The Impact of Internal Auditing on the Telecommunication Industry

Topics: Auditing, Audit, Internal audit Pages: 35 (7400 words) Published: May 29, 2013


The main reason of the project work is to allow students to identify a problem of their own choice relating to their field of study and suggest how these problems may be solved at the end of project.

It is in this respect that the writer has chosen this topic: The impact of Internal auditing in the telecommunication industry with Vodafone Ghana Limited as the case study.


Mautz and Sharaf (1961) defines auditing as a systematic process of objectivity; obtaining and evaluating evidence against assertion and established criteria and commence communicating the results to interested users. Internal auditing is an independent appraisal functions established within an organization to examine, review and evaluate operations as a service to management. The internal audit department is an internal part of the organization and function under the policies established by management. An audit is not limited to the review of the management process in the accounting and financial areas alone. All department of the organization must be managed so that all can benefit from an independent objective review. The scope of internal audit spans the review of all the functions of the organization. It includes technical, commercial and financial aspects that are secured, accounted for and managed within the organization.

Moreover, the internal audit department implies that, the internal audit department should report not only on the accounting systems but on all aspects of the business. The internal audit department can operate as an effective managerial control.

Firstly, it can examine the systems and controls introduced by management to ensure that they are being followed correctly.

Secondly, it can review the efficiency of those systems and control and also advice on possible improvements them. The auditor after successfully conducting an audit produces a report which is addressed to the management of the organization, in which he or she expresses his or her opinion on the truth and fairness of the financial statement.

Vodafone has been successful in its operations over the past decade. It is the organization's effective management which internal auditing played a major role. The study is to look at some of the problems faced by the Internal Audit department of Vodafone.


Auditors are by statute required to be independent of management in the conduct of their audit assignment. However, this is not always so. Their problem emanates when management begin to influence their work.

According to Adams Rogers (1994), the auditor is expected to be independent, objective and have high degree of integrity in reporting his opinion on the true and fair view of the financial statement, so that users of these financial reports can rely on them and believe that they come from credible sources.

Auditors are presumed to be independent and objective as well as having personal integrity. Considering the fact that users of financial statements rely heavily on the opinion expressed by auditors, one would expect that these users have confidence and credibility in the work of the auditors.

Auditors sometimes face difficulty in getting the requisite information in the conduct of their audit work. For instance, management may withhold certain vital information necessary to conduct an effective audit.

Finally, auditors face a problem of getting the necessary logistics in conducting their audit. Auditing firms may lack enough qualified personnel and vital technological equipments to conduct the audit work effectively and efficiently. Anyway, it is the problems that Internal auditors encounter in the conduct of their audit work that the researcher looked for.


In this study, the researcher intends to find out the benefit of internal auditing in the Telecommunication industry. Specifically,...
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