Responsibility of an internal auditor to management

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CHAPTER THREE RESEARCH METHODOLGY

INTRODUCTION
In this chapter, the research is going to be enumerating on the way and process of approach of collecting data to arrive at an answer or solution to the existing problems as mentioned. A good knowledge of research is very important for virtually everyone in the field of carrying out a research is the ability to evaluate the result of a research to judge or not a given study has being properly carried out in such a way that one can confined in its finding an extent of its relevance to the decision factor.
RESEARCH DESIGN
Before this task can be effectively performed, some investigations were carried out, data was carefully collected analyzed. Especially, questionnaire and personal observation were used as instrument for the study; techniques were selected in the merit of each one and so combine together to satisfy the desire of the researcher. The method used could be grouped into two.

DATA COLLECTION METHOD PRIMARY DATA:

These include method of data collection in which data are directly collected from staff in a written down form, in this respect researchers uses:
QUESTIONNAIRE: The writer of this project was giving permission by the management Household products company Orlu to serve as questionnaire in the internal audit department of the company and other department of the company. The questions asked were based on the various process, procedure and auditing guidelines used in carrying out the various operations. The effectiveness and adequacy if the questionnaire express their operation and their answered the questions to the satisfaction of the researcher. To ensure relevance and truthfulness of all information, the writer makes sure that the questionnaire was served under mutual and conducive atmosphere, with no element of compulsion or under pressure of the staff.
PERSONNEL OBSERVATION: in the cause of this study, the researcher visited the company and was allowed to inspect around thus, enabling the researcher to personally observe information and get familiarize activities and recording of transaction on Household products company, most of the document were inspected such as petty cash book voucher, store requisition not store record cord, audit observation form, schedule of account, weekly product report and material utilization report.
SECONDARY DATA
The above mentioned of data collection is not as reliable as the primary data collection, but it attributes in no small measure to the perfection of the research work. The following techniques were employed under this system.
TEXT BOOK: relevant text books written out by popular authorities in auditing and relevant field were consulted by the researcher in the cause of this study
JOURNAL AND NEWS PAPER: the researcher also spent a lot of time reading some important books and articles written out by knowledgeable people particularly accountants and journals kept by school library which helped the researcher in compiling the project work
ACCOUNTIG BOOKS AND RELATED DOCUMENTS: some accounting documents and books of account such as stock exchange ledger cards, store bin cards, payment voucher and payroll e.t.c.

RESEARCH POPULATION AND SAMPLE SIZE

Out of the population of 120 staff, the researcher judgmentally selected 92 staff members, as the target population. The population is involved directly with decision making process. The targeted population of the study comprises of all staff of Soap, Detergent and House Hold products Company Imo state Since the population of the company (Soap, Detergent and House Hold products Company Imo state) has a staff of 120, it was not easy to obtain data for the whole population, therefore for ease in collecting and analyzing data, the researcher decided to select a sample from the population.
This population consists of staff drawn from some important departments within the company who are associated directly or indirectly within the application of accounting information on decision making process. The method used in the cause of this research work is the random sampling approach in which 92 of the staff were sampled out of the entire department.

DISTRIBUTION OF QUESTIONNAIRE

Simple percentage frequency and regression co-efficient statistics were used to analyze results. The expected result from respondents which stands at 100% is the independent variable upon which the actual result varies. To determine the sample size, the population size Yaro Yamani’s formula is used:

• n =N/1+N (e) 2
• n =sample size
• N =finite population
• 1 =constant
• E =level of significance
• n=120/1+120(0.05)2
• n=120/1+120(0.0025)
• n=120/1.3
• Therefore n =92

VALIDATION AND RELIABILITY OF THE INSTRUMENT
The researcher mainly used the questionnaires, which were administered by simple random sampling. In an attempt to avoid and minimiz3e the problems of bias and inconsistency in responses that were associated with the questionnaire, method used in collecting and analyzing data the researcher significantly adopted certain strategies and in-built checks and balance into the questionnaire sample and interviews to secure reliability and validity requirement on the hypothesis formulation.
The questionnaires were designed in such a way that it aroused interest on the mind of the respondent. The responses in addition to personal interviews were the constituents that served as the basis for testing the hypothesis of the study understated by the researcher.
METHOD OF DATA ANALYSIS
The following formula were used
n /N ×100
Where n =Actual number of amount obtained N =total number or amount expected.
100 = the percentage

DECISION CRITERION FOR VALIDATION OF HYPOTHESIS.

In taking a decision, the null hypothesis and alternative hypothesis is accepted if the critical or table value is greater than the compared value of b alternatively. If the computed value of b is greater than the value of a, that is if b>a accept H₁ (alternative hypothesis) where b =critical or table value and a =calculated value.

Cover page
Title page 
Certification 
Approval page 
Dedication
Acknowledgement
Table of content 
CHAPTER ONE Introduction
1.1 Background of the study
1.2 Statement of problem
1.3 Objective of the study
1.4 Research questions
1.5 Statement of hypothesis
1.6 Purpose of the study
1.7 significance of the study
1.8 Slope and limitation of the study
1.9 Definition of terms
References
CHAPTER TWO Literature review
2.1 Definition of internal audit
2.2 Objectives of internal audit
2.3 Characteristics of internal audit
2.4 Functions of an internal audit
2.5 Responsibility of an internal auditor to management
2.6 Internal auditing as an aid to fraud prevention
2.7 Internal audit as an internal part of internal control
2.8 Cooperation between internal and external
2.9 Problem of internal audit
2.10 Historical background
References
CHAPTER THREE Research methodology
3.1 Introduction and research design
3.2 Data collection method
3.3 Research population and sample size
3.4 Distribution of questionnaire
3.5 Validation and reliability of the instrument
3.6 Method of data analysis
3.7 Decision criteria for validation of hypotheses
CHAPTER FOUR Data analysis and research findings
4.1 Introduction
4.2 Data analysis
4.3 Test of hypotheses
CHAPTER FIVE Summary, conclusion and recommendation
5.1 Summary
5.2 Conclusion
5.3 Recommendation
Bibliography 
Appendix
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INTERNAL AUDITING AS AN AID TO MANAGEMENT (A STUDY OF HOUSEHOLD PRODUCTS COMPANY, ORLU, IMO STATE)