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The role of audit, objectives, responsibilities and limitations, with a special focus towards Nigeria socio-economic Umuahia North Local Government, Abia State

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The role of audit, objectives, responsibilities and limitations, with a special focus towards Nigeria socio-economic development in Umuahia North Local Government, Abia State



          The provision of balance and quantities of financial report, in the researcher’s views form one of the objectives for the establishment of audit department in the local government.

          Umuahia North Local Government was created in the year 1990 which is fifteen years in Abia state has been in operation and has it’s share of the national cake which are been allocated to all areas concerned.

          Umuahia North local government according to revenue sharing formular get its own share from the 40% available for the local government from the federation. One may ask the question; if the local government gets such share, is it allocated effectively for the growth, development and interest of the people it is meant for?

          To ensure that the resources are effectively allocated, the internal audit department cannot be ignored. The internal audit department, which is an arm of the management, monitors the implementations and realizations of the local government laudable objectives as a watchdog of the local government.

          Moreover, reports have shown that lack of audit department has given rise to mismanagement of resources in local government. This is so because adequate accounting records, which form the bedrock of effective management, are not been maintained. The result of inadequate accounting records leads to how or inadequate stewardship report.

          In order to ensure the effective and efficient system of resources allocation various devices and methods has been adopted. Internal audit being one of the measures taken by the government to ensure that resources allocation is effective and efficiently.


          Auditing like records keeping has roots that are very old, the term “Audit” comes from the Latin words “Audire” meaning to “Hear”. For centuries authors hear literally “Hearers”

          In England, the chancellor of the exchange held oral audits twice a year to hear reports about the accounts of estates manners and the royal families. The purpose of these audits was to provide assurance to the keeping that cared for the financial resources of the kingdom.

          In the development of auditing in 19th and 20th centuries, there is provision for auditing profession.

          This audit development started in the great Britain during the industrial revolution of long term dept capital grew, bankers and other lenders seek for the assurance that loan applications were reliably reporting their financial position. The resources of the people of Umuahia North local government, like every local government chairman, councellors and other office holders in the council. These resources are managed at the end of the financial year, i.e. in business organization a stewardship report is been given in order to account for how those resources where being managed for, in order to favour the people.

          The above is unreliable for the higher authorities and the people to take decision for in all areas of life. There is need for decision-making. The unreliability of the financial statement given by the authorities in the local government gives room for the establishment of audit department, who are inadequate persons, in order to examine the report and record whether in their own opinion the report show a true and fair view of the local government’s operation, but this department are not really independent because it is the government that gives them directions on what to do. For that, role cannot over emphasized at any time.

          The auditor examines all the records and operations in the local government report to the state auditors general for proper action to be taken to ensure that resources are effectively allocated.


          Most of the local government arrangement and organization had existed which formed the protection of economic transaction, regulation adjudication and execution. Then during the colonial rule which created by the British. The British colonial masters were given free hand in order to control their activities and guide them for the assessment of economic resources of the colonial people.

          During the regime of Lord Lugard, the British adopted indirect role system. Then local government was known under colonial rule as native administration why? It is people of that local government that manage it.

          Government’s system during the colonial rule was designed to ensure easy administration for the British strangers who were little the socio-political and cultural environment of the colonized people.

          This points state the British colonial background and a refection of the idea of local government in great British. The pattern of local government in Nigeria is in live with the exigencies of federal society. This was the root for the success of indirect role in the Northern Nigeria.

          This military regime in Nigeria today, adopted the sole of administrator system in our local government. The history of Local Government in Nigeria, create caretakers committees all appointed not, by merit but through clients.

          Pre-colonial pasts in Nigeria and the Federal structure and presidential system, military back ground have all contributed in sharing the nature of Local Government system in Nigeria. There are people that made impact on the various civil service reforms which are;

Mbanefor 1969, Morgan 1963, Udoji 1972 etc.

          In all these reforms, Umuahia North Local Government was not excluded, it was formally under Owerri, in Imo State until the year 1990 when Abia State was created them came into existence of Umuahia North Local Government.


After all, audit departments in the local government have to make sure

That the resources are effectively allocated and the efforts being put so far by the government authorities towards finding lasting solution for the mismanagement of fund, frauds and irregularities, in the local government.

          Thus, research is set out in solving the following problems;

  • The local government authorities are not able to allocate resources effectively
  • The inability of local government staff to safeguard its assets against loss.
  • What are the roles of audit departments to ensure efficiency?


The purposes of this project are;

-To determine extend of the independence of the audit department

-To analyze the role of auditors

-To examine the role of auditors

-To identify the problems encountered by auditors.


Dr. Godwin Onu (2002) formal control

A .H. Military (2002) Auditing

Karen .C. Princes: The User /Uses of accounting information.

B. N. Okezie, F. C. A. et al (1995) auditing and investigation.

Okorie Onovo (2001:107), practical Auditing

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