Full Project

CHAPTER ONE INTRODUCTION
1.1
BACKGROUND TO THE STUDY
The business environment has experienced rapid and revolutionary change with far reaching consequences for organizations worldwide. Management responses to fierce global competition have included improved quality and risk management initiatives, reengineered structures and processes, and greater accountability - all needing more timely, reliable, and relevant information for decision-making. Iwok, E.R (2000), Organizations are also scrambling to put in place more effective governance structures and processes. In such a climate, it is no surprise that the internal audit function is viewed as the most qualified group of professionals to help with such experimentation with improved governance as well as support key governance processes: for monitoring the controls over, and for evaluating the operational effectiveness of management strategies and initiatives. Oshishami, K. (1994), however, to take advantage of this tremendous surge in the demand for their services, not only do internal auditors need a considerably enhanced repertoire of skills, attributes, and competencies but they also need to commensurately raise their organizational status and profile and align themselves appropriately within their respective organizations. 1.2 STATEMENT OF THE PROBLEM
So many organizations have failed to recognize the efforts of internal auditing in the organisation performance and as a result of that, it has led them to poor planning, control and decision making. Olusanya, F.T (2001), some of the direct implications of restricting internal auditors from carrying out their duties in an organization that it retards the growth of the organization, loss in shareholders fund, it will welcome the idea of take overbid, the reputation of the company will be at stake, it hinder corporation objectives of the company and loss of public confidence in the company and shifting of interest to other company.
1.3
i.
AIMS AND OBJECTIVES OF THE STUDY To examine the implementation and contribution of internal audit department in an organization as a tool for presentation and detection of fraud. To measure the overall contribution of internal auditing in an organization financial performance. To investigate whether an auditing system exists within the organization. To examine the challenges encountered by internal audit. To provide a basic understanding of auditing and its procedures. RESEARCH QUESTIONS
The purpose of this research seeks to:
ii.
iii. iv. v.
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In assessing the purpose of the study, this research project attempts to answer the following questions: i. ii. iii. iv. v. What is the importances of internal audit in an organization? How can the overall influence of internal auditing be measured in an organization financial performance? What are the determinants of audit system in an organization? What are the various challenges encountered by internal audit? What are the basic procedures of auditing in an organization?
1.5 RESEARCH HYPOTHESES In carrying out this research work, these hypothetical statements are suggested to serve as a guide on which the work will be anchored. Hypotheses I Ho: H1: Internal Audit report has no effect on organizational performance. Internal Audit report has effect on organizational performance.
Hypotheses II
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Ho: H1:
Organizations that have an internal audit function are not likely to detect and report fraud. Organizations that have an internal audit function are more likely to detect and report fraud.
1.6
SIGNIFICANCE OF THE STUDY
Firstly, this will expose some of the common areas of indiscretion so that management can put in place corrective measures. Secondly, it will also educate the readers at large the need of internal audit department in an organization as a tool for prevention of fraud, errors and irregularities in an organization. Furthermore, it will afford the readers to appreciate the practical application of internal audit in an organization as a tool in running business to enable the owner reaps its benefit. Finally, it will hopefully contribute to the existing pool of material for reference purposes, on the subject for future student researchers.
1.7
SCOPE AND LIMITATION OF THE STUDY
This research work would examine the relevance of internal audit on organizational performance in Unilever Nigeria Plc, Apapa, Lagos. A random sampling of 90 respondents covering the entire organization shall be taken. To be able to audit satisfactorily the activities of the manufacturing industry, internal auditor would need to possess certain basic skills experiences. The present study will elaborate on the skill required of auditor, their method management. The relationship with the management as well as the board of audit committee, the compliance with both the code of ethics of Internal Institute of Auditors (IIA). As well as any other application statutory requirements. The study as perceived might face some logistic challenges in term of the time and the costs involved in carrying out the research, but nevertheless, it would endeavor to accomplish its aims and objectives.
1.8
BACKGROUND OF STUDY
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UNILEVEL NIGERIA PLC Unilever Nigeria Plc, was incorporated as Lever Brothers (West Africa) Ltd on 11th April, 1923 by Lord Leverhulme, but the companys antecedents have to be traced back to his existing trading interests in Nigeria and West Africa generally, and to the fact that he had since the 19th century been greatly involved with the soap business in Britain. Unilever Nigeria Plc started as a soap manufacturing company, and is today one of the oldest surviving manufacturing organizations in Nigeria. After series of mergers/acquisitions, the company diversified into manufacturing and marketing of foods, non-soapy detergents and personal care products. These mergers/acquisitions brought in Lipton Nigeria Ltd in 1985, Cheesebrough Ponds Industries Ltd in 1988. The company changed its name to Unilever Nigeria Plc in 2001. Unilever Nigeria Plc is a public liability company quoted on the Nigerian Stock Exchange since 1973 with Nigerians currently having 49% of equity holdings. Why we still succeed The long-term success of this business stems from the strong relationship with the consumers based on the deep roots in the local cultures and markets, creating products that help them to feel good, look good and get more out of life and the total commitment to exceptional standards of performance and productivity. In order to sustain this success, we endeavor to maintain the highest standards of corporate behavior towards our employees, consumers, customers, communities and operating environment. Our brands are household favorites and this is because we are so deeply committed to meet the everyday needs of people everywhere in Nigeria. What is more, our deep roots here combined with international experience and support; enable us to consistently develop brands, which raise the quality of life. It is therefore no surprise that one would find that all over Nigeria, people are at home with our brands.
Re-inventing Ourselves
Unilever as a company has embarked on a programme of restructuring in a bid to re-energize itself. Code-named the Journey to Greatness, the vision is re-inventing ourselves so that we can deliver fully on our promises to our consumers, customers and investors. In addition, the
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company has sharpened its focus by introducing the Vitality mission, which stands to ensure that in all we do, we are adding vitality to life for everyone.
Corporately Responsible
Over the years, Unilever Nigeria Plc has been a socially responsible and responsive organization that takes strategic actions for the improvement of the communities and environments in which it operates. The company has made provision for assistance in fields of health, education/children welfare and potable water/hygiene as part of its social responsibility programme in the Nigerian communities. Internal Audit Department in Unilevel Nigeria Ltd The internal audit commenced as a function in Unilevel Nigeria Ltd started on a low key in the early 90s and was not as complex as they are today. The auditing techniques were tailored towards meeting the nature of the transaction in the company as at that particular time.
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DEFINITION OF TERMS Internal checks: these are day-to-day administrative control within the internal control system which aims at detecting and minimizing the risk of fraud and errors.
Internal Auditing Control: this is the aspect of the internal control concerned with ensuring adequate and accurate accountabilities with regard to an organization transaction and assets.
Assets: all that a company owns or is due to its cash account receivables, investment income, building, machinery, inventories, patient, and goodwill.
Data: facts, figures, word or other symbols describing or referring to a problem to be solved.
Audit: an inspection, correction, and verification of business accounts, conducted by an independent qualified accountant.
Account: A formal banking, brokerage, or business relationship established to provide for regular services, dealings, and other financial transactions. A precise list or enumeration of financial transactions.
Standard: An acknowledged measure of comparison for quantitative or qualitative value; a criterion.
REFERENCES Iwok, E.R , (2000). Accountability and Transparency in Stewardship. An Address Presented at Cross-River State: Branch of ANAN End of Year dinner.
Olusanya, F.T, (2001). Auditing and Investigation. A Comprehensive Approach Lagos. Negro Ltd. Spicer and Pegler, Practical Auditing 15th Edition (1972), pg. 34
Oshisami, K. (1994). Government Accounting and Financial control. Ibadan: Spectrum Books Ltd. Planning, Research and Statistics (2000).
CHAPTER TWO LITERATURE REVIEW
2.1
PREAMBLE
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This chapter emphasis on the general historical background of auditing and the internal audit department, its responsibilities, authorities, objectives and duties. It will also focus on the principles of auditing generally and how it related to the manufacturing industry. It will also explain how auditing is being practiced presently in Unilever Nigeria Plc compared with how it should be practiced with reference to literature. This review will further explain the relationship between the internal and external audit and the similarities, common interest and differences between internal and external audit. The professional ethics, its independence and the manner in which report are recommended, as well as the general requirement by the generally standard (SAS) will be reviewed. 2.2 THEORETICAL FRAMEWORK OF THE STUDY Internal audit is an important part of the corporate governance structure within an organization. Corporate governance includes those oversight activities undertaking by the board of directors and audit communities to ensure the integrity of the financial reporting process (public oversight board, 1993). Three monitoring mechanisms have been identified in the corporate governance literature. They are external auditing, internal auditing and directorships (Anderson et., 1993, Blue Ribbon Communities, 1999) as well as the audit communities (institute of internal Auditors (IIA), 2003).In recent years, high profile corporate collapses have focus attention on corporate governance and also emphasized internal auditing as part of the governance process. The IIA sees the objective of internal auditing as both supporting and strengthening an organizations governance mechanisms and revaluating and improving the effectiveness of risk management and control (IIA 1999). The importance of internal auditing has also been underpinned by the decision of the New York Stock Exchange (NYSER) to amend its listing requirements to mandate that all listed companies in the United States (US) have an auditor community (NYSE, 2003) to liaise between internal auditors, external auditors and management, ensuring the independence of the audit function. There is evidence in the US that the securities and Exchange commission (SEC) also attaches importance of internal auditing as there have been recent cases where enforcement actions by the SEC and subsequent settlements were required to registrants to engage internal auditors (Carcello et al., 2005).
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Despite the increasing focus on internal audit, reviewing the internal audit literature shows limited research on the important and benefit of internal audit per se or the relative important of in sourcing compared to outsourcing the internal audit studies have used an agency cost framework to illustrate the value relevance of the internal audit function (e.g. Carey et al., 2000; Carcello et all., 2005). While the variable of size, dept or agencies are not associated with the presence of an internal audit function in Australian family owner companies, internal and external audit are used as monitoring substitute by these companies (carey et al., 2000), A more recent US study examined the size of internal audit budget and found that they were positively related to company size; leverage; financial, service, or utility industries; investory;operating flows; and audit committee review of the internal audit budget (Carcello et al., 2005). Results showed that internal audit budget were negatively related to the percentage of internal auditing that was out sourced. The overall conclusion was that companies facing higher risk will increase their organization monitoring through internal audit, providing evidence3 of the important of the internal audit function. Gramling et al. (2004) performed a literature review on the role of internal auditing in corporate governance. The review found that the role of an internal audit function corporate governance has been analyzed using the external auditor evaluation of its quality, determinant of its reliance Decision, the extent and nature of its work relied on by the external auditor and other aspect of the external audit (Gramling et al., 2004). Examination of this literature review show that majority of the research on internal audit has been related to the perception of the external auditor and whether the external auditor utilizes the internal auditor work. Another way of evaluating the work of internal auditor is to examine how well they detect error within an organization and there has been limited research on this topic. One study on this topic found the number and magnitude of error requiring adjustment by the external auditor have been found to be substantially lower for entities that had an internal audit department compared to those that did not have an internal audit department (Wallace and kreutzfeld, 1991).
More recently, the role of auditors in detecting fraud as well as error has received greater emphasis. In Australian additional requirement were imposed on external auditor to consider the possibilities of fraud when conducting an audit under Aus 210 (Australian Accounting Research Foundation (AARE), 2004 and more recently ASA 240 (AUASB) Auditing and Assurance Standard Board), 2006. It is reasonable to expect that this increase emphasis on fraud awareness and detecting affected internal auditor duties as well. Even back in the late 1990s, there is evidence that this was occurring in Australian as a survey found that fraud detection was being included in internal audit work. Some studies have evaluated the ability of internal auditor to perform fraud related work. External and internal auditor achieved a high level of consents in their financial statement fraud risk rating suggestion that be detected (Apostolou et al., 2001).when considering fraudulent financial reporting, internal auditor, and think that fraud is the reason for an unexpected difference in income when: Income is greater than expected and when debt covenant are restrictive, conditioned on income being greater than expected (Church et al., 2001) The focuses of these studies have been financial statement fraud. The nature of the internal audit function is also an important consideration that may potentially affect its value to an organization. Companies may use their own staff (insource), use an external firm (outsource) or a combination of the tow, while out sourcing the internal audit function does not significantly affect users perceptions of auditor independence or financial statement reliability (Lowe et al., 1999) or their perceptions of protection from financial statement fraud (James, 2003) companies that decide to outsource perceive that external provider are technically more competent (Carey et al., 2006). However, limitation with these prior studies is that they were performing by measuring make perception make decision about performance. Given that many organizations make decision about whether to in source or outsource their internal audit function the quality of performance of these respective functions is an issue that warrants more examination than just perception. 2.3 2.3.1 Empirical Review of Previous work in the area of studies Historical Development of Auditing and Internal Auditing
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The earliest records ever audited were the Babylonia, clay tablet about 5000 years. The worlds first auditor may have created the tiny marks on the clay tablet next to inventory entries. By the time of the middle kingdom of the Nile, the pharaohs deputy was overseeing the storage of grain auditing was a matter of re-performing the work of other. The system was very simple, and auditing meant observing, counting and double-checking ripcord. Internal auditing did not change mush for nearly 5000 years. In some countries where modern internal auditing is just being introduced, re-performance is still a mainstay of the auditor. Business organization and system continues to change and grow in size and complexity throughout the industries age. Advance in systems thinking and massive organization of human enterprises in responses to World War II brought about a dramatic change in the practice of internal auditing. The old audit method used a checker checking, a checker victor brink and other advanced the concept of evaluating the organization internal audit. Testing compliance with these controls was more efficient for large scale enterprise. The first transactions of auditing began in the 1940s. The modern practice of auditing internal control system supplanted the prior technique of re-performing every step. We have continues to perfect our understanding of the systems. Today, we are sophisticated risk modeling statistical sampling, computer assisted audit techniques and customer-focused total quality management as part of the audit process. The environment of human enterprise is continuously changing and the organizations are beginning to feel the stress. New focuses are at work, experimenting with new ways of doing things, exploring the boundaries of our changes. The change will be at least as profound as the change in 50 years ago from substantive re-performance auditing to internal control system auditing. In Nigeria, external auditing was formalized by the enactment of the 1948 U.K companies Act, which was a statute of general application. By that Act, all companies operating in Britain and its colonies or protectorate were exper5ted to be audited by an independent auditor appointed in accordance with provision of the Act.
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On gaining independence, the 1948 U.K companies Act was replaced by the companies decree of 1968 and more recently, the companies and allied matter degree (CAMD) 1990. Nowhere in these enactments is the provision for the establishment for an internal department. However these enactments contain provision resting the responsibilities from proper conduct and establishment of adequate control in the organization on the board of directors. To ensure that polices prescribed by the board of director toward acceptable internal control practices arte adhered to, it become conventional for companies as part of the internal control procedures to set internal auditor. This practice is more prevalent in the construction companies. According to Emile Woolf, the early days of auditing, the prime qualification for the position of auditor was reputation. A man knows for this integrity and dependence of mind would be brought for this honored position, the matter of technique abilities being entirely secondary. Consequently, his functions in those days were never confused with that of accountings. However, as accounting gradually becomes more complex and concerned with technicalities, auditor found themselves out of their depth and in turn becomes increasingly dependent upon the expertise provided by the accountants. Eventually, audit function itself becomes totally dominated by the accountancy profession. It is this reason the description auditing profession is today being used synonymously. Auditing noted by Emile Woolf to have exited for as long as man have been required to account for their transaction while accounting came into Existence two to three hundred years ago, in the first division of in interest between those engaged in a business undertaking (the entrepreneurs) and those who made the finance available, without necessary becoming directly involved in the day-to day management (shareholder). Ekwere was able to explain the origin of auditing in Nigeria through the establishment of the institution of public auditing in 1888. Then, until 1910, it remains part and parcel of the United Kingdom Auditor General Office. It was further noted that the control of the office passed on to colonial office and it was form this colonial audit department that the federal audit department came to be. And the audit took the form of an examination of the system of the department
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internal control together with test checks. The extent of which depends on the efficiency of the departmental internal control. According to Ekwere, 1956, the audit of most public account in the federal republic of Nigeria became the responsibility of the Director of Audit. In 1956, the first state auditor came with the publication of the audit ordinances. The ordinance was superseded by the constitutional provision when Nigeria became independent in 1960. The growth of audit in Nigeria arose as a result of the formation of the institute of chartered accounting of Nigeria (ICAN) and the requirement of the companies Act of 1968, the information disclosed in the statement of Accounting standards n(SAS) by the Nigeria Accounting standard Board in November, 1984. The Guidelines stated in the Generally Accepted auditing standards (GAS), the income policy Guidelines of 1987, which is the productivity price and income Board (PPID) and the companies and allied matters decree of 1990 (camd), have all contributed to modifying and distinguishing the role auditors in Nigeria. 2.3.2 Principles of Auditing
Cut forth described audit as an examination of the record of the transaction of a business undertaken to enable the auditor to satisfy himself whether the account therefore are properly drawn up as to exhibit a true and fair view of the affairs of the concerned, according to the best of the information of which he can avail himself. The record consists of the books of accounts, the document etc. confirming of supporting the correctness of the entries in the books. Schlosser also defined auditing as being concerned with the verification of accounting data, with determining the accuracy and reliability of accounting statement and report. He went further to say that auditing as a systematics examination of financial statement, record and related operation to determine adherence to generally accepted accounting principle management policies or started requirement. While Kwame-Cyasi (An International Guide to Auditing) defined auditing as the independent examination and investigation of the evidence from which a financial statement has been prepared with a view to enabling the independent examiner to report whether in his opinion and according to the best of the information and explanation, obtained by him, the statement is
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properly drawn up and given a true and fair view of what it purpose to show and if to report in what respect he is not satisfied. From these definitions above, it can be deduced that auditing is the process of accessing the financial statement of an organization or association to which the person undertaking the task is not a member and has the aim of ensuring that these financial statement were truly represent the financial position of the organization or association. Auditing standard defined auditing as the independents examination of and expression of opinion of the financial statement of an enterprise by an appointed auditor in pursuance of the appointment and in compliance with any relevant statutory obligation. The auditor responsibility is to report and give his opinion on the truth and fairness of the financial statement presented by management. 2.3.3 Who is an Auditor
In ordinary sense, an auditor is a person who is charged with the responsibility of examining the book and account of an organization or association in such detail as would enable him form an independent opinion as to truth and fairness of the financial statements. 2.3.4 Types of Auditors
There are two types of auditor namely: external auditor and internal auditor. The external .auditor differs from internal auditor in the area of appointment, scope of work, reporting, independence responsibility and approach to work among others. While an internal auditor is an employee of the organization and review. The scope of this work appointment, promotion is determined by the management. The reports of the inertial auditor are made to the management and by this, the internal auditor independence as a necessity for effective audit is all that encouraging. In respect of external auditor, are the criteria for appointment is the presence of reasonable. Degree of independence, institute of Chartered Accounting of Nigeria (ICAN) specified some guideline to ensure the independence of auditor. This independence is necessary no prior relationship.
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There are four types of audit and this includes: Statutory audit Internal audit Management audit Private audit
A private audit is conducted on the owner other than those required by law and the conduct of this audit is guided by a term of reference. The statutory audit is conducted because it is mandatory by law and the term of reference or scope of work is a filtered by law, while management audit is a review of management activities. 2.3.5 Internal Audit
Many organizations of various sizes have seen the need for the internal audit as a tool for ensuring effective work of internal control system. Owing to this priceless value from internal audit, the institute of Chartered Accounting of England and Wales (ICAE and WALE) defined internal audit as a review of operation and record, sometime continuous undertaking within a business by specially assigned staff. Internal audit is an independent function within an organization as a service to all level and assesses other control, financial and control that and measure, evaluation and assesses other control, financial and otherwise as a contribution to the effective use of resource within the organization. It is concerned with the verification and appraisal of procedures as well as a transaction. The internal audit department Is responsible for designing and supervising the installation of control system. The major purposes of internal audit are as follows: To verify the accuracy and integrity of the financial and accounting record and of the related report and statistic emanating there form, To ascertain that the standard accounting practices of the organization are being followed.
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To ascertain that there has been proper authority for the acquisition of, retirement and disposal of the assets of the organization.
Conform that liability are incurred only in respect of the legitimate operation of organization.
2.3.6
To improve and analyze the system of control and checks. Internal Audit in the Organization Structure
The reporting relationship of the internal audit department influences its effectiveness. In mark and mark, the chief auditor report to the executive director- financial up till 2002. As of today, Head of Audit report directly to the Chairman and Managing Director. It has been earlier propounded that internal audit encompasses a field wider than financial and accounting, a set up where the head of audit is made to report to the head of finance. It cannot for all practical purpose be proper. The idea arrangement is for the head of audit to have a direct content with the audit committee of the board of director or to the Managing Director. Apart from achieving a more effective independence of reporting to function level, the head of audit also more authority by reporting to a high level. Regardless of the reporting relationship, effective internal auditing requires higher caliber staff. It is indeed a disaster o staff the internal audit department with incompetent and inexperience employees.
The position of the internal auditor, as the head of the internal audit department varies from country to country. What is commonly found is that within the hierarchy of the financial controller. If the internal auditor is to have real freedom of access in the company that are not within the accounting function and if he is able to report objectively on the accounting function which is a very important element in the organization internal control, than he should be more properly fixed with the financial or accounting hierarchy.
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The internal auditor should be placed in a position such that any uncompromising attitude or effect of unhealthy rivalry between any set or group of giant within the organization would not affect effective performance of his duty. He should therefore be accorded proper status to report directly to any level to top management on matter relating to the respective department (the managing director or general manager whichever is appropriate). He should have free and unrestricted access to information and given free hand to select the staff adequate for his task where the internal auditor is a qualified accountant, he is entitled to the independence conferred by the profession as limited by his being employee of the organization. 2.3.6 THE INTERNAL AUDIT CHARTER
According to Pickett (2005b: 113), the audit charter may be used in a positive fashion to underpin the marketing task that is discharged by audit management. It can also be used to audit services in the event of a dispute or an awkward audit. The charter formally documents the raison dtre of the audit function. It is important that all audit departments develop and maintain suitable charters. The Institute of Internal Auditors issued a statement of responsibilities that covers the role of internal auditing, and this document may be used to form the basis of such a charter. The audit charter is a formal document that should be developed by the chief audit executive and agreed upon by the highest level of the organisation. If an audit committee exists, it should be agreed in this forum, although the final document should be signed and dated by the chief executive officer. The audit charter establishes audits position within the organisation and will address several issues, such as the following: 1. The nature of internal auditing 2. The audit objectives 3. The scope of auditing work 4. Audits responsibilities 5. Audits authority 6. Outline of independence
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Chambers (2005: A1.1.18) states that the IIA defines the charter of internal auditing activity as a formal written document that defines the activitys purpose, authority and responsibility. The charter should establish the internal audit functions position in the organisation, authorise access to records, personnel and physical properties relevant to the performance of engagements, and define the scope of internal audit activities. The institutes Practice Advisory 1000-1 stipulates that the charter should be reviewed and approved by management and accepted by the board. 2.3.7 Approval of the internal Audit Charter
According to Moeller (2005: 182), the internal audit charter serves as a basic authorisation for every effective internal auditing programme. An adequate charter is particularly important to define the roles and responsibilities of internal audit and its responsibility to serve the audit committee properly. It is here that the mission of internal audit must clearly provide for service to the audit committee, as well as to senior management. An internal audit charter is a broad but general document that defines the responsibilities of internal audit in the organisation, describes the standards followed and defines the relationship between the audit committee and internal audit. 2.3.8 The role of the audit committee Kiger and Scheiner (1994:20) suggest that audit committees are frequently composed of three to five directors who are not members of the entitys management and who should represent the stockholders' and societys interests very effectively. Audit committees are generally charged with overseeing the financial reporting process, and they strengthen the financial reporting process by performing some or all of the following activities:

Nominating the public accounting firm to perform the audit Reviewing the plans for the audit with the auditor -overseeing internal audit activities Discussing disagreements between management and the auditor Discussing major problems the auditor encounters when doing the audit Reviewing financial statements and the auditors report upon of completion the engagement
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According to Gleim (2004: 249), the role of an audit committee or an equivalent body in strengthening the position of both internal and external auditing is now widely recognised. The following are some of its characteristics and responsibilities:
1. The appropriate governing authority should develop and approve a written charter,
describing the audit committees duties and responsibilities.

2. The audit committee should review the independence of the external auditor. 3. Reports to shareholders or other stakeholders should include a letter from the chair of the
audit committee, describing its responsibilities and activities.

4. The audit committee should monitor compliance with codes of conduct and legal and
regulatory standards.
5. The audit committee should have the necessary resources available. 6. The audit committee should oversee the regulatory reporting process. 7. The audit committee should monitor instances in which management seeks second
opinions on significant accounting issues. Moeller (2005: 171) indicates that a significant step in organising an effective internal audit function is obtaining authorisation and approval by the organisations audit committee of the board of directors. The audit committee provides this broad authorisation for an internal audit function through a formal audit charter document. It also approves internal audits overall plans for continuing activities through the current period and beyond. As one of the several operating committees established by the board, the audit committee has a rather unique role compared to other board committees. It consists only of non-executive directors giving it independence from management which should be a specially qualified group of outside directors who understand, monitor, coordinate, and interpret the internal control and related financial activities for the entire board. The audit committee helps the board of directors to fulfill its stewardship duty by monitoring and reviewing the system of internal controls and risk management, internal and external audit, and the financial information provided to shareholders. It oversees the relationship between the external auditors and the company, assesses the effectiveness of these auditors every year and
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makes recommendations to the board concerning their appointment or removal (Financial Management 2005: 3). 2.3.9 STANDARDS OF THE INSTITUTE OF INTERNAL AUDITORS
Cascarino and Esch (2005:314- 321) state that internal auditing standards are based on the established principles of the profession and tend to be fairly consistent, despite variation in style and the material covered. There is a variety of published material that represents internal auditing standards. The new standards of the Institute of Internal Auditors are numbered to 1000 to 2600. The main requirements can be summarised as follows: Attribute standards 1000- Purpose, Authority, and Responsibility The purpose, authority, and responsibility of the internal audit activity should be formally defined in charter, consistent with the standards, and approved by the board. 1000. A1-The nature of assurance services provided to the organisation should be defined in the audit charter. If assurances are to be provided to parties outside the organisation, the nature of these assurances should also be defined in the audit charter. 1000. C1- The nature of consulting services should be defined in the audit charter. 1100- Independence and Objectivity The internal audit activity should be independent, and internal auditors should be objective in performing their work. 1110- Organisational independence The chief audit executive should report to a level within the organisation that allows the internal audit activity to fulfill its responsibilities. 1110. A1- The internal audit activity should be free from interference in determining the scope of internal auditing, performing work, and communicating results. 1120- Individual Objectivity Internal auditors should have an impartial, unbiased attitude and avoid conflicts of interest.
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1130- Impairments to Independence or objectivity If independence or objectivity is impaired in fact or appearance, the details of the impairment should be disclosed to appropriate parties. The nature of the disclosure will depend upon the impairment. 1130. A1-Internal auditors should refrain from assessing specific operations for which they were previously responsible. Objectivity is presumed to be impaired if an auditor provides assurance services for an activity for which the auditor had responsibility within the previous year. 1130. A2 Assurance engagements, for functions over which the chief audit executive has responsibility, should be overseen by a party outside the internal audit activity. 1130. C1- Internal auditors may provide consulting services relating to operations for which they had previous responsibilities. 1130. C2- If internal auditors have potential impairments to independence or objectivity relating to proposed consulting services, disclosure should be made to the engagement client prior to accepting the engagement. 1200-Proficiency and Due Professional Care Engagements should be performed with proficiency and due professional care.
1210- Proficiency Internal auditors should possess the knowledge, skills and other competencies needed to perform their individual responsibilities. The internal audit activity collectively should possess or obtain the knowledge, skills and other competencies needed to perform its responsibilities. 1210. A1The chief audit executive should obtain competent advice and assistance if the internal audit staff lacks the knowledge, skills, or other competencies needed to perform all or part of the engagement. 1210. A2-The internal auditor should have sufficient knowledge to identify the indicators of fraud but is not expected to have the expertise of a person whose primary responsibility is detecting and investigating fraud. 1210. C1- The chief audit executive should decline the consulting engagement or obtain competent advice and assistance if internal audit staff lacks the knowledge, skills, or other competencies needed to perform all or part of the engagement. 1220- Due Professional Care
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Internal auditors should apply the care and skills expected of a reasonably prudent and competent internal auditor. Due professional care does not imply infallibility. 1220. A1- The internal auditor should exercise due professional care by considering the: Extent of work needed to achieve the engagements objectives. Relative complexity, materiality, or significance of matters to which assurance procedures are applied. Adequacy and effectiveness of risk management, control, and governance processes. Probability of significant errors, irregularities, or noncompliance. Cost of assurance in relation to potential benefits. 1220. A2- The internal auditor should be alert to the significant risks that might affect objectives, operations, or resources. However, assurance procedures alone, even when performed with due professional care, do not guarantee that all significant risks will be identified. 1220. C1- The internal auditor should exercise due professional care during a consulting engagement by considering the: Needs and expectations of clients, including the nature, timing, and communication of engagement results. Relative complexity and extent of work needed to achieve the engagements objectives. Cost of the consulting engagement in relation to potential benefits.
1230 Continuing Professional Development Internal auditors should enhance their knowledge, skills, and other competencies through continuing professional development. 1300- Quality Assurance and Improvement Program The chief audit executive should develop and maintain a quality assurance and improvement program that covers all aspects of the internal audit activity and continuously monitors its effectiveness. The program should be designed to help the internal auditing activity add value and improve the organisations operations and to provide assurance that the internal audit activity is in conformity with the Standards and the Code of Ethics. 1310- Quality Program Assessments The internal audit activity should adopt a process to monitor and assess the overall effectiveness of the quality program. The process should include both internal and external assessments. 1311Internal Assessments Internal assessments should include: Ongoing reviews of the performance of the internal audit activity; and Periodic reviews performed through self assessment or by
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other persons within the organisation, with knowledge of internal auditing practices and the Standards. 1312- External Assessments External assessments, such as quality assurance reviews, should be conducted at least once every five years by a qualified, independent reviewer or review team from outside the organisation. 1320- Reporting on the quality Program The chief audit executive should communicate the results of external assessments to the board. 1330- Use of Conducted in Accordance with the Standards Internal auditors are encouraged to report that their activities are conducted in accordance with the Standards for the professional practice of internal auditing However, internal auditors may use the statement only if assessments of the quality improvement program demonstrate that the internal audit activity is in compliance with the Standards. 1340- Disclosure of Noncompliance although the internal audit activity should achieve full compliance with the Standards and internal auditors with the Code of Ethics, there may be instances in which full compliance is not achieved. When noncompliance impacts the overall scope or operation of the internal audit activity, disclosure should be made to senior management and the board. Performance Standards 2000- Managing the Internal Audit activity The chief audit executive should effectively manage the internal audit activity to ensure it adds value to the organisation. 2010- Planning The chief audit executive should establish risk based plans to determine the priorities of the internal audit activity, consistent with the organisations goals. 2010. A1- The internal audit activitys plan of engagements should be based on a risk assessment, undertaken at least annually. The input of senior management and the board should be considered in this process. 2010. C1- The chief audit executive should consider accepting proposed consulting engagements based on the engagements potential to improve management of risks add value, and improve the organisations operations. Those engagements that have been accepted should be included in the plan. 2020-Communication and Approval
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The chief audit executive should communicate the internal audit activitys plans and resource requirements, including significant interim changes, to senior management and to the board for review and approval. The chief executive should also communicate the impact of resource limitations. 2030- Resource Management The chief audit executive should ensure that internal audit resources are appropriate, sufficient, and effectively deployed to achieve the approved plan. 2040- Policies and procedures The chief audit executive should establish policies and procedures to guide the internal audit activity.
2050- Coordination The chief audit executive should share information and coordinate activities with other internal and external providers of relevant assurance and consulting services to ensure proper coverage and minimize duplication of efforts. 2060- Reporting to the Board and Senior Management The chief audit executive should report periodically to the board and senior management on the internal audit activitys purpose, authority, responsibility, and performance relative to its plan. Reporting should also include significant risk exposures and control issues, corporate governance issues, and other matters needed or requested by the board and senior management. 2100- Nature of Work The internal audit activity evaluates and contributes to the improvement of risk management, control and governance systems. 2110- Risk Management The internal audit activity should assist the organisation by identifying and evaluating significant exposures to risk and contributing to the improvement of risk management and control systems.
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2110. A1-The internal audit activity should monitor and evaluate the effectiveness of the organizations risk management system. 2110. A2 The internal activity should evaluate risk exposures relating to the organisations governance, operations, and information systems regarding the: Reliability and integrity of financial and operational information; Effectiveness and efficiency of operations; Safeguarding of assets. Compliance with laws, regulations, and contracts.
2110. C1- During consulting engagements, internal auditors should address risk consistent with the engagements objectives and should be alert to the existence of other significant risks. 2110. C2- Internal auditors should incorporate knowledge of risks gained from consulting engagements into the process of identifying and evaluating significant risk exposures of the organisation.
2120- Control The internal audit activity should assist the organization in maintaining effective controls by evaluating their effectiveness and efficiency and by promoting continuous improvement. 2120. A1- Based on the results of the risk assessment, the internal audit activity should evaluate the adequacy and effectiveness of controls encompassing the organisations governance, operations, and information systems. This should include: Reliability and integrity of financial and operational information; Effectiveness and efficiency of operations; Safeguarding of assets; Compliance with laws, regulations, and contracts. 2120. A2- Internal auditors should ascertain the extent to which operating and program goals and objectives have been established and conform to those of the organisation. 2120. A3- Internal auditors should review operations and programs to ascertain the extent to which results are consistent with established goals and objectives to determine whether operations and programs are being implemented or performed as intended. 2120. A4- Adequate criteria are needed to evaluate controls. Internal auditors should ascertain the extent to which management has established adequate criteria to determine whether objectives and goals have been accomplished. If adequate, internal auditors should use such criteria in their evaluation. If inadequate, internal
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auditors should work with management to develop appropriate evaluation criteria. 2120. C1During consulting engagements, internal auditors should address controls consistent with the engagements objectives and should be alert to the existence of any significant controls weaknesses. 2120. C2- Internal auditors should incorporate knowledge of controls gained from consulting engagements into the process of identifying and evaluating significant risk exposures of the organisation. 2130- Governance The internal audit activity should contribute to the organisations governance process by evaluating and improvement the process through which values and goals are established and communicated, the accomplishment of goals is monitored, accountability is ensured, and values are preserved. 2130. A1 Internal auditors should review operations and programs to ensure consistency with organizational values. 2130. C1- Consulting engagement objectives should be consistent with the overall values and goals of the organisation. 2200- Engagement Planning Internal auditors should develop and record a plan for each engagement.
2201- Planning Considerations In planning the engagement, internal auditors should consider: The objectives of the activity being reviewed and the means by which the activity controls its performance. The significant risks to the activity, its objectives, resources, and operations and the mean by which the potential impact of risk is kept to an acceptable level. The adequacy and effectiveness of the activitys risk management and control systems compared to a relevant control framework or model. The opportunities for making significant improvements to the activitys risk management and control systems. 2201. C1- Internal auditors should establish an understanding with consulting engagement clients about objectives, scope, respective responsibilities, and other client expectations. For significant engagements, this understanding should be documented. 2210- Engagement Objectives
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The engagements objectives should address the risks, controls, and governance processes associated with the activities under review. 2210. AI When planning the engagement, the internal auditor should identify and assess risks relevant to the activity under review. The engagement objectives should reflect the results of the risk assessment. 2210. A2 - The internal auditor should consider the probability of significant errors irregularities noncompliance, and other exposures when developing the engagement objectives. 2210. C1- Consulting engagement objectives should address risks, controls, and governance processes to the extent agreed upon with the client. 2220- Engagement Scope The established scope should be sufficient to satisfy the objectives of the engagement. 2220. A1The scope of the engagement should include consideration of relevant systems, records, personnel, and physical properties, including those under the control of third parties. 2220. C1In performing consulting engagements, internal auditors should ensure that the scope of the engagement is sufficient to address the agreed upon objectives. If internal auditors develop reservations about the scope during the engagement, these reservations should be discussed with the client to determine whether to continue with the engagement. 2230- Engagement Resource Allocation Internal auditors should determine appropriate resources to achieve engagement objectives. Staffing should be based on an evaluation of the nature and complexity of each engagement, time constraints, and available resources. 2240- Engagement Work Program Internal auditors should develop work programs that achieve the engagement objectives. These work programs should be recorded. 2240. A1- Work programs should establish the procedures for identifying, analyzing, evaluating, and recording information during the engagement. The work program should be approved prior to the commencement of work, and adjustments approved promptly. 2240. C1 Work programs for consulting engagements may vary in form and content depending upon the nature of the engagement. 2300- Performing the Engagement
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Internal auditors should identify, analyze evaluate, and sufficient, information to achieve the engagements objectives. 2310- Identifying Information Internal auditors should identify sufficient, reliable, relevant, and useful information to achieve the engagements objectives. 2320- Analysis and Evaluation Internal auditors should base conclusions and engagement results on appropriate analyses and evaluations. 2330- Recording Information Internal auditors should record relevant information to support the conclusions and engagement results. 2330. A1- The chief audit executive should control access to engagement records. The chief audit executive should obtain the approval of senior management and / or legal counsel prior to releasing such records to external parties, as appropriate. 2330. A2-The chief audit executive should develop retention requirements for engagement records. These retention requirements should be consistent with the organisations guidelines and any pertinent regulatory or other requirements. 2330. C1- The chief audit executive should develop policies governing the custody and retention of engagement records, as well as their release to internal and external parties. These policies should be consistent with the organisations guidelines and any pertinent regulatory or other requirements. 2340- Engagement Supervisor Engagements should be properly supervised to ensure objectives are achieved, quality is assured, and staff is developed. 2400- Communicating Results Internal auditors should communicate the engagement results promptly. 2410- Criteria for Communicating Communications should include the engagements objectives and scope as well as applicable conclusions, recommendations, and actions plans. 2410. A1- The final communication of results should, where appropriate, contain the internal auditors overall opinion. 2410. A2- Engagement
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communications should acknowledge satisfactory performance. 2410. C1-Communication of the progress and results of consulting engagements will vary in form and content depending upon the nature of the engagement and the needs of the client. 2420- Quality of Communications Communications should be accurate, objective, clear, concise, constructive, complete, and timely. 2421- Errors and Omissions If a final communication contains a significant error or omission, the chief audit executive should communicate corrected information to all individuals who received the original communication.
2430- Engagement Disclosure of Noncompliance with the Standards When noncompliance with the Standards impacts a specific engagement, communication of the results should disclosure the: Standard (s) with which full compliance was not achieved; Reason (s) for noncompliance, and; Impact of noncompliance on the engagement. 2440- Disseminating Results The chief audit executive should disseminate results to the appropriate individuals. 2440. AI The chief audit executive is responsible for communicating the final results to individuals who can ensure that the results are given due consideration. 2440. C1- The chief audit executive is responsible for communicating the final results of consulting engagements to clients. 2440. C2During consulting engagements risk management, control, and governance issues may be identified. Whenever these issues are significant to the organisation, they should be communicated to senior management and the board. 2500- Monitoring Progress The chief audit executive should establish and maintain a system to monitor the disposition of results communicated to management. 2500. A1 The chief audit executive should establish a follow-up process to monitor and ensure that management actions have been effectively implemented or that senior management has accepted the risk of not taking action. 2500. C129
The internal audit activity should monitor the disposition of results of consulting engagements to the extent agreed upon with the client. 2600- Managements Acceptance of risks When the chief audit executive believes that senior management has accepted a level of residual risk that is unacceptable to the organisation, the chief audit executive should discuss the matter with senior management. If the decision regarding residual risk is not resolved, the chief audit executive and senior management should report the matter to the board for resolution.
REFERENCES Apostolou, B.A. Hassely. J.M. Webber, S.A and summers. G.E. (2001). The relative important of management frau risk factors. Behavioral research in accounting 13:1 24 Auditing and Assurance standard Board (AUASB) (2006). ASA 240. The Auditor responsibilities to consider fraud in an audit of a financial Report Melbourne: AUASB Australian Accounting Research Foundation (AARF) (2004). AUS 310. The Auditor responsibility to consider fraud in an audit of a financial Report. Melbourne: AARF. Alvin, A. (1984). audition, an integrated approach 3 Asein, A.A. (1999). managing audit risk, the Nigeria accountant Journl vol. 32, No 1, Jan/ March. Birkket, W.P.M., Barbera, B. Leithead, lower. M and Roebuck, P. (1999). Internal auditing: the global landscape. Altamonte springs. El: Institute of Internal Auditor Research Foundation. Blue Ribbon committee (1999). Report and Recommendation of the Blue Ribbon committee on improving the effectiveness of corporate Audit committee. New York, NY: New York stock exchange. Carcello, J. V., Hermanson, D.R and Raghundan, K (2005). factors Associated with U.S public companies investment in internal Auditing Accounting horizons (19(2): 69 84.
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Carey, P.G. Tanewski and simnett, R. (2000). Voluntary demand for Internal and external auditing by family business auditing: A Journal of practice and theory 19(Supplementary): 37 51. Carey, P., Subramanian. N. and Ching, K.C.W. (2006). Internal Audit Outsourcing in Australian. Accounting and Financial Church, B.K., McMillan, J.J. and Schneider, A. (2001). factor Affecting Internal Auditors Consideration of Fraudulent Financial Reporting during Analytical Procedures. Auditing: A journal of Practice and Theory Emilywoolf (1979). Auditing Today, Prentice, Hail International, Inc.London. Pg. 59. Gramling, A., Maletta, M.J., Schneider, A & Church, B.k. (2004). The Role of the internal audit function in corporate governance: A Synthesis of the extant internal auditing literate 23:294 244. Institute for internal auditor (IIA) (1999). Definition of Internal Auditing. Altamonte Springs. FLL IIA. Institute of Internal Auditor (IIA) (200). Simple Good Business Tone at The top (August). James, K.L. (2000). The Effect of Internal Audit Structure on Perceived. Responsibilities of interest Auditor, Institute of Internal Auditors (Altamonte Springs, Fla, IIA), pg. 7 9, 38 and 66. Junes Accounting Review (July, 1954). Historical Date in accounting. Institute of Internal Auditor (IIA): press Room-Internal Lecture Note. Lowe, D.J., Geiger, M. A and Pany, K. (1990). The Effect of Internal Audit Outsourcing on Perceived External Auditor Independence. Auditing: A journal of Practice and Theory 18 (Supplement): 7 26. Neil, D. Stein (1963). Business Policy Study, National Industrial Conference Board in Internal Auditing No. 11. New York Stock Exchange (NYSE) (2003). Amendment No. 1 to corporate Governance, Rule Filling. New York, NY: NYSE. Public Oversight board (POB) (1993). Issues confronting the Accounting Profession. Standard, C.T: POB. Special Report on Internal Control, American Institute of Certified public Accountants (AICAP) No. 33.
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Wallace, W. and Kreutzfildt, R. (1991). distinctive Characteristics of Entities an Internal Audit Department and the Association of the Quality of such department with error Contemporary Accounting Research 7 (20): 485 512.
CHAPTER THREE RESEARCH METHODOLOGY 3.1 Preamble This chapter is concerned with the method used in systematic gathering of information, recording, analyzing and reporting of all facts relating to the requirement needed for the evaluation of study. It is designed to provide a typical scenario for the essence of internal audit department as a management tools in the manufacturing company.Description method was used in carrying out this study and analyzing the findings. This chapter goes further to describe in details how each method applied. 3.2 Research Design
Asika, N. (2000), defined research design as the basic plans, which guide the collection of data and analysis phrases of the research project in order to test the research hypothesis or answer research questions. It is defined as the framework which specifies the type of information to be collected, the sources of data and data procedure. The research on the study had been conducted by means of survey design and hypothesis formulated for the research questions had been tested.
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3.3
POPULATION OF THE STUDY
A population is made up of all conceivable elements subject or observation relating to a population phenomenon of interest to the researcher (Asika, 2000). The population sample of the study was drawn from Unilever Nigeria Plc., with total employees of One Thousand, Three Hundred and Sixty Eight (1,368) in administrative Head Office located in Lagos, Nigeria.
3.4 SAMPLING, PROCEDURE AND SAMPLE SIZE In this regard, data were collected, most especially from employees who are actively involved in day to day running of the business. Regarding the size of the population, probability sampling method was employed and One Thousand, Three Hundred and Sixty Eight (1,368) was selected as the sample frame for Unilever Nigeria Plc. To get the sampling size (n) using the stratified sampling technique. Formular used: n= N 1+N (e) 2,
Source- Asika, N. (2000), Research Methodology in Behavioural Sciences.
Using sampling error of 0.10. Where N=Population size, n=Sample size, e=Sampling error. n = 1368 1+1,368 (0.01)2 1,368 1+13
n = 95 However, Ninety Five (95) questionnaires were administered by the researcher to staffs of Unilever Nigeria Plc and used research analysis.
3.5.1
DATA COLLECTION INSTRUMENT AND VALIDATION

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The study focused on the Internal Auditor which have become increasingly important worldwide due to the changes in ownership Structure or an Organisation. Data collections were effected through two major sources- secondary and primary sources and were streamlined to meet the information requirements of the study.
Primary sources: primary data are those data obtained for the solution of the specific
problem at hand. This source is very useful because the data arising there from are usually target-tailored. Since certain kinds of information can be obtained only by direct contact with the people who possess the desired information, this source is indispensable to this research. Hence, the researcher primary source of data collection was a field survey using questionnaire as the main instrument. It is noteworthy to mention that the questionnaire was articulated in such a way that they contained opened multiple-choice questions. The questions in the questionnaire required the respondents to circle or tick their choices amongst the options provided.
Secondary sources: secondary data are those data compiled from existing literatures. For
this study, the secondary data sources include study of relevant information contained in textbooks, newspapers, magazines, seminar papers, journals, periodicals and reports. 3.5.2 INSTRUMENT AND VALIDATION
The questionnaires were drawn after a review of other questionnaires used in similar research. The questionnaire is a self-reporting type which allows the respondent to choose among five level options on a rating scale, strongly agree, agree, undecided, strongly disagree and disagree. The rating points are 5, 4, 3, 2, and 1 respectively. The questionnaires were administered to obtain the view of the staff. They were distributed and retrieved by hand and exercise covered both senior and junior staff in organization. The questionnaires are divided into two sections, Part A dealt with the bio data of respondent. These include information as sex, age, marital status, educational qualification of staff, working history the status of the staff and how long they have spent in the organization is sought. The Part B dealt with questions: an overview of the critical nature of Internal Auditor in an Organisation.
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The data collected were processed into information which was analyzed in the subsequent chapter to test the stated hypothesis. It is design to measure the degree to which the research instruments produced consistent result or the consistency between independent measurements of the same research phenomenon. Generally, it implies that despite variances in time, the same set of element must yield fairly the same result. 3.6 METHODS OF DATA ANALYSIS
Measures of central tendency and dispersion were largely employed in analysing the data obtained in the course of the researcher investigation. The researchers choice was informed by the nature of data dealt with. Mean, as a measure of central tendency has made this report easily readable and understandable. The range, as a data analysis tool was employed to show those differences applied in the profiles of the researchers study respondents. Frequency distribution tables and a graphical illustration were used to present the data collected from the field to enhance the aesthetic value and readability of this report. Also, Statistical Package for the Social Sciences (SPSS) was used in processing and analysing collected data and Chi Square to analyse the hypotheses. 3.7 LIMITATIONS OF THE STUDY
The usual problems associated with research works had constitute some limitations to this research. A study of this nature requires a reasonable amount of data which will be possibly collected with the corporation of the key persons in the organization under study. More-so, this research work is constrained with time and insufficient fund needed in the completion and also assumption cannot be 100% proved due to only selected company would be covered due to time constrained. Despite all the limitation faced by the researchers in the course of these researcher, time and financial constraints was solved by making using of secondary sources data such as online journals, text book from the school library etc. and data collection was restricted within the chose location for the research.
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REFERENCES Asika, N. (2000). Research methodology in the Behavioural science. First published 1991 reprinted. SPSS (2011). Statistical package for social sciences, Standard Version, 11 for Windows Inc.
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CHAPTER FOUR DATA ANALYSIS AND INTERPRETATION
4.1 Preamble
This chapter provides the basic interpretation of data collected through questionnaires for the study. This chapter would therefore use descriptive and non parametric statistics for the analysis of questionnaire and research hypotheses. It will inculcate simple percentage, interpretation of response rate, bio-data and analysis of responses to individual questions drawn on the study. Test of hypotheses with respective statistical methods and description of the findings.
4.2 Presentation and Analysis of Data According to Research Questions

In analyzing and interpreting the result or the outcome of the data collected, the researchers employed the use of simple percentage and tabulation for the purpose of clarity. As earlier mentioned, 95 questionnaires were distributed in Unilever Nigeria Plc. At the end of the administration of the questionnaires, all were returned and subsequently analyzed.
4.2.1 Analysis of Bio-Data

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Table 4.2.1 GENDER CLASSIFICATION OF THE RESPONDENTS Status Female Male Total Frequency 43 52 95 Percentage (%) 45.3 54.7 100.0
Source: field survey, 2012
Valid Percent 45.3 54.7 100.0
Cumulative Percent 45.3 100.0
Table 4.2.1 shown that the respondents were male dominated. A total of 52 respondents representing 54.7% were male while the female were 45.3% (43) respondents respectively. The above table indicates the sex of the respondents participated in the research work. This shown that majority of the respondents involved in the study are male. Table 4.2.2 AGE Status Under 20 years 21-30 years 41-50 years Above 50 years Total Frequency 15 41 39 95 Percentage (%) 15.8 43.2 41.1 100.0
Valid Percent 15.8 43.2 41.1 100.0
Cumulative Percent 15.8 58.9 100.0 -
Table 4.2.2 above indicates the respondents age as follows: Under 20 yrs. had 15.8% (15); 2130 yrs. had 43.2% (41), 41-50 yrs. constitutes 41.1% (39) while those that are Above 50 yrs. had nil respectively. This shown that majority of the respondent that participated in the study is between ages 21-30yrs. Table 4.2.3 DISTRIBUTION OF RESPONDENT MARITAL STATUS. Status Single Married Divorce Widowed Frequency 18 77 Percentage (%) 18.9 81.1 38
Valid Percent 18.9 81.1 -
Cumulative Percent 18.9 100.0 -
Total
95
100.0
Table 4.2.3 above indicates the respondents marital status as follows: single had 18.9% (18); Married had 81.1% (77), divorce and widow had nil respectively. The analysis shown that most of the participants are married.
Table 4.2.4 DISTRIBUTION OF EDUCATIONAL BACKGROUD OF THE RESPONDENTS Status GCE/ SSCE OND/NCE HND/B.Sc Professional Qualifications Others Total Frequency 4 91 95 Percent 4.2 95.8 100.0
Cumulative Percent 4.2 100.0 -
Table 4.2.4 depicts the educational qualification of respondents. Majority of the respondent are highly learned. The above data shown that GCE/ SSCE, Professional and Other had nil, OND/NCE. 4.2% (4), 11% (10), while HND/B.Sc 95.8% (91) respectively. The analysis shown that most respondents had their higher educational qualification as HND/BSC holders. Table 4.2.5 LENGTH OF SERVICE Status 1-3 years 4-5 years 5-9 years Above 10 years Total Frequency 8 72 15 95 Percent 8.4 75.8 15.8 100.0
Valid Percent 8.4 75.8 15.8 100.0
Cumulative Percent 8.4 84.2 100.0 -
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Table 4.2.5 above indicates the respondents length of service as follows: 1 - 3 yrs. had 8.4% (8); 4-5 yrs. had 75.8% (72), 5-9 yrs. had 15.8% (15), while above 10 years had nil respectively.
Table 4.2.6 STATUS IN THE ORGANISATION Status Junior Staff Senior Staff Total Frequency 69 26 95 Percent 72.6 27.4 100.0
Cumulative Percent 72.6 100.0
Table 4.2.6 depicts the status of respondents. Majority of the respondent are junior staff. The above data shown that junior staff. 72.6% (69) while senior staff had 27.4% (26) respectively. Question 1 Financial statement has helped in checking fraud and irregularities Nigeria Plc. Table 4.2.5 Category Strongly Disagreed Disagreed Undecided Agreed Strongly Agreed Total Frequency 1 1 23 70 95 Percentage (%) 1.1 1.1 24.2 73.7 100.0 Valid Percent 1.1 1.1 24.2 73.7 100.0 Cumulative Percent 1.1 2.1 26.3 100.0
Table 4.2.5 above indicates that the agreed respondents had 24.2% (23); strongly agreed 73.7% (70); undecided had nil; while disagreed and strongly disagreed had 1.1% (1). This shown that the majority of the respondent agreed that financial statement has helped in checking fraud and irregularities Nigeria Plc.
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Question 2 Failure to fraud/malpractice by the internal audit leads to possible failure in your organization. Table 4.2.6 Category Strongly Disagreed Disagreed Undecided Agreed Strongly Agreed Total Frequency 1 3 70 21 95 Percentage (%) 1.1 3.2 73.7 22.1 100.0
Valid Percent 1.1 3.2 73.7 22.1 100.0
Cumulative Percent 1.1 4.2 77.9 100.0
Table 4.2.6 above shown that strongly agreed respondents had 78.0% (71); agreed had nil; disagreed had 3.2% (3); strongly disagreed had 1.1% (1), while undecided had 73.7% (70). This shown that the majority of the respondent strongly agrees that Failure to fraud/malpractice by the internal audit leads to possible failure in your organization. Question 3 Head of Department check for completeness, accuracy and Validity of report made by the internal audit and units Table 4.2.7 Category Strongly Disagreed Disagreed Undecided Agreed Strongly Agreed Total Frequency 1 2 92 95 Percentage (%) 1.1 2.2 96.8 100.0
Valid Percent 1.1 2.2 96.8 100.0
Cumulative Percent 2.2 4.4 100.0
Table 4.2.7 above shown that strongly agreed respondents had 96.8% (92); disagreed 1.1% (1); agreed and strongly disagreed nil while undecided had 2.2% (2). This reveals that the majority of the respondents are strongly agreed that Head of Department check for completeness, accuracy and Validity of report made by the internal audit and units.
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Question 4 Implementation of auditor report leads to improved Performance of your organization. Table 4.2.8 Category Strongly Disagreed Disagreed Undecided Agreed Strongly Agreed Total Frequency 4 3 9 17 62 95 Percentage (%) 4.2 3.2 9.5 17.9 65.3 100.0
Valid Percent 4.2 3.2 9.5 17.9 65.3 100.0
Cumulative Percent 4.2 7.4 16.8 34.7 100.0
Table 4.2.8 above shown that the strongly agreed respondents had 65.3% (62); agreed 17.9% (17); undecided had 9.5% (9); while disagreed had 3.2% (3) and strongly disagreed had 4.2% (4). This shown that Implementation of auditor report lead to improved Performance of your organization. Question 5 The system of internal control ensure reliable management Reporting. Table 4.2.9 Category Strongly Disagreed Disagreed Undecided Agreed Strongly Agreed Total Frequency 1 1 3 52 38 95 Percentage (%) 1.1 1.1 3.2 54.7 40.0 100.0
Valid Percent 1.1 1.1 3.2 54.7 40.0 100.0
Table 4.2.9 above shown that the strongly agreed respondents had 11.0% (10); agreed 85.7% (78); undecided had 2.2% (2); while disagreed and strongly disagreed had 1.1%. This shown that the majority of the respondent agreed that the system of internal control ensure reliable management Reporting. Question 6 The internal control system assists in the implementation of fraud checking. Table 4.2.10
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Category Strongly Disagreed Disagreed Undecided Agreed Strongly Agreed Total
Frequency 4 5 15 71 95
Percentage (%) 4.2 5.3 15.8 74.7 100.0
Valid Percent 4.2 5.3 15.8 74.7 100.0
Table 4.2.10 above shown that the strongly agreed respondents had 74.7% (71); agreed 15.8% (15); undecided had nil; while disagreed 5.3% (5) and strongly disagreed 4.2% (4). These shown that majority of the respondent strongly agreed that the internal control system assist in the implementation of fraud checking.
Question 7 Is there any correlation between formulized sophisticated internal System and the quality of manpower? Table 4.2.11 Category Frequency Percentage (%) Valid Percent Cumulative Percent
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Strongly Disagreed Disagreed Undecided Agreed Strongly Agreed Total
2 1 70 22 95
2.1 1.1 73.7 23.2 100.0

2.1 1.1 73.7 23.2 100.0
2.1 3.2 76.8 100.0
Table 4.2.11 above shown that strongly agreed respondents had 23.2% (22); agreed had nil; undecided had 73.7% (70), disagreed 1.1% (1); while strongly disagreed had 2.1% (2). This reveals that majority of the respondents strongly agreed that any correlation between formulized sophisticated internal System and the quality of manpower. Question 8 Internal Audit report has effect on organizational performance. Table 4.2.12 Category Strongly Disagreed Disagreed Undecided Agreed Strongly Agreed Total Frequency 1 1 2 9 82 95 Percentage (%) 1.1 1.1 2.1 9.5 86.3 100.0
Valid Percent 1.1 1.1 2.1 9.5 86.3 100.0
Table 4.2.12 above shown that strongly agreed respondents had 86.3% (82); agreed 9.5% (9); undecided had 2.1% (2), disagreed and strongly disagreed had 1.1% (1). This shown that the majority of the respondent strongly agreed that Internal Audit report has effect on organizational performance Question 9 Effective internal audits assist in the Implementation of internal control system. Table 4.2.13 Category Frequency Percentage (%) Valid Percent Cumulative Percent
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1 14 16 64 95
1.1 14.7 16.8 67.4 100.0

1.1 14.7 16.8 67.4 100.0
1.1 15.8 32.6 100.0
Table 4.2.13 above shown that strongly agreed respondents had 67.4% (64); agreed 16.8% (16); strongly disagreed had 1.1% (1) while disagreed 14.7% (14) and undecided nil. This shown that the majority of the respondent strongly agreed that effective internal audits assist in the Implementation of internal control system. Question 10 Implementation of internal control system in organization Improve the internal audit department. Table 4.2.14 Category Strongly Disagreed Disagreed Undecided Agreed Strongly Agreed Total Frequency 1 1 21 72 95 Percentage (%) 1.1 1.1 22.1 75.8 100.0
Valid Percent 1.1 1.1 22.1 75.8 100.0
Table 4.2.14 above shown that strongly agreed respondents had 75.8% (72); agreed 22.1% (21); undecided had nil; while strongly disagreed and disagreed had 1.1% (1). This shown that majority of the respondents strongly agreed that Implementation of internal control system in organization Improve the internal audit department. Question 11 Internal audit being applied to a large extent in business Organization in Nigeria Table 4.2.15 Category Frequency Percentage (%) Valid Percent Cumulative Percent
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3 2 81 9 95
3.2 2.1 85.3 9.5 100.0

3.2 2.1 85.3 9.5 100.0
3.2 5.3 90.5 100.0 -
Table 4.2.15 above shown that strongly disagreed respondents had 3.2% (3); agreed had 9.5% (9), disagreed had 2.1% (2), undecided had 85.3% (81); while disagreed and strongly agreed had nil. This shown that the majority of the respondent undecided that internal audit being applied to a large extent in business Organization in Nigeria. Question 12 Organizations that have an internal audit function are more likely to detect and report fraud. Table 4.2.16 Category Strongly Disagreed Disagreed Undecided Agreed Strongly Agreed Total Frequency 2 1 3 54 35 95 Percentage (%) 2.1 1.1 3.2 56.8 36.8 100.0
Valid Percent 2.1 1.1 3.2 56.8 36.8 100.0
Table 4.2.16 above shown that strongly agreed respondents had 36.8% (35); agreed 56.8% (54); disagreed had 1.1% (1); and strongly disagreed had 2.1% (2); while undecided had 3.2% (3) respectively. This reveals that the majority of the respondents are agreed that Organizations that have an internal audit function are more likely to detect and report fraud. Question 13 The application of internal control in an organization has helped the audit department in the asset management. Table 4.2.18 Category Frequency Percentage (%) Valid Percent Cumulative Percent
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8 22 65 95
8.4 23.2 68.4 100.0

8.4 23.2 68.4 100.0
8.4 31.6 100.0
Table 4.2.18 above shown that strongly agreed respondents had 68.4% (65); agreed 23.2% (22); undecided had 8.4% (8); disagreed and strongly disagreed had nil. This shown that the majority of the respondent agreed that the application of internal control in an organization has helped the audit department in the asset management TEST OF HYPOTHESES Using chi square method as analyzed in chapter three, were tested the hypotheses in chapter one. This method is used to determine how well the theoretical distribution is. It also test whether the relationship between the expected values and the actual values are subjective and statistically significant.
TEST OF HYPOTHESIS ONE Ho: H1: Internal Audit report has no effect on organizational performance. Internal Audit report has effect on organizational performance.
To prove this hypothesis, we used relevant questions from the questionnaire following the corresponding data in the former section. To prove hypothesis one, we used question 8 on the questionnaire. Question 8 states thus; Internal Audit report has effect on organizational performance. The data/figure gathered from the questions above were empirically analyses with chi - square using statistical software called Statistical Package for Social Sciences (SPSS 7.0) to improve accuracy and avoid human error.
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Observed N 1 1 2 9 82 95
Expected N 19.0 19.0 19.0 19.0 19.0
Residual -18.0 -18.0 -17.0 -10.0 63.0
Test Statistics Chi-Square df Asymp. Sig. Degree of freedom (d) = 4 Level of significance = 0.05 or 5% Assuming a 5% level of significance, when df = 4, the value of X2 from the table of critical values = 9.49 DECISION Because the calculated value of X2 (263.474) exceeds or is slightly greater than the tabulated value of X2 (9.49), we reject the null hypothesis and accept the alternative hypothesis, which states that, Internal Audit report has effect on organizational performance. HYPOTHESIS TWO Ho: H1: fraud. To prove this hypothesis, question 12 of the questionnaire was selected. Question 12 states thus; Organizations that have an internal audit function are more likely to detect and report fraud. Organizations that have an internal audit function are not likely to detect and report fraud. Organizations that have an internal audit function are more likely to detect and report Q8 263.474a 4 .000
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Observed N 2 1 3 54 35 95
Expected N 19.0 19.0 19.0 19.0 19.0
Residual -17.0 -18.0 -16.0 35.0 16.0
Test Statistics Chi-Square df Asymp. Sig. Degree of freedom (d) = 4 Level of significance = 0.05 or 5% Assuming a 5% level of significance, when df = 4, the value of X2 from the table of critical values = 9.49 DECISION Because the calculated value of X2 (123.684) exceeds the tabulated value of X2 (9.49) , we reject the null hypothesis and accept the alternative hypothesis, which states that Organizations that have an internal audit function are more likely to detect and report fraud. Q12 123.684a 4 .000
4.3 Discussion of Finding

This result show that organizations with an internal audit department are more likely to detect and report fraud and irregularities than those do not. It is also shown that an organization with effective internal audit control will ensure that structure frame work exist for the efficient channeling of scares resource. The study carried out in Unilevel Nig Plc. showed that the management of the company can place a very high reliance on the existence of effective internal control system which have proven that error, fraud irregularities and some of the common areas of indiscretion that management have place as corrective measure to enable the owner reap its benefit. In a nutshell,
49
the internal control procedure is a success to any business organization. Therefore, it is applied to every aspect and department of the organization to checkmate any or existing irregularities.
References Asika, N. (1991): "Research methodology in the Behavioural science". First published 1991 reprinted. SPSS (2008): Statistical package for social sciences, Standard Version, 17 for Windows Inc.
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CHAPTER FIVE SUMMARY, CONCLUSION AND RECOMMENDATION 5.1 SUMMARY
This study was carried out to provide effect of internal audit on organisational performance which goes beyond legal, social and moral reasons; the primary reason for internal auditing within an organization is broad and may involve topics such as the efficiency of operations, the reliability of financial reporting, deterring and investigating fraud, safeguarding assets, and compliance with laws and regulations. Ethnicity, sex, religion and educational background were identified as the major characteristics that affect the performance of employees as well as the organizations. In todays highly competitive world, an increasing number of organizations have realized the importance of becoming more internal audit to secure objective assurance and consulting activity designed to add value and improve an organization's operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, internal control, and governance processes. The chapter three provides how data were gathered and analyzed in the research. Information was gathered both from primary and secondary sources. Journals and textbooks were used in
51
compiling the historical background and literature review. The primary data source of data was obtained through the administration of questionnaires to members of staff of Unilevel Nig Plc. Data gathered were analyzed using chi-square methods and relevant interpretations were given on the subject matter. 5.2 CONCLUSION
The study revealed that effective internal control system can go a long way in safeguarding Unilevel Nig Plc from fraud. Study also shows that where internal audit department is put place effectively, although there is still a possibility of fraud, it is put to its barest minimum. Conclusion were also reached showing how the practice of internal auditor complied significantly to the provision of the institute of internal auditor (IIA) standard for the quality of auditor work are no longer at the embryonic stage but rather are comparable to that of the best practice in any part of the world where professional standard are also applied. Also the study showed that internal department was being used to a large extent in the chosen sample (Unilevel Nig Plc). However, the study also showed those internal audit departments were not being applied to a large extent in overall Nigeria manufacturing company especially small companies. 5.3 RECOMMENDATIONS
In view of the finding of this study, the following recommendations are made. The internal control should be introduces to all areas of operation In Nigeria business organization whether profit making ones or not, due to its obvious relevance in dealing with fraud, detection, prevention and controls. Also to enhance the efficient working of internal audit department management should adopt a more diligent approach the staff should be selected on merit and be educated enlightened enough on the need for control and objective also segregation of duties should be strictly enforced. There should be an effort from the internal audit function to live up to their responsibilities in order to review the internal control system as regular interval to ascertain effectiveness lapses.
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Also training should be reinforced to reduce human error and management should be sensitive to the plight of workers to avoid undue pressure. The researcher also noted areas concerning extent of application of internal audit department in Nigeria. Business origination where tested with the sample respondent showed a high extent of application however, this was not the same in the case of testing the relevant hypothesis which discussed extent of application in Nigeria. Other researcher could further research this different in suggestions. To develop their own appreciation of the effectiveness of internal controls. Audit committee member should be reviewing internal accounting procedure and control wit the company is financial on the work of internal auditors (Carey, P, 2006). The relationship between the audit committee and internal auditors should be an important one, with a reciprocal strengthening of each other function (James, K.L, 2006). In other words, the audit committee should strengthen the internal audit function, and auditors should in turn be an important resource to the audit committee as it strives to fulfill its responsibilities. The internal auditors of an origination should be facilitating information flow, performing special project of investigation as requested by the management/organization. The internal audit department should be able to support the organization in its evaluation of whether or not the company has satisfied its internal and external reporting objectives, support the audit committee in its assessment of the quality of financial reporting, providing information and insight Regarding the strength of control over the qualitative report/ assuring audit committee members that they are receiving report with relevant and timely business performance measures. The audit department should be able to provide information that will help management monitor the company control environment including key financial business risk facing the organization and also assist the organization in its evaluation of whether it has satisfied its control objectives.
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Bibliography Alvin, A. (1984). Audition, an integrated approach 3 Asein, A.A. (1999). Managing Audit Risk, the Nigeria Accountant Journal Vol. 32. Apostolou, B.A. Hassely. J.M. Webber, S.A and Summers. G.E. (2001). The relative important of management fraud risk factors. Behavioral research in accounting 13:1 24 Auditing and Assurance standard Board (2006). ASA 240. The Auditor responsibilities to consider fraud in an audit of a financial Report Melbourne: AUASB Audit Committee. New York, NY: New York stock exchange. Carcello, J. V., Hermanson, D.R and Raghundan, K (2005). Factors Associated with U.S public companies investment in internal Auditing Accounting horizons. Australian Accounting Research Foundation (2004). The Auditor responsibility to consider fraud in an audit of a financial Report. Melbourne: AARF. Birkket, W.P.M., Barbera, B. Leithead, lower M and Roebuck, P. (1999). Internal auditing: the global landscape. Altamonte springs. El: Institute of Internal Auditor Research Foundation. Blue Ribbon Committee (1999). Report and Recommendation of the Blue Ribbon committee on improving the effectiveness of corporate. Carey, P.G. Tanewski and Simnett, R. (2000). Voluntary demand for Internal and external auditing by family business auditing: A Journal of practice and theory 19 (Supplementary): Carey, P., Subramanian. N. and Ching, K.C.W. (2006). Internal Audit Outsourcing in Australian. Accounting and Financial. Church, B.K., McMillan, J.J. and Schneider, A. (2001). Factor Affecting Internal Auditors Consideration of Fraudulent Financial Reporting during Analytical Procedures. Emilywoolf (1979). Auditing Today, Prentice, Hail International, Inc. London.
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Gramling, A., Maletta, M.J., Schneider, and Church, B.k. (2004). The Role of the internal audit function in corporate governance: A Synthesis of the extant internal auditing literate. Institute for Internal Auditor (IIA) (1999): Definition of Internal Auditing. Altamonte Springs. Institute of Internal Auditor (IIA) (2000): Simple Good Business Tone at The top (August). James, K.L. (2006). The Effect of Internal Audit Structure on Perceived. Responsibilities of Interest Auditor, Institute of Internal Auditors (Altamonte Springs, Fla, IIA). Junes Accounting Review (July, 1954). Historical Date in accounting. Institute of Internal Auditor (IIA): press Room-Internal Lecture Note. Lowe, D.J., Geiger, M. A and Pany, K. (1990). The Effect of Internal Audit Outsourcing on Olusanya, F.T (2001). Auditing and Investigation. A Comprehensive Approach Lagos. Negro Ltd. Spicer and Pegler, Practical Auditing 15th Edition (1972), pg. 34 Oshisami, K. (1994). Government Accounting and Financial control. Ibadan: Spectrum Books Ltd. Planning, Research and Statistics (2000). Federal Treasury Circulars Issued Year 2000. Abuja: Federal Ministry of Finance. Neil, D. Stein (1963). Business Policy Study, National Industrial Conference Board in Internal Auditing No. 11. New York Stock Exchange (2003). Amendment No. 1 to corporate Governance, Rule Filling. New York, NY: NYSE. Public Oversight board (1993). Issues confronting the Accounting Profession. Standard, C.T: POB. Special Report on Internal Control, American Institute of Certified public Accountants (AICAP). Wallace, W. and Kreutzfildt, R. (1991). distinctive Characteristics of Entities an Internal Audit Department and the Association of the Quality of such department with error Contemporary Accounting Research 7 (20): 485 512.
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APPENDIX 1 QUESTIONNAIRE Department Of Business Administration Distance Learning Institution University of Lagos Akoka Lagos Dear Respondents, QUESTIONNAIRE ON THE EFFECT OF INTERNAL AUDIT ON ORGANIZATION PERFORMANCE IN UNILEVER NIGERIA PLC
I am an undergraduate student of Business Administration of the above named institution. I am currently conducting research study in partial fulfilment of the award of B.Sc (Hons) Degree in Business Administration. Please note that the information collected will be treated as strictly confidential as possible and it will be used mainly for research purposes. I am therefore appealing for your co-operation to enable the complete execution of this project by giving your responses.
Thanks for your co-operation Yours faithfully,
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Johnson Deborah Ifomewe
Tick the boxes () as appropriate. Only one box may be ticked for each question PART A: BIO - DATA 1. SEX a) Male b) Female 2. AGE a) b) c) d) Under 20 years 21-30 years 41-50 years Above 50 years [ [ [ [ ] ] ] ] [ [ ] ]
3. MARITAL STATUS a) Single b) Married c) Divorce d) Widowed [ [ [ [ ] ] ] ]
4. EDUCATION QUALIFLCATION a) GCE/ SSCE [ ] b) OND/NCE [ ] c) HND/B.Sc [ ] d) Professional Qualifications [ ] e) Others (Specify) 5. LENGTH OF SERVICE IN THE ORGANISATION a) 1 - 3 year [ b) 4 - 5 year [ c) 5 - 9 years [ d) Above 10 years [ 6. STATUS IN THE ORGANISATION a) Junior staff b) Senior staff [ [ ] ] ] ] ] ]
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PART B INTRODUCTION Please mark (*) your chosen opinion. The Likert 1-5 point scale is used in the construction of the questionnaire to elicit your responses and scales are as follows. Strongly Agree (5), Agree (4), Undecided (3), Disagree (2), Strongly Disagree (1). S/N 1 2 3 Comment Financial statement has helped in checking fraud and irregularities Failure to fraud/malpractice by the internal audit leads to possible failure in your organization. Head of Department check for completeness, accuracy and Validity of report made by the internal audit and units? Implementation of auditor report lead to improved Performance of your organization The system of internal control ensure reliable management Reporting? The internal control system assist in the implementation of fraud checking is there any correlation between formulized sophisticated internal System and the quality of manpower Internal Audit report has effect on organizational performance Effective internal audits assist in the Implementation of internal control system Implementation of internal control system in organization Improve the internal audit department Internal audit being applied to a large extent in business Organization in Nigeria Organizations that have an internal audit function are more likely to detect and report fraud The application of internal control in an organization has helped The audit department in the asset management?
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SA
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4 5 6 7
8 9 10 11 12 13
Thanks
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CHAPTER ONE INTRODUCTION

BACKGROUND TO THE STUDY

The purpose of this research seeks to:

SIGNIFICANCE OF THE STUDY

SCOPE AND LIMITATION OF THE STUDY

Standard: An acknowledged measure of comparison for quantitative or qualitative value; a criterion.

CHAPTER TWO LITERATURE REVIEW

describing the audit committees duties and responsibilities.

audit committee, describing its responsibilities and activities.

POPULATION OF THE STUDY

Source- Asika, N. (2000), Research Methodology in Behavioural Sciences.

DATA COLLECTION INSTRUMENT AND VALIDATION

CHAPTER FOUR DATA ANALYSIS AND INTERPRETATION

4.2 Presentation and Analysis of Data According to Research Questions

4.2.1 Analysis of Bio-Data

Valid Percent 45.3 54.7 100.0

Cumulative Percent 45.3 100.0

Valid Percent 15.8 43.2 41.1 100.0

Cumulative Percent 15.8 58.9 100.0 -

Valid Percent 18.9 81.1 -

Cumulative Percent 18.9 100.0 -

Valid Percent 4.2 95.8 100.0

Cumulative Percent 4.2 100.0 -

Valid Percent 8.4 75.8 15.8 100.0

Cumulative Percent 8.4 84.2 100.0 -

Valid Percent 72.6 27.4 100.0

Cumulative Percent 72.6 100.0

Source: field survey, 2012

Valid Percent 1.1 3.2 73.7 22.1 100.0

Cumulative Percent 1.1 4.2 77.9 100.0

Valid Percent 1.1 2.2 96.8 100.0

Cumulative Percent 2.2 4.4 100.0

Valid Percent 4.2 3.2 9.5 17.9 65.3 100.0

Cumulative Percent 4.2 7.4 16.8 34.7 100.0

Valid Percent 1.1 1.1 3.2 54.7 40.0 100.0

Cumulative Percent 1.1 2.1 5.3 60.0 100.0

Category Strongly Disagreed Disagreed Undecided Agreed Strongly Agreed Total

Percentage (%) 4.2 5.3 15.8 74.7 100.0

Valid Percent 4.2 5.3 15.8 74.7 100.0

Cumulative Percent 4.2 9.5 25.3 100.0

Source: field survey, 2012

Strongly Disagreed Disagreed Undecided Agreed Strongly Agreed Total

2.1 1.1 73.7 23.2 100.0

2.1 1.1 73.7 23.2 100.0

2.1 3.2 76.8 100.0

Valid Percent 1.1 1.1 2.1 9.5 86.3 100.0

Cumulative Percent 1.1 2.1 4.2 13.7 100.0

Strongly Disagreed Disagreed Undecided Agreed Strongly Agreed Total

1.1 14.7 16.8 67.4 100.0

1.1 14.7 16.8 67.4 100.0

1.1 15.8 32.6 100.0

Valid Percent 1.1 1.1 22.1 75.8 100.0

Cumulative Percent 1.1 2.1 24.2 100.0

Strongly Disagreed Disagreed Undecided Agreed Strongly Agreed Total

3.2 2.1 85.3 9.5 100.0

3.2 2.1 85.3 9.5 100.0

3.2 5.3 90.5 100.0 -

Valid Percent 2.1 1.1 3.2 56.8 36.8 100.0

Cumulative Percent 2.1 3.2 6.3 63.2 100.0

Strongly Disagreed Disagreed Undecided Agreed Strongly Agreed Total

8.4 23.2 68.4 100.0

8.4 23.2 68.4 100.0

8.4 31.6 100.0