ABSTRACT

This study is conducted in respect of relevance of internal auditing as a management tool for effective control in government parastatals - the study of Nigerian Port Plc, Calabar, where the population of the study was draw with a sample size of 133 respondents. Statement of problems are as follows; noncompliance with auditing standards and procedures, undue management interference in audit process and reports, low qualification and inexperienced of audit staffs, weak internal control system. The general objective of Ibis study is to study the relevance of internal control in an organization such as the Nigerian Port Plc Calabar, with specific as following; to investigated the compliance level with regards to established control measures by the researcher, to assess the level of performance vis-à-vis the internal audit standards of the port, to examine the factors responsible for any inaccuracy, to assess the relevance of internal control in an organization such a the Nigerian Port Plc, to be recommend appropriate internal audit measures in the areas of lapses. Survey and a case study research is used in carrying out this project. In drawing data for this research, the primary and secondary sources of data method were used. Simple percentage and chi-square are analysis technique used in research questions and hypothesis respectively. The hypothesis developed for the study have tested after thorough analysis of the data. The analysed data indicates that; weak internal control system increase the level of fraud in the organization, that appointment of unqualified accounting personnel as auditors have negative effect on the audit report of financial statement, that non-compliance with auditor's standards and procedure by an auditor affect the financial procedures of the organization, that government parastatals cannot survive without internal audit, the researcher also discovered that many staff in government parastatals are not going on special training after being employed, that non-compliance with auditor's report (opinion) standard by the management affect the realization of the organizational goals. Talking cognizance of the findings of this study, the following recommendations are considered necessary; the staff of internal audit department should attend seminars, workshops and special training regularly, the management of the port should improve upon its weak internal control system and put more effot on the areas that are considered to he good at the moment, the organization should make effort to employ qualified and experience saff; management should guide its operations with auditor's opinion an a major tool of decision making and control. Finally, management should make special provision for the independence of the internal audit department so as to ascertain a true, fair and unbiased financial statement for the port and other users.