THE EFFECTIVENESS OF AUDIT FUNCTION IN GOVERNMENT ESTABLISHMENT (A CASE STUDY OF OFFICE OF AUDITOR GENERAL IN ENUGU STATE)

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THE EFFECTIVENESS OF AUDIT FUNCTION IN GOVERNMENT ESTABLISHMENT (A CASE STUDY OF OFFICE OF AUDITOR GENERAL IN ENUGU STATE)

CHAPTER ONE

INTRODUCTION

1.1     BACKGROUND OF THE STUDY

There is need for acceptable accountability of the money spent by various government establishment. This has resulted in Federal Government Establishment of Audit Department established in both the federal and state government as provided. The duty of the Audit Department is to report on the accounts stewardship rendered by the public office sec. 118 sub-sec 2 of the 1979 constitution provides that “the public account of a state and offices court and authorities of  the state including all persons and bodies established by law entrusted with collection and administration of public assist and liabilities, shall be audited and reported by the director of audit or any person authorized by him in that behalf shall have access to all books, records and returns and other document relating to those accounts”.

The study focuses attention on how well or not Enugu state. Audit Department Conducted their activities in response to sec 118 of the 1979 constitution of the federal republic of Nigeria. To appreciate whether the audit department (Enugu State) performs its constitutional responsibility efficiently and effectively, it becomes necessary to determine or examine the effectiveness of the audit function through the analysis of audit carried out on government establishment and the opinion of those that audited the accounts. This will include whether they always audit accounts rendered by other government establishment and finally the impression of the general public about the auditor function.

1.2     STATEMENT OF PROBLEM

1.       Recognition:

Due and appropriate recognition were not accorded to the audit department

2.       Staffing:

The staffing of the department was poor, in most cases, majority of the staff did not had any basic knowledge in book-keeping and accountancy, they are not usually trained, their performance surely cannot satisfactory.

3.       Funding:

Audit department was poorly funded by non-auditing offices, who were in a position of authority.

4.       Report

Audit’s report were often disregarded and no actions were taken on them.

1.3     PURPOSE OF THE STUDY

In the light of the above the research aims at looking at the impact and significance of audit function in government establishment and then identify the causes of its ineffectiveness or effectiveness. these study also aims at analyzing the following:

–  The roles played by the Audit Department in the protection of public funds and property.

–  The delays in caring out audit of the government account (ministries and panasteris)

–  The problem encountered by auditor when carrying out their work.

1.4     SCOPE OF THE STUDY

The scope of this study is on however, Enugu state audit department had discharged. Its duties. The main focus in on the techniques used and their shortcoming.

1.5    RESEARCH QUESTIONS

In view of the point made in the statement of problem above one man ask the following question.

1.  Are the officer of the Audit department qualified for jobs

2.  Are the Audit department help in protection of public funds property

3.  Are the officers in the ministries other parastatals comply with the financial regulation in their duties

4.  What problems do the auditor encounter in the course of their duties.

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