Home » Project Material » Contributions of internal audit to the accountability of water corporation

Contributions of internal audit to the accountability of water corporation

5 Chapters
|
62 Pages
|
8,177 Words

Internal audit plays a crucial role in enhancing the accountability of water corporations by providing independent and objective assessments of their financial and operational processes. Through regular audits, internal auditors evaluate the effectiveness of internal controls, risk management practices, and compliance with relevant regulations within the water corporation. This contributes to the overall transparency and integrity of the organization’s operations, ensuring that financial resources are utilized efficiently and in accordance with established policies. Additionally, internal audit helps identify areas for improvement in governance structures, internal processes, and accountability mechanisms, ultimately fostering a culture of responsible stewardship. By addressing potential weaknesses and promoting best practices, internal audit significantly strengthens the accountability framework of water corporations, thereby enhancing public trust and confidence in the organization’s ability to manage water resources responsibly.

ABSTRACT

The primary objective of this study is to identify the contributions of internal audit to the accountability of NITEL Plc, Enugu zone. A number of 2010 staff consist the population while 72 staff from the 7 departments formed the sample through random sampling. In carrying out this research, four research questions were utilized. Copies of questionnaire were given out to staff of the organization. The data collected were analyzed using frequency table and mean. The findings revealed that: (a) High level of accountability, effective knowledge acquired by workers, etc are dependent on Internal auditing. (b) Proper stock taking, qualified auditors, etc by internal auditing helped the organization to optimize its assets. (c) The effective management of financial resources of the organization by internal audit are achieved through early dictation of fraud, effective internal control, etc. (d) Lack of internal audit give chances of fraud, retrenchment of workers, etc. Based on these findings, recommendations, conclusion and suggestions for further research were made.

TABLE OF CONTENT

Title page
Approval page
Certification
Dedication
Acknowledgment
Table of content
Abstract

CHAPTER I:
INTRODUCTION
Background of the study
Statement of the problem
Purpose of the study
Significance of the study
Research questions
Delimitation of the study
Definition of terms

CHAPTER II:
REVIEW OF RELATED LITERATURE
Roles of Internal Auditing in accountability of
business organization
Objectives and Purpose of internal Audit
Impact of Internal Auditing in the Operation Business
Organization
Summary of Literature Review

CHAPTER III:
RESEARCH METHODS
Research design
Area of the study
Population of the study
Sample and sampling technique
Instrument for data Collection
Validity of the instrument
Reliability of the instrument
Method of data collection
Method of data Analysis

Chapter IV:
DATA ANALYSIS AND RESULTS
Research question 1
Research question 2
Research question 3
Research question 4

CHAPTER V:
DISCUSSION OF FINDINGS, CONCLUSION
AND RECOMMENDATIONS
Discussion of Findings
Conclusion
Recommendations
Limitation of study
Suggestions for further Research
References
Appendixes I
Appendixes II

CHAPTER ONE

INTRODUCTION
Background of the Study
Auditing is defined as an official examination of business and financial records to see that they are true and correct.
According to Aguolu (1998:2) Auditing is defined as an independent examination of an organization’s financial statements with a view to expressing in form of a report, an opinion as it whether these statements gives a true and fair view and comply with the relevant statutes.
A person who carries out such an examination is know as an AUDITOR for an auditor to be able to carryout a meaningful examination as required for the purpose of his report, the auditor does not only review the financial statements, he also carriers out a skilful and careful examination of the records of the organization in order to ensure that the financial statements are in reflection of the affairs of the organization as they appear in the records.
Internal audit as defined by Guidance for Internal Audit (1990:14) is an appraisal function established by the management of an organization for review of the internal control system as service to the organization. It objectively examines, evaluates and reports on the adequacy on internal control as a contribution to the proper economic, efficient and effective use of resources.
Auditing is different from Accounting in what of auditing it involves a critical examination of accounts through test, vouching, verification, etc while accounting involves recording, use and analysis and interpretation of financial transaction accounting aims at determination of result of operation while auditing aims at create statement confidence on the accounts by stating the true and fair view of the financial statements. Auditing can be classified into internal, external private audit, etc while accounting can be classified into financial, costing, management and Tax accounting.
Internal auditing precisely is meant to control and ensure accounting or proper stewardship on the part of officers entrusted with the duty of managing public funds. It is also geared towards improving accounting system and techniques thereby facilitating prompt, accurate and reliable information to management.
The civil service reforms of 1988 contain provision for audit department Goarcia (2003). In highlighting the functions for internal audit department contended that internal audit department or unit is one set up to supervise the book-keeping accounting and other functions of the organization.
However, despite the above provisions safeguards one still hears and reads daily of the alarming rate of fraud and misappropriation of public fund and property by those who were entrusted with their safeguard. This study will look into the contributions of internal auditing to the accountability of water co-operation, Enugu zone to determine it potentials in preventing errors, encouraging improvements in operations accuracy, efficiency and effectiveness and operations.

Statement of the Problem
The unreliability in water corporation has given rise to the quest to know how its money is being used it is explained that the organization main objective is the welfare of its public but the extent to which they have achieved this through the services they provide is not applauded by the public.
There are still complaints on the high rate of fraud and wrong use of public funds by those who were entrusted with their safeguard the establishment of internal audit department in the organization, water corporation Enugu zone. It was based on this ground that this research has been decided to be carried out to find out how internal audit can help to the accountability of water corporation.

Purpose of the Study
This purpose of this research work was to investigate for the following objectives.
i. To determine the extent to which effective accountability is dependent on internal auditing.
ii. To find out how internal auditing has helped water corporation to optimize its assets.
iii. Ascertain how internal auditing has aided the water corporation Enugu zone, in efficient management of it financial and material resources.
iv. Dig deep into knowing the extent to which available resource of water corporation has been marked by lack of internal auditing.

Significance of the Study
It is expected that with the outcome of this study, management will be assisted in upholding its strengths and remedy the weakness of the internal audit system. Poor administrative control will not facilitate the organization’s resources and assets. There is going to be a justification for this study as both the organization studied and other’s in general would appreciate the impacts the internal audit has contributed to develop efficiency and effectiveness of performance.

Research Questions
i. To what extent is effective accountability dependent on internal auditing in water corporation?
ii. To what extent has internal auditing helped water corporation to make best use of its assts?
iii. To what extent has internal auditing aided efficient management of financial resource of water corporation?
iv. In what ways have the available resources of water corporation been marked by lack of internal auditing?

Delimitation of the Study
The study was being restricted to identifying the contribution of internal auditing to the accountability of water corporation in Enugu zone specially.

Definition of Terms
i. Contributions:- This means efforts made of help rendered to a person, group of persons, organization, etc to bring about a change.
ii. Internal: It means something happing in the inside or applying within an organization.
iii. Audit: This is an official examination of accounts
iv. Accountability: According to Ola, (1995:8) this implies being honesty and probity (transparent) in accounting for public funds both reserved and expended. It means being able to explain or give account of how something is being done.

SIMILAR PROJECT TOPICS:
Save/Share This On Social Media:
MORE DESCRIPTION:

Contributions of internal audit to the accountability of water corporation:

Internal audit plays a crucial role in ensuring the accountability of a water corporation, just as it does in any other organization. Here are several key contributions of internal audit to the accountability of a water corporation:

  1. Risk Assessment: Internal audit helps identify and assess risks that the water corporation faces, whether they are financial, operational, or compliance-related. This risk assessment is essential for accountability because it allows the corporation to proactively manage and mitigate risks that could impact its operations and reputation.
  2. Compliance Monitoring: Water corporations are subject to various regulations and laws, both in terms of water quality and financial reporting. Internal auditors ensure that the corporation is complying with these regulations, helping to maintain accountability to regulatory authorities and the public.
  3. Financial Oversight: Internal auditors review financial transactions and processes to ensure accuracy and transparency in financial reporting. They help prevent fraud, embezzlement, and other financial irregularities that could undermine accountability.
  4. Operational Efficiency: By assessing operational processes, internal audit can identify areas where the water corporation can operate more efficiently. This not only saves resources but also enhances accountability by ensuring that resources are used effectively to provide water services.
  5. Internal Controls: Internal auditors evaluate and strengthen internal controls. Robust internal controls prevent unauthorized actions or errors that could compromise accountability. This includes controls over financial transactions, data access, and security.
  6. Performance Evaluation: Internal audit can also assess the performance of the water corporation against its goals and objectives. This evaluation helps stakeholders understand how effectively the corporation is meeting its obligations and can hold management accountable for results.
  7. Transparency and Reporting: Internal audit reports its findings and recommendations to senior management and the board of directors. This transparent reporting ensures that issues and concerns are not swept under the rug, contributing to accountability at the highest levels of the organization.
  8. Fraud Detection: Internal audit actively looks for signs of fraud and corruption within the organization. Detecting and addressing fraud is critical for maintaining public trust and accountability.
  9. Continuous Improvement: Internal audit is not just about finding problems; it’s also about suggesting improvements. By identifying areas where the water corporation can enhance its operations and governance, internal audit promotes a culture of continuous improvement and accountability.
  10. Stakeholder Confidence: Ultimately, the work of internal audit helps build and maintain the confidence of various stakeholders, including customers, investors, regulators, and the public. When these stakeholders see that the water corporation has robust internal controls and is actively managing risks, they are more likely to trust and support the organization.

In summary, internal audit is an essential function within a water corporation that helps ensure accountability by assessing risks, monitoring compliance, enhancing financial oversight, improving operations, and promoting transparency. Its work not only safeguards the organization but also helps maintain the trust and confidence of stakeholders in the provision of safe and reliable water services.