INTERNAL AUDITING AND STOCK TAKING
ABSTRACT
Internal auditing and stocktaking are characterized by paucity of literature
mostly when it involves having a focus on a particular establishment.
Most at the work on auditing have been centered on independent
audit.
However, effort were made to scrape as much as possible from the dired
ground. Internal auditing is this an independent appraisal activity
within the organization for the review of accounting, financial and other
operation as a basis for services to management.
The person who does the above job is known as an internal auditor. While
stoking is the counting and checking of the price and physical quantities at
goods or items in the store by selected officials at the company. In an establishment
like the total Nig. Limited is a company which concentrates much on the
marketing of petroleum products though diversification are being made towards
such area like agriculture. In the view of different scholars and has been
established by the researcher in internal auditing is very important in any
organization, since they are eyes and ears of the management and stock being
one of goods or items that determines progress or failure of an producing or
marketing that should be taken care of.
TABLE OF CONTENT
CHAPTER ONE
INTRODUCTION
1.1 Background of the study
1.2 Statement of problem
1.3 Purpose of the study
1.4 Significance of the study
1.5 Scope and limitation of the study
1.6 Definition of terms
CHAPTER TWO
REVIEW OF LITERATURE
What is an audit
2.1
Types of audit
2.2
Internal audit
2.3
Function of internal audit
2.4
Internal audit department and others
2.5
Problems of the internal audit
2.6
Stock taking
CHAPTER THREE
SUMMARY OF FINDINGS,
CONCLUSION AND RECOMMENDATION
3.1
Findings
3.2
Recommendation
3.3
Conclusion
BIBLIOGRAPHY
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND
OF THE STUDY
Internal auditor has
been described as “the review of operations and records sometimes continues,
undertaken within a business by specially assigned staff.
An internal audit or section is a part of the organization headed by the chief
internal audit who reports to the chief of the executive of the
organization. Internal audit is a part of system of internal control and
is undertaken by the staff of the organization. The work undertaken by the
internal audit is decided by either the Board of Directors or the
management. The responsibilities duties and power of internal audit are
determined by the director periodically these duties and responsibilities are
reviewed by revised.
As with internal check, the internal audit system must be varied to suit each
particlar business for instance the type of internal audit that is applicable
to total Nigeria limited company will differ from that suitable for
retail. In the latter one of the most important point will be the
safe-guarding of cash and small articles of stock. As it is not easy for
an employee to remove a large heavy machine a different system of internal
audit may be applicable in a machine tool. Manufacturing firm
1.2 STATEMENT
OF PROBLEM
The issue of the outside
world regarding internal auditors as fraud detector has to be corrected.
The auditor is only expected to express an opinion on the true and fair view of
the financial statement and not to detect fraud unless specified on the letter
of engagement.
He owes the management and share holder a duty to report to them wherever he
discover any in the course of his normal audit.
1.3 PURPOSE
OF THE STUDY
The objective of this
study is to identify the need for an organization to have an internal audit, it
is also to stress the important of an organization to be aware of its stock
position of all times as it could enhance management decision for intense,
internal auditing in total Nigeria limited has improved the management
information system and the type of activities performed by the internal
auditors.
1.4 SIGNIFICANCE
OF THE STUDY
The significant of this
study are of two folds, for instance the total Nigeria limited is commercial
oil company, there is need to know its interest auditing system and how it has
helped the efficiency of his accounting records secondly, the study will add to
the advancement of knowledge in the field of internal auditing in the company
future researchers in this area will also benefit from the study.
1.5 DEFINITION
OF TERMS
To ensure a proper
understanding of what the study is all about some unfamiliar words to those who
are not in the same field are defined as follow.
INTERNAL AUDITING: It is an independence appraisal activities
within an organization for the review of accounting, financial and other
operation as a basis for services rendered to management. The person who
does the above job is known as internal auditor.
INTERNAL CONTROL:- This is the whole system of control financially
and otherwise established by the management in order to carry on the business
of the enterprises in an ordinary and efficient manner, ensuring adherence to
management polices, safe-guard of asset and as far as possible the completeness
and accuracy of the records.
STOCK TAKING:- Is the counting and checking the prices and
physical quantities of goods or items in the store by selected officials of the
company.
INTERNAL CHECK:- This is segregation of duties where by no one
person is allowed to is responsible for the recording and processing of a
complete transaction.
WATCHDOG:- Is a do trained and kept to guard property of
various kinds, homes and offices. In this context the term watchdog is
refers to the internal auditor.
AN INDEPENDENT
AUDITOR:- This is used to describe
a professional accountant who offers services to the public and whose chief
service is an audit of financial statement.
Department | Accounting |
Project ID Code | ACC0006 |
Chapters | 3 Chapters |
No of Pages | 26 pages |
Methodology | Null |
Reference | YES |
Format | Microsoft Word |
Price | ₦4000, $15 |
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