CHAPTER
ONE
INTRODUCTION
1.0
GENERAL
DESCRIPTION OF THE AREA OF STUDY
Corruption
is a pervasive, World Wide problem that can crop up in any organization. The
term “Corruption” implies many different meanings but generally entails
misusing one’s position for private gain or an unauthorized end.
Corruption
according to Hornby, S.A, (2000). Is defined as dishonest or illegal behaviour
especially of people in authority. It is also the act of making change from
moral to immoral standards of behaviour. It can involve financial and
non-monetary benefit, bribery, extortion, influence pedding, nepotism, and
fraud are all acts associated with corruption. Internal auditors can combat
this effective anticorruption strategies. Combating corruption requires a complex
approach, that addresses the many causes. Facets and structural issues that
corruption entails. It also requires courage and a long-term commitment by a
variety of anticorruption actors, political leaders, champions amongst public
servant, civil society, media, academics, the private sector and international
organizations all play important role in addressing corruption. The impact of
corruption in the public sector can be devastating, corrupt practices increase
risk and cost to business, damage investor, confidences and stifle growth. According
to Adams, (2009;1). Public sector is “all
organizations, which are not privately owned and operated but, which are
established, run and financed by the government on behalf of the public. This conveys
the idea that public sector consists of organizations where control lies in the
hand of the public. Eventually, these activities can distort the public sector
allocating of resources, undermine its legitimate business practice and even
lead to bankruptcy. Internal auditors are uniquely qualified to help the public
sector or organizations fight corruption. As the eyes and ears of management,
auditors are present year round, they have a broad understanding of business
operations, and they are bound by strict standards of performance and ethical
conduct. By providing assurance that effective prevention, detection and
correction measures are in place, auditors can play a significant role in the
public sector anti-corruption efforts.
PREVENTIONS: Most
auditors know quite well that rather than wait for a loss to occur, it is far
better to establish control mechanisms that prevent the loss from occurring in
the first place.
This
is especially true in fight against corruption. A practice approach to
anticorruption efforts that involves looking at areas from which the problem
may stem can help reduce the potential for misdeeds.
Ethics,
integrity, and accountability in the public sector. In the finally analysis
management has the ultimate responsibility for preventing and fighting corruption.
God corporate governance, appropriate tone at the top, and sound controls are
the three main tools at managements, disposal for accomplishing this goals.
However,
their efforts will be effective only if all members of the public sector or
organization recognize corruption as a problem and work towards preventing it.
Because the cost of corruption to public sector today is monetary as is the
level of concern among professional, using Maxi Dimegwu Bankole and others
involves in the embezzlement of public fund, as a good example of the
corruption we are referring to in the public sector.
1.02 HISTORICAL BACKGROUND OF MICHAEL OPARA
COLLEGE OF AGRICULTURE
UMUAGWO,
Michael Opara College of
agriculture Umuagwo was upgraded to a polytechnic status, renamed as the Imo
State Polytechnic, Umuagwo in 2007. the institution provide courses, training
and research in all branches of Agriculture, management sciences, Engineering
and food Sciences. The institution is certified to award National Diploma and
Higher National Diploma qualifications.
The
polytechnic is twenty six kilometer from (Owerri) on the (Port-Harcourt) road
and has three hundred and sixty hectares of land. (Otamici River)
runs past its border, making it deal for all year round agricultural production
through irrigation Chiwe Obaji was a lecturer at this institution before
appointed head of Nigeria Federal Ministry of Education.
In
2009, the Rector, Dr. Anderson Amadioha stated that “we have developed about 43
varieties of high yielding cassava stems for use by farmers. The college has
also research improvement to other crops, such as maize, in March 2009.
1.03
PROBLEM
ANALYSIS
Corruption
threaten the life of people in the public sector and deserves to be ascribed in
statute as a criminally unlawful act. It is not merely criminal expropriation
of someone’s property but also a fatal threat to the integrity of the
internal auditor in the public sector.
The Defalcation of wages which includes the use of fictions names in the wages
list as well as misappropriation through other means. If possible, the internal
auditors should ascertain whether or not only a small area is involved, for
example to avoid extra checking such as would be involved in collusive frauds
involving many employees. Public funds and properties are entrusted to certain
individuals or employees in the public sector and most case, these individuals
or employees are not brought under thorough supervision. The ultimate
consequence of this is that most of these fund or properties are diverted to personal
use this study was set up to investigate into the impact of internal control
ineffective management of public sector and also in Michael Opara College of
Agriculture, from the forgoing therefore, the problem for the present study can
unequivocally be stated thus what extent has corruption affected the performance
of Michael Opara College of Agriculture.
1.04
PURPOSE
OF STUDY
The
main purpose of this research work includes:
a.
To determine the role of internal auditor in
the public-sector
b.
To highlight the system of internal control
in combating corruption in the public
sector
c.
To analyze ways corruption can prevented in
the public sector.
d.
To discourage fraudulent activities in the
public sector.
1.05
RELEVANT
RESEARCH QUESTIONS
1.
How do bribery occur in Michael Opara
College of Agriculture?
2.
How do these fraudulent practices affect the
college of agriculture generally?
3.
How effective are the control systems put
together to combat corruption in Michael
Opara College
of agriculture?
4.
How well and fast are criminology practices
detected?
5.
How do you hope to enhance and ensure
effective and adequate internal control in Michael Opara College of Agriculture?
6.
How do you hope to ensure effective an
adequate fraud prevention and detection in Michael Opara College of
Agriculture.?
1.06
DELIMITATION
(SCOPE) OF THE STUDY
This
research work is limited to the role of internal auditors in Curbing corruption
and prevention and set out vividly the possible ways through which an internal
auditor can assist in curbing and preventing corruption. The research is
limited to Michael
Opara College
of agriculture. The researcher uses the medium to discuss corruption in the
public sector. The scope of this research is also limited to curbing corruption
proper in writing this project. The research fund certain aspects of the work
very uneasy as some obstacles were encountered in the conduct of the research.
The minimal period being one of the major constrained.
1.07
ASSUMPTION
It
was assumed that the management of Michael
Opara College
of agriculture Umuagwo, would give the researcher the necessary information and
explanation relevant to the study. It is also assumed that the findings and
recommendations in this work will be of available to public sector. It was
equally assumed that the supervisor would give the researcher the necessary
advice for the completion of the study.
1.08
SIGNIFICANCE
OF THE STUDY
Every
meaningful research is expected to yield reasonable result. Therefore, this
research will enable the internal auditors to rise up to their responsibilities
in the prevention of corruption in the public sector.
The
study will also provide an explanation to the high rate of corruption in the
public sector and then make useful recommendations as to how to arrive at a
solution.
Finally,
it will give assistance to other researchers who would which to research more
in this topic.
1.09
DEFINITION
OF UNFAMILIAR TERM
1.
AUDITOR: The individual or firm carrying out
the audit of the enterprises and the partners of such individual or in such
firm.
2.
Audit: The independent examination of, and expresses
of opinion on, the financial statements of an enterprises by an appointed and
in compliance with any relevant statutory.
3.
Internal Control: Internal control may be
define as the whole system of controls, financial or otherwise, established by
management in order to carry on the business of the organization in an orderly
manner, safeguard its assets , and secure as far as possible the accuracy and
the reliability of the information contained in the financial record.
4.
Corruption: Dishonest or illegal behaviour,
especially of people in authority. It also the act or effect of making change
from moral to immoral standard of behavious.
5.
Curbing: Curbing means to control or limit
inflation
6.
Prevention: Prevention means the act of
stopping or protecting bad from happening
7.
Integrity: Integrity is the quality of being
honest and having strong moral principle.
8.
Detect: this is the process of finding or
detecting crime or fact.
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