THE NATURE OF INTERNAL AUDIT SYSTEM IN EDUCATIONAL INSTITUTION REGULATORY ORGANIZATION
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1.1 BACKGROUND OF STUDY
Given today complex and rapidly changing management climate, most large companies, major institution and governmental agencies are implementing continuous improvements to achieve efficiency and assure all concerned parties of solid corporate governance.
The nature of interval audit system simply means explaining some of the key terms in the project topic, the internal system.
According to the Institute of Internal Auditors (IIA) definition of internal auditing the internal audit system should provide independent, thoroughly timely and objective result of quantitative and qualitative testing to senor management and in essence, help evaluate organizational risk management.
Auditing is an independent checking and investigation of the books of accounts and vouchers of a business with a view to enabling the audit to report whether the balance sheet and profit and loss account are properly drawn up so as to show a true and fair view of the state of the affairs and the best of the information and explanations obtained by the Auditors and that they comply with the rules laid down by SSAP (Statements of Standard Accounting Practice) and other statutory regulations. Audit is of two types, namely.
Internal audit is a review of the operation procedures and records of the business internal auditing is itself an internal control which operates by appraising and reporting on the effectiveness of the other controls. Thus, its main objectives is to assist management in discharging its responsibilities and to evaluate compliance with corporate procedures. The role of internal auditors therefore, is to provide an overall assurance to management that all key risk within an organization are managed effectively so that the organization can achieve its strategic objective.
External Audit: The external auditors are officers from supervisor agency or independent firm to examine accounts, document independently. However, this project topic is restricted to internal audit system, taken the National Board for technical education as a case study.
1.2 STATEMENT OF PROBLEMS
Trust in the process of financial accounting and auditing is been undermined by our present day high-profile corrupt practices in major institutions and organizations. Thus as a result is the seeming failure of internal audit system not giving value for the finances of the educational institutions and the resulted effects is responsible for the poor quality delivery of education. So also is the mechanism put in place to curb these corruption has not been effective.
In response, it has become necessary to undertake, examine and evaluate the problematic nature of internal audit system in educational institution and regulatory