Every organization, profit or non- profit making has objectives and goals in mind to achieve, for profit whole for the non- profit making organization their goal is to satisfy the social need of the citizens, and in the achievement of these purposes, supervisor more often than not of its activities, play a document role. But the largess of the size and scope of these organization have some times made it impossible for the executors to exercise personal and irst hand supervisor of operations. It is in this light that internal controls, financial or otherwise established by management is initiated. According to chambers Andrews (1974) “A complex organization needs an auditor as an extension of the eyes and ears of management who however effective, the organization might be unable to inspect the work of their subordinates whose stewardship is delegated to them.
The system of internal control keeps management informed as to whether government regulation are being followed and whether the financial position of the organization is sound. This ensures management of the effectiveness of the activities in the organization especially the accuracy and authority of financing data
Internal control can be broadly divided into two main categories
2.Accounting or financial
It is the accounting or financial control function that internal audit; internal control system thus consist internal audit; internal checks and other accounting polices and systems built into the internal control net-work to promote and encourage the attainment of the objectives of the firm.
Internal audit is an internal function which means that it is conducted by the employers of an organization specially designed for this purpose and therefor means. It is an organizations management responsibility to establish the department not to do so.
The objectives of internal auditing is to assist all member of management in the effective discharge of their responsibilities, by furnishing them with analysis, appraisal, recommendation and pertinent commentary in the activities reviewed.
To attain its overall objective, internal audit involves such activities as:
(a)Reviewing and app raising the soundness, adequacy and application of accounting, Financial and other operating controls and recommending effective control at a reasonable cost.
(b) Assertain the extent of compliance with established polices, plans and procedures.
(c)Ascertain the reliability and relevance of management data development within the organization .
(d)Appraising the quality performance in carrying out assigned responsibilities.
(e)Ascertaining the effectiveness of established policies and plans and recommending operating improvements.
Where an internal audit department operates, the statutory auditor pays particular attention to its activities as these will have a direct bearing on the scope and depth regained by the external auditor.
This system of internal check is to prevent or detect errors and fraud and that the system is operating satisfactorily: It also ensure an adequate accounting system to provide the information necessary for preparing true and fair financial statement .
Since it is the sole duty of the management of an organization to detect fraud, errors and other Irregularities and correct them before they come to the notice of the external auditors, the internal audit procedures adopted by an organization is of consequence. As a result of this, the procedure to be adopted by an internal audit department must have these in mind and also be set up by experts in theory and in practice
TABLE OF CONTENTS
1.2Statement of problem
1.3Purpose of study
1.4Significance of the study
1.5Scope and limitation of the study
1.6 Formulation of hypothesis
1.7Definition of terms
2.2What is internal control
2.3Types of internal control
2.4Overview of internal control system
2.5Element of a good internal control system
2.6Stages of internal audit planning
2.7Problems of internal control system
2.9Ways by which organization mangoes its scare fund
RESEARCH DESIGN AND METHODOLGY
3.1Area of coverage
3.6Data analysis techniques used
FINDS AND `ANALYSIS
4.2Analysis of responses to questionnaire
4.3Test of hypothesis
SUMMARY, RECOMMENDATION AND CONCLUSION
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