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MANAGEMENT AUDIT AND EVALUATION OF ORGANIZATION PERFORMANCE A CASE STUDY OF NIGERIA BOTTLING COMPANY PLC

Format: MS WORD  |  Chapter: 1-5  |  Pages: 55  |  1732 Users found this project useful  |  Price NGN5,000

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Abstract
This project work examined the role of management audit in evaluating organizational performance. The main objective of this study is to ascertain if management audit is a means of evaluating organizational performance and efficiency. The primary source of data collection which includes the personal interview and questionnaire were source to gather useful information during the project work. Simple percentage was used to analyze the data obtained. The chi-square was used to test the hypothesis drafted. The result reveals that good internal control system is the strong back bone to any establishment and objective, this internal audit department staff has to be sincere and honest. It was concluded that management audit should be carryout at a piece meal or continuous basis and it was recommended that control should be simplified and lines of accountability made direct.


CHAPTER ONE
INTRODUCTION
1.1  Background to the Study
The establishment of this organization is to produce and distribute coca-cola products and they are geared towards making profit through this goods and services they offer, this result is qualifiable and can easily be measured against predetermined standard.In an attempt to achieve this objective this organization used some kind of internal control which every staff of the organization has to adhere to accordingly. The measure of the success of this organization is a reflection of the quality and effectiveness of its management. Management accounting to Breach, is a social process entailing responsibilities of the effective and economic planning and regulation of the operation of an enterprise in fulfillment of a given purpose or task. Such responsibilities involve:
1.   Judging and taking decision that will lead to the effective management of the business of the organization.
2.   The controlling, motivation and supervisor of both man and material resources in attaining the objective and goals of the organization.
Some organizations dos well than the others in the same environment with almost the same financial economic resources.In efficiency and ineffectiveness of an organization result form may factors like bad management, fraudulent practices, lack of experience, planning and lack of good management skills. Management audit will reveal all this and recommend to the management the appropriate position and suggest solution to individual problems, then all this problems were started in the terms of reference to the management audit term.The exercise is designed to check all levels of management.
From the chief executive officer to the lowest rank officer of this organization. The independence of the management audit term has played a very crucial role in affecting the performance of the organization and to crown it all, the attitude of the management to the management audit term report has also has a very crucial role to play in measuring the extent at which management audit has affected performance in this organization.          
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 has a great effect in increasing performance.
1.3  Research Questions
1.  An interview was conducted in order to ascertain of the following;Is management audit a means of evaluating organizational performance and efficiency?
2.  Does management audit have position change in an organization?
3.   Does management audit contribute to economic development of the society?
4.  Are there significant difference between the role of management audit and evaluating performance in an organization?


1.4  Objective of the Study
The following objectives were to be achieved by the researcher during the course of this research;
1.   To ascertain if management audit is a means of evaluating organizational performance and efficiency.
2.   To ascertain if management audit have position change in an organization.
3.   To highlight the contribution of management audit to economic development of the society.
4.   To find out the significant difference between the role of management audit and evaluating performance in an organization.
1.5  Statement of Hypotheses
The hypotheses used for the purpose of this study have been divided into four;
Hypothesis One

HO:   Management audit is not a means of evaluating organization performance and efficiency.
HI:    Management audit is a means of evaluating organizational performance and efficiency.
Hypothesis Two

HO:   Management audit cannot have position change in an organization.
HI:    Management audit can have position change in an organization.
Hypothesis Three

HO:   Management audit does not contribute to the economic development of the society.
HI:    Management audit contribute to the economic development of the society.
Hypothesis Four

HO:   Management audit does not enhance the overall efficiency of the organization.
HI:    Management audit enhance the overall efficiency of the organization.

  
1.6  Significance of the Study
Management audit has been increasingly important in the model management. In the face of increasing cost of operation resulting from high cost of input, rising risk in international political economy, any responsible organization can no longer afford the luxury of either over staffing the best laid goals of an organization. irrespective of the planning expert can be frustrated, it would be seen as inadequate and well round staffing structure, hence the role of management audit.
The inviolability of management audit in less developed countries cannot be overemphasized. This research work will clearly and lucidity spell to all that is involved in management audit as well as the compelling need of such an exercise from time to time. Management audit is not only this organization but any other organization which wishes to continue in existence and remain competitive for both human and non-human resources.  


1.7  Scope of the Study
This research work covers all aspect of management audit in the coca-cola company it examine the doings and positions of every workers and see if there is need for a change in the management of the organization and for making and taking strategic and tactical plans and decision respectively. With reference to management, the underlying study is audit as it affects procedure for taking decisions, carrying out business and the goals and objectives of the organization. This study was basically carried in Benin City and a time frame of 5 years was used in the course of this study (2008 – 2013) with a sample of 40 respondents for easy clarification.
1.8  Limitations of the Study
This project work suffered several limitations, which vary in different stages and forms in the course of the research work. Briefly put the time allocated for the work of this magnitude was rather too short, distance was another constraint which militated against this work, and sources of information failure by some officers to keep their appointment are factors which also affected the research work.
1.9  Definition of Terms
-   Management: According to Wayne (2005), this is a process which enables organization to achieve their objective by planning, organization, controlling their resources in order to achieve the organizational goals.
-   Audit: According to Okolo (2004), this is an independent examination of an expression of opinion on the financial statement of an enterprise by an appointed auditor in pursuance of that appointed and in compliance with any relevant statutory obligation.
-   Auditor: According to Alan (2003), this is a professional man employed to carryout the audit exercise, he is responsible to the members or shareholders of the organization.
-   Financial Audit: According to Brech (2001), this is the strategic decisional choice in which the management finance an enterprise.
-   Internal Audit: According to Brech (2001), it is an element of internal control system set up by the management of an organization to examine, evaluate and report on accounting and other controls in operations.
-   Internal Control: According to Dave (2001), this is the whole system of control, financial and otherwise established by management in other to carry on the business of the enterprise in an orderly and efficient manner ensure adherence to management policies, safeguard the assets and secure as far as possible the completeness and the accuracy of the records.
-   Organization: Etzioni defines organization as a social units that pursue specific goals, which they are structured to service under some social circumstances.
-   Goal: According to Buri (2000) this is defined as a future state of affairs which the organization strives to achieve.
-   Fraud: According to Dave (2001) an act which involves the use of deception to obtain unjust financial advantage. It is also an act of international misstatement in or omission of amounts in an entity’s accounting records or financial statement.
-   Accounting: According to Mock (2006), this is the process of identifying, measuring and communicating of economic information or permit information judgement and decision by user of such information.
-   Policy: According to Igbinosun (2002), procedure or rules which an organization has decided to follow consistently in order to obtain defined goals.
-   Policy Analysis: According to Burt (2000), this is defined as the practical philosophy on how to assist decision, makers with complete problems of choice under conditions of uncertainty.   

 

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