Effects Of Internal Audit Practices On Financial Performance Of Commercial Banks

I would wish to acknowledge ……University, school of ……..and more particularly to the Department of ……….for offering me this unit, research proposal in compliance with the requirements for award of degree. I also want to thank my supervisor … for assisting me in developing this project proposal to the best of my standard.

The project will reflect your views and interpretation of the topic. This project is designed to help you

In this assignment students are required to clearly state and introduce their research topic, indicates clearly the two variables of interest, and present the theoretical framework with key variables. The task is also requesting that learners explained the following components linked to their selected subject: the background of the problem, the need for study, and provide the educational and practical significances of the proposed research.

Deborah S. Archambeault, F. T. (2008). The Need for an Internal Auditor Report to External Stakeholders to Improve Governance Transparency . American Accounting Association .

Submitted in Partial Fulfillment for the Requirements of the degree Programme Bachelor of Business Administration

An Honours Degree Project Submitted to the School of Business in Partial Fulfillment of the Graduation Requirement for the Degree of Bachelor of Business Administration (Honours)

Nowadays, more and more attention has been paid on internal auditing. Drawing the lessons from the scandal of Enron, Enron allowed an external accounting firm to take charge of company’s internal audit function, and consequently

Since reliable financial information is essential for investors and other stakeholders to take adequate decisions, this reliability must be backed by independent review performed by independent and certified auditing firms, which are supposed to verify and certify financial statements issued by a company’s management. If the auditor is not competent and independent from management, the audit of the financial statements loses its credibility (Schelker, 2013, p.295). According to Impastato (2003), because of audit failures, accountants are to blame for investors losing billions of dollars in earnings in addition to market capitalization (as cited in Grubbs & Ethridge 2007).

An internal auditor is an independent, objective assurance and consulting activity designed to add value and improve and organization’s operations. Internal auditors search for risk that could potential cause a company to not reach their stated goals. In order for a internal auditor to do their job effectively and efficiently, the executives must be willing to work with the internal auditors through tough issues and be open for change and improvements. Internal auditors must have the full support of the audit committee of the board of directors. Internal Auditors and Management rarely have the same views but must work together for the better of the company. Internal auditors pride themselves in saving their company from losing thousands some times millions in revenue do to the risk that go undetected.

BEING A RESEARCH PROJECT SUBMITTED TO THE DEPARTMENT OF ACCOUNTING, FACULTY OF MANAGEMENT SCIENCES, UNIVERSITY OF ABUJA, ABUJA, NIGERIA

Recent events have highlighted the critical role of boards of directors in promoting good corporate governance. In particular, boards are being charged with ultimate responsibility for the effectiveness of their organisations’ internal control systems. An effective internal audit function plays a key role in assisting the board to discharge its governance responsibilities. Yet how does the board – and its audit committee – satisfy itself that internal audit is functioning effectively and efficiently?

Despite the increased exposure and training from executive management, internal audit departments face many challenges. A few of them have been discussed below:

The role of internal audit is to provide independent declaration that an organization’s threatadministration, governance and internal control processes are functioning effectively. Internal auditors deal with concerns that are essentially important to the existence and success of any organization. Unlike external auditors, they aspect beyond financial possibilities and statements to reflect wider problems such as the organization’s reputation, development, its power on the location and the approach it treats its organizations.In summary, internal accountantssupport organizations to thrive.

Internal Audit is an independent, objective, assurance, and consulting activity designed to add value and improve operations. It helps accomplish objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of governance, risk management, and control processes.

In the partial fulfillment of the requirement of Master of Business Administration (M.B.A.) Program (2002-2004) Hemchandracharya North Gujarat University, Patan.