THE IMPACT OF AUDIT COMMITTEE ON FINANCIAL MANAGEMENT OF AN ORGANIZATION
ABSTRACT
The impact of a Good Audit committee on the financial management of an organization can not be over emphasized. This is because internal control is the bedrock of any organization that wants continuity in the existence of the organization. The problem facing 7up bottling company plc is that the do not have an internal control system and also they lack organizational control. I make use of primary and secondary source of data collection, Oral interview, questionnaire, Newspaper etc. and found out that loses occure on daily bases due to there is no relationship between 7up company plc and audit committee. Then I came to a conclusion, therefore it is conclusively to say that the financial management of an organization via internal control system may never be possible if the board and senior managements are not committed in providing well planed internal control system.
CHAPTERÂ ONE
1.1Â Â BACKGROUND OF THE STUDY
According to Orjih John (2001:2) every business organization profit making has objectives and goals in mined to achieve their goals. It is to satisfy the social need of the citizens, and in the achievement of these purpose supervisor more often than not its activities, play a document role. The size and scope impossible for the executors to exercise personal and first hand supervision of operations. It is in this light that audit committee, financial or otherwise established by management is initiated.
By section 360 of the companies and avoid matter act 2004, the auditor is expected to carry out investigations as would be necessary to enable him from a opinion. It follows from above, that even the law does specify the extent of the examination to be carried out by the auditor. This is left to the director of the auditor. This decretion is not abused by the auditor. In practice he goes beyond the legal requirement in discharging his duties and his primary focus is to plan for the projects to be audited and how each project it’s the organization’s needs. This brings to bear on his job a very high standard of professional practice and considerations.
