The Impact of Management Audit on Quality Corporate Financial Reporting
This study examines the impact of management audit on quality corporate financial reporting using Nigeria Bottling Company as a case study. Improving business performance through an effective and efficient internal control lies in the hand of the management of the particular organization. The main aim of this study is to ascertain if management audit is a means of evaluating quality corporate financial reporting.
A good management auditor therefore needs to study the whole situation and project it into the future and forecast so that he can plan and take decision for all well being of the organization. The research survey design was adopted and a sample size of 40 was adopted. The chi-square statistical tool was used in the study and it was found that the society comprising of individuals of both private and public are rapidly recognizing the contribution of the management audit organizational development.
The study concluded that management audit exercise will normally be carried out by a team comprising of accountants and other experts or professionals required for a thorough review of the operation for a particular organization. The study recommends among others that control should be simplified and lines of accountability made direct
1.1 Background to the Study
Both private and public sector organization of the economy are usually established to achieve some certain defined objectives. In public, while the private sectors, they are to provide social and welfare services to the public, while the private sector is geared towards making profit through the goods and services they offer. In most cases objectives to be achieved are obvious and expected result qualifiable and can be measured against predetermined standard.
On the other hand, particularly the public sector of the economy, objectives and goals may not be subjected to definitions and possibility of varied interpretations and the expected result may not be subjected to precise quantification and measurement against predetermined standard.
In an attempt to achieve various economic resources which can be translated into and quantified in monetary terms. The measure of the success of any organization is a reflection of the quality and effectiveness of its management.
Social process entailing responsibilities for the effective and economical planning and regulation of the operations of an enterprise in fulfillment of a given purpose such responsibilities involves; judging and taking decisions that will lead to the effective management of the business. The controlling, motivation, co-ordination and supervision of both man and material resources in attaining the objectives and goals of the organization. Some organizations do well than the other in the same environment with almost the same financial and economic resources.
Inefficiency and ineffectiveness of an organization results to many factors like bad management, fraudulent practice, lack of expression, planning and lack of good management skills. Management audit will reveal all these and recommend to the management the appropriate position and suggest solution to individual problems, when all these problems are stated in terms of reference to the management.
The exercise is designed to check all levels of the management from the Chief Executive Officer to the lowest rank officer of the organization. The independence of the management audit team have a very crucial way of affecting their report to the management and to crown it all, the attitude of the management to the management audit team report will also have a great role to play in measuring the management audit and quality corporate financial reporting.
Impact of Management Audit on Quality Corporate Financial Reporting
1.2 Statement of Problem
It is a clear fact that this organization is established to make profit the worth of a firm is determined by the financial statement prepared by the management and an independent body (the external auditors) which is called up as to examine the accounts and report on the fieriness of the account opinion. In the establishment of the organizations the objectives and goals are spelt out in the memorandum and article of association which guide their activities internally and externally as the case may be. It is an often occurrence that in an attempt for an organization to work towards achieving their desired goods and objectives in the most effective and efficient manner, the Westford some resources and left untapped as a result of either inadequate technical know hoe, experience business acumen or mismanagement of fund.
This study therefore is aimed at establishing how management audit has affected the evaluation of performance in the NBC plc coca cola company and makes necessary recommendations in the area of weakness in the organization. With the data gathered so far, it crystal clear that this organization can never do well without a good system of internal control which in there hands of the management, and this is the main focus is the management audit which ensure that this system of this external control is well planned and prepared and ensure that management conform to it because this ahs a great effect in increasing performance.