THE IMPACT OF INTERNAL AUDIT IN STATE MINISTRIES AND EXTRA- MINISTERIAL DEPARTMENTS
(A CASE STUDY OF THE OFFICE OF THE ACCOUNTANT-GENERAL)
ABSTRACT
This paper, assess the impact of internal Audit in state ministries and Extra-Ministerial Department (a case study of the Accountant-General of Enugu State). The methodology employed for data collection is only primary source, which involved the use of questionnaires, in which 40 questionnaires were administered to the staff of Accounting and internal audit department of the office of the Accountant –General of Enugu State, out of which only 36were returned. The data generated for the study were interpreted using simple percentage. The main findings of the study include among others; lack of proper independent exercise by the internal audit, poor understaffing in the side of internal audit unit, the internal control system is very weak toward financial  and other controls and also non adherence by the auditors on general auditing standards. The paper recommends that internal auditors should exercise the degree of independency on various departments within the organization in performing their duties, the internal control system should be efficient in such a way that it will prevent any act of financial crime and detection of fraud and state government should established a scheme for internal auditors training  from time to time because it will enhance their operational capacities and skills in administering  the internal control system by way of attending professional seminars, workshop and  symposium.
 TABLE OF CONTENTS
CHAPTER ONE: INTRODUCTION
1.1      Background of the Study                    
1.2      Statement of the Problem           
1.3      Objective of the Study                
1.4      Hypotheses                               
1.5      Research Questions                           
1.6      Significance of the study             
1.7      Scope of the study                     
1.8      Limitations of the study              
Reference
CHAPTER TWO: RELATED REVIEW OF LITERATURE  
2.1 Introduction                               
2.2 The concept of the Internal Auditing     
2.3 Scope and Objective of Internal Auditing
2.4 Duties of an Internal Auditor                
2.5 The concept and Definitions Internal Control System
2.6 Administrates and Extra-Ministerial Audit departments    
2.7 Reporting Relationship with Accounting Officer     
2.8 The need for Audit Quality Control Measure   
2.9 Principal functions of Internal Audit                     
2.10 Importance of Internal Audit Department    
2.11 Problems encountered by the Internal Auditors
2.12 Summary of related review of literature             
       References
CHAPTER THREE: METHODOLOGY
3.1 Research Design     
3.2 Area of the Study    
3.3 Population of the study
3.4 Sampling Method    
3.5 Research Instrumentation
3.6 Validity and reliability of Research Instrument
3.7 Sources of Data                    
3.8 Analytical Technique              
     References
CHAPTER FOUR: PRESENTATION AND ANALYSIS OF DATA
4.1 Presentation and analysis of Data
4.2 Test of Hypothesis                              
       References
CHAPTER FIVE: SUMMARY OF FINDINGS CONCLUSION AND RECOMMENDATIONS
5.1 Summary of Findings                   
5.2 Conclusion                                  
5.3 Recommendation                         
     References
     Appendix I
     Appendix II
 LIST OF TABLES
Table 4.1: The table showing how long the staff have worked we the Audit Department.
Table 4.2: The inadequately of the independence provided for the Audit department.
Table 4.3: Excessive control of audit department staff Strength.
Table 4.4: Problem in relation to the Audit  Department staff strength.
Table  4.5 Effectiveness of the state ministries and Extra- Ministerial internal control system.
Table 4.6: Hypothesis on the appropriateness of the ICS of the state Ministries Extra Ministerial Department.
Table 4.7: The effect of pressure on the internal Auditors
Table 4.6: Excessive control of budget by government officials.
      CHAPTER ONE
INTRODUCTION
1.1     BACKGROUND OF THE STUDY
The Auditor is regarded as the eyes and ears of the financial statements of an Organization. The auditor, shareholders and directors have a tripartite relationship in an organization. The shareholders are the owners of the enterprise, the directors are employed by the shareholders to manage the business while the auditors are appointed by the shareholders to act as check and balances for the purpose of giving them a true and fair view of the organizational financial report.
However, the role of auditors is to conscientiously and objectively examine inquiring into any financial statements and other documents in order to assertion an opinion. It is the auditor’s duty to consider whether the information given in the director’s report in respect of the year for which the accounts are prepared is consistent with those accounts.
        STATEMENT OF THE PROBLEM
There are bound to be problems in the presentation of accounting Information. Specifically, these problems are as follows;
1.    Audit department in the state ministries and extra- ministerial departments is subjected to pressure from within and outside the enterprise.
2.    Inadequate trained personnel posed to technical skills to meet challenges in the public sector.
3.    Lack of proper audit planning, process and the generally accepted audit procedure as the base for audit test.
4.    Poor internal control system.
5.    Lack of audit quality control measures.
1.2       OBJECTIVE OF THE STUDY
The purpose of this study includes;
1.    To determine to what extent the state ministries lack trained personnel to meet up with challenges.
2.    To find out if the internal/audit department is subject to pressure from within and outside the enterprise.
3.    The usefulness of proper audit planning, process and the generally accepted audit procedure.
4.    If there is need for internal control system and its impact on the state ministries departments.
5.    To find out the impact of the internal audit department on the state extra-ministerial departments.      
1.3     RESEARCH HYPOTHESIS
For the purpose of handling this thesis effectively, the null hypotheses have been empirically tested on the impact of internal audit on state miniseries and extra-ministerial department
Ho: The present Internal Control System in state ministries
is not appropriate in present world  of technology.
HI: The present internal control system in state ministries is appropriate in present   world of technology.
Ho: Pressure from within and outside the audit department has negative impact on       the internal auditors.
H2: Pressure from within and outside the audit departments has positive impact on the internal auditors.
 H1: There is excessive no control of budget by government officials.
H2: There is excessive control of budget by government officials.    
      RESEARCH QUESTIONS
In order to adequately address the problems already stated, the following research questions were formulated to ensure clarity.
1.      Does the audit department in practice subject to excessive control by government officials?
2.      How effective is the state ministries and extra-ministerial internal control system?
3.      Does the pressure from within and outside the audit department affect the internal audit performance?
4.      Do the ministries lack trained personnel?    
 1.4     SIGNIFICANCE OF THE STUDY
This work will find application to the public sector as it out lay the functions and the responsibilities of the internal audit towards effective and efficient objectives of the sector.  The study will also find application in higher institutions and libraries as it will contribute to stock of knowledge.
1.5       THE SCOPE OF THE STUDY
The scope of this thesis is on the impact of the internal audit through the Internal control system, the quality control measures and the audit programme on the state ministries and extra-ministerial departments.