Project Material | Attribute: 44 pages | Chapters: 1-5
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