Internal Audit: a Tool for Management Control

Internal Audit a Tool for Management Control

Internal Audit a Tool for Management Control


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Abstract on Internal Audit a Tool for Management Control

   In order to carryout any management functions effectively the top management of an organization will need information to plan, organize, direct, co-ordinate and control the activities of the organization.

The management will generally not time or expertise to collect and analyze the pies of information it needs for its management functions.  Accordingly, the internal auditor is usually appointed to do this on behalf of the management.

The internal auditor does not only provide management with information but also give management the necessary assurance that operations are being carried on in accordance with plans and led down procedures.

Therefore, the internal audit department gives necessary aids to management.

This study examined the way in which the internal audit assist management in the discharge of their responsibilities.

Based on the conclusions, the work made some recommends, the research is of the opinion that the work would be of help to the management.


Chapter One of Internal Audit a Tool for Management Control


Internal audit is a large and significant part of management control of both large and small organization.  The role of internal auditor has evolved from concentration of the detection and prevention of errors and fraud in the present day emphasis to reviewing system of internal control.

The Chartered Institute of Public Finance and Accountancy, define internal audit as an independent appraisal activity within an organization for the review of operation as a service to management.  It is a management control which functions by measuring and evaluating the effectiveness of other controls.

The problems which always exist between the managers/director to the owner of business, were solved by appointing an independent person called “auditor” to investigate the report on findings.

Internal auditor is concerned with the implementation of social responsibility policies adopted by top management.

Internal audit that is established to provide a continuous and complete audit of the accounts and records of the company with use of the following:

(i)                internal procedures system

(ii)             internal check

(iii)           pre-audit jobs

These would help in the managerial control of the organization.

The overall purpose of internal auditing is to assist management in achieving the most effective administration of operation of the business.


The purpose of this research work are as follows:

(i)                to evaluate the determinant for effective tools in management control.

(ii)             To assess the effects of internal auditing on internal control system of an organization.

(iii)           To investigate the type of responsibilities internal audit has with the chief executive of the organization under which he operates.




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