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Abstract

This study is presenting the contribution of internal audit in managerial practice in an


organization. For the research purpose TaTa Motors which is leading and one of the
largest automobile company in the world was explore as a case study. This company
has a significance role of internal audit in innovation and organization success. For
this study data was collected through quantitative approach employing by
questionnaire that was sent by email. The main variable were explore in this study
are role of internal audit, risk minimization, improvement in decision making process
and effects of internal audit in an organization. These variables help to construct and
measure the internal audit effectiveness in an organization. The result of study
shows that the internal audit helps the organization to achieve better level of
efficiency in term of organization performance. Moreover the internal audit directed
the organization in right path and identifies the loop wholes and identifies the old
fashion way of operations in any department of organization. Internal audit create an
environment within organization which provide competitiveness among different
departments of an organization and provide and edge over competitors. The result
shows that internal audit is as important as the external audit for any business.









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Table of Contents
Abstract.i
Acknowledgementii
Statement of originality authenticity.iii
Abstract ........................................................................................................................................................ 1
Statement of Originality and Authenticity ................................................................................................ 2
Please note that Dissertations may not be assessed without the inclusion of electronic
copies which may be submitted through the turnitin software to check for authenticity. ............... 2
Acknowledgement ...................................................................................................................................... 3
Chapter 1 ....................................................................................................................................................... 7
1. Introduction ......................................................................................................................................... 7
1.1 Back ground and context of study .................................................................................. 7
1.2 Research Aims & Objective ............................................................................................ 8
1.3 Importance & Rational of the Study ........................................................................... 8
1.4 Structure of study ............................................................................................................ 9
Chapter 1: ........................................................................................................................................ 9
Chapter 2: ........................................................................................................................................ 9
Chapter 3: ........................................................................................................................................ 9
Chapter 4: ........................................................................................................................................ 9
Chapter 5: ........................................................................................................................................ 9
Chapter 2 ..................................................................................................................................................... 10
2. Literature Review ........................................................................................................... 10
2.1 Significance of Audit ............................................................................................ 10
2.2 Aspects of internal audit ............................................................................................... 10
2.3 Areas where internal audit operates in an organization ................................................ 11
2.3.1 Re-evaluation financial activities ......................................................................................... 11
2.3.2 Evaluation and governance of fiscal and operational content .............................................. 11
2.3.3 Assessment of cost-effective system, perfection, and affective of transaction regarding non
fiscal relations of an organization ................................................................................................. 11
2.4 Function of IA ............................................................................................................... 11
2.5 Benefits of Internal Audit .................................................................................... 12
2.6 Function of internal audit within organization effectiveness ........................................ 12
2.6.1Role of internal audit in control ............................................................................................ 13
2.6.2 Role in Corporate governance .............................................................................................. 13
2.6.3 Theatrical role in Risk Management .................................................................................... 14
2.6.4 Role in minimizing cost of external audit ............................................................................ 14
2.6.5. Internal audit as Strategic adviser ....................................................................................... 15
2.6.6 Role in Improving Economy and efficiency ........................................................................ 15
2.6.7Internal audit in establishing good internal communications................................................ 16
2.7. Role in discharge of responsibilities of employees ...................................................... 16
2.7.1 Benefits to the manager of the unit being audited ................................................................ 16
2.7.2 The use of audit results by other review groups in the organization .................................... 16
2.7.3 Benefits to the corporation as a whole ................................................................................. 16
2.7.4 Use of internal audit results for external auditor .................................................................. 17
2.7.5 Increases efficiency of future audits .................................................................................... 17
2.8 Benefits to the manager of the unit being audited ........................................................ 18
2.9 The use of audit results by other review groups in the organization ............................. 18
2.10 Benefits to the corporation as a whole ........................................................................ 18
2.11 Use of internal audit results for external auditor ......................................................... 19
2.12 Barriers to successful Audit Results ........................................................................... 19
2.12.1 Conflicting goals: Management and auditor ...................................................................... 19
2.12.2 Absence of full range of technical competence ................................................................. 20
2.12.3 Neglect of the most important phase of the audit .............................................................. 20
2.12.4 Neglecting the fundamental of communication ................................................................. 21
2.12.5Independence of internal auditors ....................................................................................... 21
2. 12.6 approach of Auditors, process of internal audit ................................................................ 22
2.12.7 Interaction rights ................................................................................................................ 22
Critical Analysis: ........................................................................................................................................ 22
Conclusion .................................................................................................................................................. 23
CHAPTER 3 ............................................................................................................................................... 24
3. Research Methodology ................................................................................................... 24
3.1. Research Procedure ...................................................................................................... 24
3.2. Study Setting ................................................................................................................ 24
3.3. Investigation of study ................................................................................................... 25
3.4. Collection of Data ........................................................................................................ 25
3.4.1. Primary Research ................................................................................................................ 25
3.4.2. Questionnaire as research instrument.................................................................................. 25
3.4.3. Population ........................................................................................................................... 26
3.4.4. Sampling Method ................................................................................................................ 26
3.4.5. Sample Size ......................................................................................................................... 26
3.4.6. Purpose for samples ............................................................................................................ 26
3.4.7. Scale .................................................................................................................................... 27
3.4.8. Reliability of Scale .............................................................................................................. 27
3.4.9. Collection of secondary data ............................................................................................... 27
3.4.10. Secondary Data Sources .................................................................................................... 27
3.5. Interference of Researchers.......................................................................................... 27
3.6. Research Ethics ............................................................................................................ 28
3.7. Time Scale.................................................................................................................... 28
Chapter 4 ..................................................................................................................................................... 29
Data Presentation and Analysis and Results and Discussions .............................................................. 29
Descriptive Analysis ........................................................................................................... 29
4.1 ................................................................................................................................................. 29
Chapter 6 .................................................................................................................................................... 56
Conclusion ......................................................................................................................... 56
Recommendations: ...................................................................................................................................... 60
P ERS ONAL DEVELOP MENT ................................................................................................... 62
References .................................................................................................................................................. 63
Appendixes ................................................................................................................................................. 66










Chapter 1

1. Introduction
1.1 Back ground and context of study
Form last few decades the organizations are facing the internal and external risk which
seriously affect the organization performance and profitability. For that purpose they identify
the tools to overcome these internal and external threats. In developed countries they
introduced word audit which provide them plat form where they can identify external internal
risk. Internal audit is one of the tools or process comprise of procedures to rectify the internal
risk. According to Nigussie Fantaya 2007 Internal audit is a set of function constituted by the
establishment review by the organizations inside activity divine service organizations. It goal
to analyzes, valuates and studies connected the quality of the internal control exact at stake,
the economic and efficient use of resources.
In this study researcher try to identify what is the strategic contribution of internal audit in
managerial practices in an organization? In this study we take TaTa motors as case study and
find the relationship between internal audit and strategic practice. Internal audit is the part of
control system of economic and otherwise determined by the management company to do
business properly and effectively, to ensure compliance with policies to protect the
possession and assured as achievable the logicality and quality of the information. In this we
study try identifying the role internal audit in managerial practice, why internal audit is
important for organization to enhance the performance of organization. There are different
aspect try to discuss in this study.
Confirmed Codjia (2010) on the importance of internal control mechanisms in the institutions
of corporate governance through the assessment of the activities of audit firms "and make
sure they are appropriate and consistent with the recommendation of the senior management
guidelines and human resources. Internal audit helps the company to adhere to the rules and
legal practices in the industry.
Intrinsic auditors are critical to effective corporate governance and achievement of
organization objectives, because they spend all of their time within on company as a result
they have much greater knowledge about the companies as a result they have much greater
knowledge about the companys operations and internal control than external auditors and
hence in providing better recommendations (Elder, et al, 2010).
Context of the organization
TaTa Motors is one of the India's renowned and largest auto mobile companies having $3.7
billion in terms of revenue in 2012-2013. It comprises of different segments like commercial
vehicles, passengers vehicles, mid size car and utility cars are included in production. It is the
fourth largest truck and buses manufacturing company around the world. With over 60
thousand of workforce accomplish the mission "To be passionate in anticipating and
providing the best vehicles and experiences that excite our customers globally". TaTa
Motors was established in 1945 different part of India. There are different production units
spreading all over the country. Fiat and TaTa Motors joined the companies in 2005 it has a
industrial joint venture. The company dealership, spare parts, sales and services network
comprise over 3500 touch point.

1.2 Research Aims & Objective
1. What is the strategic contribution of internal audit in managerial practices in an
organization? (A case study of TATA Motors)
Action research cannot be aimlessly outside, but it has to be guided focus. This study is
mixed with the following objectives.
Objective
1. Role of internal audit in organization
2. What effects come on an organization using internal audit effectively?
3. How internal audit improve decision making process
4. To reduce the risk in an organization
1.3 Importance & Rational of the Study
This study will show the importance of internal audit and the future standing of it. This study
will provide you deep knowledge of internal audit. This study is comprised of different
features; firstly this research will provide the sensibility of internal audit. This study would
provide insights about internal audit and factors which are crucial for any organization and
also rectify the intensity of those factors. This study will align internal audit with managerial
practice and organization performance. Moreover this research will discuss different types of
quality standard and there importance in side of an organization. This study will discuss
different function of internal audit affect the performance of an organization. This study will
also provide insights of a case study TaTa Motors, their processes or procedures and quality
management. The results of this research can be used in future by Motor Industry.
1.4 Structure of study
The current study is comprised of following chapters.
Chapter 1:
The first chapter comprise of a concise introduction of topic which investigate under the light
of research question and objectives. This chapter also include the context, rational, scope and
importance of study.
Chapter 2:
Second chapter provide a detailed review of literature comprise of different papers, studies
researched to be done in past related to this subject. In the light of various studies researcher
can develop a reasonable understanding of current subject.
Chapter 3:
The third chapter based on research methodology designed to gathered information and data
and give a complete overview of methodology to be adopted in this study. More over
research methodology wltsill enclose the technique and method in which the results and
findings will be discussed.
Chapter 4:
Chapter 4 is based on analysis of data collected from methodology described in third chapter.
Moreover this chapter will highlight the relationship between findings and literature and
conclude whether literature oppose or support the findings.
Chapter 5:
In last chapter we conclude the study and provide an essential implication to the people who
relate to this study in addition enlist the limitations of current research and provide a
opportunity to upcoming researchers.

Chapter 2

2. Literature Review
Literature review emphasis on past studies to be done on selected research topic.
What is internal audit?
Internal audit is existed an autonomous assessment of function constituted by the
establishment review by the organizations inside activity divine service organizations. It goal
to analyzes, valuates and studies connected the quality of the internal control exact at stake,
the economic and efficient use of resources Nigussie Fantaya 2007.
2.1 Significance of Audit
The activities design related to independent internal audit add the value to enhance operations
and objectives of the organization. Internal audit helps to improve the performance of the
organization through organize and systematic way to examine and manage the risk through
processes, monitoring with control. Internal audit provide consistency with effectiveness as
well as efficient discharge guide and control of the organization, executive produced by back
internal customers, management, and control and risk management processes Schulze, G. G.,
& Frank, B. (2003).
2.2 Aspects of internal audit
Basically there are mainly two aspects of internal audit
a) Operational Audit
b) Management Audit
In working order evaluation concerns with investigation for the functions and actions set
provides an assessment of whether each unit apartment operating in accordance with
established rules and procedures, and if the standards of efficiency and economy remain
Metadel Abera, (2006) . It concern with
1) Design of plans
2) Implementation of plans
3) Control and evaluation
Management audit involves the audit of propriety, authority, compliance with policies, etc.
2.3 Areas where internal audit operates in an organization
Internal audit operate in following areas
2.3.1 Re-evaluation financial activities
The organization of correct financial and affiliated activities are the obligation establishment,
which requires complete care regularly inspection is often chosen by management a special
responsibility for the financial statements and the attendant inside relations, observation their
business activity and advocating transformations Barac,etal,2009 .
2.3.2 Evaluation and governance of fiscal and operational content
It could consider an appraisal of the substance utilized to refer, standard, classify and report
such information and individual elements of particular research testing of transactions,
balances and procedures including detailed Barac, etal, 2009.
2.3.3 Assessment of cost-effective system, perfection, and affective of transaction
regarding non fiscal relations of an organization
In general, the external auditor usually takes interest in the findings of examination activity
in case when there is a necessary role in the dependability of activity records Barac, etal,
2009.
2.4 Function of IA
Internal audit is existed an autonomous assessment of the review activity an organization
accounting, financial activities and other database management ASA preserving and
formative divine of service. This is a type of control which directs to measurement and
appraising the efficacy of different controls. This is mainly for account and fiscal issues, as
well as can adequately address issues that operate in nature Marquis codjia, 2010. The
internal auditor to audit the accounts and other relevant records on a daily basis, regularly or
periodically perform following requirements:
1. Internal audit determine all the rules, regulations, policies, procedures, and self-sufficiency
through by the company is or is not
2. To review the existing internal control system is adequate and effective and in accordance
with the balls and the organization.
3. To ensure that all of the assets of the organization are managed properly, otherwise the
report on management to do with suggestions refund.
4. To highlight the weaknesses of the organization, and they to strengthen suggestions.
5. To check to see if the work is smooth Organization, effective, efficient and economical.
2.5 Benefits of Internal Audit
Internal audit is a constant procedure many benefits that can be discerned and these can
include:
1. Management will be led by careful management of the major business issues which gives
an analysis of the deficiencies in the control system, which can improve the practical tips
(Basu, 2006).
2. To ensure that these controls are operating satisfactorily.
3. These actions to advance the competence and efficiency of specific
4. It provides information about potential problems early. The administrator can then take
action if necessary
2.6 Function of internal audit within organization effectiveness
Internal audit is the part of control system of economic and otherwise determined by the
management company to do business properly and effectively, to ensure compliance with
policies to protect the possession and assured as achievable the logicality and quality of the
information. The company "s control and practices, such as Internal audit is generally
believed critical to the success of the absence to be because it acts as a powerful brake any
deviation from the standard policy objectives and unused. This means that the organization,
appropriate and adequate system of checking the accounts activates is likely to better
financial results than those who have not Heinecke, P. (2011) argues that the internal audit
functions of the company can be significantly affect activities of the company and many have
influence on the ability of the device to continue the activities.
2.6.1Role of internal audit in control
The internal audit focused on improving internal controls. In order to the Committee of
Sponsoring Organizations of the committee on how the tread (COSO), as well as the internal
control process of the Board and director of the entity (BOD), organization of man power
give the platform to logical assurance as to ensure the accomplishment the goals in different
categories implementation of internal controls to do Klier (2009).
Success and effectiveness of process
The dependability of financial statements
For acquiescence through rules along with policy
Administration is liable to conduct audit. Management to policies and procedures in the
direction to achieve target develop exact goals in every department. There is a main function
of internal audit to assure the implementation of rules and regulations and recommend the
improvements in each categories Pickett, 2005, also stated the role of internal audit as
internal audit set what is found during an audit against what should be present to ensure
good control Heinecke, P. (2011) has explained the functions of internal audit in control as
follows internal audit.
Reviews validity of financial and other information
Evaluate the procedures established for assurance within managements rules,
strategy, actions plus any appropriate laws and policy.
Reviews the resources of protection the origination resources
Appraises the financial system and competences within the organizations
resources are engaged.
Evaluate the result according to determined goals and objectives
2.6.2 Role in Corporate governance
Structural governance locate procedure and structure compositions implication by CA to
report immediately to the management of resources, strategies and policies in the
organization, and monitor some organizations, and are often considered the accounting and
within the "four pillars" of corporate governance, and other substrates are BOD, management
and the external auditor.
Confirmed Codjia (2010) on the importance of internal control mechanisms in the institutions
of corporate governance through the assessment of the activities of audit firms "and make
sure they are appropriate and consistent with the recommendation of the senior management
guidelines and human resources. Internal audit helps the company to adhere to the rules and
legal practices in the industry.
Intrinsic auditors are critical to effective corporate governance and achievement of
organization objectives, because they spend all of their time within on company as a result
they have much greater knowledge about the companies as a result they have much greater
knowledge about the companys operations and internal control than external auditors and
hence in providing better recommendations (Elder, et al, 2010).

2.6.3 Theatrical role in Risk Management
Professional standards for internal auditing IIA2120 require monitoring and evaluating the
efficiency of the organizations risk managing process. The management of risk to attain
organization goals are determined the shape and then identifies and analyzes risks and
responding to their ability to influence to achieve their goals.
According to PPIA Professional Practice of Internal Auditing (2011) determine the efficiency
of internal audit in following:
2. Goals of the organization and support in line organizations objectives.
3. Significance of identifiable risk
4. Exact action to those risks in line with the risk appetite of the organization.
Is the collection of relevant information and risk communication at right time from
organization that employees, managing in addition to the center for the performance of its
duties (IIA 2120).
2.6.4 Role in minimizing cost of external audit
According to the Elder (2010), and dependence on external and internal auditors on risk
assessments whether the internal auditors, external accountants and tax effective risk
reduction and, thus, significantly reducing the functional tests. This allows reviewers to
reduce significantly if the customer has a representative of the internal audit their expenses.
The external auditor can be used. The internal auditor's direct support of our control
Referring to the internal audit function to run some tests and see the external audit are able to
complete in less time and at a lower price, the test.
2.6.5. Internal audit as Strategic adviser
Look beyond the processes and internal controls and auditing can play an advisory
role within the organization. It may be
Identify cost-effectiveness of the projects and the general
They make strategic visions to improve business performance
Make the perspective of the main focus on the risks that matter (Ernst andyoung
2010)
Internal auditors, as stated in institute of internal auditors professional practice frame work,
provide consulting work focused on value-added operations of the organization. They also
provide information which is reliable and used for strategic business decisions. As a result
they minimize information risk, too, which it is possible that the information a decision of
enterprise risk was wrong, which is defined as y Elder, (2010)

2.6.6 Role in Improving Economy and efficiency
According to the U.S General Accounting Office (GAO), audit determines
1) If the entity already runs its own resources (staff and buildings) economical and efficient.
2) Reasons of failure and inefficiency
3) Is the organization performing their activities within the rules and regulation such as
economically and fuel consumption.
Internal audit in its finding determines the above all the provide how to improve weakness
and maintain strengths which intern increases economic use of resources and efficiencies by
avoiding misuses.
2.6.7Internal audit in establishing good internal communications
The internal auditors duties bring him into contact with all department of his organization,
since his role is to check on the effectiveness of the system and the security of its assets at all
levels. Naturally he will want to know the organization of responsibilities and manuals of
operation of each department and provide remedies for inefficiencies of each unit in the
organization and creating common understanding between the auditor and managers or other
senior officers (Bigg and Davies, 1980).
2.7. Role in discharge of responsibilities of employees
The Institute of Internal Auditors (IIA) explained why internal audit is importance of every
part of organization in order to perform their activities. To do so, provides analysis, ratings,
recommendations, advice and information on the activities of the Internal Audit Service As
cited in Ernst and young, 2010, also expressed internal auditing as it is independent
assessment activity began to "internal audit activities of others through creating conducive
environment in work place and serving as information communicator.
2.7.1 Benefits to the manager of the unit being audited
The audit report shows the weakness and strength of an organization and recommendations
for improvement. The internal auditors shall also discuss with issues that require
improvement with management so as to enable the manager better understand and accept the
problem, and the rationale for recommendations on timely basis. In doing so, management
used the result of the audit to save time, money, and effort, as well as to reduce the risk of
loss of funds while achieving corporate results H. Spencer Pickett, 2005.
2.7.2 The use of audit results by other review groups in the organization
This refers to the extent of the use made of the results by other review groups in the
organization, which may help them to save time, effort and money in conducting their own
reviews. The director of audit department is liable and must plan audits in such a way that the
information contained in each report can be used by others in the organization. The higher the
review groups who use the audit results, the higher the successfulness of the audit Dereje
Workie, 2007
2.7.3 Benefits to the corporation as a whole
An audit report consisting of information logically structured provides foundation to reducing
cost gathering information, saving task force time and effort, and providing general
assistance. Internal audit could serve as a database for important information about the
history of and problems in the organization, providing that the results of each audit were
planned and structured in such way to provide this information Marquis codjia, 2010.
Internal auditors of an organization shall have access to all organizational units to gather,
store and retrieve information from each. This enables auditors to look at the key results areas
of the organization and determined whether there were sufficient controls to ensure that the
goals were being achieved. Since only people can achieve results, the internal audit group
could have ensured that members of the organization were being evaluated effectively. The
most logical way to do this is to review the performance appraisals.
Internal audit is one of the most important aspects of internal control because it is the people
in the organization that make the other controls work. If the people are not being properly
evaluated, senior management should know about it before it becomes a problem. Therefore,
had the audit group planned and structured each audit so that performance appraisal was
always included, they could have been in a position to maintain available source of
information that could be updated regularly.
When computer are used in internal audit, useful information becomes available in a format
that will make it easy for the auditors to study, analyse and determine the linkage and causes
of the problem within the corporate organization. Internal auditor are an integral parts of
management control and will contribute to top management strategy, provide service beyond
simply finding faults and can play a role in resolution of corporate problems and
improvement of management performance without impairing of its independence.
2.7.4 Use of internal audit results for external auditor
Internal audit is a successful if it has strong leadership; a professional staff and a strict
adherence to internal auditing standards with often external auditors rely on to save time and
money. This would also reduce the cost of auditing (Elder, 2010).
2.7.5 Increases efficiency of future audits
An audit which is structured in a logical way is useful to save time and effort in the future.
An audit result is useful for future reports if the corporate and internal audit long range plans
are linked each other. The strategy is developed at the beginning of each audit specifying
what requirement the audit is going to satisfy, who is going to use the information from the
audit, what information from the audit should be maintained for future use Marquis codjia,
2010.
Documentation of previous work serve as reference for current year audit works as a result it
reduces time and effort. The internal auditor must realize that a system is needed to save time
in the future, and ensure that a data gathering system is set up. If information is gathered and
documented for each unit, it will be possible to look at a summary report for each unit and
quickly obtain a general understanding of how they operate, and the auditor can use this file
if they are worthwhile for current year audit H. Spencer Pickett, 2005.
2.8 Benefits to the manager of the unit being audited
The audit report shows the weakness and strength of an organization and recommendations
for improvement. The internal auditors shall also discuss with issues that require
improvement with management so as to enable the manager better understand and accept the
problem, and the rationale for recommendations on timely basis. In doing so, management
used the result of the audit to save time, money, and effort, as well as to reduce the risk of
loss of funds while achieving corporate results.
2.9 The use of audit results by other review groups in the organization
This refers to the extent of the use made of the results by other review groups in the
organization, which may help them to save time, effort and money in conducting their own
reviews. The higher the review groups who use the audit results, the higher the successfulness
of the audit. .
2.10 Benefits to the corporation as a whole
Internal audit could serve as a database for important information about the history of and
problems in the organization, providing that the results of each audit were planned and
structured in such way to provide this information. Internal auditors of an organization shall
have access to all organizational units to gather, store and retrieve information from each.
This enables auditors to look at the key results areas of the organization and determined
whether there were sufficient controls to ensure that the goals were being achieved. Since
only people can achieve results, the internal audit group could have ensured that members of
the organization were being evaluated effectively. The most logical way to do this is to
review the performance appraisals. Internal audit is one of the most important aspects of
internal control because it is the people in the organization that make the other controls work.
If the people are not being properly evaluated, senior management should know about it
before it becomes a problem. Therefore, had the audit group planned and structured each
audit so that performance appraisal was always included, they could have been in a position
to maintain available source of information that could be updated regularly. When computer
are used in internal audit, useful information becomes available in a format that will make it
easy for the auditors to study, analyze and determine the linkage and causes of the problem
within the corporate organization. Internal auditor are an integral parts of management
control and will contribute to top management strategy, provide service beyond simply
finding faults and can play a role in resolution of corporate problems and improvement of
management performance without impairing of its independence..
2.11 Use of internal audit results for external auditor
Internal audit is a successful if it has strong leadership; a professional staff and a strict
adherence to internal auditing standards with often external auditors rely on to save time and
money. This would also reduce the cost of auditing (Elder, 2010).
2.12 Barriers to successful Audit Results
Barriers are obstacles which encounter the auditors, and have an impact on their performance
resulting in unsuccessful audit results. The most important barriers include:
2.12.1 Conflicting goals: Management and auditor
This barrier arises due to internal auditors lack of understanding of managements goals and
the ensuring conflicts that arise. According to Brathwaite, 1988, conflicts frequently a rise
when the auditor doesnt take the time to understand what management wants. This neglect
causes he auditor to make audit observations that appear irrelevant to management and
therefore create conflict. Consequently, what could be an excellent audit is not considered as
such and when this happens management ignores the observations and recommends actions
not a useful situation. Because internal auditors usually begin their work with an audit
program designed to concentrate on control and risks, they are seldom able to include
statement concerning the objectives of the unit. Without knowing these, it is impossible for
auditors to link the audit observations and recommendations to the results and services of the
organization. If the auditors are not absolutely clear on both the goals of the manager of the
unit and the quality of service that the corporation as a whole is aspiring to provide, they
cannot possibly show management the relevance or benefits of the observations and
recommendations for management point of view (Brathwait, 1988).
2.12.2 Absence of full range of technical competence
Many internal auditors are interested in maintaining high standards for their profession. They
are concerned about the number of practicing internal audit managers and staff who do not
possess the necessary qualifications to do a credible job. Some contend that internal audit
department is often staffed with individuals with varied specialized knowledge, some of
whom are not interested in a career in internal auditing. It is perhaps not necessary for these
employees to be professionally qualified. Others suggest that because most of the senior
advisor an accountant, and the economic advisor and economist it stands to reason that the
internal audit advisor should be professionally qualified. In organizations where the head of
audit department is not professionally qualified there are serious implications for the future of
the internal audit group corporate institute and the inside auditing occupation as whole. Lack
of technical competence can also affect hiring decisions. Poor hiring decision have a high
cost. Another area that could be affected by the absence technical competence is moral in the
audit organization. Internal auditors get frustrated, as would anyone else, when professionally
qualified employees are evaluated by superiors who lack similar qualification.
2.12.3 Neglect of the most important phase of the audit
Business organizations are increasingly complex and this means that relationships among
data and information now require analysis as opposed to simple reporting. In the past, internal
auditors were content to simply state the facts to management. They expected favorable
response compliance and financial audits, which form the audit majority, require little
evidence is conclusive. Traditionally, the analysis phase of the audit was not even identified
to management as being an integral part of the audit; this is largely still true today. This
neglect had been the direct cause of audit failure. Where analysis is missing in internal
auditing, the interrelationship among observations and impacts of all observation on the
corporate entity may not be understandable (Brathwait, 2010).
There are some important steps that would help internal auditors break with tradition and
make their work more meaningful to management. These are planning, field work, analysis
and reporting which are the corner stone of successful internal audit. Analysis of audit results
enhances the quality of recommendation and better understanding of inefficiencies.
Therefore, neglecting one of the above steps would result in audit failure.
2.12.4 Neglecting the fundamental of communication
Learning how to communicate clearly with the entity audited is important for successful audit
results. As Brathwait, 2010, noted, inadequate planning creates a barrier during the initial
communication between the auditor and the audited organization (audited) poor
communication of audit results has caused the downfall of some audits and led to a negative
misconception about auditors.
2.12.5Independence of internal auditors
Lack of independence has a greater impact on auditors successful performance of their
responsibility. Independence is a major requirement for audit to allow a clear increase in
organizational and personnel activities. In Biggs and Davies 2001, point of view lack of
internal audit department will affect
The ability to set down, without bias, fear or equivocation the auditor judgment on
very part of organization activities.
The ability to arrange the audit work comprises of all business exclusive of
requirement any permission.
The ability toward deliver reports any management level
As the Institute of Internal Auditors directed to the independence of the internal auditor:
1. Reports on the state of executive control line or CEO (CAE) to the Director of Internal
Audit should be within the organization that allows the creation of a level. Internal Audit
Executive CAE responsibilities and must be connected to the board, at least annually, the
organizational independence of the internal audit function (IIA Standard 1110). Regulatory
independence is achieved when really knows CAE and functionally to the Governing Board
(GB Practice Advisor 1110 A1). The Council is the governing body , as the Board of
Directors , Supervisory Board, the head of the agency or legislative body , the Board of
Directors or the Supervisory Board in a nonprofit organization or other body responsible for
the organization, including the audit committee , chief executive may functionally report
control (IIA Glossary )
2. 12.6 approach of Auditors, process of internal audit
Internal audit activity away from interference in determining the scope of internal auditing,
performing work, and communicating results of this practice (IIA consultant 1110A1).
2.12.7 Interaction rights
The directors of audit department have rights to communicate with BODs (IIA standard)
Davies, 2002, also stated that, the internal audit department shall have ability to deliver
reports to all appropriate level of management. The IIA further explains that independence is
not only assured by having organization status, but also through objectivity.
Objectivity is essential to the audit function. Therefore, internal auditors should not develop
and install procedures, proper records, or engage in any other activity which they would
normally review and appraise and which could reasonably be constructed to compromise the
independence of the internal auditor. The internal auditors objectivity need not be adversely
affected, however, by determining and recommending standards of control to be applied in
the development of the systems and procedures being reviewed.Thus, Internal Auditor is not
one of the organization controls, corporate control, to control all the other simple. For this
reason, internal audit should not be to maximize design and implementation of institutional
controls, not the objectivity, internal auditors should serve the organization as an independent
expert in the controller. Design, implementation and testing of controls is a conflict of interest
(Simmonsb, 2010).
Critical Analysis:
If we take a look on broad prospect of internal audit how identify the internal organizational
and external environment. In literature review mostly writers agreed that internal audit adds
value and supports the achievement of the objectives to make recommendations for
improvement, and the production of information and training of supervisors in understanding
and application of objective and independent process monitoring and self-assessment
activities business and others within the organization. One very interesting thing we can see
in this literature that there is no conflict that internal audit is help to minimize the risk and
provide a foundation to external audit. According to different writers internal audit is a
management monitoring tools across their operations help the entire organization through the
study and evaluation of the adequacy and effectiveness of internal control system and risk
management, quality and governance processes. Literature basically discuss the organization
provides internal audit analysis, evaluation and recommendations, advice and information.
The aim is to ensure that the internal control system, also taking into account the information
produced by the external auditors and administrative functions can be sure that the goals and
objectives are achieved reasonable and efficient operations and reporting is reliable and the
laws and regulations and respect the assets remains.
Conclusion
Internal audit serves the most significant role for many companies in preventing the fraud
and it also help the firm to detect the kind of fraud and other kinds of accounting
irregularities. In many firms, audit professional help in designing and modifying the internal
control system that aims at preventing the firm in meeting fraud and other accounting errors
in financial reports. If the firm is famous for its strong and active auditing system in market,
it not only saves its employees and reputation but also it retains credibility and trust of its
stakeholders. The prosper usage of all means of communication in the organization can
increase the efficiency of the employees and produces the open culture where all employees
coordinate with each other because of communication. In evaluating the strategic and
auditing skills to meet the organizational objectives, most of the firms use three elements in
the skills audit which may prove to be more effective and result-oriented.










CHAPTER 3
3. Research Methodology
Research methodology is a combination of prescribed method or procedure design to
accomplish to achieve the research objectives (Begievi, et.al, 2007). Its follows systematic
approach to avoid the uncertainties related research. Second chapter provide the detail insight
about the concept of internal audit and significance in current era. Internal Audit is very
important to a company and it is necessary to polish their skills and motivate them towards
achieving organizational goals (Carolyn, 1997). This chapter encapsulates the detailed
procedures and methods applied for inquiring role of Internal Audit (Adrian, et. al. 2009). In
addition to this it covers the details about sampling techniques, research instrument and
statistical tools adopted to achieve the objectives of research. The entire study tends to
examine the overall effects of motivation which results in efficiency and better performance
of organization and to find out whether the relation exist within the organizations or not? This
research is base on following procedures and guidelines. The concepts of these procedures,
methods or techniques highlight below.
3.1. Research Procedure
The research aims what is the strategic contribution of internal audit in managerial practices
in an organization and for this reason several components that make up the internal audit
variable are identified by means of literature and the previous researches. The general
research question is formulated and the basic purpose of the study is to answer this question
by means of data analysis and interpretations (Heinecke, 2011). Quantitative research method
is used for data collection (Klier, 2009). The responses collected from the sample are
quantified for gaining information about the relevant variables.
3.2. Study Setting
Environment in which the research is conducted plays a significance role to shaping the
research effectively. There are several mediating variables existing in the environment and
play their parts in determining the relationship among variables under consideration. In
researches, the importance of explanation of setting of study to generalize the result,
influence of related factors use for recommendation design accordingly. This study conducted
in non-contrived and purpose to establish association between internal audit and strategic
practice.
3.3. Investigation of study
In business research investigation could be carried in different way. During research
researchers focus on different variables to identify the appropriate method of research which
identify the definite method to investigate the relationship between independent and
dependent variable. The aim of this study is to relate the internal audit and strategic practice
therefore this type of study is co-relation.
3.4. Collection of Data
Data collection method is a research tool for data access through a process of preparation.
This method and device development, and how to get the data, and data collection for an
environment that is pre - data collection are the many. Data Collection and most of the
primary and secondary sources are used. Study on the method of data collection and sample
details of the effects of internal audit work after the control " is defined:
3.4.1. Primary Research
First hand research and data collected directly through is a search tool that collects the data
directly from the part of the organization, and a question has been sent via email to the
opportunity to do research and surveys to gather information. Limited time responses
reactions were taken from the sample and the reaction are analyzed using statistical software.
3.4.2. Questionnaire as research instrument
The purpose of questionnaire is to cover all the aspects of internal audit. Different
The questionnaire, which placed all sections of internal audit reflected in the relevant
variables and developed demographically, to be tested later in the report. Questionnaire
surveys section variable areas and I tried to protect the section office level remainder was
used to distinguish cut to divide the entire sample, which contains a number of variables with
Age, sex and position in the organization of the three variables that are large section of the
survey demographic. Section is on its performance data that respondents indicate that their
responses and other quantitative data analysis answers are successful.
3.4.3. Population
According to the secondary information and Companys official sources, it was identified
that total number of employees within the selected organization are almost 400. However, it
is not possible for the researcher to collect the data from the entire population. Therefore a
sample is selected carefully from the specified population and the results have been
generalized for the entire population.
3.4.4. Sampling Method
Non probability sampling does not allow the researcher to select the sample randomly. This
sampling technique is further subdivided into many categories (Sachse, 2012). On the basis
of purpose of research and keeping in view the target sample in mind, it was identified that
researchers has predefined sets of sample in mind (Petruzzellis, et. al, 2006). Hence the
sampling purposive method, which is a kind of sampling rates are used to search for. In
addition, we found that subsets easily accessible and can be explained on the purpose and
design of the study.
3.4.5. Sample Size
The size of sample is very important to justify the results. It must be enough in size to
generalize the results. To ensure the validity or reliability of scale, the understanding of basic
aspects of and completely define sample size is very important for the people. During
selecting sample size researchers must be very careful if the sample size is not suitable or
define properly many of research problems can be arise and the research could not lead attain
desire results. For these reasons 90 to 150 employees chosen from population as sample size
and objectives of study define to them.
3.4.6. Purpose for samples
Data has been collected from the employees from TaTa Motors and it has been ensured that
employees from all levels in the organization have been selected. In addition to this, it is
ensured that the entire sample constitutes the educated people who are graduated from the
professional colleges or universities. Another factor that was taken into account while
selecting the sample groups were their position in organizations. Employees of all levels
associated with the firm (TaTa) directly involved in the performance of organization have
been selected so that the actual relationship between motivation factors and performance
could be identified (Osman and Mehmat, 2006).
3.4.7. Scale
To examine or estimated response of sample Likert-Scale was used, the test results in the
states. For this alternative, the respondents agree or disagree with this assertion. Then
encoded at different levels and ensure the effects of the variables together.
3.4.8. Reliability of Scale
The Chronbach alpha indicator is use for scale of reliability. This indicator produces the
reliable results when the value of this indicator is more than 0.6. If the value of this indicator
is less than 0.6 then the reliability is not suitable for research. To check the scales of
reliability by enter a variable into a statistical tool and by adding hypothetical data. It
indicates the scale use for collection of responses from sample is reliable or not.
3.4.9. Collection of secondary data
It is essential for the researcher to gain insight about the topic and the relevant variables. In
addition to this, it was essential that the researches to be considered conducted in related
subject thats why researcher can find the ways of adding more scope in addition to studying
their affect. Internal Audit is a well known concept, however for identifying several possible
variables that are related to internal audit, there is a need to explore secondary sources.
Secondary data which has been utilized in this study was mostly comprised of journal
articles, book chapters and other credible web sources. The secondary research has been done
by means of digital libraries which present a wide database to the people related to the
literary work and scholarly articles.
3.4.10. Secondary Data Sources
Digital Libraries and Databases are the major sources of getting access to secondary data. In
addition to this, the official sources of the company like employment records and the other
related sources were also examined for the selection of appropriate samples. The companys
authorized sources were the mainly trustworthy sources hence the reliability of information
and credibility of information is not challengeable. Performance of the employees was further
inquired by consulting the records and with the help of these measures, the data was filtered.
3.5. Interference of Researchers
The interference of researches shows the tendency to influence and manage the proffered
variables. Generally, manipulation is a scientific experimentation with the limited size of
local control. Therefore, the ability to reduce the overall results, such as the environment in
general, and there are many things that can be controlled and renaming variables, directly or
indirectly, can be. Search in current accounts to determine the impact on performance of the
organization is fully in the responses of the survey sample. The study was conducted in an
environment that is not artificial, and therefore it is not possible for the researchers to control
variables and control conditions. Therefore, the investigator's intervention is minimized.
3.6. Research Ethics
As it has been described that research comprise of both primary and secondary data, so that
researcher must be follow the ethics of research. So many ethical rules and regulation define
by different researchers according to nature of research acquiring set of ethics (Koh &
Boo2005).
As concern about primary research the first and major ethic is too kept all the information
provides by respondent will be kept confidential. Confidentiality is important factors ensure
the respondents that the official information keep confidential and do not disclose to anyone
(Trevio, 2005). To prove this point even no one question was related to their name and
designation for this reason questionnaire could attain disclosure of information.
Secondary data include the studies already done to related topic considered for information
available in libraries or on online. The majority of study or researchers have their own
copyrights so that it is unethical to cut or copy information from their work directly. To
ensure the reliability of research make sure every part of this research is not plagiarized
therefore the previous researches and studies considered for the sake of deep knowledge to
related topic and evaluate the appropriate variables.
3.7. Time Scale
The purposes of most of academic studies conducted are cross sectional thats why base on
limited time of period. The collection process helps by once for the researches and cases.
Thats why this research to be considered as a cross sectional research because data was
collected once and the research was design within limited time of period in an academic
institution.

Chapter 4

Data Presentation and Analysis and Results and Discussions
Descriptive Analysis
The analysis and computation of the research data has been done careful and researcher has
developed a frequency distribution for every question a developed some tables and graphs
showing the exact results of collected data. so in these tables and graph, authors has indicated
the degree of responses and agreement to the question which are highly related to audit of
firm are given in the following tables.
4.1 What is your gender?
Table of total classification of respondents in
TaTA Company








Employees
Gender
%
male 90 60
female 60 40
total 150 100

Bar Chart of Total Number of employees who responded the questions

Interpretation:
The reserachesr has selscted 150 respndants from the company and he has selected both male
and female employees who have been asked to respond the various questions about the
intended research which has successfully focused on the internal audit of TATA company. It
is researcher selective approach for asking questions about the research objectves to various
respondants. The researcher took higher ratio of men over women and out of 150 selected
respondants, 90 were men while 60 were wormen with the ratio of 60% and 40% respectively
which has been shown in the table and Bar chart respectively. It was the researcher intention
to select more male over female as male are supposed be to more competent according to
firms offical record and have been on the key post for many years. The authors also saw
some good potential in males responses to questionaires over female. Usually researcher has
preferred to ask the questions from well educated employees who have been serving TaTa
motor company over the many years who have been much familiar with the different
approaches which have been used over the years in company.



4.2 What is your age? _____________ Year.
1.3
2.7
13.3
54.7
28
0
10
20
30
40
50
60
strongly
disagree
disagree moderately
agree
agree strongly
agree
Percent
Performance of firm due to adaptations and
standardization
Table of
Employees
Age

Sr. No Employees Age
Average
Age
1 45 18-25 21.5
2 10 26-35 30
3 30 36-45 40
4 15 46-55 50
5 20 56-60 52.5
6 30 61-66 57.5
Total 150


Interpretation
The researcher has selected 150 respondants from the company and he has selected both male
and female employees who have been asked to respond the various questions about the
intended researcher which has successfully focused on the internal audit of TATA company. It
0
20
40
60
80
100
120
140
160
1 2 3 4 5 6 7
Employees
Average Age
is researcher selective approach for asking questions about the research objectves to various
respondants. The researcher took higher ratio of men over women and out of 150 selected
respondants, 90 were men while 60 were women. Employees selcted for the research were
from 18 years to 60 years. The researcher selected most of respondants from 18 to 25 years of
age as these employees seemed more potential and industrious for their career ponit of view.
In the above-mentioned table it is evident that author has approached to 30 old employees
who have been the part of TaTa motor company and these employees were highly influenced
by the auditing of the organization over the period of time. The major purpose of aksing and
writing this question was to see how many employees have been or will be influnced by
autiding of the firm over the period of time. Also this question also highlight the approach of
researcher in meeting his research objectives. Thus employees having age from 18 to 60 years
have been classified in the table and have been shown in Bar Chart with their respective
represenattaion in the research.

4.3: Do employees have understanding and knowledge about internal audit of the firm?

Employees Know about
Internal Audit

Knowledge
about Audit Percentage
Employees Unknown
Percentage
male 90 60 66.66666667 33.33333
female 60 40 66.66666667 33.33333
total 150 100


Interpretation:
The researcher asked the question about the level of understanding to auditing to employees
when he has approached. The reserachesr has selscted 150 respndants from the company and
he hasselected both male ans dfemale employees who have been asked to resposnd the
variosu questions about the intended resercah which has successfully focsed on the internal
audit of TATA company. It is reesaher selciev apprach for asking questions about the reserch
objectves to various respondants. The resrraher took higher artio of men over men and out of
150 selected respondants, 90 were men while 60 were wormn. So the reseracher intention to
inquire to various employees about the level of awarness to auditing has been reflcetd in the
table and it has been shown in the bar Chart. In the table we have seen that only 66.66% of
male have greta awraeness about the auditing while few employees are still unknown to
auidting which is done on yarly basis in company. In the same way, authors has also pointed
out the frmale ration about the awareness to auidting and only 40 femaales out of 60 showed
their huge level of undersstanfing to auidting. It means that reseracher has selcetd those
pupoulation in TaTa motor compnay who has vast knowledge about auditing and carry higher
acquaintances with auditing.





0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Knowledge
about Audit
Percentage Unknwon
Percenatge
Employees Know about Internal Audit
total
female
male
4.5 Do Employees think internal audit play an important role in an organization?

Employees think about the role of Internal Audit in organizational success
employees consent Percentage for consent employees Percentage
male 90 45 50 50
female 60 55 91.66666667 8.333333333
total 150 100



Interpretation:
In the questionaire, the reseracher asked employees about the role of intrenal nasuidit for the
sucees of organzation and respondanst were asled to select either Yes or No repsone. For
getting the resposne,The reserachesr has selscted 150 respndants from the company and he
hasselected both male ans dfemale employees who have been asked to resposnd the variosu
questions about the intended resercah which has successfully focsed on the internal audit of
TATA company. It is reesaher selciev apprach for asking questions about the reserch
objectves to various respondants. The resrraher took higher artio of men over men and out of
150 selected respondants, 90 were men while 60 were wormn. From the tabel it is evdient
that resrrachsr has an eqaull level of resposne for the question and 50% of male employees
,mentioned that intrenarl auidt play the effetceive role in the success of firm while 50% of
0
20
40
60
80
100
120
140
160
male female total
Employees think about
the role of Internal Audit
in organizational success
Employees think about
the role of Internal Audit
in organizational success
employees consent
Employees think about
the role of Internal Audit
in organizational success
Percentage for consent
male employees were not satisfied from the role of internal auditing in the success of firmBut
reserachre got very impressive resposne frty of from female and major of bfemale showed
their sataifaction on the role of auditing in the uplift and success of TaTa motor. Making the
huge comapsrion on the level of perfromave due to auidting in the firm, Resercahsr has
further asked many questions to both male and females about auditing with its due effect.


4.6 Internal audit department can set down opinion and provide recommendation on
every aspect of the organization without bias of fear?
Internal audit department can set down opinion and provide recommendation on every aspect of the
organization without bias of fear
Frequency Percent Valid Percent Cumulative Percent
strongly disagree 12 8 8 8
Disagree 43 28.666667 28.66666667 36.66667
Neutral 55 36.666667 36.66666667 73.33333
Agree 15 10 10 83.33333
strongly agree 25 16.666667 16.66666667 100
Total 150 100


interpretation
in questionaire, the rscahsr has respnsdanst from TaTa motor company that to what level auidt
department can prodvdie its opinion and recommendation about the perfromance of firm
which can be more helpful in meeting the strtagic gaols. So for taking the nnswer, The
reserachesr selscted 150 respndants from the company both male ans dfemale employees who
have been asked to resposnd the variosu questions about the intended resercah which has
successfully focsed on the internal audit of TATA company. It is reesaher selciev apprach for
asking questions about the reserch objectves to various respondants. The resrraher took
higher artio of men over men and out of 150 selected respondants, 90 were men while 60
were wormn. In the above-mentioed table, resercaher has depcted the responses from
employees that only 36% of employees showed their consent and asked that auidit
departemnst can presnst its opinion and recoomentaion without any baise and fear. So only
16.67% of employees ere agreed by the resercaher question about the internal audit
deaprtment recommednationa nd opion which are formulated without any bais and fear. Thus
in the light of literuate where Pickett agrred that internal auidt perform and make
recommendation after making evelautioing the policies and specfic objectives. He also
emphasied that internal audit can provdie more effeictve impromvemsnt and recoomentaion
wthout any fear and bias.



0
20
40
60
80
100
120
140
160
Frequency
Percent
Valid Percent
Comulative Percent
4.7 Internal audit department has unrestricted access to all units of an organization?
Internal audit department has unrestricted access to all units of an organization

Frequency Percent
Valid
Percent Cumulative Percent
strongly disagree 20 13.333333 13.33333333 13.33333
Disagree 35 23.333333 23.33333333 36.66667
Neutral 65 43.333333 43.33333333 80
Agree 15 6.6666667 6.666666667 86.66667
strongly agree 15 10 10 96.66667
Total 150 96.666667




interpretation
the resercahra incldued the question of whtjer internal audits department in TaTa motor
company has unrestected access to all units for gaining their opion or in the implemensttaion
of certain policies there. For the purpsoe of knowing the responses,The reserachesr selscted
150 respndants from the both male ans dfemale employees who have been asked to resposnd
0
20
40
60
80
100
120
140
160
Frequency
Percent
Valid Percent
Comulative Percent
Comulative Percent
the that questions about the intended resercah which has successfully focsed on the internal
audit of TATA company. It is reesaher selciev apprach for asking questions about the reserch
objectves to various respondants. The resrraher took higher artio of men over men and out of
150 selected respondants, 90 were men while 60 were wormn and he found that only 65% of
employyes showedtheir newyrual respsoesn to that particular question. Only 10% of
employees gave postive feedback about the unrestcited access to all units in Tata company by
internal auditors in firm. While 35% of employees were strongly disagreed from the
questions. In the above mentioned table, resercajer has shown the table and Bar Chart which
indiecates the percenatge of employees with their respeivyve resposnes to the question. In the
light of liteeraure reviw, (Basu, 2006 ) mentioedn that in any organziation intrenatl auisdt
departmenst may or may not have unrestrcted access to all units for evaluting the
performnace and effeicny of particular department and help the firm to gain strategic
objectives.

4.8 There is a strong relationship between internal audit and strategic practices?
There is a strong relationship between internal audit and strategic practices

Frequency Percent
Valid
Percent
Cumulative
Percent
strongly disagree 10 6.666667 6.666667 6.666667
Disagree 35 23.33333 23.33333 30
Neutral 55 36.66667 36.66667 66.66667
Agree 25 16.66667 16.66667 83.33333
strongly agree 25 16.66667 16.66667 100
Total 150 100

interpretation
the resercahra incldued the question of whtjer there is strong relationship between internal
audits and startegic objectives in TaTa motor company. For the purpsoe of knowing the
responsesThe reserachesr selscted 150 respndants from the company both male ans dfemale
employees who have been asked to resposnd the particular questions about the intended
resercah which has successfully focsed on the internal audit of TATA company. It is reesaher
selciev apprach for asking questions about the reserch objectves to various respondants. The
resrraher took higher artio of men over men and out of 150 selected respondants, 90 were
men while 60 were wormn. From the resposnes of employees which resecar has mentioned in
table indicates that 36.67% of employees were neutrally agreed with the resecaer question
and said that TaTa motro company has the high level of asociation between the intrenal audits
and straegic objectives. While16.67% of employees awere both agreed and stronlg agreed
from the resercah question about the huge asoctaion of intrenal audits and straegic objectives
of firm. The finding of resposne of question from employees has been depcted in the above-
mentioned table with the Bar Chart. Heinecke, (2011) mentioned that organization has the
strong association when it decides to meet its strategic objectives, it also looks at the role of
internal audit. He is also of the opinion that both strategic practices and internal audits are
interrelated which can both help the company to achieve its desired objectives.
Internal auditors performs management function or make management decision
Internal auditors performs management function or make management decision
Frequency Percent
Valid
Percent Cumulative Percent
strongly disagree 40 26.666667 26.66666667 26.66667
Disagree 15 10 10 36.66667
Neutral 35 23.333333 23.33333333 60
Agree 45 30 30 90
strongly agree 15 10 10 100
Total 150 100


interpretation
the resercahra included the question of whether internal audits peform well the function of
managemnet in TaTa motor company. For the purpsoe of knowing the responsesThe The
reserachesr selscted 150 respndants from the company both male ans dfemale employees who
have been asked to resposnd the particluar questions about the intended resercah which has
successfully focsed on the internal audit of TATA company. It is reesaher selciev apprach for
asking questions about the reserch objectves to various respondants. The resrraher took
higher artio of men over men and out of 150 selected respondants, 90 were men while 60
were wormn. From the findisng of resracher about this question, alemployees resposne have
been decpited in abobe-mentione dtable along withBar Chart. Only 30% of employees were
agreed about the functions of managmenst in light of recommedation and decsion by internal
auditors. While 26.67% of employees were strongly disagreed with the role of intrenal
auidots in the managemnt functions.in the light of literature review, according to Heinecke
(2011) mentioned that organization expects more recommendation and opinions in the
process of making policies and strategies which can be used for attaining the strategic
objectives. He was of the opinion that employees can expect better auditing techniques which
are more favourable for organization which if be implemented.

4.10 Audit department can arrange the audit work as to cover any area of the business
without requiring specific permission
Frequency Percent
Valid Cumulative

0
20
40
60
80
100
120
140
160
Frequency
Percent
Valid Percent
Comulative Percent
Percent Percent
strongly disagree 40 26.66667 26.66667 26.66667
Disagree 25 16.66667 16.66667 43.33333
Neutral 55 36.66667 36.66667 80
Agree 10 6.666667 6.666667 86.66667
strongly agree 20 13.33333 13.33333 100
Total 150 100

interpretation
the researcher has asked the question about the possisble and relevant information about the
permission of other department in getting inofmrtaion for audit purppose from other
department and reserachesr selscted 150 respndants from the company both male and female
employees who have been asked to resposnd the particular questions about the intended
resercah which has successfully focsed on the internal audit of TATA company. It is reesaher
selciev apprach for asking questions about the reserch objectves to various respondants. The
resrraher took higher artio of men over men and out of 150 selected respondants, 90 were
men while 60 were wormn. The repsone taken from slected employees has been shown in the
table and Bar Chart whch indicates that 36% of both male and female employees were neutral
and were of the opinion that auidt department can arrange work for getting information fro
other department in order to obtain information from other department. So in the light of
0
20
40
60
80
100
120
140
160
Frequency
Percent
Valid Percent
Comulative Percent
literature review, audit deprtment can take some assistance from managers and leaders in the
firm for facilitating audit department for getting relevant infromation which can save time
and money for the firm and it also help firm to meet its straegic goals on the collaboration of
other department.. ( Elder, 2010).

4.11 Internal audit helps to minimize the risks.
Frequency Percent
Valid
Percent
Cumulative
Percent
strongly
disagree 20 13.333333 13.33333333 13.33333
Disagree 15 10 10 23.33333
Neutral 50 33.333333 33.33333333 56.66667
Agree 15 10 10 66.66667
strongly agree 50 33.333333 33.33333333 100
Total 150 100


interpretation
0
20
40
60
80
100
120
140
160
Frequency
Percent
Valid Percent
Comulative Percent
all firm face the possilble risks in the environment and to know about the auidt role in
minimzing the risks faced by firm, researcher included this question and he selscted 150
respndants from the company both male ans dfemale employees who have been asked to
resposnd the particular questions about the intended resercah which has successfully focsed
on the internal audit of TATA company. It is reesaher selciev apprach for asking questions
about the reserch objectves to various respondants. The resrraher took higher artio of men
over men and out of 150 selected respondants, 90 were men while 60 were wormn. The
reseracher found the resposnes from both female and male and showed them in table and Bar
Chart.33% of firms employees were stringly disagreed with the role of auidtor in helping
firm to minimize the risks while same ratio of employees in the firm were strongly agreed
with role of audit departemnt which help firm to curb the threats and risks from both interal
and external environment. Thus in the light of literature review, it is because of audit
department that help Organizational objectives to be more supportive and align with the
organizations missions and significant risks are identified and assessed and these are
captured and communicated in timely manner across the organization, enabling staff,
management and the board to carry out their responsibilities According to international
standards for the professional practices of internal auditing, (2011)


4.12 Internal audit helps to improve the organization performance.
Frequency Percent
Valid
Percent
Cumulative
Percent
strongly disagree 25 16.66667 16.66667 16.66667
Disagree 20 13.33333 13.33333 30
Neutral 40 26.66667 26.66667 56.66667
Agree 25 16.66667 16.66667 73.33333
strongly agree 40 26.66667 26.66667 100
Total 150 100

interpretation
the reseracher asked the question of performance of orgnziation because of audit from both
male and female employees and the reserachesr selscted 150 respndants from the company
and he both male ans dfemale employees who have been asked to resposnd the particular
questions about the intended resercah which has successfully focsed on the internal audit of
TATA company. It is reesaher selciev apprach for asking questions about the reserch
objectves to various respondants. The resrraher took higher artio of men over men and out of
150 selected respondants, 90 were men while 60 were wormn. The resposne taken from
employees has been shown in table an dBar Chart where 26.67% of firms employees were
stringy agreed with the question and said that auidt depratment help the firm in improving the
performance of firm while the same ratio of employees were neutral in answering. So
resercher found few percenatge of employees who were strongly disagreed with the role of
audit in helpin firm to improve its efficiency and business.thus in the light of literature
review, the firm internal audit department can play the effective role in identifying the and
offering the strategic insights that help the firm to improve its business performance. It also
help firm to Provide a key perspective that focus on the risks that matter (Ernst andyoung,
2010). Internal auditors also provide information which is reliable and used for strategic
business decisions. As a result they minimize information risk, too, which is the possibility
that the information up on which the business risk decision was made inaccurate, as defined
by Elder, (2010)

4.13 Internal audit recommendations and finding are being implemented properly?
0
20
40
60
80
100
120
140
160
Frequency
Percent
Valid Percent
Comulative Percent
Frequency Percent
Valid
Percent
Cumulative
Percent
strongly disagree 35 23.33333333 23.33333 23.33333
Disagree 30 20 20 43.33333
Neutral 30 20 20 63.33333
Agree 35 23.33333333 23.33333 86.66667
strongly agree 20 13.33333333 13.33333 100
Total 150 100

interpretation
the reseracher asked the question about the possible recommendation and suggestions for
firm which are implemented in the firm or these are discarded by the higher management in
the firm. For the purpsoe of finding the relevnat answer, the reserachesr selscted 150
respndants from the company both male ans dfemale employees who have been asked to
resposnd the particular questions about the intended resercah which has successfully focsed
on the internal audit of TATA company. It is reesaher selciev apprach for asking questions
about the reserch objectves to various respondants. The resrraher took higher artio of men
over men and out of 150 selected respondants, 90 were men while 60 were wormn. The
resposne taken from employees has been shown in table an dBar Chart where 23.13% of
employees were disgareed and said that management usualy ignore the recommednations and
0
20
40
60
80
100
120
140
160
Frequency
Percent
Valid Percent
Comulative Percent
suggestions which are forwarded to them by auditors while the same ratio were agreed that
firm consider the recommednation and suggestion of auditors in their business operation and
in making the important decisions. So in the light of literature review, suggestion made of the
results by audit groups in the organization help them to save time, effort and money in
conducting their own reviews .thus management in the firm consider the higher the review
groups who use the audit results, the higher the successfulness of the audit Dereje Workie,
2007
4.14 Internal audit play a vital role in decision making process?
Frequency Percent
Valid
Percent
Cumulative
Percent
strongly disagree 15 10 10 10
Disagree 40 26.66667 26.66667 36.66667
Neutral 40 26.66667 26.66667 63.33333
Agree 25 16.66667 16.66667 80
strongly agree 30 20 20 100
Total 150 100



0
20
40
60
80
100
120
140
160
Frequency
Percent
Valid Percent
Comulative Percent
Interpretation
the reseracher asked the question from employees about the role of audit in maing decsion
making process and for the purpsoe of response, the reserachesr has selscted 150 respndants
from the company and he hasselected both male ans dfemale employees who have been asked
to resposnd the variosu questions about the intended resercah which has successfully focsed
on the internal audit of TATA company. It is reesaher selciev apprach for asking questions
about the reserch objectves to various respondants. The resrraher took higher artio of men
over men and out of 150 selected respondants, 90 were men while 60 were wormn. . The
resposne taken from employees has been shown in table an dBar Chart where 26.67% of
employees were neutral and disagrred with the reserachesr and said that auidt department
may or may not be more effective in decsion making process of the firm. While 20% of firm
employees were strongly agreed with the role of audit which play more effectively in
decision making process. Thus in the light of literature review, Internal audit is one of the
most important aspects of decision making process which help the firm to make important
plan and to maintain available source of information that could be used regularly.

4.15. Internal audit provides assistance to management in evaluation, appraisal and
monitoring of individual schemes?
Frequency Percent
Valid
Percent
Cumulative
Percent
strongly disagree 45 30 10 10
Disagree 20 13.33333333 26.66667 36.66667
Neutral 30 20 26.66667 63.33333
Agree 25 16.66666667 16.66667 80
strongly agree 30 20 20 100
Total 150 100

interpretation
the reserachsr asked the question about the roleof aauidt to assist firm in making evaluation
and appraisal scheme for the firm and for the purpose of getting resposne on this question, the
reserachesr selscted 150 respndants from the company both male ans dfemale employees who
have been asked to resposnd the particular questions about the intended resercah which has
successfully focsed on the internal audit of TATA company. It is reesaher selciev apprach for
asking questions about the reserch objectves to various respondants. The resrraher took
higher artio of men over men and out of 150 selected respondants, 90 were men while 60
were wormn. The resposne of responadnat have been shown in table and Bar Chart where
30% of employees were srongly diaagreed that auidt department cannot assiat in evelatung
and appraisal making scheme for emplyees in firm. While 20% of employees were strongly
agreed and neutral with the role of auidting department in making evaluation and appraisal in
the firm. In the light of literature review, The strategy is developed at the beginning of each
audit specifying what requirement the audit is going to satisfy, who is going to use the
information from the audit, what information from the audit for the purpose of evaluation
should be maintained for future use (Marquis codjia, 2010)
4.16 internal audit examine and evaluate the reliability of information?
Frequency Percent
Valid
Percent
Cumulative
Percent
strongly disagree 15 10 10 10
0
20
40
60
80
100
120
140
160
Frequency
Percent
Valid Percent
Comulative Percent
Disagree 30 20 20 30
Neutral 30 20 20 50
Agree 25 16.66667 16.66667 66.66667
strongly agree 50 33.33333 33.33333 100
Total 150 100

interpretation
the reseracher asked the question about the reliabilty of information which is examined by
auidt department and for the purpsoe of getting the resposne, the reserachesr selscted 150
respndants from the company both male ans dfemale employees who have been asked to
resposnd the particular questions about the intended resercah which has successfully focsed
on the internal audit of TATA company. It is reesaher selciev apprach for asking questions
about the reserch objectves to various respondants. The resrraher took higher artio of men
over men and out of 150 selected respondants, 90 were men while 60 were wormn. The
resposne of employees have been shwon in table an dBar Chart which indictaes that 33.33%
of employees were strongly agreed that auidt department evalsute and exmaine all kinds of
information while auditing and 10% of employees were strongy disagreed that audit
department can not examine the information more accuratley. So in the light of literature
review, Internal audit is one of the most important aspects of making every information to
check and monitor because it is the people in the organization that make the other controls
work. Therefore, had the audit group planned and structured each audit so that performance
0
20
40
60
80
100
120
140
160
Frequency
Percent
Valid Percent
Comulative Percent
appraisal was always included, they could have been in a position to maintain available
source of information that could be updated regularly.

4.17 Internal audit facilitate the achievement of organizational objectives?
Frequency Percent
Valid
Percent
Cumulative
Percent
strongly disagree 25 16.66666667 16.66667 16.66667
Disagree 20 13.33333333 13.33333 30
Neutral 30 20 20 50
Agree 35 23.33333333 23.33333 73.33333
strongly agree 40 26.66666667 26.66667 100
Total 150 100

interpretation
the researcher asked the question about the auidt help the firm to achaive its objectives and
for the purpose of getting the resposne, the reserachesr selscted 150 respndants from the
company both male ans dfemale employees who have been asked to resposnd the particular
questions about the intended resercah which has successfully focsed on the internal audit of
TATA company. It is reesaher selciev apprach for asking questions about the reserch
0
20
40
60
80
100
120
140
160
Frequency
Percent
Valid Percent
Comulative Percent
objectves to various respondants. The resrraher took higher artio of men over men and out of
150 selected respondants, 90 were men while 60 were wormn. The response takenfrom
various employees have been shown in tabel and Bar Chart which indicates tf ehat 26.67% of
employees were strongly agreed that auidt help the firm to achive its intended objectives
which also saves time and money for the firm.while 16.67% of employees were strongly
disagreed that auidt deprtment can not help the firm in getting its objectives. So in the light of
literature review, Internal help the firm to control of weaknesses in the system of control, and
it leads the firm to positive assurance when controls are operating satisfactorily and it also
help the firm to identify opportunities for improved efficiency and effectiveness and it also
help the firm to take necessary measures for every problems. (Basu, 2006)

4.18 Internal auditors performs management function or make management decision
Frequency Percent
Valid
Percent
Cumulative
Percent
strongly disagree 15 10 10 10
Disagree 20 13.33333 13.33333 23.33333
Neutral 30 20 20 43.33333
Agree 25 16.66667 16.66667 60
strongly agree 60 40 40 100
Total 150 100

interpretation
the reseracher asked the question about the management funstion perfomed by internal
auditors and for the purpsoe of getting resposne,the reserachesr has selscted 150 respndants
from the company both male ans dfemale employees who have been asked to resposnd the
particular questions about the intended resercah which has successfully focsed on the internal
audit of TATA company. It is reesaher selciev apprach for asking questions about the reserch
objectves to various respondants. The resrraher took higher artio of men over men and out of
150 selected respondants, 90 were men while 60 were wormn. The resposne taken from
employees have been shown in table and Bar Chart which indicates that 40% of employees
were strongly agreed that internal auditor perform many management function while 10% of
employees were stringly disagreed that internal audit can not perform management function.
So in the light of literature review, weakness and strength of an organization and
recommendations for improvement are taken when internal auditors perform the management
function in the firm. (Spencer pickett,2005)







0
20
40
60
80
100
120
140
160
strongly
disagree
Disagree Neutral Agree strongly
agree
Total
Series1
Series2
Series3
Series4
Series5
4.19 Internal audit give a foundation for external audit?
Frequency Percent
Valid
Percent
Cumulative
Percent
strongly disagree 25 16.66666667 16.66667 16.66667
Disagree 20 13.33333333 13.33333 30
Neutral 20 13.33333333 13.33333 43.33333
Agree 25 16.66666667 16.66667 60
strongly agree 60 40 40 100
Total 150 100

interpretation
the resercaher asked the question that internal auditrs provide chnace to external auditors and
for getting the resposne from employees, the reserachesr selscted 150 respndants from the
company both male ans dfemale employees who have been asked to resposnd the particular
questions about the intended resercah which has successfully focsed on the internal audit of
TATA company. It is reesaher selciev apprach for asking questions about the reserch
objectves to various respondants. The resrraher took higher artio of men over men and out of
150 selected respondants, 90 were men while 60 were wormn. The resposne of employees is
haoen in Table an dBar Chart which indicates that 40% of employees were strongly agreed
0
20
40
60
80
100
120
140
160
Frequency
Percent
Valid Percent
Comulative Percent
that internal auditors cause to invite external auditors when some wrongdoings are done in
auidting. While 16.67# of employees were strongly disagreed about external auditors come in
the organzation because of intrenal auditors. In the lightt of litertaure review, because internal
auditors usually begin their work with an audit program designed to concentrate on control
and risks, they are seldom able to include statement concerning the objectives of the unit.
Which invites external auditors to audit observations and recommendations to the results and
services of the organization. If the auditors are not absolutely clear on both the goals of the
manager of the unit and the quality of service that the corporation as a whole is aspiring to
provide, they cannot possibly show management the relevance or benefits of the observations
and recommendations for management point of view (Brathwait, 1988).

4.20 Internal audit does not provide any direction to improve organization efficiency.?
Frequency Percent
Valid
Percent
Cumulative
Percent
strongly disagree 35 23.33333 23.33333333 23.33333
Disagree 30 20 20 43.33333
Neutral 40 26.66667 26.66666667 70
Agree 25 16.66667 16.66666667 86.66667
strongly agree 20 13.33333 13.33333333 100
Total 150 100


interpretation
the reseracher asked the question about that intrenal auditors does not provdie any
improvement in the organziational efeicncy. For getting the resposne from employees, the
reserachesr selscted 150 respndants from the company both male ans dfemale employees who
have been asked to resposnd the particular questions about the intended resercah which has
successfully focsed on the internal audit of TATA company. It is reesaher selciev apprach for
asking questions about the reserch objectves to various respondants. The resrraher took
higher artio of men over men and out of 150 selected respondants, 90 were men while 60
were wormn. The resposne taken fromemployees have been shown in the table and Bar Chart
which indicates that 23.33% of employees were strongly disagreed while 26.67% of
employyes were neutral and 13.33% of employees were strongly agreed, in the light of
literature review, firm take more assiatnace from the suggestion and recommendtaions of
internal auditors which sometime play effective role in bringing more efficiency to
organization.







0
20
40
60
80
100
120
140
160
Frequency
Percent
Valid Percent
Comulative Percent
Chapter 6
Conclusion
Through auditing the efficiency of company is evaluated and it is considered as most vital
element for maintaining and achieving the overall objectives. Reliable financial reporting a
strong tool that help firm to prevent fraud and misappropriation of its assets and it also help
firm to reduce its cost of capital. Thus both internal and external auditors play the important
contribution to the audit system of firm in better ways. Auditing system helps the firm to
attain its various corporate objectives through the involvement of employees and various
form of internal financial control which regularly detect and prevent irregular transaction,
measure employees and organizational performance and help the firm to maintain its
adequate business records.
Thus internal auditors help the firm to review the design of internal controls and propose
various suggestions and improvements in the firm. If the firm has strong auditing system, it
can reduce the various firms of risks like information risks, risk of being fraud and
misappropriation of assts in the firm and other.
Professional skills (auditing) are related to the professional careers and growth in the
organization. Professionals skills are special ones that engage the individual in the
profession where she/he performs some activities with the assigned job responsibilities.
Leadership skill possessed by the individual also plays the dominant roles in setting the
strategic goals easily. Leadership skill includes interpersonal skills which play the impressive
role for the individual to be known as the successful leader .interpersonal skills included the
god attitude and manners .A high regards is given to me by the employees just because of my
leadership qualities and interpersonal skills.
Thus employees at TaTa motor company can be valuable assts if company properly provides
them the necessary training to understand the philosophy and mechanism of auditing
techniques. As it will help employees to be more dedicated and committed while performing
their responsibilities wholeheartedly. Vast understanding of the subject helps the firm
employees to be more result-oriented.
Any kind of fraud and misstatement can be assessed by auditors in the financial reports which
the firm makes. Thus it is impossible for any firm to make the reliable financial reports
without the use of internal control or strong audit system for internal and external financial
purposes. The firm will not be in a position to determine the cost of allocation to its resources
to its various products line and segment which ensures either profit for the firm in achieving
the strategic goals. If the firm is lacking the poor internal financial control, it may not be in a
position to reveal the status of its assets and liabilities in the market which would further
make its business operation to be failed in producing its best quality of goods and services.
So auditing system in any firm ensures in preventing the misstatements in the overall
companys records and reports.
Therefore internal audit serves the most significant role for many companies in preventing
the fraud and it also help the firm to detect the kind of fraud and other kinds of accounting
irregularities. In many firms, audit professional help in designing and modifying the internal
control system that aims at preventing the firm in meeting fraud and other accounting errors
in financial reports. If the firm is famous for its strong and active auditing system in market,
it not only saves its employees and reputation but also it retains credibility and trust of its
stakeholders.
Communication plays the major role in meeting the strategic goals which are set by
individuals or organization. Without communication nothing is possible and only source of
meeting the organizational goals is to convey the important messages/circular to the staff
which can address the new policy regarding the workplace environment is concerned.
Communication enable the individual to convey the data to another who perceive it and
understand it .Communication is of two types that plays important role to the strategic
objectives. Verbal communication and non-verbal communication, verbal communication is
expressed in words that are spoken while non-verbal communication is without word but uses
the body language or other gestures to express or convey the meanings.
For any organization to be most successful in the attainment of the strategic goals, monitoring
skills are playing the important role where manager guide their teams to follow the
instructions for the completion of the tasks. organizational team members often update
themselves with the latest information about the company policies and chalk out the proposed
plan which can benefit the organization employees engage themselves in the assessing the
working output of the all employees which may increase the efficiency of the organization in
better way. The specific tasks assigned by the higher authorities, managers point out to some
competent and skills workforce to complete under my supervision.
Manger and leaders with the vast decision power at the right time lead the firm effectively.
decision about the availability and utilization of all resources must be done on the right ties
and if the mangers and leader who are given the power to perform the decision making skills,
take the opportunity for the welfare of the firm .decision making power to the mangers can
motivate the employees and can lead the company from crisis to prosperity. Manger even use
this power for bring the transition in the company. Some leaders and mangers also involve
their sub-ordinate in the important decision making skills. The involvement of the employees
in the important decision can motivate the employees which show their dedication and
commitment and ever bring the most effective results to the company.
In evaluating the strategic and auditing skills to meet the organizational objectives, most of
the firms use three elements in the skills audit which may prove to be more effective and
result-oriented.
Following are the skill needed in auditing for the strategic goals.
Communication skills: In the execution of the all policies in the working environment,
communication along with the strong analytical skills play the dominant role in making the
stance on any issue vary durable, employees who possess the analytical skill with strong
argumentation can make the situation in favor their organizations. The constant feedback
from the external sources about the firms product can arise some heated debate within the
organization and managers in the organization with the argumentations skill can change the
entire situation on the important decisions.
Communication plays the major re in meeting the strategic goals which are set by individual
or organization. Without communication nothing is possible and only source of meeting the
organizational goals is to convey the important messages/circular to the staff which can
address the new policy regarding the workplace environment is concerned. Communication
enables the individual to convey the data to another who perceive it and understand it.

Leadership role and skills:
Leaders can play effective role in the promotion of the organization values and in the
attainment of the strategic goals .Manager with the leadership skill demonstrates and exhibit
the courage and dedications.
Leadership skills possessed by the individual also play the dominant role in setting the
strategic goals easily. Leadership skill includes interpersonal skills which play the impressive
role for the individual to be known as the successful leader.
Preparation of Audit development:
By making the audit development, people in the organization feels motivation and prepares a
framework that monitors and evaluate the entire process. So it is necessary for the employees
or manger to make certain decision to implement the plan before its development. So
manager must understand about the possible issues and problems or they should indentify the
tasks for which the plan is to be developed. It helps the individual and managers in the firm to
find some solution of the issues which may increase the morale of the employees to perform
more in order to attain the organizational strategic goals.
These both skills are interrelated with other as self-skill management is considering the part
of time management. Individuals and mangers must possess these skills which can bring the
positive development in the career growth. When some new tasks are assigned to workforce
by the higher authorities, then workforce must manage the time in order to complete the tasks
with their own self skills which they have already captured over the period of time , Self-
management skill emphases on the use of individual own ideas and options into actions
which create positive results to the firm.
Individual seeking the higher level of success in their life, must be acquainted with the art of
writing, speaking, presentation, communication and leadership skills which can impact on
the performance of the organization. The employees performance can also be measured
through interpersonal skills and rapport with other in connection with carrying out the
organizational goals.
All organization tries to develop improvement in all business areas which has fostered
commitment of employees to increase the overall efficiency of the organization. my strong
collaborations and rapport with the staff have gained lot of trust and confidence which many
authors personally believe to be playing the satisfactory role for the prosperity of the firm,
therefore it is necessary for the mangers and leaders to develop the interpersonal
communication which will provide more opportunities to others and will motivate workforce
to contribute more for the achievement of strategic goals. The development of auditing plan
for the organization also motivate the employees with the latest ideas and opinion to the most
complex issues, enable the employees to participate more for the stability and survival of the
organization.
Employees can assess their outcome o the basis of their achieved communication skills
through simple planning and control. The developments of interpersonal skills also provide
the better outcomes to the career growth of employees and to the company particularly. the
prosper usage of all means of communication in the organization can increase the efficiency
of the employees and produces the open culture where all employees coordinate with each
other because of communication.
For the monitoring of long term plan, there is a dire need of developing the technical skills
which can be fruitful in achieving the goals. When some technical issues arise in the firm
than the individual possessing the technical skill can be more dominant over other employees
and can increase the worth. Technical knowledge can solve the complicated issues of the
organization and employees should possess the technical skills.
Recommendations:
Organization can use the various financial methods and techniques which can have the
positive impact on the companys aggressive profit. So apart from using the finical
techniques companies must show their ideal commitment in completing the whole tasks. So
all decisions are made keeping in view the exact ratio of the financial(audit) techniques which
help to take the better sue of the organizational capital for future perspectives for improving
employees performance. When the organization adopts the sound finical decision, it helps the
organization to develop the sound strategies towards for suing the accurate capital to the point
where it is needed.
Organizations must use two approaches in developing the strategic investment audit
techniques. One involves the organization to modify the traditional investment framework
that is used y the organization and second is sued when the organization thinks to involve the
reliance on the analytical framework. Between these approaches, organization focus on the
use of strategic cost management, value analysis, R research and development and many
other methods.
When the organization takes the decision on the basis of audit done, it considers them more
appropriate because it includes that entire financial requirement which is required by the firm.
Making decision regard to available investment also evaluates that the clear considerations
are being taken in the projects. Appropriateness of the financial commitment further save the
organization for being driven into dangers and complexities. So strategic decision made after
the approval of the budget give the organization to make the positive development in the
project which meet all the requirements. Through this approach, organization indentifies the
level of additional expenses which can be easily controlled. Post audit appraisal also give the
organizations to look at the various aspects that create huge costs and expenses. it makes the
organization to be well aware about the losses due to extra expenses to any project or
developmental scheme.
The basic purpose of the conducting audit is to show the public that how much revenue,
assets and obligations the company is generating and giving the dividends to its shareholders
accordingly. Organization can also explain in its balance sheet and in its income statement
that how the company is perfuming in the market with its available resources. The
information contained in the balance sheet and income statement also shows the firms
strength in terms of its available capital for the future use. And further improve the efficiency
of the firm along with performance of employees.
With the industry trends in the market in terms of more competition, organization has also to
change its policy for sustaining its position in the market and has to make joint-venture
projects. Keeping the credibility among the its stakeholders, management of organization has
to look at its annual financial report which in clear terms reflects its comprehensive policy to
public. These financial annual reports also depict the wide range of its profitability and
shareholders contribution to the company.
For gaining the long term goals organization in the competitive environment use the concept
of audit management which enhances the power in making the decision about that resource
already used which the organization jeeps under its domain .when the organization focus on
the profile strategy, it gains the ultimate outcome more quickly. So by keeping the strategic
portfolio decisions, organization can get the following improvements which are based on the
financial information. It helps the organization to make less relying on the investor in selling
the inventory in the average industry to pay its short term debt. So firm must adopt the policy
of conducting audit of its product which is not creating more revenue. Thus it must expedite
all available resources to consume in the business. Thus there should be revised policy of
financial aspect especially of audit.
PERS ONAL DEVELOPMENT
I a l wa ys h a v e t h e i n t e r e s t i n t h e f i e l d o f ma n a g e me n t wh e n I wa s
i n c o l l e g e . Th a t s wh y I c h o o s e ma n a g e me n t s t u d i e s a s ma j o r .
Wi t h t h e h e l p o f my t e a c h e r s I e n h a n c e d my k n o wl e d g e i n t h e
f i e l d o f ma n a g e me n t . Un d e r t h e s u p e r v i s i o n o f my i n s t r u c t o r s I
c o n d u c t a r e s e a r c h wh i c h p r o v i d e me g r e a t u n d e r s t a n d i n g o f
ma n a g e me n t . Du r i n g t h i s p e r i o d I e n h a n c e my s k i l l s a n d l e a r n n e w
c o n c e p t s a n d t h e o r i e s o f ma n a g e me n t . Th e t o p i c o f t h i s r e s e a r c h
i s v e r y i n t e r e s t i n g wh i c h h e l p s me t o p a y my a t t e n t i o n s t o wa r d s
my r e s e a r c h wh i c h ma k e a b l e t o s u b mi t my r e s e a r c h o n t i me .



















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4. http://www.tata.com
5. http://tatamotors.com













Appendixes