Complete Material Cost #3,000
Order for Complete Material now
Abstract
The aim of this project is to give potential computer auditors an overview of the main activities of computer audit and design a system that can perform personnel auditing in the local government area.. They have been written to assist candidates who are planning to attend an interview for a position in computer audit but have a limited knowledge of the subject. For those from either an audit, business or information technology (IT) background seeking a move into computer audit. Computer audit operates in a climate of constant and rapid change. Computer auditors are continually faced with the prospect of faster, smaller and cheaper IT systems. An analogy that is frequently used to describe the rapid development of IT, is if aviation had developed at the same rate, man would have landed on the moon in 1922. IT is a dynamic area which in turn, requires a dynamic and flexible control structure.
CHAPTER ONE
INTRODUCTION
1.1 Background of Study
Local government is a form of public administration which, in a majority of contexts, exists as the lowest tier of administration within a given state. The term is used to contrast with offices at state level, which are referred to as the central government, national government, or (where appropriate) federal government and also to supranational government which deals with governing institutions between states. Local governments generally act within powers delegated to them by legislation or directives of the higher level of government. In federal states, local government generally comprises the third (or sometimes fourth) tier of government, whereas in unitary states, local government usually occupies the second or third tier of government, often with greater powers than higher-level administrative divisions.
The historical evolution of the local government system in Nigeria dates back to the colonial era when it was called the colonial native authority system which existed between 1920’s and 1930’s (Orewa and Adewumi 1983). In their form, they represented a system of indirect rule whose aim was to establish a system of local authorities through traditional authorities. The main task of local government in this era was maintenance of law and order at grass root level. Also the issue of revenue generation in the local government system has been in existence since in this traditional system of local government. In pre-colonial Nigeria the Chiefs, Obas and Emirs were responsible for revenue generation. This they usually did through levies and taxes, which they used in managing their communities. During the colonial era the British especially in the North introduced a system of indirect rule in which direct taxes were introduced in various local communities for running their affairs. By 1933, the powers of the local authorities were extended to cover expanded functions due to reliable performances. After the independence in 1960, local governments acquired more responsibilities that were assigned to them by the constitution. For instance, section 6 of the 1979 Constitutions of Nigeria provides that: The functions to be conferred by law upon local government council shall include those spelt out in fourth schedule to this constitution.
Also the constitution made provision for substantial funds to local councils. This is because there is no doubt that sound financial base is a prerequisite for effective performance of the roles assigned to local government. For instance, section 7(6) of the 1999 Constitution makes provision for the funding of local government as follows;
- The National Assembly shall make provision for statutory allocation of public revenue to local government councils in the federation; and
- The House of Assembly of a state shall make provisions for statutory allocation of public revenue to local government councils within the state.
1.2 STATEMENT OF THE PROBLEM
Auditing techniques and procedures as they affect field of Accounting System of local government is an uphill task faced with the following problems:
- Handling records beset with problems. The records are not kept well and retrieval is very difficult.
- Loss of records is always common to manual auditing as there is no computerized way of storing the information contained in these records.
- Inability on the part of the accountants to provide necessary information.
- The accountants might not be willing to provide some or correct receipt booklets that could help in the evaluation process.
1.3 AIM AND OBJECTIVES OF THE STUDY
The aim of this study is to design and implement a personnel auditing system for local government administration.
The objectives include;
- a) To develop an efficient system for auditing personnel records.
- b) Detect/Prevent fraud and error in local government accounting system.
- c) Make checks, test and inquires considered necessary in the order to form an opinion as to the reliability of the records as a basis for the preparation of an accounts.
- d) To provide facilities for quick access to stored data given at random in order to assist in management function.
- e) To provide an effective computer based system for easier update, documentation and retrieval of taxable data of employee’s.
1.4 SIGNIFICANCE OF THE STUDY
The importance of this study is to help enhance the old way of personnel auditing by introducing computer if it is done manually for more effective and accurate records. This is an improvement over the old system.
1.5 SCOPE OF THE STUDY
This research work covers design and implementation of an Auditing System as it affects local government administration. The knowledge and understanding of these procedures and methods is very essential in the computer that could be involved in the processing of data like the accounting system.
1.6 LIMITATION OF THE STUDY
This project was seriously constrained by a number of factors, but the most pronounced ones are time and money.
Time: This was the most important hindrance to this work. Ever since the inception of this work, was tied down with serious studies practical researching, evaluating and examining. Irrespective of all our endevours, this research was not given the appropriate possible treatment due to time factor.
Money: Limited funds also pose some threat to the realization and completion of this work. Transporting myself from one local government to another seeking help and assistance cost me much money. As a student faced with other financial commitments to attend to this much fund was very difficult to generate.
Epileptic Power Supply: Due to the unstable nature of our electricity, it makes the work very difficult.
Inadequate Research Data: The research material is very scarce and because of non-availability of this material the work was hard to find.
1.7 DEFINITION OF TERMS
Auditing: This can be defined as checking. Examining of whatever you are auditing, find out if there is any kind of fraud.
Personnel: This can be said to be staff/people employed by a company/ organization.
Personnel Auditing: It is defined as an activity or exercises carried out to examine the personnel records and a set financial statement and their underlying records.
Financial Statements: The statement concerning money or it can be said to be statement of accounts (money)
Aditor: Expert accountant who checks a company’s accounts.
Analysis: This is an exercise carried out for close examination in details of something.