Full Project-INTERNAL AUDITING AND STOCK TAKING,

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ABSTRACT

INTERNAL AUDIT AND STOCK TALKING

Internal auditing and stocktaking are characterized by paucity of literature mostly when it involves having a focus on a particular establishment.  Most at the work on auditing have been centered on independent audit.

However, effort were made to scrape as much as possible from the dired ground.  Internal auditing is this an independent appraisal activity within the organization for the review of accounting, financial and other operation as a basis for services to management.

The person who does the above job is known as an internal auditor.  While stoking is the counting and checking of the price and physical quantities at goods or items in the store by selected officials at the company.

In an establishment like the total Nig. Limited is a company which concentrates much on the marketing of petroleum products though diversification are being made towards such area like agriculture.

INTRODUCTION

1.1            BACKGROUND OF THE STUDY

Internal auditor has been described as “the review of operations and records sometimes continues, undertaken within a business by specially assigned staff.

An internal audit or section is a part of the organization headed by the chief internal audit who reports to the chief of the executive of the organization.  Internal audit is a part of system of internal control and is undertaken by the staff of the organization. The work undertaken by the internal audit is decided by either the Board of Directors or the management.  The responsibilities duties and power of internal audit are determined by the director periodically these duties and responsibilities are reviewed by revised.

As with internal check, the internal audit system must be varied to suit each particlar business for instance the type of internal audit that is applicable to total Nigeria limited company will differ from that suitable for retail.  In the latter one of the most important point will be the safe-guarding of cash and small articles of stock.  As it is not easy for an employee to remove a large heavy machine a different system of internal audit may be applicable in a machine tool.  Manufacturing firm

1.2            STATEMENT OF PROBLEM

The issue of the outside world regarding internal auditors as fraud detector has to be corrected.  The auditor is only expected to express an opinion on the true and fair view of the financial statement and not to detect fraud unless specified on the letter of engagement.

He owes the management and share holder a duty to report to them wherever he discover any in the course of his normal audit.

1.3            PURPOSE OF THE STUDY

The objective of this study is to identify the need for an organization to have an internal audit, it is also to stress the important of an organization to be aware of its stock position of all times as it could enhance management decision for intense, internal auditing in total Nigeria limited has improved the management information system and the type of activities performed by the internal auditors.

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