Internal Auditing And Accountability Among Secondary School Heads In Ikot Ekpene Local Government Area Of Akwa Ibom State

CHAPTER ONE

1.1     BACKGROUND OF THE STUDY

Financial management comprise of the planning implementation of a financial plan, accounting, reporting and protection of assets from loss, damage and fraud. Schools financial management with the use of internal audit, if a school does not have the internal auditor there is a risk that internal controls are not set. The school head is accountable for setting internal control or internal auditing. The main products of financial management are reporting process is closely linked to the planning process, the definition of objective and measuring the results.

Various forms of school head training and the project of financial resource management which were both implemented wither the framework of Association of Nigeria Secondary Principals (ANCOPRS) schools leadership for education, have shown the distinctive need for individual accountability and financial management of an individual school Harvate 2014 reported that most school heads do not have the required techniques of putting their financial reports as required by the accounting regulations framework of Nigeria. The author also noted that the secondary school heads for financial planning and reporting. The main reason for such situations is the lack of school leaders knowledge in financial management.

Auditing school accounts in the final stage in the process of managing school funds. Accountability is normally associated with financial accounting and lack of accountability and transparency by public servant in the Local Government and other teers of government have been identify as a serious administrative constraint. A school heads is a person who out effective administration of a school and must see to the fact that his administration employs internal auditing  as internal control apart from treasurer who is supposed to be the chief financial adviser to the school and who is expected to ensure compliance on the school financial management with financial regulations of public accounting  framework. Each secondary schools. In Ikot Ekpene Local Government Area is expected to have an internal auditor who will scrutinize the school is discover the attention of the approving authority is drown but if the authority insist the audit alarm shall be raised.

Internal auditing: Is usually a management activity and is service intended to ensure regular and frequent checking on a school financial management and records. An auditor is an  employee of the school e.g the deputy head who main rules is to supervise the account staff to ensure efficiency management. Its also check wither all financial transactions have taken place accounting to budget to set procedure and following management policy. The objective of internal auditing differ from school but general aim is to promote efficiency in the school financial control and management. So school are small entity where internal auditing may be necessary especially where the account staff is directly involve in a authorizing and approving  community of the board may inspect and carry out internal control of the funds.

1.2     STATEMENT OF THE PROBLEM

Financial accountability is one of the major responsibility school board of governors/directors and the school heads. Government statutes usually include section outlining the financial principle and practices which board and heads must follows to achieved accountability for the funds accounting  regulation system issues financial regulation from time, to time whereby audited account of the given financial period must be summarized to facilited^^^ financial decision on allusions of grant to schools. The main objective of auditing is to enable the auditor to form an opinion on the efficient utilization of money given to school heads for running school.

Auditing also help the heads improve the school, accounting system. The secondary objective of auditing is to direct or prevent mismanagement of funds. Auditing therefore enhance the head staff skill in financial management and evaluate his/her performance. This research is carried out to find out the internal auditing and account ability among secondary heads in Ikot Ekpene Local Government Area.

1.3     PURPOSE OF THE STUDY

The main purposes of this study are as followed:

1. To examine the extent to which internal auditing as been instituted in secondary schools to ensure financial management by the school heads in Ikot Ekpene Local Government Area.
2. To examining the extent of the use of accounting practices in public secondary schools in Ikot Ekpene Local Government Area.

• To examine the available of guidelines to the preparation of annual financial report by secondary school principals in the Ikot Ekpene Local Government.

1. To examine the extent to which proper books of account are kept by secondary school heads in Ikot Ekpene Local Government Area.

1.4     RESEARCH QUESTION

1. To what extent does internal auditing been execute in secondary schools to ensure proper management by schools heads in Ikot Ekpene Local Government Area?
2. Do school heads use standard accounting practices principles in managing finances in secondary schools in Ikot Ekpene Local Government Area?

iii.     To what extent does the Ministry of Education provided guidelines to secondary schools heads for preparing annual financial report in Ikot Ekpene Local Government Area?

1. What is the extent to which proper books of account are kept by secondary schools heads in Ikot Ekpene Local Government Area?

1.5     RESEARCH HYPOTHESIS

The operational hypothesis for this research work is hereby stated in null form (Null Hypothesis):

1. There is no relationship between the use of internal auditing and accountability among heads of public secondary schools.

1.6     SIGNIFICANT OF THE STUDY

This study will enable the school heads to submit to auditor all account records and books to facilities his/her work after signing the contract with all the relevant audience to enable the auditor draws conclusion on the state of the school account. The school heads should also allow any inspection of assets by an auditor. It also enable the school heads to gives a thorough knowledge, oral evidence of the school financial environment for example regulation, principles and practice, mechanism of control and school budget on the part of the heads will greatly enhance the work of auditors. This will you some general knowledge of the subject of auditing. Auditor are highly privileged position and have statutory right to demand such information and explanation as they considered necessary for the purpose of auditing. Finally, it will save as a reference material to future researcher especially student who may be interested in further understanding in this regards.

1.7     LIMITATION OF THE STUDY

Despite the short time from all allotted for this study complied with financial contribution attribute of respondent among the secondary school head. It has been noted already that internal auditing is to ensure regular and frequent checking of the financial transaction of the school. A schedule for internal auditing should be indicated and outline the objective, the procedure to be followed, the frequency and the methods of committing or assets of the school. The study examines various approaches of internal audit work. The basic techniques, the quality of internal audit as well as carrying opinion which can enhance the contribution.

1.8     SCOPE OF THE STUDY

The scope of study is limited among secondary school heads in Ikot Ekpene Local Government Area. The synopsis appraises the important of internal auditing function in Ikot Ekpene Local Government Area regards to effective control over assets reliability and at adherence the policy of the school. However, internal auditing and accountability of properly done will be down on the cost of external auditing and greatly enhance the process.

1.9     DEFINITION OF TERMS

Internal Auditing: Is usually a management activity and is services intended to ensure regular frequent checking on school financial transaction and internal auditor is normally an employee of the organization or school to supervise the account staff to ensure the efficiency in the day to day management of the school finance.

Accountability: Can be define as answerable to one client liable one self and responsibility one employers. Accountability is a state of being accountable, liable and responsible for certain action or decision Kogan (Watt et. al., 2002). Accountability refers to giving an account of action taking and being held accountable for this action.

Internal Auditor:        Is usually the employee of the school to verify the accounting statement of balance sheet, profit and loss account and other financial report of the school.

External Auditors: This gives an independent report on the financial performance of the school in accordance with the terms and the contract agree with school. The focus of the external auditing is on establishing the truth and fairness of the account. It gives added credibility to audited financial transaction and confirm their compliance to the statement.

Internal Control: Is a system of procedures and method with the objective to assure compliance with the principles of legality, transparency, effectiveness, efficiency and economy to verify the regularity of accounting data and the correction of found irregularities as well as the inventory of assets and liability.

Reporting: The school has to report on it worker and action to the management or supervision fund provider founder and other interest group