The Role of Internal Auditors in A Depressed Economy.


This research was undertaking to ascertain the role of Internal Auditors in a depressed Economy with particular reference to Banks in Nigeria,

The main purpose of the study is to look at the Internal Auditing Department in banking industry and to review to an extent to which it is used in the protection of the Bank’s assets, misappropriation and embezzlements of funds.

The objectives of this study are: to examine the roles of Internal Auditors in Financial Institutions, to access the impact of government financial policies and guidelines on the execution of Internal Audit functions in financial institution,

To evaluate the usefullness of Internal Audit functions in financial institution (Banks), to find out the importance of Internal Auditors in protection of company’s assets, misappropriation of funds and embezzlement of funds

And to make appropriate recommendations that will proffer sound solutions in the weakness of Internal Auditing functions in bank’s. In pursuance of the objective of the study, three hypotheses were formulated ad tested.

In order to get information for the study, both description and historical method of research have been used in the course of study. Also primary and secondary data was used.

Primary data was gotten through the application of questionnaire, personal interviews and observation. Secondary data was gathered through the review of related literature and the results of the questionnaires were analyzed and assembled in tables.


Background of Study

The practice of auditing has been existence even in the ancient time. The need for auditor arises when the truthfulness and fairness of financial statement is required.

An Auditor is a person appointed by law to examine and investigate the accounting records prepared and maintained by organization are of true and fair view.

Before the medieval times, auditing was referred to as the process of public hearing in which financial statement of financial records were read aloud, Ekwere (1991).

In essence, auditing was made to determine where persons in position of fiscal responsibilities in government or organizations were acting and reporting in good faith or in honest manner.

But today, auditing has taken a new dimension in our society and it will continue to be improved upon as a result of expansion and growth of business in our contemporary society.

Auditing is a systematic process of objectively obtaining and evaluating evidence regarding assertions about economic actions and events to ascertain the degree of correspondence between those assertions and establish criteria and communicate the result to interested users”


ADAMS, R. (1995), Audit Framework, London: Certified Accountants Educational Projects Ltd

ADENIYI, A.A. (2004), Auditing and Investigation, Values Analysis Consult Publishers, Ibadan.

AGUOLU, Osita (1998) Fundamentals of Auditing, Enugu, Meridian Associates Publishers Pg. 16-23.

BABATUNDE, A.A. (1996), “The Role and Responsibilities Relation to Fraud, the Nigerian Accountants.

BAILEY, L.P. (1999), Contemporary Auditing, 1st Edition London, Gree and Company Ltd, pg 21

CRANFORD, T.C. (1999), Auditing, 1st Edition London: Gree and Company Ltd.

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