ATTENTION:
BEFORE YOU READ THE CHAPTER ONE/ABSTRACT OF THE PROJECT TOPIC
BELOW, PLEASE READ THE INFORMATION BELOW.THANK YOU!
INFORMATION:
YOU CAN GET THE COMPLETE PROJECT OF THE TOPIC BELOW. THE FULL
PROJECT COSTS N5,000 ONLY.
THE FULL INFORMATION ON HOW TO PAY AND GET THE COMPLETE PROJECT
IS AT THE BOTTOM OF THIS PAGE. OR YOU CAN CALL: 08137701720
AUDITING PROCEDURE AND INTERNAL
CONTROL SYSTEM {A case Study of Union Bank of Nigeria Plc}
ABSTRACT
This
research study has examined all possible areas of the study was conducted on
Auditing procedure and internal control system with reference to Union Bank of
Nigeria Plc. However, the areas where the research revolves around are not
limited to the scope of the study. Audition procedure and internal
control system is very important in every organization to identify the
loopholes and lapses to proffer lasting solution. Data was analyzed using
descriptive and chi-square statistics for test of hypotheses. The five
point likert scale will be used analyze the data for the study. The
research questions will be analyzed using the percentage analysis. For
hypotheses testing, chi-square statistics will be used to test the individual
hypothesis formulated. Its also important to posit that internal audit
ensure detention of financial fraud and irregularities. In the course of the
research work, its discovered that organization with effective internal audit
system are more likely to affect fraud than organizations with no such system
and function. Adequate internal audit system must be established in the
organization to ensure that activities of the organization are carried out
effectively and should be provision of adequate training programme to the staff
of Lagos State University. Also, qualified and competent staff should be
employed in other to ensure efficient operation.
TABLE
OF CONTENT
PAGE
TITLE
PAGE
I
CERTIFICATE
II
DEDICATION
III
ACKNOWLEDGEMENT
IV
ABSTRACT V
ABSTRACT V
TABLE
OF CONTENT
VI-VII
CHAPTER
ONE: INTRODUCTION
1.1
BACKGROUND TO THE STUDY
1
1.2
STATEMENT OF
PROBLEMS
3
1.3
OBJECTIVE OF
STUDY
5
1.4
RESEARCH
QUESTIONS
6
1.5
SIGNIFICANCE OF THE
STUDY
6
1.6
RESEARCH
HYPOTHESES
7
1.7
SCOPE AND LIMITATION OF THE
STUDY
8
1.8
DEFINITION OF
TERMS
8
REFERENCE
10
CHAPTER
TWO: REVIEW OF RELATED LITERATURE
2.1
INTRODUCTION
11
2.2
HISTORICAL DEVELOPMENT OF
AUDITING
11
2.3
HISTORICAL DEVELOPMENT OF INTERNAL
AUDITING 13
2.4
DEFINITION/MEANING OF AUDITING AND INTERNAL CONTROL
SYSTEM
15
2.2
INTERNAL CONTROL
SYSTEM
17
2.5
PURPOSE OF INTERNAL CONTROL
SYSTEM
19
2.6
OBJECTIVE AND SCOPE OF INTERNAL CONTROL
SYSTEM
21
2.7
AN OVERVIEW OF UNION BANK OF
NIGERIA
22
2.8
EVALUATION
25
2.9
VERIFICATION
26
2.10
COMPLIANCE
28
2.11
PROFESSIONAL QUALIFICATION AND QUALITIES
AND
AUDITOR
29
2.12
THE POSITION OF THE INTERNAL COMPANY
ORGANIZATION
31
2.13
AUTHORITY
31
2.14
RESPONSIBILITY
32
2.15
INDEPENDENCE
33
2.16
MEASURING THE IMPORTANT OF AN INTERNAL
AUDITOR
33
2.17
INTERNAL AUDIT
REPORTS
34
REFERENCE
36
CHAPTER
THREE: RESEARCH METHODOLOGY
3.0
INTRODUCTION
37
3.1
RESEARCH DESIGN
37
3.2
RE-STATEMENT OF RESEARCH
QUESTIONS
38
3.3
RESEARCH
HYPOTHESES
38
3.4
POPULATION OF THE
STUDY
39
3.5
SAMPLE AND SAMPLING
TECHNIQUES
39
3.6
RESEARCH
INSTRUMENTS
40
3.7
VALIDATION OF THE INSTRUMENT
40
3.8
RELIBILITY OF THE
INSTRUMENT
40
3.9
METHOD OF DATA
ANALYSIS
41
REFERENCE
42
CHAPTER
FOUR: DATA PRESENTATION, ANALYSIS AND INTERPRETATION
4.1
INTRODUCTION
43
4.2
SUMMARY OF SOCIO-DEMOGRAPHIC
CHARACTERISTICS
43
4.3
SECTION B; INTERNAL CONTROL
EFFECTIVENESS
60
4.4
TESTING AND ANALYSIS OF HYPOTHESIS
61
CHAPTER
FIVE: SUMMARY, CONCLUSIONS AND RECOMMEDATIONS
5.1
SUMMARY OF
FINDINGS
65
5.2
CONCLUSIONS
66
5.3
RECOMMENDATIONS
67
5.4
SUGGESTION FOR FURTHER
STUDIES
68
QUESTIONNAIRE
69
CHAPTER
ONE
INTRODUCTION
1.2
BACKGROUND TO THE STUDY
An
audit involves the independent examination of an expression person in
accordance with the terms of engagement and the observance of statutory
regulations and professional requirement (Okolie, 2008). According to
Milichamp (2003) the primary objective of an audit is to produce a report by
the auditor of his opinion of the truth and fairness of financial statement, so
that any person reading and using them can have belief in them.
Corporate
management is a genetic term used to describe the way by which big and
established companies with large networks are controlled of the purpose of
achieving set goals. Management is a universally acceptable and necessary
concept irrespective of whether or not an organization exists to make profit.
It takes place at all levels in an organization and easy manager performs
essentially the same function whether he belongs to top or middle or first line
management. The difference lies in magnitude of the task and the scope
and degree of the authority. American Institute of Certified Public
Accountant, Chicago clearing House (1982) defined management as a process by
which scarce resources are combined to achieve given objective. It refers
to the people that carry out the activities that are the manager.
Put
different by Alter (1996), management may be described as the achievement of
organization goals through people and after resources. The Manager’s job
is to combined and co-ordinate human, material and technical resources in the
best way to achieve these goals. Managers may not be directly involved in
production; they produce to achieve the organization’s set goals.
Management indeed is a critical ingredient in the five MS. Management,
manpower, machinery, money and materials; which are the basic resources of any
organization.
Corporate
management has become complex in recent times. The emphasis on
decentralization, increasing use of delegation of authority and even in volume
of trade has made the art of management so complex and intriguing that only managers
who master the modern scientific method of management can cope with the
increasing demands scientific method of management can cope with the increasing
demand required by the poison. To asses the complexity of the art of
management, in the current increasing wake of business fraud, embezzlement and
the cash squeezes which has crippled many companies because of the Structural
Adjustment Programmes (SAP) and its attended foreign exchange and raw materials
security.
In
order to cope with the current situation and keep their business profitable,
management has to look more inwardly, to increase the profitability of the
company and to keep the overall activity of the company under control.
This can only be achieve through good effective internal control system of
which internal auditing is a major problems and performance of every department
in the company.
As
representative of top management, the internal auditor is interested in
determining whether each branch or department has a clear understanding of its
assignment whether it is adequately stated, maintains good records, protects
cash and inventories and other assets properly, co-operates with other
departments and in general carries out effectively the functions provided for
it in the overall plan and organization of the business.
1.2
STATEMENT OF PROBLEMS
The
researcher is disturbed by various problems faced by an internal control system
in an organization. Some of the problems include:
-
Suppression of information of middle management
-
Delegation of authority
-
Non compliance with laid down accounting procedure
-
Incomplete records
The
study considered the needs for a system to ensure the physical assets of a
proper management.
Above
all, internal audit department should be created and charges with the
responsibility for monitoring, evaluating and reviewing the system of internal
control. This department, however, is faced with the problem of awareness and
growth. It is only very few staff that know essence and usefulness of this.
Department to the organization in which it operates. Some workers hold it
behind them.
Failure
to institute good control measures that act across the area of business would
make it impossible for the company to detect immediately any abnormality. Fraud
and errors committed in the course also encourage collusion of few staffs in
perpetrating frauds and side tracking normal work procedure.
Effectively,
internal audit improve employee skills, morale and knowledge while otherwise
could resist in laziness and irresponsibility of staff. Also improper
accounting information and reports could lead to poor financial position of an
enterprise if there is no adequate financial data.
Since
management can only be ensured through delegation of authority, it is only
through a good internal audit system that the top management can determine the
degree of compliance to delegation authority.
This
system of appraisal and reviews needs to make sure that all delegation duties
are being carried out effective and also that the policies and procedures of
the company are being adhered to. Recession has led to the laying off of
workers and this led to job combination. Too much workload by individual
workers leads to various forms of errors and mistakes. It is the internal
control that will check on errors of recording whether the errors were internal
or not.
Finally,
this study therefore investigate internal audit: An aid to management decision
with a case study of Union Bank of Nigeria (UBN).
1.3
OBJECTIVE OF STUDY
The
primary purpose of this study is to:
-
To ensure efficient assets and liabilities management.
-
To under score the importance of internal control as a way of encouraging
efficient performance through adherents to lay down organization procedure and
accuracy of record.
The
basic responsibilities of management are to safeguard assets, to be efficient
in operation and also to produce reliable financial records. Management
delegates some of these supervisors’ responsibility to the internal audit
department and the major function of this department is to help management in
performing its duties.
(i)
It helps the management of an organization to achieve some organization goals
which include sound and adequate internal system and efficiency in other system
of the organization among others.
(ii)
Management is responsible for the establishment of adequate accounting and internal
control system.
(iii)
Internal control system is assigned specific responsibility for reviewing the
design of the system, monitoring their operation and recommending improvement.
(iv)
It’ helps to identify the problems and prospect of internal system.
1.4
RESEARCH QUESTIONS
In
the light of the problems under investigation, the flowering research questions
were raised to facilitate empirical enquiry.
1.
Will internal control system give
confidence to management on its activities?
2.
Does auditing procedure point out
material errors and frauds?
3.
Does internal control system help
management to keep proper control of its activities and responsibility?
4.
Will internal procedure make fraud
and embezzlement less possible?
5.
Is internal system keeping records
of transaction and safeguards assets and liabilities?
1.5
SIGNIFICANCE OF THE STUDY
The
research work will serve as an individual document for students, business
executives, middle level management staff and other people. The result of the
study will also be very essential to all government offices that are presently
witnessing large-scale misappropriation of funds, fraud and poor
accountability.
Although
several studies have been conducted on internal audit as an aid to management
decision, it is disappointing after a review of literature to report that very
little has been achieved in checking fraud in most organizations.
This
may be as a result of some of the earlier identified problems. Therefore, the
present study serve as an eye opener to some of the top management authorities
to correct all the identified problems areas.
1.6
RESEARCH HYPOTHESES
In
accordance with the research questions the following hypotheses were postulated
and tested.
1.
H0: Internal control system does not help management
keep proper control of its activities and responsibilities.
H1:
Internal control system helps management keep proper control of its activities
and responsibilities.
2.
H0: Internal procedure does not make fraud and
embezzlement less possible.
H1:
Internal procedure makes fraud and embezzlement less possible
3.
H0: Internal control system does not give confidence to
management on its activities.
H1:
Internal control system gives confidence to management on its activities.
4.
H0: Internal system does not keep records of
transactions and safeguard assets and liabilities.
H1:
Internal system keeps records of transactions and safeguard assets and
liabilities
5.
Ho: Internal procedure does not point out material errors and
frauds.
H1:
Internal procedure does not point out material errors and frauds.
1.7
SCOPE AND LIMITATION OF THE STUDY
This
study only tries to point out the benefits of internal audit to management.
Internal
audit is a component of internal control system; but as already stated this
study is not going to review the internal control system in general, the study
will not concern itself with procedure programmes and the general audit
functions, since it does not intend to audit the organization. This scope of
this study will not extend to the part of internal control system that involved
internal audit.
The
study was limited to Union Bank of Nigeria (UBN) within Lagos metropolis and
could be generalized to all the Union Bank of Nigeria all over the country.
The
major constraint witnessed/encountered in the study is solely on the official
releases of Union Bank of Nigeria Annual report of CBN and NDIC deposit
insurance corporation journals.
1.8
DEFINITION OF TERMS
The
following terms which have been adopted for this study are operationally
defined below:
1.
Aid:
to help or something that help
2.
Audit:
the process of verifying accounting
records by an accountant (to a third party) to ensure that the accountants,
truly represent the state of affairs a financial audit can be described as a
systematic examination of the financial statements, records and related
operations to determine adherence to generally accepted accounting principles
management policies and statement.
3.
Auditing: Auditing in the broads form may be defined as a critical
investigation to arrive at sound conclusions about accounting for the financial
and operating aspect of an economic organization.
4.
Audit
Report; A report replaced by an accountant
which specially must be attached to every income statement and balance sheet
prepared by members of a registered company.
5.
Control: the exercise in the present to achieve a plan
previously drawn up for the future.
6.
Fraud: Deceit, imposture, a share.
7.
Interest
Audit: The ICAN defined it as a review of
operations and records sometimes continuously undertaken with a business by
specifically assign staff it involves encouragement and monitoring of
compliances.
8.
Internal
Control: It
is defined as comprising of all plan of organization and all the coordinated
methods and measures. Adopted within a business to safeguard its assets, check
the accuracy of its accounting data promoted operational efficiency and
encourage adherence to prescribed management policies.
9.
Management:
the act of managing, directing or of
using anything, skillful treatment of a body of managers.
It
is people utilization of available resources within the framework of
appropriate legal and moral standards for the maximum achievement of goals and
objectives.
HOW
TO GET THE FULL PROJECT WORK
PLEASE, print the following instructions and information if you
will like to order/buy our complete written material(s).
HOW TO RECEIVE PROJECT MATERIAL(S)
After paying the appropriate amount (#5,000) into our bank Account
below, send the following information to 08137701720
(1) Your project topic
(2) Email Address
(3) Payment Name
(4) Teller Number
We will send your material(s) after we receive bank alert
BANK ACCOUNTS
Account Name: AMUTAH DANIEL CHUKWUDI
Account Number: 0046579864
Bank: GTBank.
OR
Account Name: AMUTAH DANIEL CHUKWUDI
Account Number: 2023350498
Bank: UBA.
NOTE:
YOU CAN ALSO MAKE A TRANSFER PAYMENT
FOR MORE INFORMATION, CALL:
08137701720AFFILIATE LINKS:
Comments
Post a Comment