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Effectiveness Of Audit Function In Government Establishment

(A Case Study Of Office Of Auditor General In Enugu State)

5 Chapters
|
60 Pages
|
7,788 Words

In the realm of governmental operations, the effectiveness of the audit function plays a crucial role in ensuring transparency, accountability, and adherence to financial regulations. Government establishments are entrusted with managing public funds, and as such, a robust audit function is imperative to evaluate the efficiency and compliance of financial activities. The audit function serves as a critical mechanism to identify potential discrepancies, assess risk management processes, and enhance the overall governance framework. By systematically examining financial records, internal controls, and operational procedures, auditors contribute to the detection and prevention of financial mismanagement or fraud. This multifaceted approach to auditing not only safeguards the public’s trust in the government but also promotes fiscal responsibility and sound financial stewardship. Consequently, an effective audit function in government establishments not only ensures compliance with regulatory requirements but also fosters a culture of accountability and integrity in the management of public resources.

TABLE OF CONTENT

Cover page
Title Page
Approval Page
Dedication
Table of Contents

CHAPTER ONE:
INTRODUCTION
1.1 Background of the Study
1.2 Statement of Problem
1.3 Purpose of the Study
1.4 Scope of the Study
1.5 Research Question
1.6 Hypotheses
1.7 Significance of Study

CHAPTER TWO:
LITERATURE
2.1 Nature of Auditing
2.2 The Auditor General
2.3 The Auditor General
2.4 Duties
2.5 Power
2.6 Audit Ordinance
2.7 The Audit of Government Account
2.8 The Roles Played by the Audit Department in the Protection of Public Funds and Property

CHAPTER THREE
3.1 Methodology
3.2 Area of Study
3.3 Population of the Study
3.4 Sample & Sampling Procedure
3.5 Instrument of Data Collection
3.6 Administration of the Research Instruments
3.7 Methods of Data Analysis
3.8 Research Design

CHAPTER FOUR
DATA PRESENTATION AND RESULTS
Research Questions I
Research Questions II
Research Questions III
Research Questions IV

CHAPTER FIVE
Discussion of Results
Research Questions I
Research Questions II
Research Questions III
Research Questions IV
Conclusion
Recommendation
Implication of the Research Findings
Suggestion for Further Research
Limitation to the Study

CHAPTER ONE

INTRODUCTION
1.1 BACKGROUND OF THE STUDY
There is need for acceptable accountability of the money spent by various government establishment. This has resulted in Federal Government Establishment of Audit Department established in both the federal and state government as provided.
The duty of the Audit Department is to report on the accounts stewardship rendered by the public office sec. 118 sub-sec 2 of the 1979 constitution provides that “the public account of a state and offices court and authorities of the state including all persons and bodies established by law entrusted with collection and administration of public assist and liabilities, shall be audited and reported by the director of audit or any person authorized by him in that behalf shall have access to all books, records and returns and other document relating to those accounts”.
The study focuses attention on how well or not Enugu state. Audit Department Conducted their activities in response to sec 118 of the 1979 constitution of the federal republic of Nigeria. To appreciate whether the audit department (Enugu State) performs its constitutional responsibility efficiently and effectively, it becomes necessary to determine or examine the effectiveness of the audit function through the analysis of audit carried out on government establishment and the opinion of those that audited the accounts. This will include whether they always audit accounts rendered by other government establishment and finally the impression of the general public about the auditor function.

1.2 STATEMENT OF PROBLEM
1. Recognition:
Due and appropriate recognition were not accorded to the audit department
2. Staffing:
The staffing of the department was poor, in most cases, majority of the staff did not had any basic knowledge in book-keeping and accountancy, they are not usually trained, their performance surely cannot satisfactory.
3. Funding:
Audit department was poorly funded by non-auditing offices, who were in a position of authority.
4. Report
Audit’s report were often disregarded and no actions were taken on them.

1.3 PURPOSE OF THE STUDY
In the light of the above the research aims at looking at the impact and significance of audit function in government establishment and then identify the causes of its ineffectiveness or effectiveness. these study also aims at analyzing the following:
– The roles played by the Audit Department in the protection of public funds and property.
– The delays in caring out audit of the government account (ministries and panasteris)
– The problem encountered by auditor when carrying out their work.

1.4 SCOPE OF THE STUDY
The scope of this study is on however, Enugu state audit department had discharged. Its duties. The main focus in on the techniques used and their shortcoming.

1.5 RESEARCH QUESTION
In view of the point made in the statement of problem above one man ask the following question.
1. Are the officer of the Audit department qualified for jobs
2. Are the Audit department help in protection of public funds property
3. Are the officers in the ministries other parastatals comply with the financial regulation in their duties
4. What problems do the auditor encounter in the course of their duties.

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Effectiveness Of Audit Function In Government Establishment:

The effectiveness of the audit function in government establishments is crucial for ensuring transparency, accountability, and good governance. Auditing is a systematic and independent examination of financial, operational, and managerial activities to determine whether they comply with established policies, laws, and regulations. Here are some key points regarding the effectiveness of the audit function in government establishments:

  1. Transparency and Accountability: Audits help promote transparency by providing an independent assessment of financial transactions and operations. They hold government agencies accountable for their use of public funds and resources, ensuring that taxpayers’ money is used appropriately and efficiently.
  2. Prevention and Detection of Fraud and Corruption: Effective audits can identify irregularities, discrepancies, and potential instances of fraud or corruption. By highlighting these issues, audits play a preventive role, discouraging unethical practices within government organizations.
  3. Compliance with Laws and Regulations: Government establishments are often subject to various laws, regulations, and policies. Auditors review whether these entities are complying with these rules, helping to mitigate legal and regulatory risks.
  4. Operational Efficiency and Effectiveness: Audits assess the efficiency and effectiveness of government programs and operations. They can identify areas where improvements can be made to optimize resource utilization and achieve better outcomes.
  5. Risk Management: Auditors evaluate and highlight risks faced by government establishments, enabling management to address these risks proactively and implement risk management strategies.
  6. Data Accuracy and Reliability: Auditors ensure the accuracy and reliability of financial and operational data by examining the processes and systems used to gather, record, and report information.
  7. Enhanced Decision-Making: Audit reports provide valuable insights that aid decision-makers in making informed choices about resource allocation, policy formulation, and process improvements.
  8. Strengthening Internal Controls: Audits assess the effectiveness of internal controls within government establishments. Weak internal controls can lead to inefficiencies, errors, and vulnerabilities. Effective audits recommend enhancements to internal controls to prevent such issues.
  9. Public Confidence: An efficient audit function enhances public trust in government institutions. When citizens see that there is independent oversight of government activities, it fosters confidence in the administration’s integrity.
  10. Legislative Oversight: Audit reports provide lawmakers with information necessary for conducting effective oversight of government operations. This enables them to evaluate the performance of government agencies and make informed decisions about budgets and policies.
  11. Continuous Improvement: The audit process often includes recommendations for improvement. By acting on these recommendations, government establishments can continuously enhance their operations and governance practices.

To ensure the effectiveness of the audit function in government establishments, it’s important to maintain the independence of the auditing body, provide sufficient resources for conducting audits, foster a culture of accountability, and take action on audit findings and recommendations. Additionally, embracing modern auditing technologies and methodologies can enhance the efficiency and scope of audits in complex government environments.