ATTENTION:
BEFORE YOU READ THE PROJECT WORK, PLEASE READ THE
INFORMATION BELOW. THANK YOU!
TO GET THE FULL PROJECT FOR THE TOPIC BELOW PLEASE CALL:
08068231953, 08168759420
TO GET MORE PROJECT TOPICS IN YOUR DEPARTMENT, PLEASE VISIT:
THE NATURE OF INTERNAL AUDIT
SYSTEM IN EDUCATIONAL INSTITUTION REGULATORY ORGANIZATION
CHAPTER
ONE
1.0 INTRODUCTION
1.1 BACKGROUND
OF STUDY
Given
today complex and rapidly changing management climate, most large companies,
major institution and governmental agencies are implementing continuous
improvements to achieve efficiency and assure all concerned parties of solid
corporate governance.
The
nature of interval audit system simply means explaining some of the key terms in the project topic, the internal
system.
According
to the Institute of Internal Auditors (IIA) definition of internal auditing the
internal audit system should provide independent, thoroughly timely and
objective result of quantitative and qualitative testing to senor management
and in essence, help evaluate organizational risk management.
Auditing
is an independent checking and
investigation of the books of accounts and
vouchers of a business with a view to enabling the audit to report
whether the balance sheet and profit and
loss account are properly drawn up so as to show a true and fair
view of the state of the affairs and the best of the information and
explanations obtained by the Auditors and that they comply with the rules laid
down by SSAP (Statements of Standard
Accounting Practice) and other statutory regulations. Audit is of two types, namely.
Internal
audit is a review of the operation procedures and records of the business
internal auditing is itself an internal control which operates by appraising
and reporting on the effectiveness of the other controls. Thus, its main
objectives is to assist management in
discharging its responsibilities and to evaluate compliance with
corporate procedures. The role of
internal auditors therefore, is to provide an overall assurance to management
that all key risk within an organization are managed effectively so that the
organization can achieve its strategic objective.
External
Audit: The external auditors are officers from supervisor agency or independent
firm to examine accounts, document independently. However, this project topic
is restricted to internal audit system, taken the National Board for technical
education as a case study.
1.2 STATEMENT
OF PROBLEMS
Trust
in the process of financial accounting
and auditing is been undermined by our present day high-profile corrupt
practices in major institutions and organizations. Thus as a result is the
seeming failure of internal audit
system not giving value for the finances
of the educational institutions and the resulted effects is responsible for the poor quality delivery of
education. So also is the mechanism put in place to curb these
corruption has not been effective.
In
response, it has become necessary to undertake, examine and evaluate the
problematic nature of internal audit system in educational institution and regulatory
organization and to see whether the process cold be effective or not.
1.3 OBJECTIVES
OF STUDY
The
objectives of this resource project are as follows: -
i.
To Evaluate the nature of internal
audit system in an educational institutions regulatory authority.
ii.
To determine the effectiveness or
other wise of such internal audit system.
1.4 RESEARCH
QUESTIONS
The
research study shall proffer answer to the following questions
i.
What is the nature of the internal
audit system in a regulatory authority?
ii.
Does the internal audit system in a
regulatory authority effective or not?
1.5 SIGNIFICANCE
OF STUDY
Significance
of every research project are set of standard that outlines, the perceived or
real contributions of the research.
This
research study would be of immense benefit to the accounting profession, policy
makers and leaders at the helm of affairs in various institutions because, the
ideal solution will of course be the achievement of a proper internal audit system that will assist public and private organization to meet overall
corporate objectives by establishing a
systematic and discipline approach to assessing, evaluating and improving the
quality and effectiveness of the process.
Also,
this study will provide a rationale for
introducing programmes designed
to aid student and researchers who
intend to make research on internal
audit system.
1.6 SCOPE
OF THE STUDY
The
scope of the study shall be limited to evaluating the nature of internal audit
system and find out whether this system is effective or not in the educational
institution, regulatory authority.
Furthermore,
the research study shall cover on the National Board for Technical Education (NBTE) Kaduna as a
case study.
1.7 HISTORICAL
BACKGROUNDING OF THE CASE STUDY
The
National Board for Technical Education (NBTE) was established by Decree (now
Act) No. 9 of January 1977. The decree
empowers the board to among other things: -
i.
Advice the federal government on and
coordinate all aspect of technical and vocational education falling outside the
universities.
ii.
Make recommendations on the national
policy necessary for training of technicians, craftmen and other middle level
manpowers.
iii.
Determine, after consultation with the
National manpower board, the industrial training find and such other
relevant bodies the skill and middle level manpower needs of
the country in the industrial commercial and other relevant field of the
purpose of planning, training facilities etc.
iv.
Inquiry into and advise the federal
government on the financial needs, for
both recurrent and capital expenditure of polytechnics and other technical
institutions to enable them achieve the objective of producing the trained
manpower needs of the country.
v.
Receive block grants in accordance
with such formula as may be noted that items iv and v above particularly
require audit control towards ensuring that financial and material resources
allocated to educational institutions under NBTE are done with are highest
conformity to government financial rules and regulations.
In
addition, Decree (now Act) it of August
1985 entitled: National minimize standards and establishment of institution”
further empowers NBTE to prescribe minimum standards, entry qualifications and
accreditation of all academic programmes on all the institution under purview
or supervision of the Board. Another amendment to the above decree (Now Act) gave birth to decree number
a of January 1993 which empowers the board of
recommend the establishment of polytechnics, college of agriculture and
technical colleges in Nigeria.
The
membership of the board cut across
ministries of education, labour, agriculture, industry, college of
agriculture and some professional bodies
among others.
It
has six (6) standing committees namely.
i.
Appointment and promotions committees
(A&PC)
ii.
Programmes evaluation and development
committees (PE&DC)
iii.
Academic planning and Research
committee (A&RC)
iv.
Finance and financial purpose
committee (which has a lot to do with this research project) and
v.
Tenders committee (TC)
Each
committee has specific function relevant to the smooth administration and the
discharge of the statutory functions of
the board assigned to it.
The boards
organization indicated that it has four operational department namely:
i.
Personnel management department
comprising establishment management services and manpower and training
divisions.
ii.
Programmes department comprising
polytechnics, colleges of agriculture and science, technical institution and
post HND/Polytechnics Research Division
iii.
Planning Research and statistics
department comprising academic planning, physical planning, research and
statistic divisions and three (3) other
units, computer services, maintenance and transport and SIWES,
iv.
Finance and supplies department
comprising main Account Budget and Budgetary and stores divisions. The above
four operational department are being over-seen
and coordinated by the office of the executive secretary namely:
a.
Boards secretariat
b. Protocol/public
relation unit
c.
Internal Audit unit ( the unit that is
directly relevant to this research project, and which we will study further in
the course of this project).
d. Legal
affairs unit.
e.
Security unit
f.
UNESCO – Nigeria/TVE project office.
As
indicated in term iii. Above, the internal audit unit of NBTE is a very vital
unit or Division of the Board under the office of the executive secretary. The
unit is structural into four sections in
such a way that all the function of the internal audit system are clearly
defined and appropriately staffed to take care of the various
activities of the board. The sections
were not rigidly structured and have been subjected to review in a
number of items. Such reviews
were usually approved by the management to handle some recurring work of
internal auditing programmes which comprehensively covers all aspects of
internal audit system that are equally subject to review.
The
main structures of the board internal audit system unit division are as
follows.
i.
General auditing section: This section
directly review the operational control
associated with administering the overall activities of the board.
ii.
Financial operational section: this
section directly review the activities
related to resource allocation utilization and the control process to provide
the assurances that financial resources are obtained economically and used
efficiently and effective in the accomplishment of the and down rules and
objectives. It also deals with the provision acquisition of stores.
iii.
Accounting operation section: this
section deals with control within and
around the accounting system installed
to ensure that all financial transaction
and activities are accurately recorded in the system, completely and promptly,
carryout a complete and continuous audit of the account and records of
revenues, expenditure, stores and other properties of the board towards
ensuring accountabilities and as in insurance against fraud and other
malpractices.
iv.
Stock verification section: This
section deals with the review of physical control for the protection of the
boards assets and ensuring some
safeguards assets and properties.
The staffing
of the internal audit unit of the board is said to be fairly
good with a principal internal
auditor heading the unit assisted by seven other officers varying ranks and cadres of HATISS 07 to HATISS 11
and some seven other supporting staff. The summary of the numerous functions of
the board internal audit and in line
with the traditional audit functions and objectives include among others:
a.
provision of timely advice to the
executive secretary on government financial regulations and audit valuation.
b.
Routine financial checks to prevent,
detect and report any observation irregularities.
c.
Pre-auditing of payment vouchers with
proper supporting document
d.
Investigation and reporting cases
of malpractices
e.
Ventification/pre-auditing of terminal
benefit of retired/deal staff.
f.
Pre-auditing of all staff claims to
ensure that they were in line with the financial various standing ad-hoc committee staff appointment etc
g.
Verification of workshop/accreditation
cost estimate
h.
Training and retraining of board
internal auditors
i.
Liasing with external auditors
j.
Stock taking
k.
Monitoring of the revenue base of the board
l.
Pre-verfication of salaries before
payment
m.
Inspection of all goals purchased by the board before usage.
n.
And any other audit functions that may
be assigned by the executive secretary from time to time
1.8 DEFINITIONS
OF TERMS
i. Audit: Accounting to Webster business
dictionary is an examination of accounting document and of supporting evidence
for the purpose of reaching propriety fairness, consistency and conformity with
accepted principles.
ii. Internal audit: This refers to the
institutionalized examination of accounting procedures with an organization.
iii.
Internal
audit control: they are measure adopt for effective auditing in an organization
iv.
NBTE/the
board: National Board for technical Education.
v.
Financial
regulation: these are rules, regulations and guideline
governing financial transition.
vi.
Stock
verification: It refers to confirmation of goods
and merchandized supplied in terms of value for money quality and quality.
Comments
Post a Comment