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.


 Title page                                                   i
Approval                                                    ii
Declaration                                                iii
Dedication                                                 iv
Acknowledgements                                  v
Abstract                                                      vi
1.1 Background to the study                                       1
1.2 Statement of problem                                           2
1.3 Purposes of the Study                                           3
1.4 Research questions                                               4
1.5 Research hypotheses                                            4
1.6 Significance of the Study                                     4
1.7 Scope of the study                                                5
1.8 limitations of the study                                       5
1.9 Definitions of Terms                                           6
2.1 Concept of internal auditor                                7
2.2 Objectives of internal auditors                         9
2.3 Types of auditors                                                 9
2.4 Challenges of internal auditors                       10
2.5 Reliance of internal auditors to external auditors                   11
2.6 Internal auditors in banking sector                                          12
2.7 Disadvantages of internal auditors in bank                             12
2.8 Advantages of internal auditors in bank                                 13
2.9 Evaluation and prospect of internal auditors in bank             13
2.1.0 The evaluation of challenges and prospects of internals in
Diamond Bank-                                      14
2.2 Theoretical framework                                               15
2.3 Empirical framework                                                18
2.4 summary of the review literature                           20
3.1 Research Design                                                21
3.2. Area of the study                                               21
3.3 Research Population                                         22
3.4 Instrument for data collection                        22
3.5 Method of data collections                              22
3.6.0 Validation of the instrument                      23
3.7 Reliability of the instrument                         23
3.8 Method of Data Analysis                          23
4.1       Data presentation                             20
5.1       Summary of Finding                                                                                                  32
5.2       Conclusion                                                                                                                  32
5.3       Recommendation                                                                                                        32
5.4       Suggestion for further research study                                                                         33
References                                                                                                                              34
Appendix                                                                                                                                37


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.

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….


2.0       Introduction

Review of related literature is approached thus: conceptual framework, theoretical framework, empirical review /research gap

2.1 Concept of Audit

Different people, at various times has given different definition of auditing, here are some of them:
Taylor,(1982) stated that auditing is an investigation done by an auditor into the evidence from the final revenue accounts and balance sheet or other statements of the organization of which have been prepared in order to ascertain that they present a true and fair view of the summarized transactions for the period under review and of financial state of the organization at the end date so enabling the auditor to report thereon.

Nwabueze (2000), defines auditing as an evidence from which final revenue account and balance sheet have been prepared in order to ascertain that they present a true and fair view of the summarized transactions of the period under review and of the financial state of the organization at the end of the year, thus enabling the auditing to report thereon.

It is an investigation into the books of account and the documents and vouchers from which the books have been written up, with the object of enabling the auditors to make a report on the balance sheet or the other statements prepared from the books to the person to whom he has been appointed to report.

Santocic (1974) stated that auditing may be described as an examination and evaluation of the authenticity and therefore the reliability of a firm business documents and records: it also involves the mating inclined to ascertain that the financial statements on which the auditor is reporting in which have been prepared from these records display……


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