THE ROLE OF INTERNAL AUDIT IN THE MANAGEMENT OF HOTELS AND RESTAURANTS
ABSTRACT
            The question as to whether or not internal audit has an important role to play, has been generating a lot of controversies over years, especially, among hotel and restaurant owners.  This question that seemed to be yet half way answered, gave rise to carrying out this study.   The work is designed in such a way as to help readers understand the roles of internal audit in management of hotels and restaurants.  The project deals extensively with the roles of internal audit in the management of hotels and restaurants the importance of these roles, the hindrances, advantages and disadvantages, effect and possible solutions to these problems.      Chapter one was designed to give an overview of the study.  This chapter dealt with the background of the study, relevant research questions, statement of hypothesis, significance of study, scope and limitations.  Also covered were the definitions of technical jargons employed in the work.            Chapter two was a review of previous work on the definition and meaning of internal audit, importance of internal audit, advantage and disadvantage of internal audit, scope, roles of internal audit among others.  This chapter in a nutshell gave a clue of the need for an internal audit.           Chapter three of this work was all about the summary of findings, conclusion and recommendations.  This chapter suggested new findings as regards internal audit activities and recommendations.   Finally, this work was made to assist many people in various aspect of life including student’s lectures, hotel and restaurant owners and other alike.
TABLE OF CONTENT
CHAPTER ONE
1.0              INTRODUCTION
1.1     BACKGROUND OF STUDY
1.2              STATEMENT OF PROBLEMS
1.3              PURPOSE AND OBJECTIVE OF STUDY
1.4              SIGNIFICANCE OF STUDY
1.5              SCOPE, LIMITATIONS AND DELIMITATION
1.6              DEFINITION OF TERMS
CHAPTER TWO
2.0              REVIEW OF RELATED LITERATURE
2.1     DEFINITION OF INTERNAL AUDIT
2.2              IMPORTANC OF INTERNAL AUDIT
2.3              QUALITIES OF A GOOD INTERNAL AUDIT
2.4              MERITS AND DEMERITS OF INTERNAL AUDIT
2.5              SCOPE OF INTERNAL AUDIT
2.6              INDEPENDENCE OF INTERNAL AUDIT
2.7              QUALIFICATIONS OF INTERNAL AUDIT
2.8              PROBLEMS OF INTERNAL AUDIT
2.9              ROLES OF INTERNAL AUDIT
CHAPTER THREE
3.0:      FINDING, CONCLUSIONS AND RECOMMENDATIONS      
3.1              FINDINGS
3.2              CONCLUSION
3.3              RECOMMENDATIONS
BIBLIOGRAPHY.
CHAPTER ONE
1.0              INTRODUCTION
 1.1    BACKGROUND OF STUDY:
            Internal auditing has become a very important tool of the management and directors of companies since the drift of business activities from sole proprietorship to larger public enterprises.
            Experts rank it, the number one instrument of internal control and internal check.  It forms the bedrock of reviewing the operations and records sometimes continuous, undertaken within a business.
            Management of companies interested on the protection or security of their jobs.  The directors of business are always looking forward to getting an answer of improved performance from the management.  Their ultimate aim is to receive as much returns as possible from the capital they invested in the business.
            Through the work of internal auditors, management is given reasonable assurance of staff competence and safeguard of company’s assets.  The external auditors and the directors companies also make use of the internal audit report to form an opinion after carrying out some tests and appraise the performance of the management team respectively.
            The management team to ensure efficiency and.  Effectiveness in the operations of the company.  It checks redundancy, misuse of fund, and manipulations of information among others.
            Competitors may also be attracted to seek advice from a company that make use of internal audit due to the growth of such company brought about by audit effective system of internal control and its efficiency of operations.
            The internal auditors can be readily seen as watching or managing the entire company by way of representing these groups.  Their peculiar position in a company therefore calls for a free and conducive atmosphere.
            This research tends to investigate into the nature, importance and create or streamline their roles so as not to conflict with the company’s objectives.
1.2              STATEMENT OF PROBLEMS
There are several problems facing the internal auditors is different
Companies especially hotels.  Even the most successful ones among them find it very difficulty in Nigerian hotels as a result of the angle from where black men perceive the work of auditors, ignorance, illiteracy, lack of training and many more.  This work studies these problems of internal auditors, the causes of these problems, the effects and the possible remedies.
1.3 PURPOSES AND OBJECTIVE OF STUDY
            The aims of embarking on this study are:
(i)                 To ascertain the nature of roles of internal audit in the management of hotels and restaurants.
(ii)               To identify the problems facing them as they carry on their roles or hindrances to their roles.
(iii)             To identify the causes of the problems.
(iv)             To ascertain the effects of these problems on the work on internal audit.
(v)               To recommend measured that would enable internal auditors to overcome the problem identified.
(vi)             To ascertain the level of relevance of internal audit in hotels and restaurants.
(vii)           To identify the advantages and disadvantages of these internal audit roles.
(viii)         To identify their limits of operations so as not to conflict with the companies objectives.
1.4.   SIGNIFICANCE OF STUDY
            It is a true saying that ignorance is a disease.  If internal auditors are not aware that they have significant roles to play for the smooth running of an organization, they will not be able to predict the possible problems they will encounter, the importance of their work and fashion a good internal audit program.  This work will serve as an eye opener to draw their attention to these roles, importance and likely problems.
            Again, it enables the external auditors to know the extent of work they will cover after satisfying themselves of the internal control system in place.
            Furthermore, it is expected that through this study, the management and directors of Nigerian hotels and restaurants will clearly know why internal audit is needed in the management of hotels.
            This study will also form a good reference material for any other person who wants to carry out study on a related topic in future.
1.5              DEFINITION OF TERMS
(a)                AUDITING:  Examination of the books, accounts and the vouchers of a firm in such a way as would enable the examiner to express an opinion as to whether it is in order.
(b)               INTERNAL AUDITING:  A review of operations and records sometimes continuous under taken with in a business by specially assigned staff.
(c)                INTERNAL CONTROL:  The whole system of controls, financial and otherwise, established by the management in order to carry on the business of the enterprise in an orderly and efficient manner ensure adherence to management policies, safeguard its assets and secure as far as possible the annually and reliability of its records.  Internal check is part of internal control.