External Audit a Tool for Improving Public Corporations and Parastatals.
ABSTRACT
The research centered on External audit as a tool for improving public corporations and parastatals, the Nigerian Communication Commission as a case study.
The main objective that guided this study was to check if there are financial irregularities in the company and whether the internal audit department is discharging its responsibilities effectively.
In realizing its objective, the study has employed a case study design which has provided the opportunity to such techniques as questionnaires and observations in the data collection process.
The target population of this study targeted some NCC employees who formed 43 respondents. The data obtained in this research provided descriptive statistics and narrations.
The study also used a Single Factor Analysis of Variance (ANOVA) to determine the relationship between the independent variables and the dependent variable.
The study found that management support had the greatest effect to the external audit operation as an instrument towards improving the Nigerian Communication Commission (NCC).
The study recommends that in order for the corporation to be effective in its operation and service delivery it needs to pay attention to the contribution of external auditing on its operations.
TABLE OF CONTENT
Title Page
Certification
Dedication
Acknowledgement
Abstract
Table of Contents
CHAPTER ONE – INTRODUCTION
1.1 Background to the study
1.2 Statement of the problem
1.3 Objective of the study
1.4 Research Question
1.5 Research Hypothesis
1.6 Scope of the study
1.7 Significance of the study
1.8 Definition of operational terms
1.9 Historical Background of the Nigerian Communication Commission (NCC)
CHAPTER TWO – LITERATURE REVIEW
2.1 Introduction
2.2 Conceptual framework
2.2.1 Objective of Auditing
2.2.2 Purpose of external audit
2.2.3 Qualities of an Auditor
2.2.4 Qualification of an Auditor
2.2.5 Appointment of an external auditor
2.2.6 what the auditor need
2.2.7 Rights and Duties of an Auditor
2.2.8 Independence
2.2.9 Audit report
2.2.10 Nature of Government Parastatals
2.2.11 Auditing Government Corporations
2.2.12 Internal Control and Internal Check
2.2.13 Internal Control in the Public Sector
2.2.14 The Need for Effectiveness and Efficiency in Government Audit
2.2.15 Legal Basis of Government Accounting
2.2.16 Method of keeping records in public corporations
2.2.17 Fraud in Government Parastatals
2.2.18 Corporate irregularities
2.3 Theoretical Framework
2.4 Empirical framework
2.5 Summary of review
CHAPTER THREE – RESEARCH METHODOLOGY
3.1 Introduction
3.2 Research design
3.3 Population of the study
3.4 Sample size determination
3.5 Method of Data Collection
3.5.1 Research instrument
3.5.2 Reliability & validity Test
3.6 Method of data analysis
3.6.1 Decision Criterion for validation of Hypothesis
CHAPTER FOUR – DATA PRESENTATION ANALYSIS AND INTERPRETATION
4.1 Introduction
4.2 Presentation of Results
4.3 Discussion of Results
CHAPTER FIVE – SUMMARY CONCLUSION AND RECOMMENDATION
5.1 Summary
5.1.1 Factors that strengthen External Audit in NCC
5.1.2 Factors that Weaken External Audit in NCC
5.2 Conclusion
5.3 Recommendation
REFERENCES
APENDIX 1 – QUESTIONNAIRE
INTRODUCTION
1.1 Background to the study
There is general awareness all over the world for the need to pay greater attention to the improvement of public corporation and parastatals.
The reason is obvious, government constitutes the largest single business entity and her pattern of expenditure through its various parastatals, agencies and commissions stimulate lot of economic activities.
As a result of the governments’ involvements in economic activities, initiatives are being taken all over the world towards improving the standards of accounting and auditing departments in its institutions.
The public sector accountant has the responsibility of developing systematic arrangements to assist management in the performance of the services of the institution while the External auditor has among other duties, the complementary role to examine whether management actually performs that efficiently.
The External auditor has to satisfy himself that the accounts presented have been prepared according to statutory and regulatory requirements considering that all proper accounting practices have been observed throughout the compilation process.
It is a fact that public Corporations have a significant role in improving the wellbeing of the communities in any nation. In Nigeria, The Nigerian Communication Commission (NCC) falls in the category of public corporation.
These corporation are the ones whose management has a direct impact on people’s lives in their respective localities (Chacha, M.A,).
In this way, improving the manner in which these local institutions are managed is likely to be significance not only on the way they deliver goods and services to the population but also provide a good image of the public sector institutions within and outside Nigeria.
REFERENCES
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Akinbuli, S.F., (2010). The effect of audit expectation gap on the work of auditors, the profession and users of financial information. Niger. Accountant, 43(4): 37-47.
Appah E. and Bariweni B., (2013). An examination of the effectiveness of auditing of local government financial reports in Bayelsa State, Nigeria. Current Research Journal of Social Sciences 5(2), March 2013.
Babatunde, S.A., (2013). Stake-holders perception on the effectiveness of internal control system on financial accountability in the Nigerian public sector. International Journal of Business and Management Invention, 2(1) pp 16 –33 www.ijbmi.org.
Dauda, I.A and Kumanjock S. N., (2015), an examination of the efficacy of the office of Auditor
General of Nasarawa State in ensuring finanacial accountability. European Journal of Accounting Auditing and Finance Research Vol.3, No.4, pp.15-24. Retrieved from http://www.iiste.org/Journals/De Smet, D. & Mention, A., (2011). Improving auditor effectiveness in assessing KYC/AML practices: Case study in a Luxembourgish context. Managerial Auditing Journal, 26(2), 182 –203. Electronic copy available at: http://ssrn.com/abstract=2051258.
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