THE ROLE OF INTERNAL AUDITING IN THE EFFECTING MANAGEMENT CONTROL OF LOCAL GOVERNMENTS
ABSTRACT: The subject of this research investigation is the role and functions of internal auditing within the local government councils in Enugu State, specifically, this study has empirically investigated the present situation functions and problems of the internal audit department within the local government councils in Enugu. The major problem of the researcher was to find out their relevance to the to the effective and efficient performances of the local government areas. The research methodology in this investigation is descriptive approach, based an the answers to certain research questions. Data for the descriptive analysis were generated through an empirical investigation of the activities of the internal audit department in Ezeagu local government area. The methods of data collection were interviews, direct observations and study of secondary materials. The major findings of this study are:-
- That Ezeagu local government area has an internal audit department.
- That internal auditing helps to know how well the policies of management were executed.
- That the duties of the internal auditor could be performed by either the accounts division or the external auditor who must be statutorily appointed.
- That all the internal auditors of the local government report to the auditor general, through the executive chairman of their local government areas.
The conclusions of this study are:
- Management needs to know whether the report it relieves are accurate and adequate and whether its policies are being effectively translated into action in all sections of the local governments.
- It also needs to know whether staffs are being properly trained and that they understand the rules and procedures they are expected to follow.
PROPOSAL:Â The purpose of this project is to bring out the role and function of internal auditing in the effective management control of local government councils in Enugu State. The research work will fall in the area of internal auditing in Ezeagu local government area in Enugu State. The internal auditing, which is an audit function is in use by the local governments as a part of their overall system of internal control. The project will state the present situation, functions and problems of the internal audit department with the local government councils in Enugu State. The research method which is going to be use will be the desciptive approach. The descriptive approach will give answers to certain research questions. This method will enable the researcher to describe in a systematic manner the role of internal auditing in the local government area studied. The method of data collection is going to be interviews, study of secondary material and direct observations. The scope of the research work will be only limited to Ezeagu local government area in Enugu State. This is due to the short period of time available for the research work/project.
TABLE CONTENTS
CHAPTER ONE
- Introduction
- Area of research investigation
- Problems background
- Statement of problem
- Method of study
- Objective of study
- The importance of study
- The scope of the study
- The limitations of the study
- Definition of terms
CHAPTER TWO
2.1 Literature review
2.2 Historical background
2.3 Principles
2.4 Operational definition of internal auditing
2.5 Functions of an internal auditor
2.6 Benefits from an internal audit function
2.7 The internal auditor’s role in the area of management audit
CHAPTER THREE
3.1 Methodology and procedures
3.2 The empirical investigation
3.3 Reliability of data collection
CHAPTER FOUR
4.1 Data presentation and analysis
4.2 Location of Ezeagu local government area
4.3 The objectives behind the creation of local governments
4.4 Functions of local governments
4.5 Structural organisation of Ezeagu local government
4.6 Sources of revenue
4.7 The functions of internal audit in the effective management control of local governments
4.8 Results of emperical investigations
4.9 Problems identified
4.10 Procedure of improvement
4.11 Major findings
CHAPTER FIVE
5.1 Summary
5.2 Conclusions
5.3 Recommendations for improvement
5.4 Appendix
5.5 Interview guide sheet
5.6 Bibliography
CHAPTER ONE
INTRODUCTION
1.1 AREA OF RESEARCH AND INVESTIGATION
This research investigation falls within the area of internal auditing in Ezeagu local area.
Internal Auditing is an audit function which is being used by local governments as a part of its overall system of internal control. Such auditing is carried out by local government employees who are responsible to local government management.
