Internal Auditing As An Instrument For Effective Management And Accountability Of Financial Resources In The Public Sector

Internal Auditing As An Instrument For Effective Management And Accountability Of Financial Resources In The Public Sector

Preface

Background Of The Study

lately effective operation and responsibility of fiscal coffers vike cash in the public sector has begun to admit important emphasis primarily in response to increase in fraud and high pretense rate that cheapen idle or unaccounted cash and utmost especially defeat of points of establishing similar adventures and redundant clerical department most government establishments are tensing their internal control system to insure strategic operation planning and translucency in the affairs of the department

This duty call made imperative due to the near collapse of government institutions occasioned by abuse of cash and its vulnerability to loose functionary who are ever at work to defraud and Erich themselves from the orgnaization. In order to cover its fiscal coffers from being despoiled an association must know exactly its income and expenditure insuring system account system and base authorization procedure cash control systemetc. with respect to cash inrushes and exoduses. This explains the geometric rise in the embezzlement of public finances by sanctioned and government crackers who are supposed to secure similar finances.

It’s cases to recall that cash and other near- plutocrat coffers either real or fiscal is the utmost enhancement current asset for the smooth handling of her ministries. It’s input demanded to keep the business on nonstop base similar coffers are demanded for payment of hires payment for connections and other infrastructural development need to make for a good standard of living.

An integral part of real and fiancnail means administration is concerned with the effective application of commercial fund. The planning and control of similar exertion is made possible by strict internal auditing which embodies strict internal controls observation of account norms and principle vouching and authorization procedure. This is made necessary by the fact that business is cyclical in nature with abating government profit and a considerable quantum of time during which factors inputs must be bought and stipend paid elapses between the damage of an order its payload and the banking of cash. An investment in cash and real means is needed in order to meet with pressing functional demand the uneven inflow in the damage and disbursement of fund causes seasonal oscillations and so on also the damage and disbursement of fund is useable in diurnal base and within the month with a strong cash operation and control system( models) fete the query essential in vaticinating both cash inrushes and exoduses.

An effective cash operation and responsibility is necessary for the overall performance of an association one is surprised at the complete lack of legal cash control and other real asset operation system in numerous public sector association in Nigeria especially those bones possessed by government and the state.

While some associations prepare cash budget at the morning of their fiscal time without any follow up authorization and control process others just more cash control to yearly base in the form of bank conciliation statement which are doctored to clan up their augean forces unfortunately, it’s only when cash problem arises that operation starts to look for the immediate and remote causes and possible remedies while they’re the problem themselves.

According to Stever( 1994page1) auditing in all its ramification whether internal or external in nature provides a unique platform and tool for responsibility as no director would like himself or herself to be set up wanting for failure to give an accurate account of the fund entrusted to him or her. It thus saves as a determent to directors of public finances from negotiating frauds. More importantly internal auditing which is an independent appraisal of exertion within an association for the review of the account fiscal and other operations as a base for defensive and formative services to operation is a type of control which functions by measuring and assessing the effectiveness of other types of control.

The experimenter intends to look into the nature of internal auditing as a probable tool for effective operation and responsibility of fiscal instrument with particular reference to the public sector the third league of government using Udi original government council as a case study and to estimate the internal control system in line with approved transnational standard and principles.

Statement Of Problem

Among the worst profitable crimes current in out frugality moment fraud and embezzlement of public finances stands out conspicuously. This social use is common thin the government circle as the people who are entrusted with the paraphernalia of government defy any from of internal inspection designed to check and descry frauds they generally despoil the system alongside the civil retainers in the hunt to each themselves the reason being that the applicable internal control system isn’t in place or missing. And where it’s rules and regulations guarding the system are bombarded and manipulated in order to immortalize fraud and embezzlement is what the present exploration intends to examine in addition to establishing internal auditing in us true perspective as an instrument for effective operation and responsibility the statement of problems includes

1. Impact of colorful department towards the establishment of internal control in the planning and controlling of real and fiancnail means of the public sector.

2. How effective is the controls for forestallment and discovery of fraud and other fiscal inequalities

3. goods of internal auditing and control in the public sector

4. delicate that internal auditing ahs encountered towards achieving and cranking organizational

Purpose Of The Study

The cardinal objects of the exploration study are

1. To know the extent colorful departments have helped in the establishment of internal control in the planning and controlling of real and fiancnail as of the public sector.

2. To find out how effective is the control for forestallment and discovery of fraud and other fiscal irregularities.

3. To punctuate the goods of internal auditing and control controls in the public sector.

4. To ascertain the difficulties institutionalization of internal auditing ahs encountered towards achieving and attaining organizational pretensions

Exploration Question

To guide this design work four exploration question were formulated to insure clarity.

1. To what extent does colorful department helped in the establishment of internal controls in the planning and controlling of real and fiscal means of the public sectors

2. To what extent does the controls being effective for the forestallment and discovery of fraud and other fiscal irregularities.

3. To what extent does internal auditing and controls have affected the public sector

4. To what extent does the difficulties institutionalization of internal auditing ahs encountered towards achieving and attaing organizational pretensions.

Exploration Thesis

Towards vindicating the subject matter of this work the following preposition were formulated and tested.

1. Ho1 There will be no significant difference( P<0.05)( at the probability position of.05) between the mean perception of finance dept and stores department on the impact of valued department towards the establishment of internal control in the planning and controlling of real and fiscal means of the public sector.

H1 There’s a significant difference( P<0.05)( at the probability position of.05) between the mean perception of finance and stores department on the impact of colorful department towards the establishment of internal control in the planning and controlling of real and fiscal means of the public sector.

2. Ho There will no significant difference( P<0.05)( at the probability position of0.05) on how effective is the control for forestallment and discovery of fraud and other fiscal irregularities.

H1 There’s a significant difference( P<0.05)( at the probability position of0.05) on how effective is the control for forestallment and discovery of fraud and other fiscal irregularities.

3. Ho There will be no significant difference( P<0.05)( at the probability position of0.05) between the mean perception of finance and stores department on the goods of internal auditing and control in the public sector.

4. Ho There will be no significant difference( P<0.05)( at the probability position of0.05) between the means perception of fiscal and stores department on the difficulties institutionalization of internal auditing ahs encountered towards achieving and attaing organizational pretensions.

H1 There’s a significant difference( P<0.05)( at the probability position of0.05) between the means perception of fiscal and stores department on the difficulties institutionalization of internal auditing ahs encountered towards achieving and attaining organizational pretensions.

The Compass Of The Study

This scholars engagement is meant to dissect the need for drivers of the public sector to borrow and establish internal auditing and control as an instrument for effective operation and responsibility of fiscal coffers no the public sector like real and fiancnail means with a reference to Udi original government council in Enugu state. The study excavated considerably on the magnitude of sacking pillaging and embezzlement of public finances and stressed on the effectiveness of internal auditing towards bridling the unattractive trend.

The Significance Of The Study

This exploration will be benefit to private and government establishment in that if the recommendations are enforced public finances presently being siphoned through avoidable embezzlement conduct peoples and fraud in numerous public enterprise and department will be conserved.

The staff of similar association will profit because the conserved fund can be used to ameliorate their condition of service and the provision of social amenities for the public. When this is attained to workshop will be well motivated. This will have a positive impact on their position of productivity and affair. As a result, better services will now be handed to the society and humanity through bettered effectiveness of operation this study will inversely help the operation of public and private establishment in planning and control which are introductory constituents of strategic decision timber.

The resaerch is also an attempt to chancing result to the disturbing problem posed to the commercial actuality and growth of government establishment by office perpetrators of fraud and embezzlement that made the exploration to sock the content.

This piece of work will inversely be of immense benefit to

a. The general public.

rehearsing accountants

Those in fiduciary positions

Account officers in both private and public establishment and

scholars of accountancy and confederated disciplines since they can use it as a companion for carrying out unborn resaerch and to educate their minds generating.

Description Of Terms

Real means These are fixed means in an association which are used in the

product process it may be machines vehicles manufactories office blocksetc.

fiscal means These are inventible means of an association in the form of

cash and near plutocrat instruments like cheques bonds sharesetc.

Internal This simply means carrying out an exertion or working within the

immediate terrain

Auditing This is defined according to the inspection functional standard as the

independent examination of and expression of opinion on the fiscal statements of an enterprise by an appointed adjudicator in performance of the appointment and in compliance with any applicable statutory obligation

Instrument utensil or outfit used in performing an action a complex

executive association( Webster Encyclopaedia) dictionary OT 1993)

Effective This means having the good quality of achieving or negotiating

the thing operation seeks to pursue.

operation This is employment and operation of both mortal and

material coffers to achieve the objects of an orgnaization in the most profitable way

responsibility The act of giving explanation or reckoning for commodity

entrusted to one

Fraud purposeful deformation of fiscal statements.

Embezzlement To man private the finances and fiancnail records of an

association in order to enrich oneself

Public sector That part of the aggregate frugality being possessed and

controlled by the government state or the central government

Fiduciary relationship Means that the operation of finances isn’t

fully and completely in the hands of proprietor but supplicated by proprietor to notoriety differently.

Control Any deliberate act to avert the Mis. operation of finances and

the performance of fraud in an association

System A group of effects or corridor working together as a whole