THE EFFECT OF INTERAL AUDIT ON THE-PERFORMANCE-OF-PRIVATE-FIRMS (A STUDY OF ANAMBRA MOTOR MANUFACTURING COMPANY)
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THE EFFECT OF INTERAL AUDIT ON
THE-PERFORMANCE-OF-PRIVATE-FIRMS (A STUDY OF ANAMBRA MOTOR MANUFACTURING
COMPANY)
CHAPTER ONE
INTRODUCTION
1.1.
Background of the Study
Internal
audit is a management tool used in ensuring transparency in conduct of
business. Auditing took the entire stage after the industrial revolution since
before this period, transactions increased, precipitated by the development of
large corporations, limited liability companies, there became the need for
divorce of ownership from control. Hence mangers and shareholders became two
different partners. Then it became apparent for mangers to render accounts of
their stewardship to those who has pooled their resources together for the
business .it is noteworthy that an independent person be appointed to represent
the interest of the shareholders in reviewing the report of mangers to ensure
accuracy and transparency. This is how auditing started.
We have two
types of sectors. Public and Private sectors. Public sector is the governments
initiate and control in economic activities with the aim of rendering services
at a breakeven point.
The private
sector is the private initiative aimed at profit/wealth maximization for the
owners Mill champ (1996) defines internal audit as an independent appraisal
function within an organization for the review of system of control and the
quality of review of systems of control and the quality of performance as a
service to the organization.
The papers
seek to empirical and statistically ascertain the impact of the internal audit
in the private sector of the Nigerian economy, while the private sector of the
economy is studied at large; the case study MB ANAMCO Ltd, Emene, Enugu is
particularized.
1.2. Statement of the Problem
The private
sector according to Anyanwu (1993; 25) is that part of the economy not under
direct government control. It entails production and distribution that is in
private hands. It serves as a complement to the public sector since increased
public sector efficiency results from improvements and places government in a
better position to focus on the objectives, conduct and performance of those
enterprises that remain in the public sector (Hamming and Mansoor 1987).
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