Internal Audit Unit

Brief History of Internal Audit Department from 2005 to Date



INTRODUCTION
Internal Audit was formally set up as unit and part of checking processes of the then Finance Department {now Bursary Department} in 1960’s. The Unit examined payment vouchers before they were paid. It also carried out some accounting functions like checking monthly salaries, rending of various returns and stock taking exercise.

After the Council enquiry by Professor Ola’s Committee into the losses of stock of various rations especially of Jerry and Mammalade which resulted into loss of colossal sum of money in the Catering Department of the University of Ibadan, the council at its meeting of 18th and 19th November 1974 decided to establish an Independent Audit Department. The Governing Council therefore accepted the recommendation of Professor Ola’s Committee on Internal Audit Unit which include the following;

I. that a complete Independent Internal Audit Unit should be set up with immediate effect. Its duty would be to audit regularly and without prior notice, the account of all the spending departments and unit in the University.

II. that the unit should be independent of the Bursar and be responsible to Vice-Chancellor. It should be submitting reports to the Vice-Chancellor at least once in a quarter. However, the reports are now being forwarded to the Council through the Vice-Chancellor and this confers greater level of Independence on Audit Department.

III. that the head of the Internal Audit department should be a well qualified accountant..

INTERNAL AUDIT FUNCTIONS
The functions of Internal Audit are many and these include but not limited to the following;

I. the maintenance of an adequate check against fraud and misappropriation;
II. the verification of assets and liabilities at regular intervals;
III. the examination and constant scrutiny of all system of authorization of payment to ensure an adequate control of expenditure;
IV. concerned with measuring and evaluating the continuous effectiveness of internal control system;
V. ensure that various policies as put in place by the management are strictly adhered to;
VI. that the information required by the management to manage effectively is reliable and complete;
VII. periodic examination of internal checks to ensure the highest possible standards of accuracy and efficiency;
VIII. Review of accounting system and related internal controls;
IX. Examination of financial and operational information for management, including detailed testing of transactions and balances;
X. Review of the economy, efficiency and effectiveness of operations and the functioning of non-financial controls;
XI. Review of the implementation of corporate polices, plans and procedures;
XII. Special investigations.

Internal auditing is a profession and activity involved in advising organizations regarding how to better achieve their objectives. Internal auditing involves the utilization of a systematic methodology for analyzing business processes or organizational problems and recommending solutions. Professionals, called internal auditors are employed by organizations to perform the internal auditing activity. The scope of internal auditing within an organization is broad and may involve internal control topics such as the efficacy of operations, the reliability of financial reporting, deterring and investigating fraud, safeguarding assets, and compliance with laws and regulations. Internal auditing frequently involves measuring compliance with the entity’s policies and procedures. However, internal auditors are not responsible for the execution of company activities; they advise management and the Board of Directors (or similar oversight body) regarding how to better execute their responsibilities. As a result of their broad scope of involvement, internal auditors may have a variety of higher educational and professional backgrounds.

INTERNAL AUDIT SINCE 2005 TO DATE
Let me say here that the Internal Audit department that we use to know has changed both in strength and quality.

Before year2005, this department was headed by a Chief Internal Auditor which is equivalent to the Chief Accountant in Bursary and could only carry out its various assignments with three (3) chartered accountants (himself inclusive).Today, the department has not less than ten {10) chartered accountants and operate at director level.

The department operates a decentralized system with Faculties Audit units headed by Resident Auditors, most of whom are chartered accountants.

Some of these faculties are:
I. Faculty of Agric, Forestry, Veterinary Medicine and Pharmacy,
II. Faculty of Education and Institute of Education,
III. Faculty of science and Technology,
IV. Faculty of Art , Social Science, Law and Institute of African Studies,
V. College of Medicine,
VI. Postgraduate School,
VII. Works and Maintenance,
VIII. International School (ISI),
IX. Distant Learning Centre,
X. Halls of Residence,
XI. Staff School,
XII. Library and Publishing House.
XIII. Cash Office

IN-HOUSE TRAINNING


There has also been a development of In-House Training Programme aimed at equipping staff with modern techniques of auditing. This is done via monthly lectures from the most senior and experienced members of staff , on monthly basis.

REVIEW OF ACCOUNTING POLICIES
Accounting Policies’ Review Committee was set up in the department to review the University accounting policies and make policy recommendations for the University. The first draft of this review has been submitted appropriately.

TENURE AUDIT WIDER COVERAGE
Over these 6 years, the reporting standard of Internal Audit and scope of coverage of the report has increased tremendously to cover tenure audit of many more Heads of Departments and Deans of Faculties; than in the past .

QUALITY CONTROL
As a way to comply with the Nigerian Standard on Auditing No.4, we have taking steps to increase Quality Control of Audit.
Reports are reviewed together on fortnight basis by Sectional Leaders and Resident Auditors to improve quality control. This has helped to bridge gaps and unfold loopholes in the system, which some of our clients use to exploit in the past.

COMPUTER ASSISTED AUDITING TECHNIQUES (CAAT)
Of recent the Department acquired Active Data Software , in order to advance forward in the performance of her roles on the computerized University accounting system.

INTERNAL CONTROL OVER E-PAYMENT
More to that, the Department has familiarized herself with the e-payment system of the University and the internal controls needed in such an environment to protect and detect errors and omissions within the system.

OBJECTIVITY AND INTEGRITY
As a matter of fact, we have improved in our social relationship with the entire University community. Despite the fact that our roles as Auditors require firmness in principle, we approach our clients with politeness, OBJECTIVITY, INTEGRITY and with unbiased mind.

CONCLUSION
The Internal Audit, University of Ibadan since 2005 has undergone re-engineering, in her compliance with the new Standard on Auditing in Nigeria. The focus remains to maintaining adequate, efficient and effective internal controls within the University.

Mr. B. O. AKINREMI
FCA, MMP, ACTI, MNIM, B.Sc(Accounting).
Director Of Audit