DESING AND IMPLEMENTATION OF AUDITING SYSTEM
A Case Study of Delta State Polytechnic, Ozoro.
This project emphasis on the Automation of Auditing System acquainting its readers most especially the Internal Audit Sector. The basic objective of this project is to exhume the problems encountered during Auditing.
When a statement of Account is presented to an auditor for examination, he will need to scrutinize the underlying documents such as receipts, payment Vouchers, Various ledgers, Bank tellers, Bank statements e.t.c.
He may also ask for explanations and information from the offices of the institute or organization whose account is auditing. In other to effectively carry out an auditing a computerized Auditing system will be implore. Since the computerized system will give the necessary information to the audit and also reduces the work load of the Auditor.
TABLE OF CONTENTS
1.1 Historical background of study
1.2 Statement of Problem
1.3 Objectives of Study
1.4 Scope and Limitation
1.5 Importance of the Study
1.6 Definition of Terms
2.0 Literature review
2.1 Analysis of the Manual System
2.2 Problem of the Manual System
3.0 System Design
3.1 Method of investigation
3.3 Proposing the new System
3.4 Objectives of the New System
3.5 Analysis of the New System
3.6 Procedural Chart
3.7 Input Specification of New System
3.8 Output Specification of New System
3.11 System Flowchart
4.0 System Development/Implementation
4.1 Program Development
4.2 System Testing
4.3 System Documentation
4.4 User’s Guide
4.5 System Conversion
4.6 System Installation
4.7 System Evaluation/Maintenance
5.1 Problem Encountered
1.0 The Need for Audit
Must people at one time or the other would have heard of audit and may also have a general idea of what it is a review of a statement of account prepared by the appointed financial officer of an organization by some other persons.
It is usual, for example, for various social clubs, family unions, students Unions, town development association, Government and Private Institutions just to mention but a few to provide in their constitutions for the post of treasurer and or financial secretary to receive and disburse the funds of the organization. The question that comes to mind then would be: What is the need for such a provision? In other words, what is the need for an audit? Put simply, the need for an audit would arise where one person or group of persons handle money worth or money’s worth on behalf of some other person or group of persons. In such a situation, the owners of the fund need an audit to satisfy themselves that their funds are being honestly and prudently managed. For example in an institution such as Delta State Polytechnic: Normally there are officials (i.e Bursary Department) who collect school fees, any payment and levies from student and sometimes from staffs and finds accruing to the institute from other sources. The officers also effect approved disbursements. They would normally be expected to keep any surplus fund in the bank or in some other custody the institute may approve. At the end of the year, or other period agreed upon, the finance officers present a statement of account to the head of school (Rector and other management) to show:
(a) How much the institute had at the beginning of the period?
(b) How much was collected during the period and from what sources.
(c) How much was spent during the period and on what?
(d) The balance at the end of the period and where it is.
Currently, audit is more or less manually done. It involved
(i) Checking of payrolls.
(ii) Checking of impress
(iii) Checking of purchases
(iv) Checking of prepared budget
1.1 THE NEED FOR A COMPUTERISED AUDIT:
Since computer is an electronic device use in inputting data, storing data, processing data as well as outputting data for future use, it therefore means that it can be use to carry out job accurately pending on what is given to it, it is also used to efficiently carryout job, it is versatile, it is consistent e.t.c.
The computerized auditing system will provide easy access to locate an existing file (Staffs, Students e.t.c) most especially when payment is made or given out and also the computerized system would be free from errors.
1.2 HISTORICAL BACKGROUND OF STUDY
Delta State Polytechnic, Ozoro forms part of a cohesive polytechnic community within the growing agro-commercial town of Ozoro located in the Isoko North Local Government Area of Delta State, it is approximately 95 kilometers to Asaba, the capital of Delta State.
It is on record that there was a Polytechnic at Ozoro (Ozoro Polytechnic) between 1981 and 1985 or there about in 1985, it becomes a satellite campus of the defunct Bendel State College of Agriculture with its main campus at Anwai- Asaba. Other satellite campuses were Ekpoma and Iguoriakhi. While Ekpoma and Iguoriakhi are presently in Edo State, Anwai main campus was relinquished to Delta State University, Abraka as its Faculty of Agriculture.
In 1992, College of Agriculture, Ozoro campus become a full – fledged college of Agriculture (Delta State College of Agriculture) with a provost as the Chief Executive Officer, this was after the former Bendel State in August 1981. The Delta State College of Agriculture, Ozoro Operated for approximately ten(10) years before it was merged with the Delta State Polytechnic, Ozoro. The Delta State Polytechnic, Ozoro was established by law enacted by the Delta State Government on November 12, 2002. The development of the project has been managed by the Delta State Higher Education Project (DSHEP), which is partnership with the Delta State Ministry of Education and the University of West ministry, London. The purpose of this international collaboration is to bring the very best of current education practice to Nigeria and to Delta State in particular.
1.3 STATEMENT OF PROBLEM
Computing technology involves the use of computers to run data into useful information. Therefore, a computer system is a collection of interrelated components working together for the purpose of turning data into useful information. The problems dealt with in this study include:
(i) The inefficiency and ineffectiveness of the manual audit system and its resultant effect which is the over laboring of staffs due to the large volume of work to be done and the limited time available.
(ii) Time wasting: Since the manual system involves the use of time in the registration and retrieval of information, much time is wasted in the process.
(iii) In – accuracy: This is the process of giving a wrong output while output undertaking a specific task. The manual system is subjected to errors, which is likely to give an in – accuracy output.
1.4 OBJECTIVES OF THE STUDY
The primary object of this study is to provide a more convenient way of organizing audit in Delta State Polytechnic, Ozoro by computerized the process. A well articulated computerized audit system will ease the work load on staff and will save time too.
In other words, a successful design of a computerized audit system will go a long way to help in carrying out department audit, keeping of records whenever the need arises.
1.5 SCOPE AND LIMITATION
This research is limited to the audit department of Delta State Polytechnic Ozoro during the course of carrying out this research; the researchers limited their time in knowing the details of an audit, the entire requirements, audit records which include department, revenue as spelt out as well as the income.
1.6 IMPORTANCE OF THE STUDY
This research work will go a long way to provide solutions to the problems associated with the audit of department, storing those record and retrieval of the audit in information when the need arises. Below are other importance of this study.
(i) High speed of operations in order to eliminate in efficiencies.
(ii) Elimination of duplicate entries, error, and increase in the accuracy of information.
(iii) Quick and easy reference of information through the audit search.
Therefore, it will not only take care of the current systems deficiencies but will also improve the audit department of Delta State Polytechnic Ozoro.
1.7 DEFINITION OF TERMS
DESIGN: The art or process of deciding how something will look like.
IMPLIMENTATION: To make something that has been decided start to happen or be used.
AUDIT: An official examination of business and financial records to see that they are true and correct.
SYSTEM: Is a collection of related components or units that interact with one another to perform a task in order to perform a task in order to accomplish a goal.
PROGRAM These are written instruction that instruct the computer on what to do. It also manages the computer resources.
SYSTEM ANALYST: This is a trained personnel who investigates system to know how the system work in order to make it work more effectively.
FILE: This is a collection of related records information or data items.
DELETE: This is the process of removing records from a file.
INSERTING: This is the operation of adding records from a file.
EDIT: This is the operation of looking for information in a computer database or network.
DATA: These are raw facts about the organization and its business transaction.
INFORMATION: This is a data that has been refined and organized by processing and purposeful intelligence.
INFORMATION TECHNOLOGY (IT): This is a contemporary term that describes the combination of computer technology (hardware and software) with telecommunication technology (data, image and voice networks).
INFORMATION SYSTEM: This is an arrangement of people, data, processes, information presentation and information technology that interact to support and improve day-to-day operations in a business as well as support the problem solving and decision making need f management and users.