INTERNAL AUDITING AS AN INSTRUMENT OF EFFECTIVE MANAGEMENT OF ORGANIZATION A CASE STUDY OF NIGERIAN BREWERY ABA

ABSTRACT

        Internal Auditing are considered to be an instrument of effective management of an organization. It is therefore the essential aim of this projects research work to find out through the research hypothesis and questionnaire whether effective use of internal auditing enables managements to achieve their organization objectives or not. Hypothesis was formulated and tested using percentage and statistical techniques.

        The percentage table tables were used to analyze the key questions and statement in the questionnaire and also for easy comparison. The major findings of the research were that adequate internal auditing system helps management make second decision.

TABLE OF CONTENTS

Approval page

Dedication

Acknowledgement

Abstract

List of tables

Chapter one

Introduction

1. Background of the study
   1. Statement of the problem
   1. Purpose of the study
   1. Research questions
   1. Significance of the study
   1. Scope of the study
   1. Limitation of the study
   1. Definition of terms

Chapter two

• Review of related literature
  • Brief history of Nigeria brewery plc, Aba
  • The Roles And Importance Of Internal Audit Departments
  • AREA OF INTERNAL AUDIT

Chapter three

• Research methodology
  • Research design
  • Area of study
  • Population of study
  • Method and data collection
  • Sampling method
  • Validity of the instrument
  • Method of data analysis

Chapter four

• Presentation, Analysis and Interpretation of data
  • Presentation of data
  • Analysis of data

Chapter five

• Summary, Conclusion and Recommendation
  • Summary of finding
  • Conclusion
  • Recommendation

Reference.

CHAPTER ONE

1. INTRODUCTION
   1. BACKGROUND OF THE STUDY

Internal auditing can be defined as an independent appraisal of activities within an organization for the review of operation as a service to management. It is a managerial control function which functions by measuring and evaluating the effectiveness of other controls. The internal auditor objectively examines, evaluates and reports on the adequacy of internal control as a contribution to the proper, economics, efficient and effective use of resources.

Internal audit is the function of records appraising the procedures and organization of a business and reviewing effectiveness of the system of internal check. It is widely accepted that virtually nothing in the society should be spared on independent review. The object is to promote the utmost efficiency and security conducting a business. Attempts have been to trace internal auditing back to ancient times.

Perhaps the greatest stimulus to the development in the U.K was the establishment in the court of the principle that a local authority treasurer is personally accounting funds this led to the appointment of an internal auditor to the treasurer’s staff whose initial task was to perform a pre-audit for the treasurer before the district audit arrived.

However, efficient an organization is set out to be, procedural deadwoods is certain to accumulate unless conscious and regular steps are taken to discard what is out modeled. Once this is appreciated, the internal auditor can work amicably and advantageously as an instrument of management control.

Contemporary internal audit provides a constructive service to all branches of management. It is now concerned to appraise the effectiveness of internal control in operational areas such as production or marketing as well as in the traditional area of accounting and finance.

Internal auditor seeks for effectiveness, economy and efficiency. This is because internal auditors intended to become a better acquainted with the procedures and auditing activities could be carried on, continuously, once a year when outsider auditing services were utilized.

As a further inducement to the development of internal auditing, public accountant were about the same time finding to the expression of an opinion that they could seldom perform the other types of detailed verification as efficiently as could the company own specialist.

1. STATEMENT OF THE PROBLEM

The problems identified in this area of study include the following:

1. The funds and properties of the organization entrusted to certain individual employees of the organization in most cubes, these individuals works are not brought under thorough surveillance.
2. The result is that much of these funds and properties are diverted to personal use.
3. Measures that could be taken to address the problem arising from these internal auditing, so that it can be effectiveness and reliable tools to management in the performance of its functions.

1. PURPOSES OF THE STUDY

The purposes of this study are the following

To identify the functions of the internal audit department.

To ascertain whether or not adequate and efficient internal control system exists in Nigeria breweries.

To identify problems that hinders the efficient performance in the system.

To suggest solution to these problem.

To find out whether internal auditing is an instrument for effective management of companies.