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Education Accountancy

The Relevance Of Auditing In The Enhancement Of Financial Management In Institutions Of Higher Learning

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ABSTRACT

This research work is carried out to find out the relevance of auditing in the enhancement of financial management in institutions of higher learning, case study of Imo State University, Owerri. Four research questions were formulated. The area of the study was Imo state university, Owerri. The study has sample of fifty (50) staff from accounts and auditing sections of Imo state university, owerri. Descriptive survey method was used in the research with stratified random sampling technique. The questionnaire was the instrument used for the collection of data from the sample.  The finding of this study reveals that auditing enhances the accounting system in institutions of higher learning. effective financial management has impact in the staffs, students and financial controllers of Imo State University, Owerri. Based on data analysis and findings, the following conclusions were made. Some auditing are relevant to financial management. Some auditors that stamped auditing such as failure of the auditor to detect the over valuation of project in circumstances where sample evidence is available for the purpose of checking for accuracy of the figures given to him should be avoided as it could make audit work relevant to financial management.

CHAPTER ONE

INTRODUCTION

In this chapter, the researchers present; background to the study, statement of the problem, scope of the study, purpose the study, significance of the study and the research questions.

Background to the study

Auditing is not a special professional work performed by a chartered accountant or an auditor.  It is also a method of examination nearly used by everyone at various times in different places consciously or unconciously. Adeniyi, (2010) defined it as a systematic process of objectively obtaining and evaluating  evidence regarding assertions about economic actions and events to ascertain the degree of correspondence between the assertions and established criteria and communicating the result to interest users.

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Audits were made to determine whether people in position of financial responsibility were acting and reporting in a transparent manner. According to Aroh (2002) financial management is the art of controlling money efficiently in an organization, firm, institution etc. where financial activities are carried out either by the cashier, accountants auditors  and other financial  managers.  The manner and system in which the financial activity is carried out for effective result is known as financial management.  The degree of efficiency of the management  depends  on the  auditors check up on the accounts as precautions  against  financial crimes and fraudulent  acts. Financial management at private or public levels involves authority and responsibility.

Authority on the part of the financial manager to utilize resource entrusted to him and   subsequently give accurate and up to date account of what they have done with these money,   with a view to ascertain whether or not they have individually or collectively confirmed with violated manipulated, achieve or even thwarted the objectives of the organization or institution. Institutions of higher learning includes post secondary education where values, norms, ethics, culture, knowledge (cognitive, effective, psychomotor) are imparted to the less informed through instructional process (Adeniyi, 2010). Institutions are not only restricted to instructional process, financial activities are also carried out through payment of school fees by student, government subventions, payment of staff salaries, clearance fees, payment and receipt of bills etc. all these are financial transactions and are summarized and counted on by the auditor. The auditor also tries to establish financial responsibility of institutions assets and flow of values within and outside.

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Financial management is the area of business management  devoted to a judicious use of capital and a careful selection of sources of capital in order to enable a business firm to move in the direction of reaching its goals. Business finance deals primarily with rising, administering and disbursing funds by privately owned business units operating in non-financial fields of industry  (by Prather and Wert)

Statement of the Problem  

Money is embezzled in financial  institutions, firms, companies, schools, industries and other organizations that carry out monetary  activities  at alarming rate.

These problems include:

  • Misappropriation of bills
  • Under payment of salaries
  • Over estimation of miscellaneous expenses
  • Embezzlement through uncompleted projects

These problems cut across public and private offices of the abuse of financial report and statements.

Since auditing deals with scrutinizing of financial records, the researcher intend to look into the relevance of auditing in the enhancement of financial management in institutions  of higher learning with Imo state University, Owerri as a case study.

Scope of the Study

This study is limited to the relevance of auditing in financial management of Imo state University, Owerri. Furthermore, this research is carried out in Imo state University, Owerri  which is in Owerri, the capital of Imo state. Owerri is a large city which is bound on the north by Ubommiri, on the south by Mbieri, on the east by Emekuku, and on the west by Umuguma respectively, Owerri people and the environs are referred to as literate population. The entirety of the population is seriously desirous of education.

Purpose of the Study

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The general purpose of the study is the relevance of auditing in the enhancement of financial management. Specifically, the study aimed at, ascertaining the extent to which auditing is relevant to financial management of Imo State University, Owerri.

  • Investigate whether auditing enhance the accounting system in Imo state University Owerri
  • Identify the role auditing plays in financial management of Imo State University, Owerri
  • Find out the impact of effective financial management on the students, staff and financial workers.

Significance of the Study

This study will be beneficial in the following ways; the study will be of great importance to the accountants of Imo state University to enable them realize the relevance of auditing In the enhancement of financial management.

This study will make the students, lecturers and staff to embrace accountability as paramount to social values, financial stability and economic growth and development in Imo State University, Owerri.

Also the study will be benefit to the management of Imo State University, Owerri as it is hoped that the information on the relevance of auditing in the enhancement of financial management will be provided.

Research Questions

To guide the study, the following research questions were formulated;

  1. What extent is auditing relevant to financial management in institutions of higher learning?
  2. Does auditing enhance the accounting system in institution of higher learning?
  3. Does auditing play a role in financial management of Imo State University, Owerri?

Does effective financial management have any impact on the staff, students and financial controllers of Imo State University, Owerri?


Pages:  60

Category: Project

Format:  Word & PDF         

Chapters: 1-5                                                      

Material contains Table of Content, Abstract and References.

Project

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