THE CHALLENGES OF INTERNAL AUDIT FUNCTION IN THE NIGERIAN PUBLIC SECTOR. (A study of Kaduna state ministry of finance.)

ABSTRACT

This research work deals with the challenges of internal audit function in the Nigerian public sector with reference to Kaduna state ministry of finance. Internal auditing is a process generally adopted towards ensuring and safeguarding of resources and promoting operational efficiency in organization. The objective of this study has been to evaluate the internal control system in the Nigerian public sectors, to ascertain the non implementation of routine audit report and the lack of proper segregation and assignment of duties. In recent times, a combination of forces has led to a quiet revolution in the profession. Government moving towards democracy must demonstrate accountability in the use of public money and efficiency in the delivery of service. In many cases internal control system are weak, staffs are poorly paid making them unmotivated, coupled with nonimplementation of routine audit report by appropriate authorities. The Responses from staffs were analyzed using relevant statistical tools from which three hypothesis were formulated and tested using Ztest statistics, while questionnaire were analyzed in tabular form using simple percentage. It was discovered that the internal audit is facing a lot of challenges which includes inadequate staffing, lack of independence, lack of facilities to carry out audit function and also poor funding. As a result of some of these challenges the effectiveness of the internal audit in the Nigerian public sectors, has been hindered as well as the organizational change it can bring to its environment. I recommend that for internal audit to be effective, it must be a completely independent group, adequately funded and equipped with qualified internal auditors as well as sufficient opportunities for internal auditors to become qualified.

TABLE OF CONTENTS

Approval page ii

Certification iii

Dedication iv

Acknowledgment v

Abstract vii

CHAPTER ONE: INTRODUCTION

1.1 Background of the study 4

1.2 Statement of the study 5

1.3 Statement of the objectives 6

1.4 Research questions 6

1.5 Research hypotheses 7

1.6 Significance of the study 8

1.7 Scope of the study 9

1.8 Limitations of the study 9

1.9 Definition of terms 9

CHAPTER TWO: REVIEW OF RELATED LITERATURE

2.1 Introduction

2.2 Organizational structure of ministry of finance

2.3 Definition of auditing

2.4 Types of auditing

2.5 Meaning of internal audits

2.6 Meaning of internal control

2.7 Meaning of internal check

2.8 Objective and purpose of internal audit

2.9 Qualities required of an auditor

2.10 Elements of internal audit

2.11 Scope of internal audit

2.12 Duties and responsibilities

2.13 Role of internal audit in the Nigerian public sector

2.14 Challenges of internal audit

2.15 Factors responsible for the problem of internal

CHAPTER THREE: RESEARCH METHODLOGY

3.1 Research design 34

3.2 Sources of data 35

3.3 Area of the study 36

3.4 Population of the study 36

3.5 Determination of population size 37

3.6 Reliability Test 39

3.7 Validity test 39

3.8 Method of data collection 39

3.9 Techniques for data analysis 40

CHAPTER FOUR: PRESENTATION OF DATA, INTERPRETATIONAND ANALYSIS OF DATA

4.1 Presentation of data 42

4.2 Test of hypotheses 55

4.3 Discussion of findings 68

CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS

5.1 Summary of findings 70

5.2 Conclusion 71

5.3 Recommendations 71

Bibliography 73

Appendix 75