CHAPTER ONE
INTRODUCTION
The word internal audit comes into existence as entity within an establishment or organization because management cannot do without it in the past year’s organization or establishment were small in size and could for, the fact that management or establishment once getting more advanced, there are immense expansion of these establishment together with the increase in the scope or management functions required to cope with the situation, management could not control all the activities alone. For this purpose there was a great need for an assistant to be attached to the management of the organization. As an integral part, being internal audit controls internal system, was then established as a district limit within the organization to help management in advisory capacity and also to ensure effective and operational control of internal system in the organization also according to Agudlu (1988) in his own view sees internal audit as independent appraisal of the functions and quality of performance of an organization by a special assigned staff as part of the internal control system. In addition to the performance of the statutory still need the services of an internal auditor in order to enhance the efficiency of the operations. However, in line with terms audit is to ensure an effective performance, a suitable arrangement is made to ensure the in dependence of the internal auditor.
BACKGROUND OF THE STUDY
The word audit was derived from a lat in word Audire, meaning to hear or Audit us meaning hearing. The practice of auditing in the primitive form can be traced back to ancient times where the receipts and payments of an estate or main or were read to the head or proprietor or the lord of a manor with industrial revolution. This was an increase in business transactions and there emerge partnership and joint stock companies. The evolution of mechanized industries involved the provision of financed far in excess of what is used to be business become more complex and required more formal and improved accountability.
In the opinion of Ubesie (2000) in the light of the general misconception of the word audit, there is every need to state that audit is not fault finding, out aimed at black mailing or discrediting of a public servant but rather the word audit means to hear it is because of this that an auditor can be likened to a referee in a football match. He can be also being referred to a mediator such as a case and render an objective opinion. In the years back, when establishment were small in size and could be controlled by the management alone, the objective of auditing was limited on ascertaining correctness of the sum of money collected and used. The idea of audit then being to check accuracy of each entry and record and to verify the balance of every individual account.
There was no defined of internal audit function as we have it today. As said ear her, internal audit was constituted as an organ of management and was charge with the responsibility of a division of a management function and enforcing the operation of internal check within the organization. but in order to achieve all these objective, internal has to
(i) Assess the soundness of accounting and financial control of the organization.
(ii) To review establishment policies regularly and recommend remedies for improvement.
(iii) Asses the accuracy and relevance of the management.
(iv) Asses to prevent or detect error and fraud today services of internal audit are very essential in many industries and government establishment due to expansion.
STATEMENT OF THE PROBLEM
In some organization, internal audit is established and controlled by the management themselves and to this situation has, subjected internal audit to various problems. Many professional auditors has been fighting on way to remove these issues yet there was no improvement.
The following below are the problems encountered by internal audit.
CO-OPERATION: In an organization, some department are aware of the importance role which internal audit plays the welfare of the under taking. The causes lack of co-operation between the department and internal audit especially, during audit engagement in such department. This is because of ignorance of importance play in the organization. some employees of the organization cannot be properly examines as result of Negative attitudes toward internal audit.