ATTENTION:
BEFORE YOU READ THE CHAPTER ONE 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: 08068231953,
08168759420
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
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 assetsof 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
systemkeeping 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 systemdoes 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
proceduredoes 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 generallyaccepted 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
08068231953 or 08168759420
(1) Your project topics
(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.
FOR MORE INFORMATION, CALL:
08068231953 or 08168759420
AFFILIATE LINKS:
myeasyproject.com.ng
easyprojectmaterials.com
easyprojectmaterials.net.ng
easyprojectsmaterials.net.ng
easyprojectsmaterial.net.ng
easyprojectmaterial.net.ng
projectmaterials.com.ng
googleprojectsng.blogspot.com
myprojectsng.blogspot.com.ng
https://projectmaterialsng.blogspot.com.ng/
Comments
Post a Comment