Impact Of Internal Audit And Accountability On Government Ministries / Extra Ministerial Departments

Impact Of Internal Audit And Accountability On Government Ministries / Extra Ministerial Departments

Abstract

Using the office of the Auditor-General of Enugu State, Nigeria, as a case study, this investigation aimed to assess the Impact of Internal Audit and Accountability on government ministries and extra-ministerial departments. As a result, the researcher employed a population of 54 staff members from the office of the Auditor-General, from which 36 were randomly chosen as the population sample. In addition to percentage frequency and tabular analysis, the researcher also utilized chi-square statistics to analyze the collected data. Without adequate internal auditing and accountability in the majority of government ministries and government parastalls, the public sector will grind to a halt, according to the findings of the researcher. Due to the importance of audits and accountability in all areas of any organization, the researcher suggests that the function of the internal audit departments in government offices should be expanded so that it can contribute more effectively and credibly to the overall health of the various government ministries and institutions.

Chapter 1 is titled “Introduction.”

Context of the Study

Description of the Problem

Object of the Study

Importance of the Research

The Range of the Study

Research Concerns

Zero Hypothesis

CHAPTER 2: Review Of Related Literature

The notion and Characteristics of Auditing

Government Audit Department

Conceptualizing Accountability

Section Iii: Research Method

Research Plan

Subject of Study

Participants in the Study

Sampling and Sampling Method

Verification of Equipment

Precision of Instrument

Method for Collecting Data

Methodology of Data Analysis

Data Display And Outcomes

Validating Hypotheses

Conclusive Findings

CHAPTER 5: DISCUSSION OF RESULTS/ FINDINGS, CONCLUSION AND RECOMMENDATIONS

Discussion Of Results

Discussion Of Results

Conclusion

Suggestions For Future Study

Constraints Of The Study

References

Appendix

Questionnaire

introductory chapter

introduction

Context of the Study:

Auditing practices originated from the need to impose a system of control on individuals whose business requires them to record the receipt and disbursement of money on their behalf. Due to the crudeness of accounting methods in the early phases of civilization, however, individuals were responsible for their own accounting. The Renaissance’s impetus for trade and commerce in the 15th century led to the discovery of a more scientific system of accounting, and in 1494, the Italian publisher LUCCA PACIOL published the principle of Double Entries Book-keeping in Venice. Consequently, this revelation made it possible to record all types of merchandise transactions involving all aspects of accounting, which led to the implementation of Audit on these records.

The mechanical inventions of the eighteenth century, which led to the industrial revolution, combined with the increased need for financial assistance to finance ambitious projects, led to the emergence of numerous joint stock companies and corporate enterprises with enormous capital under the management of a small number of individuals. Under these conditions, the benefits of utilizing the services of a professional auditor were apparent enough to be commercialized publicly, typically to compel the operator of these enterprises to account for the results of all transactions they conducted on behalf of the company during their period of stewardship.

To attest to the emergence of auditing as a profession, it is generally acknowledged that autonomous expertise and the service ideal are not the most disseminative characteristics of a profession, along with the existence of a systematic body of knowledge and authority acknowledged by the client or user. All have been defined and are applicable to auditing.

The operations of government and institutions necessitate primarily government auditing. The increased delegation of authority and responsibility as a result of the preceding management has increased the significance of burden.

Federal, state, and local governments rely on the communication of financial data to ensure that the costs associated with a project, whether it be a mass transit system or a foreign aid program, are reasonable. Therefore, there is a need for open and honest public disclosure. The financial difficulties of federal, state, and local governments in recent years serve as a further reminder that all organizations must be held accountable for the proper management of resources entrusted to them if those resources are altered. Industry and organization enbitus must be subjected to goods accounting and reporting for efficient allocation of materials and financial resources, as it is an effective means of assessing capability. Inadequate and inaccurate reporting, on the other hand, conceals waste and inefficiency, preventing our economic resources from being allocated effectively.

The majority of material policies, including the development of energy resources, the control of inflation, and the expansion of employment, rely directly on the qualitative management of economic activities and the dissemination of these data. Unquestionably, the purpose of audit is to ensure accountability and the reporting of stewardship to those to whom one is accountable. The fundamental tenet of a democratic society is that the government and the authority responsible for enforcing laws must account for their actions. Accountability is inherent to the government process and can be visualized as the responsibility or explanation one owes a superior officer for his action or conduct. It identifies the motives for the diversion of public resources as well as the mode and extent of their application.

Accountability entails the expenditure of funds and the imposition of legal liability on the delivery of services. If the task is not completed according to specifications, the owner has the right to impose sanctions or penalties on the person or group responsible for developing and implementing the strategies for providing the services. This specialized knowledge is the primary cause for concern. Consequently, it supplies significance for research.

Description of the Problem:

Specifically, the perceived concerns that inspired this study’s research are as follows:

1. The public sector lacks trained personnel with technical expertise to meet challenges; consequently, the audit department demonstrates the problem of inadequate staff composition.

2. The financial regulation that governs the principle of government auditing restricts the Auditor-General’s Audit functions insufficiently.

Politicians and senior government officials exert a disproportionate amount of control over the Audit Department. This has rendered the department’s independence inadequate.

4. The Office of the Auditor-General does not have sufficient authority to meet auditing challenges in ministries and extra-ministerial departments.

Objectives of the Study:

This study is predicated on the assessment of government audit in relation to accountability in ministries/Extra-ministerial Departments. Consequently, the objectives of this investigation include:

Determine the extent to which the public sector lacks trained personnel to meet challenges.

2. To determine the financial regulation that governs the principle of government auditing and that restricted the Auditor-General’s auditing functions;

3. Determine the extent to which the Audit department is subjected to excessive control by politicians and senior government officials, which has diminished the department’s independence.

4. Determine the extent of the office of the Auditor-General’s authority and determine if it is sufficiently strengthened to meet auditing challenges in ministries and extra-ministerial departments.

Importance of the Research:

Applying public expenditure in relation to fiscal irresponsibility that led to the mismanagement of our public sector’s limited resources. It becomes evident that this endeavor will have public sector applications.

This would also contribute immeasurably to the revolving of a verifiable and formidable audit department that is completely equipped to meet the audit challenges of the current era, as a result of which it exhibits a high level of fraudulent practices.

It will also aid in staff development, thereby enhancing accountability in ministries and extra-ministerial departments.

To provide fundamental information on the Auditor-General’s authority and capacity to meet challenges in ministries/Extra-ministerial Departments.

This would also improve relations between the Audit staff and the rest of the employees who view auditing as something different.

It will also expand the financial regulation that restricted the Auditor-General’s auditing capabilities.

This work will also assure a useful solution to the existing staff composition problem in the Audit Department and the execution of audit functions.

In addition, there is a paucity of literature on this topic, so the study will be useful to polytechnics, universities, and libraries by contributing to the existing body of knowledge.

Scope of the Research:

The scope of this project board is certain procedures in the ministries/Extra-ministerial Departments with reference to the Audit-General of the state of Enugu.

Investigative Questions:

In order to adequately resolve the previously outlined issues, four research questions were developed for clarity. This research query was derived from the study’s background, problem statement, and purpose. For instance:

i. To what extent does the public sector lack the trained personnel necessary to meet the sector’s challenges?

ii. To what extent are the Audit functions of the Auditor-General sufficiently broadened in light of the financial regulations that regulate the principles of government auditing?

iii. In what manner are politicians and senior government officials excessively controlling the Audit Department?

iv. To what extent is the Auditor-General’s authority not sufficiently strengthened to meet Accountability challenges in ministries/Extra-ministerial Departments?

Zero Hypothesis

In order to effectively conduct this study, the null hypothesis was empirically tested on the generalization of the assured relationship between government audit and accountability in ministries/Extra-ministerial Departments.

HO1 There is no significant distinction between the senior and intermediate staff of the state Audit on the extent to which a lack of trained personnel affects its challenges.

HO2 There is no discernible distinction between the senior and junior staff of the state Audit on excessive budget control by politicians and government officials.