THE EFFECT OF INTERNAL AUDIT ON THE PERFORMANCE OF PRIVATE FIRMS (A STUDY OF ANAMBRA MOTOR MANUFACTURING COMPANY)
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THE
EFFECT OF INTERNAL 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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