EVALUATION OF INTERNAL AUDIT AS A VERITABLE CONTROL MACHINERY FOR EFFICIENT MANAGEMENT IN PUBLIC ENTERPRISES
ABSTRACT
This research is conducted to emphasize the essence of internal audit as a veritable control machinery in public organizations drive to improve on their managerial efficiency. This is achievable through the employment of relevant research techniques to obtaining necessary information from the sample population upon which in-depth analysis will be made to highlight the significance of internal audit as a potent machinery of internal control in public enterprises with which the efficiency of management can be raised. For the purpose of this study, questionnaires were administered which were properly filled and returned from the internal audit personnel’s of the Lagos branch of the Nigerian television authority (NTA). Findings revealed that internal audit efficiency is relevant for improvement on the managerial performances in public enterprises. Besides, this study also reveals certain practical factors that will lead to internal audit inefficiency in public enterprises. This finding will help management of public enterprise place more priority on their internal control and audit apparatus to improve on their management performance and public image.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
The’ term management was coined from the Italian word “managgiare” which connotes ‘to train horses’. It was originally used to indicate the process of training or coordinating sporting activities. Later its application was extended to the operations of government and businesses.
Akpala (2001) describes management as the process of combining and utilizing organization’s inputs (men, materials, money and’ machine) by the mix of planning, organizing, directing and controlling activities for the purpose of producing outputs (usually goods and services), desired by the customers, so that the organization’s objectives are accomplished. In the definition given above, it is worthy of inference that control is an essential tool of management. The term control was rightly described by Lucey (1990) as “a systematic effort by business management to compare performance with predetermined standards, plans or objectives to ensure that performance is in line with standard and also to take remedial action required so that human and other corporate resources are employed in the most efficient and profitable manner.
