SIGNIFICANCE OF INTERNAL AUDITING IN FEDERAL GOVERNMENT PARASTATALS
ABSTRACT
This study is centered on the internal auditing in Federal Government parastatals with particular reference to the Nigerian Prisons Service Enugu. The main purpose of the study is to look at the internal audit system in federal government parastatals and to review the extent to which it is used in safeguarding the council assets; preventing fraud and inefficiency of operations. This work also examined the essence of internal auditor to external auditors of the government parastatals and how government policies can influence the execution of internal audit functions. Both descriptive and historical method of research have been employed in the course of study. Also primary and secondary data are used. Primary data were through the application of questionnaire, personal interviews, and observation. Secondary data was gathered through the review of related literature and results of questionnaires were analyzed and assembled in tables. The end result revealed that internal auditing is a powerful tool in safeguarding the resources of government parastatals. It also shows that the functions of internal audit department are essential to external audit of Government Parastatals. In the findings, it was discovered that government policies affect the execution of internal audit functions. The study recommended that qualified accounting officers are employed as internal auditors in Government parastatals and particularly in Nigerian prisons service.
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