Internal audit: a tool for management control

Thesis Overview

<p> </p><p>1.0 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<strong>INTRODUCTION:</strong></p><p>Internal audit is a large and significant part of management control of both large and small organization. &nbsp;The role of internal auditor has evolved from concentration of the detection and prevention of errors and fraud in the present day emphasis to reviewing system of internal control.</p><p>The Chartered Institute of Public Finance and Accountancy, define internal audit as an independent appraisal activity within an organization for the review of operation as a service to management. &nbsp;It is a management control which functions by measuring and evaluating the effectiveness of other controls.</p><p>The problems which always exist between the managers/director to the owner of business, were solved by appointing an independent person called “auditor” to investigate the report on findings.</p><p>Internal auditor is concerned with the implementation of social responsibility policies adopted by top management.</p><p>Internal audit that is established to provide a continuous and complete audit of the accounts and records of the company with use of the following:</p><p>(i) &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;internal procedures system</p><p>(ii) &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; internal check</p><p>(iii) &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; pre-audit jobs</p><p>These would help in the managerial control of the organization.</p><p>The overall purpose of internal auditing is to assist management in achieving the most effective administration of operation of the business.</p><p>1.1 &nbsp; &nbsp; <strong>PURPOSE OF THE STUDY:</strong></p><p>The purpose of this research work are as follows:</p><p>(i) &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;to evaluate the determinant for effective tools in management control.</p><p>(ii) &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; To assess the effects of internal auditing on internal control system of an organization.</p><p>(iii) &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; To investigate the type of responsibilities internal audit has with the chief executive of the organization under which he operates.</p> <br><p></p>