This research work deals with the challenges of internal audit function in the Nigerian public sector with reference to Kaduna state ministry of finance. Internal auditing is a process generally adopted towards ensuring and safeguarding of resources and promoting operational efficiency in organization. The objective of this study has been to evaluate the internal control system in the Nigerian public sectors, to ascertain the non- implementation of routine audit report and the lack of proper segregation and assignment of duties. In recent times, a combination of forces has led to a quiet revolution in the profession. Government moving towards democracy must demonstrate accountability in the use of public money and efficiency in the delivery of service. In many cases internal control system are weak, staffs are poorly paid making them unmotivated, coupled with non-implementation of routine audit report by appropriate authorities. The Responses from staffs were analyzed using relevant statistical tools from which three hypothesis were formulated and tested using Z-test statistics, while questionnaire were analyzed in tabular form using simple percentage. It was discovered that the internal audit is facing a lot of challenges which includes inadequate staffing, lack of independence, lack of facilities to carry out audit function and also poor funding. As a result of some of these challenges the effectiveness of the internal audit in the Nigerian public sectors, has been hindered as well as the organizational change it can bring to its environment. I recommend that for internal audit to be effective, it must be a completely independent group, adequately funded and equipped with qualified internal auditors as well as sufficient opportunities for internal auditors to become qualified.

TABLE OF CONTENTS
Approval page ii
Certification iii
Dedication iv
Acknowledgment v
Abstract vii
List of tables’ xi

CHAPTER ONE: INTRODUCTION
1.1 Background of the study 4
1.2 Statement of the study 5
1.3 Statement of the objectives 6
1.4 Research questions 6
1.5 Research hypotheses 7
1.6 Significance of the study 8
1.7 Scope of the study 9
1.8 Limitations of the study 9
1.9 Definition of terms 9

CHAPTER TWO: REVIEW OF RELATED LITERATURE
2.1 Introduction 12
2.2 Organizational structure of ministry of finance 14
2.3 Definition of auditing 15
2.4 Types of auditing 16
2.5 Meaning of internal audits 17
2.6 Meaning of internal control 18
2.7 Meaning of internal check 20
2.8 Objective and purpose of internal audit 21
2.9 Qualities required of an auditor 23
2.10 Elements of internal audit 25
2.11 Scope of internal audit 27
2.12 Duties and responsibilities 28
2.13 Role of internal audit in the Nigerian public sector 29
2.14 Challenges of internal audit 30
2.15 Factors responsible for the problem of internal 32

CHAPTER THREE: RESEARCH METHODLOGY
3.1 Research design 34
3.2 Sources of data 35
3.3 Area of the study 36
3.4 Population of the study 36
3.5 Determination of population size 37
3.6 Reliability Test 39
3.7 Validity test 39
3.8 Method of data collection 39
3.9 Techniques for data analysis 40

CHAPTER FOUR: PRESENTATION OF DATA, INTERPRETATION
AND ANALYSIS OF DATA
4.1 Presentation of data 42
4.2 Test of hypotheses 55
4.3 Discussion of findings 68

CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.1 Summary of findings 70
5.2 Conclusion 71
5.3 Recommendations 71
Bibliography 73
Appendix 75