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Evaluation Of Value For Money Audit, As A Tool For Fraud Control In The Public Sector (A Study Of Power Holding Company Of Nigeria Abuja)

  • Type:Project
  • Pages:98
  • Format:Microsoft Word
(Accounting Project Topics & Materials)
The scope of governmental auditing has been widened over the year by the demand for independent verification of information to the extent that it can no longer be limited to the audit of financial operations, but value for money audit which ensures that the activities and programs are carried out at low cost and high standard. Lack of commitment in cost efficiency to the overall achievement of goals by the managers in the public sector brought the need of this research work titled “Evaluation of value for money audit as tool for fraud control in the public sector”. The aim was to ascertain whether government auditing achieves the purposes for which programs are authorizes and funds released economically and efficiently in accordance with applicable law and regulations. A survey research design was adopted for the study with sample size of 100 respondents randomly sample and stratified from Audit and finance department of PHCN (Abuja). Three hypotheses were tested at 5% level of significance using the analysis of variance (ANOVA) statistics. it was found that value for money audit play a vital role in promoting the effectiveness and efficiency of activities in the public sector the researcher recommend that government should support the implementation of policies formulated to enhance value for money audit in the public sector.

TABLE OF CONTENTS
The title page i
The approval page ii
Certification page iii
Dedication iv
Acknowledgement v
Table of contents vii
List of tables viii
List of figures ix
The abstract x

Chapter One: Introduction
1.1. Background of the study…………………………………………………………….1 
1.2. Statement of the problem…………………………………………………………..3 
1.3. Research question……………………………………………………………………….4 
1.4. Objective of the study…………………………………………………………………4 
1.5. Research hypotheses……………………………………………………………………5 
1.6. Scope of the study………………………………………………………………………6 
1.7. Limitation of the study…………………………………………………………………7 
1.8. Significance of the study………………………………………………………………7 
1.9. Definition of terms……………………………………………………………………….8 

Chapter Two: Review of related literature
2.1. Difference between internal auditing and internal auditor…………....10 
2.1.1. The need or objective of internal auditing in power sector……………..11 
2.2. Difference between external auditing and external auditor……………..12 
2.2.1. Objectives of external auditing…………………………………………………....13 
2.3. Qualities of an auditor………………………………………………………………….14 
2.3.1. Auditors right………………………………………………………………………………….16 
2.3.2. Duties of an auditor………………………………………………………………………..17 
2.4. Value for money audit as a tool of fraud control…………………………..18 
2.4.1. Value for money objectives…………………………………………………..……….…19 
2.4.2. Improving value for money audit………………………………………..………….…20 
2.5. Problems and prospects of value for money audit…………………………20 
2.5.1. Causes of fraud in the public sector………………………….…………………..21 
2.5.2. Prevention measures of fraud in the public sector……………………..…23 
2.6. Other preventive measures………………………………………….…………………...24 
2.6.1. Internal auditor’s role in fraud control……………………..……………………24 
2.6.2. Fraud control methods………………………………………….……………………….26 
2.7. Core of value for money audit…………………………………………………………27 
2.7.1. Value for money audit concept……………………………………………………….31 
2.7.2. Scope and emphasis……………………………………………………………………….33 
2.8. Auditing and value for money……………………………..…………………………34 
2.8.1. Steps involved in carrying out value for money audit…………………………36 
2.8.2. Public sector audit………………………………………………………………………….36 
2.9. Procedures for value for money audit…………………………………………….37 
2.9.1. Value for money audit technique………………………………………………….39 
2.9.2. Value for money review………………………………………………………………….41 
2.10. Problems of value for money audit in the public sector………………….42 

Chapter Three: Research methodology
3.0 Introduction………………………………………………………………………………………..44 
3.1 Research design………………………………………………………………………………44 
3.2 Source of data……………………………………………………………………………………46 
3.3 Population of the study…………………………………………………………………..46 
3.4 Sampling size and techniques…………………………………………………………47 
3.5 Instrument for data collection……………………………………………………..48 
3.6 Validity for instrument of data ………..………………………………………….49 
3.7 Reliability of the instrument data…………………………………………………..49 
3.8 Method of data ……………………………………….…………………………………..49 
3.9 Method of data analysis……………………………………………………………….50 

Chapter Four: Data presentation, analysis and interpretation
4.1. Data presentation and analysis……………………………………………………..53 
4.2. Test of hypothesis…………………………………………………………………………63 

Chapter Five: Summery of findings, conclusion and recommendation

5.1. Summary of findings………………………………………………………………………75 

5.2. Conclusion…………………………………………………………………………………….77 

5.3. Recommendation…………………………………………………………………………78 
BIBLIOGRAPHY………………………………………………………………………….80
APPENDIX / QUESTIONNAIRE……………………………………………..82


List of tables
4.1.1 Responses on the extent to which value for money audit is relevant to the effectiveness and control of an organization. 
4.1.2 Responses on the significant relationship between internal control and fraud detection. 
4.1.3 Responses on the causes of lack of transparency and wide spread corruption in power sector. 
4.1.4 Responses on the significant impact of value for money audit in fraud detection and control. 

List of Figures
Fig 2.7 Categorization of fraud detection methods
4.2 Anova table
4.2.1 Anova contingency table for hypothesis 1 
4.2.2 Anova contingency table for hypothesis 2 
 
INTRODUCTION
Every sector of the economy both the private and the public sector has its own objectives and goals to achieve. For the public sector of the economy, their goal is to satisfy the social needs of the citizens and in the effort to achieve these purposes, auditing more often, play a vital role.

The size and scope of these sectors have sometimes made it clear for the executor to exercise personal and first hand supervision of operation. It is in this light that value for money audit established by management is initiated, for any organization to carry out its business efficiently and effectively, there must be some factors that must be put in place for the smooth running of the organization like materials, machines, human labor and money e. t. c.

Auditing is seen to play an intermediary function in between management and the resources of the organization. It is also fundamental to any business either the public or private sector, which will help the business to keep its adequate financial records. These financial records are kept in response to the demand by a system control which requires that the business enterprise must be carried out in an orderly manner, ensure adherence to management policies, safe guard the assets and secure possibly the completeness and accuracy of the records. Irrespective of these facts of system of control established by the management of the organization, fraud still thrives.

In the early 1970s, the role of the state auditors began to change dramatically. Changes began in USA, Canada, and in several European countries. The representative of the people started demanding information on the efficiency and effectiveness of public expenditure.

In Nigeria no specific legislation has been put in place to empower auditors to carryout value for money audit. However, the 1999 constitution section 88 (2) empowered both the two federal house and the state house of assembly to conduct investigation to expose corruption, inefficiency or waste on the execution or administration of law within the legislative competence and in the disbursement or administration of fraud appropriated by it.

Therefore, fraud control has become increasingly important to managers of various governments in an organization. In general, financial statements fraud has always weakened investors’ confidence in both private and public sector investment. This is because 1 fraud against an organization reduces the net income by 1 and services to be provided to people in the case of public sector.

However, value for money audit will be wildly concerned with the economy and efficiency of an organization and the effectiveness of achieving its desired objective thereby controlling fraud to evaluate the effectiveness of the internal control system within the organization.

(BRIEF REVIEW OF THE FIRM, POWER HOLDING COMPANY OF NIGERIA, PHCN)

The history of electricity in Nigeria can be dated back to the end of the 19th century when the first generating plant was installed in Lagos in 1898. From then until the 1950, the platform of electricity development was in the form of individual electricity power undertaking scattered all over the towns, some of the few undertaking were federal government bodies under the public works department, some by the native authorities and others by the municipal authorities.

Evaluation Of Value For Money Audit, As A Tool For Fraud Control In The Public Sector (A Study Of Power Holding Company Of Nigeria Abuja)

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Details

Type Project
Department Accounting
Project ID ACC2717
Price ₦3,000 ($9)
No of Pages 98 Pages
Format Microsoft Word

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    Details

    Type Project
    Department Accounting
    Project ID ACC2717
    Price ₦3,000 ($9)
    No of Pages 98 Pages
    Format Microsoft Word

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