INTERNAL AUDIT CONTROL IN GOVERNMENT ESTABLISHMENT
(A CASE STUDY FO PROJECT DEVELOPMENT INSTITUTE (PRODA), ENUGU).
ABSTRACT
            There is no doubt that anything that is not controlled is either wasted or mismanaged and on this premise, the importance of internal audit in controlling operations both in the public and private sector organizations cannot be overemphasized.Generally, Internal Audit Control in Government establishments is very weak and in particular, Internal Audit Control in project Development Institute (PRODA) Enugu is no exception.  As the main aim managerial control, internal audit ensures conformity to laid down rules and regulations.The topic “Internal Audit Control in Government Establishment”, A case study of PRODA Enugu highlights some problems and areas of the study.  Findings of the study were analyzed using percentage analysis and presented in table using the formula.
Some of the findings includes:
1.                  Management rarely uses internal audit report or recommendations;
2.                  The internal audit department is poorly staffed;
3.                  The internal audit reports to the chief directors;
4.                  The relationship between the internal audit it and other department s is not very encouraging.
Based on these findings, the researcher made some
recommendations some of which are:
1.                  Letting all the other department staffers know that the role of internal audit is that correction of mistakes where any is made and not that of catching a thief.
2.                  Staff the internal audit department properly with staff from accounts and personnel, and
3.                  The internal auditor should be allowed some reasonable decree of independence to enable him function effectively.
Having made the above recommendations, arising out of the
findings, the research concludes that for the successful attainment of organization goals the internal audit department should be given its far share in the scheme of things including, some reasonable measure of independence.
TABLE OF CONTENTS
CHAPTER ONE
INTRODUCTION
1.1       BACKGROUND OF THE STUDY
1.2       BRIEF HISTORY OF PRODA ENUGU
1.2       STATEMENT OF PROBLEM
1.3       OBJECTIVES OF STUDY
1.4       SIGNIFICANCE OF THE STUDY
1.5       RESEARCH QUESTION
1.5       DELIMITAITON/LIMITAITON OF THE STUDY
1.6       DEFINITION OF TERMS
CHAPTER TWO
2.0       LITERATURE REVIEW
2.1       HISTORICAL BACKGROUND OF AUDITING
2.2       PURPOSE OF AUDITING
2.3       SELECTION OF AUDITORS
2.4       INTERNAL AUDITORS IMPORTANCE
2.5       ROLE OF AUDITING IN COMPANIES
2.6       PLANNING FOR AN AUDIT
2.7       EVALUATION OF INTERNAL CONTROL SYSTEM
2.8       RELIANCE ON OTHER AUDITORS
2.9       PREPARATION OF THE AUDIT REPORT
            REFERENCE
CHAPTER THREE
3.1       METHODOLOGY
3.2       POPULATION
3.3       SAMPLE
3.4       INSTRUMENT
3.5       VALIDATION OF INSTRUMENT
3.6       COLLECTION OF DATA
3.7       QUESTIONNAIRE DESIGN
3.8       METHOD OF ANALYSIS
3.9       RECOMMENDATION
3.10     CONCLUSION
            BIBLIOGRAPHY
APPENDIX
CHAPTER ONE
1.0              INTRODUCTION
This research work is an attempt to study an internal audit
control as a tool for improving company’s performance using project development institute (PRODA), Enugu as the case study.
1.1       BACKGROUND OF THE STUDY
Auditing standards and guidelines (AS89) define internal
audit control as “the whole systems of control both financial and otherwise established by management in order to carry on the business of the enterprise in an orderly  and efficient manner ensure adherence to management policies and secures as far as possible the accuracy and reliability of its records.
As we have been witnessing in recent times, there has been drastic changes in business trends in Nigeria.  Some of the reasons for these anomalies in company performance resulted in the general company down turns, some of the seasons include fraud, misappropriation of funds and property, excess expenditure incompatible with real budgets, lack of accountability and general company crises.
It is also believed that fraud and misappropriation of funds and property have been the main causes of company’s poor performance in Nigeria.
Improvement will only follow, when there is a recognition of what is wrong and how it can be put right.
In view of this fact, attempt will be made to highlight the importance of control in auditing and its effect in improving company’s performance.
1.2              BRIEF HISTORY OF PRODA ENUGU
The project development institute (PRODA) an industrial
research and development agency (PRODA) by the East Central State Administration of Mr. Ukpabi Asika.  In 1976 with the creation of Anambra and Imo States, it was taken over by the Federal Government and renamed project Development Institute while retaining the acronym (PRODA).
            The work of research institutes is very essential for all countries especially developing ones.  Research and development products are packages for entrepreneurs and investors, thereby creating new jobs another production opportunities.  In order to achieve its opportunities any research establishment must operate from a very conductive environment.  When the mandate of PRODA was spelt out in 1976, the institute was directed to produce a master plan of the required infrastructure needs to create this conducive environment.
            The vision of the Federal Government was to set up a National Technology Development Institution of the type famous Korean Institute of Science and Technology (KIST).  The vision is that at PRODA Nigeria Scientist, Engineers, Technologies and Technicians form Nigeria Institutions of Higher Learning and Overseas, will pursue National Development project in a conducive project in a conducive productive atmosphere.
            The statutory mandate of PRODA includes: Research and Development of Machinery and equipment particularly as they pertain to the use of steel, other metals, ceramic and glass for industrial and consumer gadgetry, including their engineering design and fabrications of proto types.  In particular, the institute conducts research and development into:
1.                  Adaptation of technologies, indigenous and imported
2.                  Applied mechanical and electrical engineering products
3.                  Materials and processes for metallurgy and foundry works
4.                  Applied mechanical engineering research and development
5.                  Research in industrial tribology and corrosions
6.                  Micro-electronics including chips technology, soft and hardware studies.
 STATEMENT OF THE PROBLEMS
The purpose of this study is for the researcher to find out the
efforts made by government institutions especially PRODA, Enugu towards ensuring compliance with set out policies, guidelines and procedures as laid down by Auditing Standards and Guidelines and the financial regulations.  It also sets out to ascertain compliance with objective setting up the company and whether PRODA Enugu is a victim of gross abuse, mismanagement and embezzlement which is the bane of many distressed public institutions today.
1.3              OBJECTIVES OF THE STUDY
            The objectives of this study include: -
1.                  To find out whether there is internal control in government establishment
2.                  If internal control is an existence, is it operating effectively.
3.                  Whether political influence is marring the attainment of the objectives of PRODA.
4.                  Whether too much governmental interference is affecting adversely the operations of PRODA.
1.4              SIGNIFICANCE OF THE STUDY
The significance of this study has in the fact that the
government will be made aware of all the factors militating against the successful attainment of the objectives of her institutions and how to address such issue.  The public will also be made aware of those constraining factors and solutions proffered.
1.5              RESEARCH QUESTIONS
The following research questions have be formulated to guide
the study.
1.                  What are the sources of revenue open to PRODA Enugu.
2.                  Is all the revenue due to PRODA Enugu actually collected and utilized effectively.
3.                  Are there too much governmental interference in alternatively, government establishments.
1.6              DEFINITION OF TERMS
In order to prevent ambiguity, the following terms used in
this project writing has been defined as follows:
Internal Control:  This is the whole system of control in an organization that involve safe guarding of asset and records providing reliable data, providing operational efficiency and ensuring adherence to the policy that makes it.
Fraud:-  This could be defined as an unintentional act in other to steal or deceive from one partly to the other.
Financial Statements: - These are part of an enterprises, annual report, the purpose of which is to communicate information about the company to those who have a right to receive it, that is shareholders.