ABSTRACT
This research work deals with internal audit as an aid to management. It aims
at finding out the role of internal audit in management decision making in
organizations. It is a survey research. Data were collected from primary and
secondary sources which included using questionnaires, personal observations,
text book, journal and internet. Sample of 92 were collected by random sample
method. Three hypotheses were formulated and tested using Z-test statistics,
while questionnaires were analyzed using simple percentages. We discovered
among other things that internal audit assists management in managerial
decisions. We recommended among other things that the auditors be trained
in forensic accounting to enable them to be more effective in their duties.
CHAPTER ONE
INTROUCTION
1.1 BACKGROUND OF THE STUDY.
At the beginning of the century, most businesses are small and sole-operated.
The owners/managers are overly involved with most of the decision making. As
business grows in size and complexity, professional managers take position of
the owners and the operators.
Consequently, they rely heavily upon streams of accounting and
statistical report which summarizes current happenings and conditions in the
enterprise. The information carried by these streams of report enables
management to control and direct the enterprise in order to assure
management that the information received are both reliable and accurate. A
system of internal audit is developed to monitor the activities of the company.
The need for maintaining the adequate efficient and effective internal
audit, therefore cannot be overemphasized especially in days when Nigeria’s
economy still is witnessing depression and every company is making effort in
ensuring that wastage, pilferage, misappropriation are checked or avoided,
and to ensure that assets are being secured.
Some problems were noticed during the cause of this research;
problems within the company, these problems necessitate this work. The
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researcher noticed that there was ineffective co-operation between the
internal audit and management, audit reports were sometimes ignored by the
management. The relationship between the internal auditor and external
auditor was strained making work harder for the external auditor. The lack of
internal audit to prevent pilferage and fraud within the company thereby
preventing an error free working condition.
1.2 STATEMENT OF PROBLEM
Often, management and internal audit department function were seen as
contradictory rather than complementary. Internal audit department is setup
to ensure adherence to management policy but this objective cannot be
achieved because of interference and undue influence by the top
management.
More so, monthly or quarterly internal audit report as the case may be
in an organization is expected to provide information required by management
to determine how effective their policies and implementation are. It is on this
realization that this study will attempt to determine how effective are those
information to aid management in solving day to day problems. It signifies
defects or problems; the research will examine number of them namely:
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a) There exists no relationship between the internal audit and
management.
b) Co-operation does not exist between the internal auditor and
external auditor.
c) Internal audit does not assist in detection and prevention of fraud.
1.3 OBJECTIVES OF THE STUDY.
Objectives of the study include:
 To ascertain if the duties of the internal auditor assist management in
taking informed decision.
 To ascertain if there exist co-operation between the internal auditor and
external auditor.
 To find out if internal audit assists in the detection and prevention of
fraud.