THE ROLE OF AUDITING IN ENSURING ORGANISATIONAL EFFECTIVENESS

This study assess the role of auditing in ensuring organisational effectiveness, with a view to finding out whether or not auditing impacts positively on the effectiveness of internal control system of this companies. The study employs survey and research design where primary data were collected using the questionnaire administered to employees, finance and administrative staff of these companies. Descriptive statistics and Chi-square technique were used to analyse the data obtained. The main findings of the study are that auditing can truly evaluate company’s internal control system. The activity of auditors goes beyond | reporting in the truth and fairness of an financial statement(s) to include a thorough assessment of the internal control system of the company. The study also discovered that, auditing can improve the investment potentials of companies. Audit opinion in a company’s financial statement is a veritable tool which investors consider before investing in a company. The study recommends that there should be clear cut difference between the internal and external auditor’s jobs so as to avoid class of interest / duties. Greater autonomy should be granted to the internal audit unit so as to improve their objectivity when carrying out their assessments/ assignments.