THE INTERNAL AUDITING AS AN INSRUMENT FOR EFFFECTIVE MANAGEMENT

The function and the existence of internal audit department in organisation cannot be over emphasized considering the enormity of trust and responsibility attached to this department of an organisation.  This brings to mind why the writers chose to research on the subject, internal auditing as an instrument for effective management. Internal auditing becomes necessary as a result of the extended span of control faced by the management concerning the employment of men and material in the conduct of organizational affairs.  The work of the internal audit are very important in most modern organizations and have trust of responsibility to advice the management and enforce the operations of internal control, and the internal checks in the organisation.  The inefficiency in the organisation during day to day activities are controlled. The internal audit is the independence appraisal activity in the organisation as a service to the management.  The duties are usually defined by the management and these includes:
Ø  Measurement of the adequacy and effectiveness of the internal control system on a continuous basis;
Ø  Routine checks to prevent and detect errors and frauds;
Ø  Provision of hireling advice to management on internal control matters;
Ø  Investigation of reported cases of all practices;
Ø  Provision of statiscal data for management information and decision making;
Ø  Other special assignment such as asset disposal, staff audits.
 
Inspite of this being a seemingly exacting and challenging function of the internal audit department.  In some organizational, the management starve the internal auditor of funds, staffing and training. It is necessary for internal audit to have credibility by having as internal auditors persons of interrity. The above qualities of internal auditors contributed to the inefficient of the internal audits of the organizations world-wide. As regards, the problems which usually effects the internal audit departments, the staff of some organisation treats the internal audit as “blood hound” and not “watch dogs”.  The fraudulent staff would not normaly corporate with the internal auditors as regard the supply of information which should be used for the effective checks of the work of the organizations activities.
 
The project directs its attention on the institute of management and technology (IMT) Enugu.  The school was established as a result of the combination of the former college of technology and institute of administration of East Central State in 1972. The institute of management and technology (IMT) Enugu came into being of the 1st July, 1973 as a result of edict No. 10 of 1973 of the then East Central State Government. The institute of management and technology has two campus whish is campus II and III as campus I has been taken over by the Enugu State University of Science and technology (ESUT) Enugu Nigeria.
 
The institute of management and technology (IMT) Enugu runs preliminary studies, such as full-time, part-time and poly-air programmes.  The institute has its head of establishment, the rector of the institute, the registrar, the accounts and the student’s affairs etc. The institute of management and technology (IMT) Enugu has under its various programmes:
Ø  School of business and administration;
Ø  School of Engineering
Ø  School of General Studies;
Ø  School of Technical Teachers Education and;
Ø  School of Continuing Education.
 
The research titled internal auditing as an instrument of effective management attempts to determine the methods by which some institution like the institute of management and technology (IMT), Enugu has utilized internal audit as an instrument for effective management some of these problems are:
(i) Inability to identify the functions of the internal audit department;
(ii) Lack of information for internal audit work;
(iii) Non-independent of internal audit work in the institute and
(iv) Inability to recognize the internal audit as effective and reliable tools to management in performance of its functions.
 
The objective of this work is as follows:
(i) To discover the extent to which the inability to identify the function of the internal audit department affects institute of management and technology (IMT), Enugu.
(ii)  To find out how lack of information in this institute affects the internal audit work.
(iii) To determine the extent to which the independent of the internal audit work is being hampered; and
(iv) To determine whether internal audit is an instrument for effective management.
 
The scope of this study focuses on the internal auditing as an instrument for effective management using institute of management and technology (IMT), Enugu as a case study.
 
To guide these projects, (4) four research questions were formulated as follows:
(i) To what extent does inability to identify the function of internal audit department affects the activities of the institute of management and technology (IMT), Enugu.
(ii) To what extent does lack of information in institute of management and technology (IMT), Enugu affects the internal audit works;
(iii) To what extent does independence of internal audit work is being hampered; and
(iv) To what extent does internal auditing as an instrument for effective management in institute of management and technology (IMT), Enugu.
 
The hypothesis of this work include:
Ho1:     Inability to identify the functions of the internal audit department does not in any way affects the management of institute of management and technology (IMT), Enugu.
Ho2:     Lack of information in the institute of management and technology (IMT), Enugu does not affect the internal audit work of  its management; and
 
This work will be of great benefit to the management of every institute or firm not only the institute of management and technology (IMT), Enugu that require effective internal control. The benefit of internal audit may not be over emphasized due to detection, control and prevention of waste and fraud in the organisation.  This researcher provides moral influence to protect efficiency and assists management in dealing prompting with some issues which would have created problems if left to linger until they come to the attention of the higher management.The students of business, research, business executions and the public institute might find the work interesting.