The purpose of this project is to bring out the role and function of internal auditing in the effective management control of local government councils in Enugu State.

The research work will fall in the area of internal auditing in Ezeagu local government area in Enugu State. The internal auditing, which is an audit function is in use by the local governments as a part of their overall system of internal control. The project will state the present situation, functions and problems of the internal audit department with the local government councils in Enugu State.

The research method which is going to be use will be the desciptive approach. The descriptive approach will give answers to certain research questions. This method will enable the researcher to describe in a systematic manner the role of internal auditing in the local government area studied.

The method of data collection is going to be interviews, study of secondary material and direct observations. The scope of the research work will be only limited to Ezeagu local government area in Enugu State. This is due to the short period of time available for the research work/project.

TABLE CONTENTS

Title page

Approval page

Abstract

Acknowledgement

Dedication

Table Contents

CHAPTER ONE

1.1 Introduction

1.2 Area of research investigation

1.3 Problems background

1.4 Statement of problem

1.5 Method of study

1.6 Objective of study

1.7 The importance of study

1.8 The scope of the study

1.9 The limitations of the study

1.10 Definition of terms

CHAPTER TWO

2.1 Literature review

2.2 Historical background

2.3 Principles

2.4 Operational definition of internal auditing

2.5 Functions of an internal auditor

2.6 Benefits from an internal audit function

2.7 The internal auditor’s role in the area of management audit

CHAPTER THREE

3.1 Methodology and procedures

3.2 The empirical investigation

3.3 Reliability of data collection

CHAPTER FOUR

4.1 Data presentation and analysis

4.2 Location of Ezeagu local government area

4.3 The objectives behind the creation of local governments

4.4 Functions of local governments

4.5 Structural organisation of Ezeagu local government

4.6 Sources of revenue

4.7 The functions of internal audit in the effective management control of local governments

4.8 Results of emperical investigations

4.9 Problems identified

4.10 Procedure of improvement

4.11 Major findings

CHAPTER FIVE

5.1 Summary

5.2 Conclusions

5.3 Recommendations for improvement

5.4 Appendix

5.5 Interview guide sheet

5.6 Bibliography

CHAPTER ONE

INTRODUCTION

1.1 AREA OF RESEARCH AND INVESTIGATION

This research investigation falls within the area of internal auditing in Ezeagu local area.

Internal Auditing is an audit function which is being used by local governments as a part of its overall system of internal control. Such auditing is carried out by local government employees who are responsible to local government management. The activities of internal auditors were originally intended to verify secrecy and dependability of the accounting systems, data and information, but currently they are operating in non-accounting functions, verifying local government operation and efficiency.

From the foregoing, internal auditing is therefore, a day to day verification process, which operates continuously throughout the local government financial year. According to Akanyanwu (1990) internal auditing is “The independent appraisal within a local government of the accounting, financial and all other operations as a basis for protective and advisory services to management”.

1.2 PROBLEM BACKGROUND

The new civil service move with designed to made the service more functional, professional, productive and responsive to the socio-economic needs of the nation. The federal government has also recently revamped and restructure the local government system to enable it perform its role of promoting, co-ordinating and implementing community services, enhancing citizens participation and maximizing the use of local resources. Enormous amount of money if flowing to the local government from the federation