ABSTRACT 

The management tool in insuring strict compliance in budgetary

provisions is internal audit. Large and small as well as medium scale

industries have found the need for internal audit headed by the internal

auditor .This has boosted the performance of such Organizations

because of strict adherence to the budgetary provisions. Internal Audit

are employed by the organization and are integral part of the

organization, work exclusively for the sustenance of the organization.

Auditing is the wçrk carried.on by the auditpr, when he verifies

accounting data determines the accuracy and reliability of accounting

statement standard and reports on his findings. It is an activity carried on

by an independent person with the sole aim of reporting on the fairness

of the financial statements.

The institute of Internal Auditors defines Internal Audit as an

independent appraisal 'function established within an organization to

examine and evaluate the adequacy and effectiveness of the

organizational control system and the overall quality of the system

performance. Internal auditing furnishes the executive arms of the state

government with analysis, appraisals, recommendation, counsel and

information concerning the activities reviewed. Internal auditing reviews

the control process by the 'state government, compliance and policies

and efficient use of resources, achievement of established operational

goals and objectives. Internal audit encompass financial and operational

activities. Internal Auditor assist the auditor general the through the

information he makes available, who finally reports to the executive arm

of the government. Due to their expertise and the knowledge of

operation, internal auditors often fulfill ,a consuItancy role of the

executive arm of the state government.

1

Due to the complexities of scientific and technological

development with increasing security of economic resources, it has

QQm imprive Tht thc gvcrprnont hcld pin nçJ ccntrol

their activities. This is achieved through the instrumentality of budgeting.

This bring to bear the significance of government budgetary

process in a democracy both as a tool for macro-economic management

as well as an instrument of public accountability, is underscored by the

tremendous impact public sector budget exerts on both the public and

private sectors. A state budget is the financial plan of government for a

particular period. It shows the expected stream of revenue and the

various uses to which these resources would be employed to achieve

both political and economic goals.