THE ROLE OF INTERNAL AUDITORS IN AN ORGANIZATION AS AN INTERNAL CONTROL IN ENSURING COMPLIANCE WITH PLANS AND POLICIES OF AN ORGANIZATION
TABLE OF CONTENTS
Title page i
Table of content vi
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
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
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
4.0 Presentation and analysis of the system control in uith
4.1 Data presentation
4.2 Data analysis
4.3 Testing of hypothesis
4.5 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
5.0 Summary conclusion and recommendation
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 department.
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.
summary, conclusion and recommendation
the research makes a critical study of the need for internal audit in an organization, a case study of university teaching hospital ilorin. The researcher made use of the questionnaire aimed at finding solution to some research question regarding staff welfare and accountability.
Related literature on internal audit was reviewed to give different opinion on the subject matters this lends credence to the very need to establish an internal audit for effectives monitoring of the internal control system. However other information lifted from quarterly reports bulleting journals and other university of ilorin teaching hospital publications were used in order to carryout a worth, whole research into the subject matter, twenty questionnaire were distributed to some respondents and were collected in “yes” or “no” heading to determine the average number of respondents who agree or disagree that the internal audit alone could be rallies upon to serve as checks to fraud and irregularities.
What can be deducted from this study is the effective coordination of all the working orgasm in the teaching hospital, this has make it possible to produced an almost error proof in accounting system.
The supervision of different subordinates staff by their superior officers as also produced a good team work of officials.
There fore the situation in the teaching hospital management has improved greatly unalike in the past when there was no promotion for many years, and staff were being denied of many things to be enjoyed.
The present condition to staff of the teaching hospital is fair, but we recommend for further provision of more incentive as a way of innovative and further improvement or existing facilities to encourage the workers to perform more efficiency.
in other to enhance the improvement of internal auditor efficiency. The following recommendation are made:-
A. the internal audit department must be staffed with a member of qualified and experienced staff with enough accommodation.
B. the internal audit report should be sent periodically to the management of the activities of the department for the management actions where appropriate.
C. The staff of each section of internal audit department must be related at a regular intervals to acquire experience of the activities being carried out by the internal auditor to avoid being collected with accounts staff or section concerned.
D. The internal audit department must not only enjoy a measure of independence from the organization but also they should be able to carryout a critical and detail study of the accounting system and procedures in operation with a view of pointing out errors and made suggestion for improvement where necessary.
E. the should be able to safeguard the resources of the hospital by ensuring strict adherence to policies and guidelines set out by the management of the hospital and relevant accounting policies and concept.
F. The audit department should be provided with official vehicle to enable them carry out operations efficiently.
G. The internal audit department should not as well as other professional skill likes system analysis and researchers for this purpose therefore, the department for the presentation and detection of frauds, irregularities, loss of cash share and equipment should be establish a whole system of internal control..