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TABLE OF CONTENT
Content Page
Title page i
Certification ii
Declaration iii
Dedication iv
Acknowledgement v
Abstract vii
Table of content viii
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study 1
1.2 Statement of the Problem 3
1.3 Statement of the Objective 4
1.4 Research Questions 5
1.5 Scope and Limitation of the Study 6
1.6 Delimitation of the Study 7
1.7 Significance of Study 8
1.8 Definition of Terms 9
CHAPTER TWO
LITERATURE REVIEW
2.1 Theoretical Framework 11
2.2 Review of Related Literature 12
2.2.1 The Public Sector 12
2.2.2 Scope of Public Sector 13
2.2.3 Overview of Public Sector Accounting 13
2.2.4 Principles and Procedures of Public Sector Accounting 16
2.2.5 Objectives of Public Sector Accounting 17
2.2.6 Internal Auditing in Public Sector 18
2.2.7 Public Sector Internal Audit Functions 22
2.2.8 Internal Audit Policy 22
2.2.9 Appointment of Internal Auditor in the Public Sector 23
2.2.10 Duties of Internal Auditors in Public Sector 24
2.2.11 Principal Functions of Internal Auditing 24
2.2.12 Reporting in Public Sector 25
2.2.13 Treasury Department Internal Audit in Public Sector 26
2.2.14 Internal Audit Programme in Public Sector 27
2.2.15 Accountancy and Audit in Public Sector 28
2.2.16 Accounting Records 29
2.2.17 External Reports 30
2.2.18 Accounting Failure 32
2.2.19 Auditing Parastatals in Public Sector 34
2.2.20 Limitation of the Effectiveness of Internal Auditing 38
2.3 Summary of Literature Review 39
CHAPTER THREE
3.0 Research Methodology 41
3.2 Research Design 41
3.3 Research Population 42
3.4 Sample and Sampling Techniques 42
3.5 Data Collection Method 43
3.6 Validity of Study 43
3.7 Reliability of Study 43
3.8 Method of Data Analysis 43
CHAPTER FOUR
4.0 Presentation and Analysis of Data 44
4.1 Data Presentation 44
4.2 Data Analysis 44
4.3 Analysis of Questionnaire 45
4.4 Research Question One 45
4.5 Research Question Two 48
4.6 Research Question Three 51
4.7 Research Question Four 55
CHAPTER FIVE
5.1 Summary of Findings 57
5.2 Conclusion 60
5.3 Recommendations 61
References 63
Appendix 1 64
Appendix 2 65
CHAPTER ONE
GENERAL INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The achievement of organizational aims and objectives either in the private or public sector is crucial to the management and all stakeholders of any organization. The achievement of common goals is dependent upon the attitude of management of human and material resources, particularly the financial resources as finance is the livewire of any organization. Management in order to achieve this fact, need to carryout independent appraisal activity within the organization. This appraisal is done by the internal audit department of the organization.
According to the Institute of Internal Auditors as in Obara (2002) “ Internal Auditing is an independent appraisal activity within an organization for review of accounting, financial and other operations: as a basic for service to management. It is a managerial control which functions by measuring an evaluating the effectiveness of other control.
The appraisal activity within an organization ensures that staff entrusted with responsibilities within the ambit of the organizational legal framework. Kiabel (2002) stats, “Auditing has also been a potent factor in ensuring compliance with legal requirement and organizational rule”. The formalization of an organization establishing rules and regulations, give the managers of the organization a proper direction in its administration. The adherence of these organizational norms will definitely bring about effective administration. Therefore, when we talk about effective administration we are talking about a management that carry out its responsibilities according to laid down rules and regulations, with a view to achieving organization goals.
The Nigerian public sector today is faced with several administrative ineffectiveness which had caused unprecedented damages to the economy. Several government owned companies and parastatals have either wound up or become dormant and unproductive. This is in spite of the fact that work in these organizations is departmentalized; division of labour and each department has a competent staff at the helm of affairs. The situation maladministration, in the public sector is so worrisome that one is tempted to ask if actually there are Internal Audit department in practice and what role it has been playing in public sector administration. It is in view of that, this study is designed to examine the role of internal auditing in effective public sector administration.
1.2 STATEMENT OF PROBLEM
Organization of different categories (private/public organization) often encounter problems of financial irregularities, ineffectiveness, maladministration, non-compliance of laid down policies. Excessive and/or inexplicable expenses and elaborate internal control system on records does not guarantee a good system in operation. If so what are the factors responsible for it? How can organizations have an effective and efficient administration and maintain the completeness and accuracy of records?
The occurrence of insufficiencies had however, become more prominent in Government parastatals, could it be as a result of inadequate internal auditing. The worrisome nature of this act has therefore necessitated the following questions.
· How effective is internal auditing in public sector?
· To what extent are accounting records reliable for the production of appropriate revenue.
· Does the policies and producers established by accounting standard for public sector in use?
· What are the consequences of inadequate internal auditing in public sector?
· Is there any way of restricting or replacing the existing audit system for proper effective accounting in public sector administration?
This study will therefore investigate internal auditing and public sector administration effectiveness.
1.3 STATE OF OBJECTIVE
The importance of adequate internal auditing to both governmental and non-governmental organizations cannot be over emphasized. For these reasons the following objectives for this study include:
· To determine whether there is an effective internal auditing in the public sector administration.
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