In the yearly of period of scientific management in the days of Fredrick Taylor, the use of management techniques known to them to improve the organization to improve the condition of the management could be linked to care of a disease which are partly known while other more serious ailment ravaging the body has not been diagnosed at all.

Infect management techniques and principle like the principle of management, management by objective (MBO), management by the expected, minimum and maximum great criterion, decision techniques and expected value etc., were all used as a way to enhance the organizational performance through good decision making. All this was like first aid in treating organizational performance.

Efficiency in auditing provides means of appraising companies performance and diagnosing ill or weakness of the company more effectively and comprehensively.

The research will conduct a comprehensive and a more critical on the topic: INTERNAL AYDITING AS A TOOL FOR IMPROVING COMPANIES PERFROMANCE, with the earning finding out how far has the EMENITE LIMITED ENUGU has carried out the efficiency required with a view to identifying the inefficient and deficiencies which are presumably believed to be non-existence and ahs the company used as a case of study been efficient as it ought to be.

A research work will be carried out on the coursed of low company performance and how o correct this abnormal using efficient auditing process.

The research work is divided into five chapters. The first chapters’ center on the introduction, the background of the study, statement of the study, objective of the study, hypothesis testing, scope and definition of term.

Chapter two deal on the view of some authors on the topic while the chapter three deals with the research design and methodology, furthermore, chapter four focuses on the data analysis and lastly, the chapter five is concern with the findings, summary of the findings, interpretation of data collected, conclusion and recommendation. Written data source of questionnaire and interviews will make use of by the research library and that will form the part of the secondary data formation collection and testing of the hypothesis will be done using;

Null hypothesis: Ho – the company’s internal auditing process is not efficient.

Alternative hypothesis (Hi) – the companies auditing process is efficient. Finally, various attempt will be made on how best Emenite Nigeria should be improved by applying efficiency in the auditing process, by carrying out the under mention objective;

1. Analysis of the company in general

2. Reviewing and approving the soundness, adequately, use of operational research and other accounting control like the inventory control, process costing, job costing control etc.

3. Assembling ascertaining, reviewing the extent of compliance with the established laws.

ACKNOWLEDGEMENT

I witch to express my sincere gratitude to my project supervisor for his excellent guidance and supervision towards the successful complement of this work. I also thank my head of department Mr. Ani , for his contribution toward the success of this research work.

My gratitude also goes to the following: my brother Mr. Thomson Imoudu , Geologist, warri Oil refinery, Margaret Imoudu, Rebbeca Imoudu, for all their moral and financial contribution throughout the studies.

Eng. Frank Imoudu (lecturer), River state university Port-Harcourt, Emmanual Imoudu (J.N.R.) Abraham, Grace and Dorah, they all are commeded for their contributions. To my parents Mr.& Mrs. Monday Imoudu is commended for their support.

In a similar development, a thank my class mate and all my friends; Chioma Onuoha, Oserentin Irorere, Vicente Uchechi, Nnenna Onyejiwa Okafor for their all their contributions, prayers towars the success of our H.N.D programme which we all archived

I am also grateful to the managements of the Emenit Company Enugu for their support. I also thank Patrick Nnamagai, Fidel’s Ani, J.K, Ani, Ewo micheil, all of Akintola Willians chattered accountants, Enugu for their support to me.

Finally and above, I thank the almighty God for keeping me alive till today inspite of the dizzy high of my academic struggle. After all except the lord keep the city, the keepers of the city labour in vain ( “Psalm 127 Vs 1 – 2” ) and without Jesus Christ we can do nothing John 15 Vs 5.

I called upon the lord in the days of my troubles and he delivered me both in my academics and other engagement- Psalm 50 Vs 15.

PREFACE

This research work is a guide, a touch that will basically help and direct attention to the important areas needed to find out whether a company is efficient, as it ought to be or not with reference to its auditing process. The research work is not expected to give an answer to every expected question of the topic under review. There is no gain saying the fact that auditing efficiency is an indispensable process in a company. Efficiency in auditing serves as a life wire in any company. Most companies that are having the mirage the socio-economic problems leading to abysmal performance are due to inefficient auditing.

I am highly optimistic that the completion of this will assist both the student in the future and even the staff in the tottery institutional will focus the general public who after passing through this research work will find it more valuable.

Furthermore, the technology gained form this research work will assist the professional accountant whose works are so valuable.

Ina nutshell, students, tutorial staff, in auditing will find this research work more rewarding and educative

CHAPTER ONE

INTRODUCTION

Since the creation of Enugu state on the 17 of august 1991 till date, many of the government owned company e.g. Niger gas limited, Emene flour mill limited Emene, Anambra vegetable refinery oil Nachi, Nigeria cement company Nkalagu located at Eboyi state which is jointly owned by Enugu Eboyi and other state – Imo are at the point of collapse. Many of the company if they are working are performing below 40% as optimum utilization as statistic on that will reveal latter. The above issue is not peculiar with Enugu state alone. Recently, there has been a drastic change in the business trends in Nigeria. Many reasons has been giving for the anomalies in the business which has resulted in many companies down – fall, ranging from lack of accountability, company crisis, misappropriation of funds, fraud, excess expenditure that are usually not compactable with the real budget. In this maiden broadcast to the state government, Dr, Chimeroke Nnamani raveled that the account of Enugu state public service has not been audited since the state was created while chief Egbogu, the chairman of the panel constituted (among other things) find the best way of making the civil service more functional to increase the in the state. In the interim report submitted to the deputy governor of Enugu state on Wednesday, 28 July 1999, that the fraud, overbroad wage bill, ghost workers syndrome were the factor militating against the efficient performance of the civil service and reported that the civil service will not be having above twelve thousand workers (12,000) while here has Ben speculation that payment re been made to up to thirty thousand worker in Enugu state.

The above shows categorically in all ramifications that of the state civil service and their minitry – extra minitry department and other parastatals have been audited efficiently, such anomalies could not have crept up.

In a related development it has been believed that efficiency in discovering the management inefficiency has been the root cause of many companies poor performance. Both companies in private and public limited sector in Nigeria. Improvement can only follow when what is honestly followed in been recognized and how such wrong could be remedied. In view of this point effort will be made to painstakingly highlight the improvement however taking auditing efficiency in respect of private companies, volume of transaction may not be substantial and hence a book keeper can record transaction more effectively with ease. On the contrary, the case of the public enterprise and transaction show that there are numerous of transaction and so each companies may have subsidiaries and investor investing in a companies having a control investment of the 20 – 50% share in associate company and as such, the service of a qualified accountant who is knowledgeable in accounting to be able to record business transaction of such greater magnitude are needed.

STATEMENT OF PROBLEM

A company may be classified under small medium or large depending on the size, feature of number share authorized calls issue and fully paid etc. many companies face the problem of auditing efficiency such as non-compliance with the accounting standard that the auditing guidelines non- disclosure of some which will enable either the external; auditor to form opinion. Other cooperate crime may pose a problem in the auditing efficiency. This cooperate crime may be a serious issue, for example in the news watch 5^th July 1999, Lucky Igbenedion governor of Edo state reported that cheque were flying up and down as formal governor Onearugbulem awarded indiscriminately and Igbenedion reported that there is an inherent debt of 5 million. There is many more looting in all the state in government offices, companies etc. the research work will attempt to highlight on these problem areas that basically undermine auditing efficiency in a company and give a possible solution.

PURPOSE OF THE STUDY

The work was fundamentally undertaking to study internal auditing efficiency as a tool to improve cosmogonies performance (using Emenite Enugu as a case of study). The main purpose of this study is find out some of the reason for deficiency and inefficiency in the company which is usually believed as not existing but in fact they exist and to find some way of eradicating it using auditing efficiency. Findings will be don to know the extent to which the management has appraised their own operation and how competent they have been in determining operational ills and weak points.

SIGNIFICANT OF THE STUDY

The research work is aimed at having many important to the readers and to those who may be using the study for a reference purpose. Beside the above, it will also form part of the external examination. For me, the researcher, it is a major preliquisite for the actual completion of the course of study. Apart from being necessary for the award of national higher diploma (H.N.D.) in accountancy, it is significant to undertake this study because a thorough and fuller comprehension of the subject matter which is tested; INTERNAL AUDITING EFFICEINCY AS A TOOL FOR IMPROVING COMPANIES PERFORMANCE. Moreover, other future readers will find the research work more beneficial.

STATEMENT OF HYPOTHESIS

The efficiency of companies auditing:

Ho; the company (Emenite Enugu) auditing process is not efficient

Hi: the companies auditing process is efficient

Ho: The internal auditing indolence is efficient to embark on the internal auditing work.

Hi: The internal auditing indecency is not efficient to embark on effective and efficient audit work.

SCOPE AND LIMITATION OF THE STUDY

For the purpose of the research work, the researcher will focus his attention to the internal; auditing effeminacy as a tool for improving the company’s performance using Emenite Enugu as a case of study.

The researcher in carrying out the research work encountered many problems, ranging from time constraint, poor response, financial constraint etc.

Financial constraint: the researcher having considered the financial involvement and other problems and bearing in mind that the work was singled handedly sponsored plus the need to meet up with the standard set for the working to its logically and exhaustive conclusion, he faced a lot of financial predicament with the merger financial resources. The researcher virtualized the fear that the study will be adversely constrained due to financial transport involved in running around to get the needed information and other incidental express.

Poor response: most of the research work are characterized with poor response from various respondent and having taking into consideration some of the misguided beliefs and expression by many respondent, they are usually faced with problem like;

(a) Fear of been exposed and fear of been retrenched or dismissed for revealing official information

(b) General apathy, indifference towards the question being put to the potential respondent

Time constraint: other factors like the time factor militates against the progress of the project. The time allocated to carry out this research was too short plus other logistics problems. The time for work done, compilation, completing, and submission for assessment irrespective of the fact that there are other academic engagement were too small.

Furthermore, as the interview necessary to carry out this research have to be conducted during the official working hours and days of the weeks with a view t get the respondent in the office, the researcher has occasionally forfeited his lectures in order to get the researcher successfully executed.

DEFINITION OF TERM

Audit: in general is the mechanism within the process of accountability whereby the performer of those in control of the research of the organization is check or monitored by or on the behalf of the interested persons. The statutory audit of limited companies is the commonest example.

Internal audited: an element of the internal control system set up by the management of an enterprise in order to review accounting, financial, and operating and determine whether the prescribe policies are being adhered to. External auditors take account of the work done by an eternal auditor letters independence, staff resource, test mode, and influence by the management action.

Efficiency: the is referred to the ability to perform a duty well and produce a statistical result

Tool: it is an instrument used in doing a certain work or producing a certain result especially such that require accountancy or precision

Company; an association of persons for a business purpose in particular which incorporated in the united kingdom under the companies Act or by the Act of parliament or by royal charter. In Nigeria, company is registered by a cooperate affairs commission Abuja and regulated by the companies and allied matter decree 1990. There are companies limited by share and those limited by guarantee.

Companies can be divided into

(a) Private limited companies

(b) Public company

Improvement: this means to make or become better or addition or alteration, form of repaired to better the face of an asset or to enhance the value of anything.

Diagnosis: ascertaining, analyzing, or determine the cause of nature of problem, situation from observation.

Performance evaluation: the easement by a superior or a subordinate and an important part of any management control system. To evaluate performance is necessary to decide which measure are to represent organizational goal, how qualify, what standard is to be used, what step back is to be taking.

PERFORMANCE REPORT: A REPOT COMPILING OF THE BUDGETED PERFORMANCE

Reference Note:

1. Macmillan dictionary of accounting: second Edition.R.A.H peter.

2. Jesse stein and Lawrence Urdang. The random house dictionary of English language Cambridge edition P.455.

3. Companies and allied matters. Vol. 45,357,358,359,360.

4. A.H Milliamp, Auditing, an instructional manual accounting studies 4ht edition.

Reference Note:

1. Macmillan dictionary of accounting, second Edition,

LAH Parter

2. Jesse Stein and Lawrence Urdang: the random house dictionary of the English language Unabridge Edition.P.445

3. Companies and Allied matters

Vol. 43,357, 358, 359, 360