CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Company performance is very important if such a company wants to achieve the purpose of its establishment without positive impact of any organization, it means that the way of achieving the objectives when the business has commenced will be a difficult situation for the organization. It is obvious that the performance of companies is not up to expectations which leads the researcher to know the impacts of the internal auditing efficiency as a tool for improving company’s performances. Since companies have been encountering some problems like fraud, misappropriation of funds and properties, lack of effective management and others that made people to be asking whether auditing plays any significant roles towards ensuring efficiency and judicious use of funds set aside for various purpose. Therefore, for the proper efficient accountability, it is obvious that the auditor and accountant will manifest their principles to be able to arrive at what is expected of them in order to be convinced that the financial position of the organization as presented, show a clear and fair view of the organization. Consequently, because of biased nature of the organization as a result of poor investigation of the organization position, past rulers have pledged to introduce a more responsible system of government with accountability but their subsequent conduct has shown that they have little or no understanding definition and application of efficiency in the improvement of company’s performances. Auditing which is regarded as one of the recently established professions turn out of the complexity of modern business world. It became relevant so as to discourage people from erring and to expose those that gave wrong account of how they managed the funds and properties under their custody. The account or report is usually done by means of financial statement. In order to verify the time and fair view of this report, an independent person is needed to audit the account such as the internal auditor and the service of a qualified accountant for proper accountability and efficiency in the organization financial position and performances.
In a related development it has been believed that efficiency in discovering the management inefficiency has been the root cause of many companies poor performance both companies in private and public limited sector in Nigeria. Improvement can only follow when what is honestly followed in been recognized and how such wrong could be remedied. In view of this point effort will be made to painstakingly highlight the improvement however taking auditing efficiency and the service of a qualified accountant in respect of private companies and public enterprises to improve the company’s performance. The question that is normally asked is that in spite of all those provision and safeguard, why is it that one still experience the alarming rate of fraud and misappropriation of funds, companies crisis, excess expenditure that are usually not compatible with the real budget by those entrusted to safeguard. This is why a great emphasis has to be laid on proper internal auditing efficiency as a tool for proving companies performance using Emene Flour Mill Limited Lagos as a case study.