CHAPTER
ONE
INTRODUCTION
1.1
Background Of The Study
Globally
the role of auditing is being appreciated for its avowed operations and
activities. Ihe and Umeaka(2006:370) defined a process carried out by suitably
qualified auditors during which the
accounting records and
the financial statements of an organization are subjected to examination by an
independent auditor with the main objective of expressing an opinion in accordance with the relevant terms of
appointment purpose” they also noted that the were grouped into two
1.2 Primary objective:
the auditor (one who carries out audit operation) is to report whether the
financial statements shows a „true financial affairs of the organization during
the period under review and send date.
1.3 Secondary objective:
This concerns the detection of frauds and errors and the prevention of frauds
and errors The crux of this research
work however is based on internal Audit – which is a very important aspect of
auditing, how the internal audit unit of the government can be made effective
in order to assist in the efficient administration of local Government Areas
(LGA). Internal Audit as defined by Chukwu L. C.
(2011: 28)l of activity is
withi“an the indep
organization for the service of
accounting, financial and other business practice
as
a protective and constructive aim of management”. He fu internal audit is a
type of control which functions by measuring and evaluating
the effectiveness of other types of control.
Anosike. C. K (2009:29) noted that the primary objective of internal audit, is
to promote utmost efficiency and security in conducting business, in our case,
the business or operations of the Local government areas. Azubike (2005:83)
enumerated the features of internal audit as follows:
a. Independence:
it is carried out by independent personnel through appointed by the management.
b. Appraisal
Function: it appraises the activities of other. Example, reviewing the system
of checking employee expense claims.
c. Management
Service: Plans and controls work according to management policies, so that
information used by the management is complete and reliable.
d.
It
is carried out skillfully and with due care.
e. The
Findings, conclusions and recommendations are communicated promptly and
efficiently.
He also noted that internal audit seeks for
effectiveness, economic and efficiency. Effectiveness here: means achieving the
program objective or goals. Economy means operating at the lowest possible
cost. Efficiency implies effectiveness in outputs, avoidance of accessory waste
of resources.
Having known the
definition of internal audit and its implications, It is seen that it plays a
significant role in the efficiency of local government administration. However,
as a group of the subject matter of this research work, explanation and
highlights of local government and its administration shall be attempted.
For
complete materials (Chapter One to Chapter Five), visit www.researchshelf.com
No comments:
Post a Comment