The Impact of Audit Report in Organizational Performance
CHAPTER ONE
Objectives of the Study
The objectives of this research on the audit report of the organization particularly P.H.C.N Ughelli are as follow:
- To know the true and fair of the financial position of the organization operation.
- To know the accuracy of the financial statement of the organization (P.H.C.N)
- To know the degree of efficiency and economic operation of the organization.
- To know if actually the recommendation made by the auditor report are implemented in order to ascertain the extent of the organizational growth achieved in the organization (P.H.C.N Ughelli)
CHAPTER TWO
REVIEW OF RELATED LITERATURE
Theoretical Framework
A theoretical framework is an edge of reference that forms the foundation for observations, meanings of ideas, research plans, presentation, and analysis, much as the casing that lays on an establishment characterizes the general outline of a house (LoBiondo & Haber, 1998).
Control Theory
Control theory is considered as an interdisciplinary source of illustrating and science that game plans with the lead of dynamical system with data sources. The outside duty of a framework is known as the reference. At the point when no less than one yield components of a structure need to take after a specific reference over the long haul, a controller controls the commitments to a system to gained needed effect on the yield of the system. The goal of a control hypothesis is to ascertain answers for the best possible collective activity from the controller that outcome in system steadiness that is, the system will hold the set point and not waver around it. Frameworks have inputs and yields to bring an item in the wake of preparing thus inputs and yields of a control framework are by and large related by differential conditions. Setting objectives, spending arranges, masterminds and distinctive goals develop criteria for control. Control itself exists to keep execution or a circumstance inside what is routine, allowed or saw. Control worked inside a theory is inside in nature. It happens with a blend of interrelated parts, for instance, social environment affecting behavior of pros, information essential in control, and strategies and methodology. Inside control structure is a procedure picking how inside control contains these parts. From control point of view, the significance of inward evaluating hones comes from the need to adjust the interests of administration with different partners in the firm keeping in mind the end goal to make the administration responsible on the additions of the firm and expand the inner review division viability. Different interior reviewing systems can be utilized to screen the administration’s conduct and these incorporate having a powerful review board of trustees and both outside and inner review. Davidson et al., (2005) depict the mind boggling collaborations between these inner examining systems as the corporate administration mosaic. The theory control theory applies in businesses today, as it is turned out to be essential for their operation and accomplishing the goal of associations. The part of inward reviewing is to survey the viability of the inside control framework and to see if the framework is working as planned.
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION
In this chapter, we described the research procedure for this study. A research methodology is a research process adopted or employed to systematically and scientifically present the results of a study to the research audience viz. a vis, the study beneficiaries.
RESEARCH DESIGN
Research designs are perceived to be an overall strategy adopted by the researcher whereby different components of the study are integrated in a logical manner to effectively address a research problem. In this study, the researcher employed the survey research design. This is due to the nature of the study whereby the opinion and views of people are sampled. According to Singleton & Straits, (2009), Survey research can use quantitative research strategies (e.g., using questionnaires with numerically rated items), qualitative research strategies (e.g., using open-ended questions), or both strategies (i.e., mixed methods). As it is often used to describe and explore human behaviour, surveys are therefore frequently used in social and psychological research.
POPULATION OF THE STUDY
According to Udoyen (2019), a study population is a group of elements or individuals as the case may be, who share similar characteristics. These similar features can include location, gender, age, sex or specific interest. The emphasis on study population is that it constitute of individuals or elements that are homogeneous in description.
This study was carried to examine the impact of audit report in organizational performance using staffs of PHCN in Ughelli as case study form the population of the study.
SAMPLE SIZE DETERMINATION
A study sample is simply a systematic selected part of a population that infers its result on the population. In essence, it is that part of a whole that represents the whole and its members share characteristics in like similitude (Udoyen, 2019). In this study, the researcher adopted the convenient sampling method to determine the sample size.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
INTRODUCTION
This chapter presents the analysis of data derived through the questionnaire and key informant interview administered on the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as interpretation of the information gathered. A total of eighty (80) questionnaires were administered to respondents of which only seventy-seven (77) were returned and validated. This was due to irregular, incomplete and inappropriate responses to some questionnaire. For this study a total of 77 was validated for the analysis.
TEST OF HYPOTHESIS
HO1: there is no true and fair of the financial position of the organization operation.
H1: there is true and fair of the financial position of the organization operation
HO2: there is no accuracy of the financial statement of the organization (P.H.C.N).
H1: there is accuracy of the financial statement of the organization (P.H.C.N).
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain the impact of audit report in organizational performance
In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of audit report in organizational performance
Summary
This study was on the impact of audit report in organizational performance. Four objectives were raised which included: To know the true and fair of the financial position of the organization operation, to know the accuracy of the financial statement of the organization (P.H.C.N), to know the degree of efficiency and economic operation of the organization and to know if actually the recommendation made by the auditor report are implemented in order to ascertain the extent of the organizational growth achieved in the organization (P.H.C.N Ughelli). The study adopted a survey research design and conveniently enrolled 80 participants in the study. A total of 77 responses were received and validated from the enrolled participants where all respondents were drawn from PHCN. Hypothesis was tested using Chi-Square statistical tool (SPSS).
Conclusion
The study established that internal auditing is regularly considered as a general checking action with obligation to management for surveying the viability of control techniques which are the duties of functional managers. Internal audit helps an organization to complete its targets by bringing a composed, restrained approach that to build up the adequacy of hazard administration, control and administration forms (IIA, 2004). The internal audit function is not limited to the operation of any particular function within an organization. Rather, it is all-embracing and accordingly is structured in the organization 55 as a separate entity responsible only to a high level of management. An effective internal audit service help to reduce overhead, distinguish approaches to enhance proficiency and boost introduction to conceivable misfortunes from deficiently shielded organization resources all of which can significantly affect the main issue. Cai (2007) internal auditing shapes a key managerial control mechanical assembly that is clearly associated with the structure and general standards of an affiliation. Internal audit function in organizations where it exists, contributes considerably to execution change and help with distinguishing benefit prove in corporate calamities, especially money related extortion reliably archives a relationship between feeble administration. Venables and Impey (2010) expressed that internal audit is a significant instrument of administration for enhancing organization performance. Along these lines inner review by going about as a guard dog could spare the association from acts of neglect and anomalies in this manner empowering the association to accomplish its targets of guaranteeing abnormal state of efficiency and benefit. Hermanson and Rittenberg (2008) pointed that the existence of an effective internal audit capacity is connected with effective firm performance.
Recommendation
The study recommended that risk assessment should be led at the level of individual organizations and over the wide range of exercises and auxiliaries of the solidified association. This includes evaluating the risks to determine which are controllable by the bank and which are not. This can be accomplished through various methods. This 56 addresses both measurable and non-measurable aspects of risks and weighs costs of controls against the benefits they provide. In order for risk assessment to remain effective, senior management needs continually to evaluate the risks affecting the achievement of its goals and react to changing circumstances and conditions. Internal controls should also be revised to appropriately address any new or previously uncontrolled risks. On control environment, the study concludes that management attitude should be committed to ethical business practices and follows the established control procedures. This is the establishment for every other segment of inside control, giving order and structure. The study also concludes that where an enterprise has environmental considerations as some of their objectives it is entirely necessary and appropriate that internal control should facilitate the assured achievement of those objectives. Additionally, the study concluded that organizations should have separate environmental audits conducted by someone other than internal audit; but internal audit should be in a position to provide this service to the business, and to take account of work done by others that contributes to meeting this objective. To the effect of control activities on organization performance, the study recommends that internal control ought to be viable when looking at outline can amazingly gainful and is as a rule for association administration and broadly to monetary proclamations at present, a wide range of business firms have utilized interior controls through the development of strategies to guarantee a shielding resources and beneficial business environment particularly bookkeeping arrangement, administration approach, and operational strategy. Subsequently, inner control ought to be all the time survey in all parts of their organization and embed inward controls that will reinforce the organization and increment benefit. An effective internal control system requires that an appropriate control structure is set up, with control activities defined at every business level. These should include: top level reviews; appropriate activity controls for different departments or divisions; physical controls; checking for compliance with exposure limits and follow up on non- compliance; a system of approvals and authorizations; and, a system of verification on reconciliation.
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