ABSTRACT

The study is an attempt to discern the effect of internal audit on the performance of private firms' in Nigeria. Although the study VIEWS the entire private sector at large, particular emphasis is on the ANAMCO limited, Emene, Enugu State. The study observed that notwithstanding the legal and statutory function of internal audit which is to examine and scrutinize the documents for accountability and transparency, yet there has been report cases of issues of fraud and other sharp practices. The chi-square (X2) statistical tool was used to test this hypothesis. 32 questionnaires were distributed to the audit staff of MB ANAMCO Ltd Emene, Enugu, out of which 28 were completed and returned . The study found out that the internal audit has not significantly affected private sector Performance, that there exists a positive relationship between achieving corporate goals and efficient internal audit and in the private sector. Also the study found that inefficient internal audit and internal control has hampered audit report. In view of the findings, the study made some recommendations. There is need for the protection of the internal auditors -through statutory and legal provisions. Also this is urgent need for a total overhead of the internal audit system in the private seátor. Equally management should as a matter of responsibility, utilize and apply to the latter, all the internal audit reports as against total or partial abandonment of such reports which is the bane in the private sector. Finally the study is of the opinion that experienced, qualified and honest internal auditors should be appointed to the post of internal auditing.