THE ROLE OF INTERNAL AUDITING IN THE EFFECTING MANAGEMENT CONTROL OF LOCAL GOVERNMENTS

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