THE EFFECT OF INTERNAL AUDIT IN AN ORGANIZATION (A CASE STUDY OF UNIVERSITY OF ILORIN TEACHING HOSPITAL ILORIN)
TABLE OF CONTENTS
Title page i
Certification ii
Dedication iii
Acknowledgement iv
Table of content vi
CHAPTER ONE
1.0 INTRODUCTION
1.1 Background of the study
1.2 Problems of the study
1.3 Aims of the study
1.4 Scope of the study
1.5 Organization of the study
CHAPTER TWO
2.0 LITERATURE REVIEW
2.1 Internal review
2.2 Function of internal audit
2.3 Internal control and accounting procedure
2.4 Internal auditing as an aid to management
2.5 Comparization of internal audit department
2.6 Comparism with external auditor
2.7 Investigation of internal auditor
2.8 Internal audits report
CHAPTER THREE
3.0 RESEARCH METHODOLOGY
3.1 Historical background of the case study
3.2 Source of data
3.3 Data analysis techniques
3.4 The organization of the internal audit department of the case study
3.5 Limitation of the study
CHAPTER FOUR
4.0 PRESENTATION AND ANALYSIS OF THE SYSTEM CONTROL IN UITH
4.1 Data presentation
4.2 Data analysis
4.3 Testing of hypothesis
4.4 Findings
4.5 Control on cash office
4.6 Internal sources of revenue
4.7 The major unit of audit department
4.8 External auditor
4.9 The report
CHAPTER FIVE
5.0 SUMMARY CONCLUSION AND RECOMMENDATION
5.1 Summary
5.2 Conclusion
5.3 Recommendation
References.
CHAPTER ONE
1.0 INTRODUCTION O THE STUDY
1.1 BACKGROUND OF THE STUDY
Internal auditor constitutes parts of the structure of the internal control system, which function as a check in other work in and organization.
The internal auditors enjoy some measures of independence from organizations operating personal for the fact that they make report, the chief executive of an organization to whom they are responsible.
The external auditor is certified that the activities of the internal auditor is assured of the reliability of accounting records, he can substantially limit amount of checking’s he has to do.
He may decide, for instance, to adopt the figure to stock on the balance sheet if he is satisfied that the internal auditor conducts a continuous check on the stock record. It has to be noted that wherever reliance the external auditors, it is done at is own risk.
Therefore, if anything goes wrong, he cannot escape the liability merely because he relied on internal auditor, the internal auditor is more intimately associated with the operation on the external auditors as to area that requires a particular attention.
Once the internal auditor departments has created its term of reference to carryout internal audit work without objection and recitation from those responsibilities. The work of internal audit is not easy, because it work is concerned with inspection apart from other control system and people normally resent being inspected.
1.2 PROBLEM FACING THE INTERNAL AUDIT DEPARTMENT IN (UITH) UNIVERSITY OF ILORIN TEACHING HOSPITAL
Present point of view of challenges facing the internal audit department in UITH, the deficiencies in corporate government revealed buy the financial crisis, the new compliance requirement and achieving a balance between the internal audit control departments.
Enterprise risk management (ERM).
TOP FIVE CHALLENGES FACING THE CASE STUDY
1 Realigning skills to address new requirement of the audit department in UITH
2 Aligning internal audit coverage new requirement of the case study.
3 Maintaining stature with the audit committee in UITH
4 Maintaining a focus to prevent and detect fraud in audit department
5 Addressing internal auditing role in assessing risk management.
Is clear from the explanation given that the internal audit is a responsibility job.
Infarct, its involves contacting the staff of the department for expert advise, which requires qualified skill and experience staff of the department for expert advice, which required qualified skill and experience staff, for internal audit department to function effectively it has to be adhere adequate staff with skill officers and provide necessary infrastructure.
1.3 AIMS OF THE STUDY
The study is intended to establish the importance of role of internal auditors in an organization in terms of internal control and to ensure compliance with plans and polices of an organization
The study is further means to highlight the function of auditor and its relations with account and other department in and organization
1.4 SCOPE OF STUDY
The case of study is very important to an organization especially to the university of Ilorin Teaching Hospital management in term of internal control and to attain corrective actions where necessary.
The study covers the internal audit as it affects the following sections
A. Salary section
B. Expenditure section
C. Revenue section
D. Purchase and supplies section
E. Final account section
F. Cash office
The study goes further to cover the procedures for the payment of suppliers and contractors in this organization as it affect the internal control system.
1.5 ORGANIZATION OF STUDY
This project is broken down into five (5) chapters, which comprises
Chapter one: - Introduction of study and scope of study.
Chapter two: - Contains the literature review of the internal control system.
Chapter three: Deals with research methodologies, which involve sources of data, data collection methods and analysis techniques, history of university of Ilorin teaching hospital and its organization chart.
Chapter four: - The summary of the role of internal auditor in a organization finally
Chapter five: Contains the summary conclusion and recommendations for improvement of internal audit efficiency.
CHAPTER TWO
2.0 LITERATURE REVIEW
2.1 INTERNAL AUDITOR DEFINITION
According to (2010) internal auditor is an employee of a company’s financial and operation business activities including its corporate governance?
Internal auditors also provide evaluation of operational efficiencies and will usually report to the high’s level management in how to improve the overall structures and practice of a company.
Okolo J.U.T (1978) said, the first point one should note about the internal auditor is its purely voluntary internal audit is not required by any low as the case with statutory or external audit with regard to limited liability Company’s for example
The second point in the question of the power and authority of the external auditor. Authority to look into any records what so ever of the company and to require the official to give him any information he needs
Then power and the authority of the internal auditor depend on the management and the level of the internal auditor in the management structure.
If for instance, are in some cases the internal auditor is part and parcel of the chief accounting officer, it is unlikely that he would be able to see any document the chief accounting officer does not want him to see.
Also is unlikely that having its own interest heart, be would write any report unfavourable to his boss i.e. the chief accounting officer for and internal auditor to be effective, he should be on highest level of management reporting directly to the general management and to the board of directors he should be of equal rank at least with the chief accounting officer and other divisional heads, and have authority to require that to provide him with records and information relating to the affairs of there respective divisions.
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