CHAPTER ONE
1.1       INTRODUCTION
The function and the existence of internal audit department in organisation cannot be over emphasized considering the enormity of trust and responsibility attached to this department of an organisation.  This brings to mind why the writers chose to research on the subject, internal auditing as an instrument for effective management.
Internal auditing becomes necessary as a result of the extended span of control faced by the management concerning the employment of men and material in the conduct of organizational affairs.  The work of the internal audit are very important in most modern organizations and have trust of responsibility to advice the management and enforce the operations of internal control, and the internal checks in the organisation.  The inefficiency in the organisation during day to day activities are controlled.
The internal audit is the independence appraisal activity in the organisation as a service to the management.  The duties are usually defined by the management and these includes:
Ø  Measurement of the adequacy and effectiveness of the internal control system on a continuous basis;
Ø  Routine checks to prevent and detect errors and frauds;
Ø  Provision of hireling advice to management on internal control matters;
Ø  Investigation of reported cases of all practices;
Ø  Provision of statiscal data for management information and decision making;
Ø  Other special assignment such as asset disposal, staff audits.
Inspite of this being a seemingly exacting and challenging function of the internal audit department.  In some organizational, the management starve the internal auditor of funds, staffing and training.
It is necessary for internal audit to have credibility by having as internal auditors persons of interrity.
The above qualities of internal auditors contributed to the inefficient of the internal audits of the organizations world-wide.
As regards, the problems which usually effects the internal audit departments, the staff of some organisation treats the internal audit as “blood hound” and not “watch dogs”.  The fraudulent staff would not normaly corporate with the internal auditors as regard the supply of information which should be used for the effective checks of the work of the organizations activities.
The project directs its attention on the institute of management and technology (IMT) Enugu.  The school was established as a result of the combination of the former college of technology and institute of administration of East Central State in 1972.
The institute of management and technology (IMT) Enugu came into being of the 1st July, 1973 as a result of edict No. 10 of 1973 of the then East Central State Government.