The use of an internal audit as an aid to management control

Thesis Overview

<p> <strong>1.1 INTRODUCTION</strong><br>Internal audit has been of great assistance to management.<br>There is need to discuss why internal audit should exist in an organization.<br>Internal audit is as old as civilization. It was used in ancient Egypt and the Roman Empire. The common areas of internal auditing action throughout its history have been examining, veriting and reporting.<br>The growth of business management has bring about the development of internal audit as a useful aid to management control. In this present day, there is a continuous increase in size of business which creates an ever widening gap between management and the actual field of operations. In this case, it is only internal auditor that provide a link throughout the whole organizations.<br>For as the chain of responsibility lengths, so does the responsibility grow delays, misinterpretation and misjudgments. This hinders the running of an efficient and prosperous business.<br>Internal auditors are those employed by the management, but they are not managers rather they serve as advisers to the management. They provide to the management all necessary information needed for the running of the business. Internal auditing is an element of managerial control and is responsible for measuring the effectiveness of such controls.<br><strong>1.2 PURPOSE OF THE STUDY</strong><br>The main objective of this study is to draw attention to the<br>invaluable role or input of an effective control in an organization, tendered by internal audit unit. In all the overall purpose of internal auditing is to assist management in achieving the most effective administration of the operations of the establishment.<br>The internal auditor ensures that the organizations business is conducted in an orderly and efficient manner.<br>He also ensures that the management policies are strictly adhered to likewise he ensures that resources are economically, effectively and efficiently utilized in achieving the management objectives.<br>Furthermore he ensure strict compliance with statutory requirements, securing as far as possible the completed Furthermore he ensure strict complacence with statutory requirements, securing as far as possible the completeness, accuracy and reliability of the records as well as safeguarding the organizations assets.<br><strong>1.3 SIGNIFICANCE OF THE STUDY</strong> <br></p>