CHALLENGES AND PROSPECTS OF INTERNAL AUDIT IN NIGERIA BANKS (A STUDY OF DIAMOND BANK)

ABSTRACT
The study focused on the “Challenges and Prospects of Internal Audit in Diamond Bank PLC. The main purpose of this study is to determine the challenges and prospects of internal auditors in Nigerian Banks. This work made use of two specific objective, two research question and also two hypotheses. The study conducted a survey research design .Questionnaires was self-distributed among the senior managers and auditors. The population was made up of eight (8) senior managers and internal auditors in Diamond Bank PLC. Simple percentage and T-test were used to run my data analysis ,the finding is that internal auditing as a profession faces significant challenges that makes them not to have enthusiasm towards their profession. From the study, the following recommendations were made: Management should have quality technology and materials available for internal auditors.  Management should provide training ground for internal auditors. 

CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
It is said that finance is the mainstay of an economy without finance there will be no investment and capital to start up a business and also no meaningful development could be done without finance and proper management, as a result of that diamond bank has a system of control which ensures smooth running of their bank of which internal auditing is an integral part.
Internal auditing ensures that all activities of the organization are carried out employee according to laid down procedures, the introduction of new technologies e.g. the invention of computerized internal audit system which posed challenges to the internal audit system and internal audit staff and their duties the prospect of this challenges is to update their knowledge and adjust to the current practice and also to overcome those challenges in the face of manipulation and also to perpetrate fraud is desirable, more so the requirement of new auditing  standards will make staff of internal audit to update their knowledge and adjust to the current practice. Auditing is a key factor in controlling every kind of organization with financial and economic aspect serve as a sort of check and balances and administrative procedure of any organizational set up.
The need to maintain effective and efficient internal audit system, cannot be over emphasized especially in a period like this, when Nigeria government is making effort towards ensuring that wastage, privilege, misappropriation and checked or avoided to ensure that asset are being secured.
As one of the cornerstone of a career in accounting internal auditor gives strong understanding of the financial faces and processes, many may view it as a mundane and repetitive job but what they do not realize is the challenges and complexity that comes with job which are: shortage of talent, distinguishing yourself from the crowd, developing your career and market outlook.           
Diamond bank plc as a private ltd liability company on March 21 1991 was incorporated on December 20 1990.Ten years later, in February 2001 it became a universal bank. In January 2005 following a highly successful private placement share offer which substantially raised the bank equity base diamond bank became a public LTD company. Since then 1990, diamond bank has challenged the market environment by introducing and setting new bench mark through international standard.
They bank also have a strong cooperate banking ethics that is helping fuel the growth across Nigeria through supporting many businesses. It serves over 150000 business including cooperate client as well as Micro Small and Medium Scale (MSME).it is also the first Nigerian bank to operate in francophone west Africa
The Carlyle group, the global alternative asset manager became a significant share holder in November 2014 following its 1.47 investment in bank. The auditor came across many challenges while carrying out their duties but with some prospect that can be able to carry out their duties effectively and efficiently.

1.2 Statement of problem:
Robert (2016) observed that there are several big challenges facing the internal audit as a whole some of them represent opportunities as well as obstacles to overcome. The difficulty in filling internal audit positions with talented candidates for example has led to increase in pay to many internal auditors the internal auditors perform their duties successfully also enhance good internal audit control as well as maintain some standard of good services which their client have engaged their services, there is need for utilization of effective management functions, However this internal auditors face some challenges while carrying out their duties such a Robert 2016 noted this challenges.
Proper document are not given to them on time.
They are not adequately equipped.
lack of requisite system
inability to adequately recommend and establish production method
It should be noted that a lot of studies have been conducted on the challenges of internal auditors in diamond bank as a whole but It is hoped that this study will contribute to debate and perhaps shed further light on the impact of reducing the challenges audit faces in diamond bank so as to make the working environment conducive for them while carrying out their duties and also to reduce the challenges auditors faces while carrying out their duties in an efficient and orderly manner.

1.3      Objectives of the Study:
The main objective of this study is to find out the challenges and prospect of internal audit in Nigerian banks. The specific objectives are to ascertain the challenges faced by internal auditors in Nigerian Banks. To ascertain the prospect of internal audit in Nigerian Banks.

1.4      Research Question
What are the challenges faced by internal auditors in Nigerian Banks.
What are the prospect of internal audit in Nigerian Bank comply with banks complies with bank management policies and regulation.

1.5       Research Hypotheses:
H0 There is no significant challenges faced by internal auditor in Nigerian Banks.
H1 There is significant challenges faced by internal auditor in Nigerian Banks
H0 There is no significant prospect of internal audit in Nigerian Banks
H1 There is significant prospect of internal audit in Nigerian Banks

1.6       Significance of the Study:
They significance of the study form the contribution it will add to knowledge on the often debated topic of evaluation challenges and prospect of internal audit. This work will be of great benefit to:
Researchers and student: because it reveals the relevance of auditors and for student it also contributes significantly to the internal auditing debate.
Auditors: it will be useful to auditors because it tells them about their challenges and how to face them and also prospect toward them carrying their duties.
Management of Banks: the study is to help management appreciate auditors and understand the challenges the face in carrying out their duties, so also to provide prospect for auditors so that they can help to improve audit facilities or technology and so that  they will make the work enjoyable and they wouldn’t want to risk losing billions of money.
Government: agencies, companies, bankers researchers student who might be interested in knowing about the concept challenges and prospect of internal auditors it will cover the whole aspect of internal audit the objectives, types, reliance and prospect etc this huge amount of information will be an indispensable material to the above mentioned beneficiaries.
Public:It will also help the public in the sense that they will able to know the statues of the company so that they can make decision on either to invest in the company or not so as to avoid risk.

1.7       Scope of the Study:
It was the wish of the researcher to cover many areas of the banking sector but for the purpose of this study the researcher is only restricted to the role of auditors in detection, prevention and control of fraud in banking sector with the case study of diamond bank plc.

1.8       Limitations of the Study:
The researcher encountered a lot of hindrances and problems while carrying out this work. The major limitation was pressure of time in terms of academic work and demand of the research. The researcher was combining academic work with activities relating the research. Finance to source relevant materials was also a major hindrance. However these problems did not affect the quality of the research   

1.9       Definition of Terms:
Auditor: An auditor is a person usually professional, appointed by banks to audit its financial statement and therefore make an opinion on the truth and fairness of the financial statement Auditor in this study refers to the internal auditors
Bank: A organization or place that provide financial services Bank in this work refers to as diamond bank

Financial Statement: This is a form of annual report and accounts that includes a statement of comprehensive income and loss, statement of financial position and also other statement including directors report and cash flow statement, finance statement in this work refers bank financial statement.

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Item Type: Project Material  |  Size: 44 pages  |  Chapters: 1-5
Format: MS Word   Delivery: Within 30Mins.
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