Description
ABSTRACT
The major objective of this study is to examine how internal
audit can promote Accountability and transparency. The first chapter
gave an in-depth of the background to the study, statement of the
problem, objective of the study, research question, research study,
limitation, definition of term in the course of the study, many literary
works were on the literature review and conceptual framework in this
chapter, the researcher was able to explain the concept of Internal
Control based on the explanation given by different authors. The
researcher was able to relate Internal audit as a check on Internal
Control. Also, the researcher explained the concept of Accountability
and Transparency, limitation of Internal System, and lastly review of
previous Studies which the researcher gave a lot of Authors opinion.
There is no research that can be done without presenting data.
Chapter three, which is the research methodology on respondent who
are well informed about auditing. The data collected were mostly
analyzed by using chi-square method (x 2 ) to arrived at final
conclusion. Chapter Four focuses on the data presentation, analysis
and interpretation. Based o the data collected and analyzed. It was
discovered that the relationship between Internal audit department
and other department strongly affect the Effectiveness of
Accountability and Transparency in Okehi Local Government. The
factors that hindering the effective performance of auditors includes
auditor’s independence, qualification and working experience and
laid down rules and regulations, while Chapter Five focus on
Summary, Conclusion, Recommendation and Suggestion for further
studies.
TABLE OF CONTENTS
Title page i
Dedication ii
Certification iii
Dedication iv
Acknowledgement v
Abstract vii
Table of Contents ix
List of Tables xiii
CHAPTER ONE: INTRODUCTION
1.1 Background of the Study 1
1.2 Statement of the Study 3
1.3 Objective of the Study 4
1.4 Research Question 5
1.5 Research Hypothesis 6
1.6 Significance of the Study 7
1.7 Scope of the Study 8
1.8 Limitation 9
1.9 Definition of Terms 10
CHAPTER TWO: LITERATURE REVIEW
2.1 Introduction 12
2.2 Concept of Internal Control 13
2.3 Internal Audit as a Check on Internal Control 17
2.4 Internal Check 21
2.5 Concept of Accountability and Transparency 23
2.6 Limitation of Internal Control System 25
2.7 Review of Previous Studies 27
2.8 Summary 30
CHAPTER THREE: RESEARCH METHODOLOGY
3.0 Introduction 32
3.1 Research Design 33
3.2 Population of the Study 333.3 Sampling Method 34
3.4 Sampling Procedures 34
3.5 Research Instrument 35
3.6 Analysis of Data Collected 36
3.7 Statistical Tools and Analytical Procedures 36
3.8 Limitation of Methodology 37
CHAPTER FOUR: DATA ANALYSIS RESULTS AND DISCUSSION
4.1 Introduction 39
4.2 Data Analysis 39
4.3 Analysis of Responds/Items on the Questionnaire 44
4.4 Testing of Research Hypothesis 51
4.5 Discussion of Findings 57
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 Introduction 60
5.2 Summary 60
5.3 Conclusion 62
5.4 Recommendation 63
5.5 Suggestion for Further Studies 65
References 66
Appendix 69
Questionnaire
LIST OF TABLES
Table 1: Age Distribution of Respondents 39
Table 2: Marital Status of Respondents 40
Table 3: Gender Distribution of Respondents 41
Table 4: Respondents Level of Education 42
Table 5: Working Experience of Respondents 43
Table 6: Percentage Score of the Responses 44
Table 7: Percentage Score of the Responses 45
Table 8: Percentage Score of the Responses 46
Table 9: Percentage Score of the Responses 46
Table 10: Percentage Score of the Responses 47
Table 11: Percentage Score of the Responses 48
Table 12: Percentage Score of the Responses 49
Table 13: Percentage Score of the Responses 50
Table 14: Percentage Score of the Responses 51
Table 15: summary of chi-square (x 2 ) result of the impact of
internal auditing in promoting transparency in the local
government council 52
Table 16: Summary of Chi-square (X 2 ) result of the impact of
internal audit in promoting accountability in Okehi Local
Government Area of Kogi State 54
Table 17: Summary of Chi-square (x 2 ) result of the impact of
internal auditor’s independence, qualification and
working experience in promoting accountability and
transparency in Okehi Local Government Council of
Kogi State 56
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
The growth and increasing complexity of business environment
has made it imperative for management to seek for more of control
which has resulted to internal and it serves as control measure in both
public and private sector. It is now very rare to find an enterprise of
any size which does not have internal control system.
Internal control system said to be essentially and appraising
activity with an organization that contributes to a good controlled
environment through an effective internal audit function.
According to Dandago (2002), internal auditing is the
independent review or appraisal within an organization of accounting,
financial or other operations as basic for protection and constructive
service to the management of such an organization.
Accountability is an obligation imposed by law or lawful order
or regulation on an officer or other person for keeping accurate record
of property, documents or funds.
It is quiet understand that internal audit is the major role play in
the public sector and expected to enhance accountability. But there are
some sector that is still lack accountability despite the internal audit is
put in place by government.
I carry out the research and discover there are some challenges
facing by internal auditors that is why internal audit in public sector
lack accountability.
The reason of carrying out the research is to correct and
maintain proper internal control and adequate internal audit to
enhance accountability in public sector.
The challenge that affects internal audit in order not to enhance
accountability is inadequate staffing, organizational policy and
incompetent staff.
With the challenges listed above, if government can make
adjustment and put in place adequate staffing manipulation of
organizational policy and employ quality auditors.
If all these can be meaningful and financial statement of every
parastata will be fair and free from miss- appropriation.
1.2 Statement of the Problem
The effectiveness and survival of any organization depends on
its ability to manage its resources effectively and one of such ways is
by establishing an effective internal control system in the
organization. It is often argue that despite that there is existing internal
audit department in both private and public sector, the rate of fraud I
the economic is still on the high side…