ABSTRACT
Nigeria emerged from colonial rule
with little technological know-how. This attributed to the fact that the
colonial masters made no attempt at laying foundation for acquisition of the
know-how required to build the economy. Despite this, the Nigerian economy has
greatly evolved and is now termed the fastest growing economy in Africa. This
is due the fact that they have developed skills and procedures so that
businesses and organizations can prosper. Inn relation to banks, before the
2005 consolidation exercise so many individual had little or no faith at all in
these financial institutions as some kept on folding out. How ever the
consolidation process endorsed by the Central Bank of Nigeria was see and
considered a savior to the economy. The banks later developed schemes and
strategies to grow and face their competitors without crumbling; one of such
schemes being the thorough function of the internal auditing department. This
research reviews the roles and functions played by the internal audit
department in organizations. It is therefore unavoidable to talk of the role of
the internal audit department without relating to the views of the staff who
work in such a department in any organization. Three firms in the same industry
(the banking industry were thus selected) and questionnaires were issued to the
members of staff working in this department. This project therefore focused on
the importance of the existence of an Internal Auditing Department in any
organization. It high lights some problems faced by banks and how the IAD could
assist them in combating these problems
Chapter three dwelt on the
research methodology employed in the study. I discussed the various sources
data used, the sample from which information was sought and the reasonability
of using such samples. Chapter four provide presentation and analysis of data
collected and testing of research hypothesis. Finally Chapter five summarized
the findings of the research and offers recommendations and conclusion.
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
Through out the past decade,
Nigeria has witnessed a rise and fall in several businesses. The businesses or
organizations which are still in existence and experiencing growth set up
structures and practices of boards so as to monitor the performance of the
organizations. This is done so as to impress the shareholders of the various
businesses and attract new investors.
The companies or establishments
which did not make it could have suffered from one problem or another. The most
prominent one which can not be ignored is that of fraud. This alone has caused
a lot of damage in the financial markets and the entire economy has been
plunged into a terrible crises. The fall of a company like Enron in the United
States of America caused an up rise and raised so many eyebrows hence leading
to a sagging investor’s confidence.
On the other hand, there are
some organizations growing in strength. One of the factors that could
contribute to the steady growth of companies is the setting up of an Internal
Auditing Department. As fraudulent financial reporting and restatements of
earnings have become more prevalent, auditing (be it external, internal or
governmental audits) has become more important. So to monitor the procedures
and adherence to principles to an organization, internal auditing could be looked upon as a key. A
typical example is seen in the case of World com, (a financial establishment in
United States of America) when Cynthia Cooper (Vice President of the internal
auditing team) and her staff unveiled several auditing practices which were not
in line with the Generally Accepted Accounting Principles (GAAP). In carrying
out this audit, it was discovered that for previous two years, $3.8 billion in
cost had been capitalized rather than expensed. This announcement was made in
June 2002.
Pinero
(2001), in his paper presented at a workshop for internal auditors stated that
“the prime objective if the Internal Auditing Department (IAD) in any bank is
to evaluate whether the bank’s framework of risk management, internal control
and corporate governance processes are adequate and functioning properly and
carried out throughout the year. He added that the objective of the internal
auditing department (IAD) includes suggesting and recommending the management
for improvement in internal control and risk mitigating factors. Internal audit
services provided by the IAD therefore exist to add value to the organization,
to concentrate on the key risks, to evaluate and assess the Internal Control
System (ICS) and contribute to the proper economic, efficient and effective use
of resources in banks and other organizations (Miten Keynes Council,2002). As
such the IADs of Oceanic bank plc, UBA plc and First bank plc could be looked
up to as monitors in their various organizations as they check the risks and
ICS of the organizations. Therefore internal auditors in Nigeria, in carrying
out their function and roles judiciously could as well save a company or
organization from a fall......
================================================================
Item Type: Project Material | Attribute: 80 pages | Chapters: 1-5
Format: MS Word | Price: N3,000 | Delivery: Within 30Mins.
================================================================
No comments:
Post a Comment