ABSTRACT

This research study centers on the Evaluation of Internal Auditor's Challenges and Prospects in a computerized accounting system. In the past, a huge but manageable amount of book keeping was handled manually at Seven-up Bottling Company Plc. Aba. But with the expansion of the company in 1990 and a corresponding increase in workload, manual record keeping was found wanting. To avoid this unpleasant situation, computer was introduced same year. Computerized accounting system helps to facilitate the 'work of the auditors. One of the major problems on the Evaluation of the internal auditor's challenges and prospect in a computerized accounting system is that the computerized accounting system environment may affect the internal auditors design and performance of tests of control and substantive procedures appropriate to meet the audit objectives. To solve the research problems, and achieve the aim of the study, secondary data were used equally, questionnaires were administered to the various levels of the staff of seven-up Bottling Company Plc to ascertain their view on internal auditor's challenges and prospects in a computerized accounting system, in order to elicit answers to research questions and hypothesis. Furthermore, percentage, table and Chi- square method was used on research questions and in testing the hypothesis. The following findings were made: is it easy for internal auditors to trace data sorted by computer in a source document from output document; internal auditors do not find it difficult to examine records since information is sorted on magnetic disc; the internal auditors have access to the customers statement of account which is retained in the file; internal auditors in a computerized accounting system encounter problems, computer is a useful tool for the improvement of departments. The researcher also recommends that the internal auditor auditing in a computerized accounting system should first of all have a good knowledge of the system of accounting used in the organization, secondly, appropriate software programmes should be used to obtain appropriate audit trial, necessary for accurate audit exercise, thirdly, the organization should be able to secure as for as possible the important files and data and the reliability of its records.