SKILL IMPROVEMENT NEEDS OF INTERNAL AUDIT STAFF IN AGRO-ALLIED INDUSTRIES IN AKWA IBOM STATE NIGERIA

Abstract

The study was carried out to determine the skill improvement needs of internal audit staff in agro-allied industries in Akwa Ibom State, Nigeria.  Six research questions were answered by the study while six null hypotheses were tested at 0.05 level of significance.   Descriptive survey research design was adopted for the study. The population for the study was 161 internal audit staff in registered agro-allied industries in Akwa Ibom State, Nigeria. The entire population of 161 internal audit staff were surveyed because of its manageable size. Hence,  there  was  no  sampling  for the  study.  The  instrument  for  data  collection was  a structured questionnaire titled: “Questionnaire on Skill Improvement Needs of Internal Audit Staff (QSINIAS) which contained 112 items developed by the researcher from the literature reviewed for the study. The instrument was subjected to face-validation by five experts who were three lecturers from the Department of Business Education, University of Nigeria, Nsukka and two Chartered Accountants from Account and Audit Unit, University of Nigeria, Nsukka. The questionnaire was trial tested on 20 internal audit staff from different agro-allied industries in Cross Rivers State, which is outside the study area, to establish the internal consistency of the instrument.   The reason for selecting the respondents from the zone is because of the similarity in socio-cultural background of the two States, and also to avoid the use of the same respondents that were used for the study. Cronbach Alpha () Reliability method was used to determine the internal consistency of the instrument which yielded a coefficient of 0.78, 0.84, 0.84, 0.80, 0.76, 0.91 and 0.83 for financial information verification, enterprise  risks  identification,  policy compliant,  communication,  ICT  security and  audit report  writing  skills  while  reliability  coefficient  of  0.81  was  obtained  for  the  entire instrument.   The entire 161 copies of the questionnaires were administered directly to the respondents by the researcher with the help of five research assistants. Out of the 161 copies of the questionnaire administered, 150 copies were duly filled and returned representing 93.2 rate of return. The data collected for this study were analysed using mean and Need Gap Index (NGI)  for  answering the  research questions while  t-test  and  analysis of variance (ANOVA) were employed in testing the null hypotheses at 0.05 level of significance. The results showed that internal audit staff of agro-allied industries in Akwa Ibom State needed improvement in some identified skills in financial information verification, enterprise risks identification, policy compliant, communication, ICT security and audit report writing. On the hypotheses tested, the study found that there were no significant differences in the mean ratings of internal auditing staff on their performance in 92 out of the 112 identified skills. Although, there were significant differences in the responses of the internal auditing staff on the remaining 20 skills.  Therefore, the study among others recommended that agro-allied industries in Akwa Ibom State should always ensure recruitment of qualified and competent internal auditors for handling internal auditing work in their firms and enterprises, and that there should be regular training and retraining of the internal auditors in areas and skills where improvements were found needed for their proficiency in service delivery in agro- allied firms in Akwa Ibom State.

CHAPTER ONE

INTRODUCTION

Background of the Study

Agro-allied industries are business establishments that rely on agriculture for the provision of their raw materials which are processed into finished goods.  The development of agro-allied industry could help to stabilize and make agriculture more lucrative, by the provision of basic raw materials for industrial purpose, such that other products which are not directly   utilized   could   be   transformed   into   usable   materials,   creating   employment opportunities  both  at  the  production and  marketing  stages,  thus,  agro-allied  industry is regarded as an extended arm of agriculture, making the importance of agriculture extends beyond the provision of food for man and animals.

The  quality  of  finished  goods  of  agricultural  products  depends  largely  on  the potentials of agro-allied industries.   The agro-allied industries are business entities or establishments that  process, package and  store food and  beverages in order to generate revenue and improve food consumption of consumers (NgCareers, 2013). In this study, agro- allied industries are establishments that rely on agriculture for the provision of their raw materials which are processed into finished goods for use by the final consumers.  The agro- allied  industries are  vital  for  economic  growth of any  country.    This  is  because  these industries utilize and transform various agricultural products to useful goods (Olaoye, 2014).

One of the most profound changes taking place in the economy of many countries is the transformation of agro-processing from the  informal to the formal sector which has critical implications for participants along the entire length of the supply chain, from those engaged in agriculture, fisheries and forestry, through food retailers and other traders to the final  consumer.     Potentially,  agro-industrialization  presents  valuable  opportunities  and benefits  for  developing countries,  in terms  of overall processes of industrialization and economic development, export performance, food safety and quality (Henson & Cranfield,

2009).  Examples of agro-allied industries include soap industry, oil mill, feed mill, sugar industry, paper industry among others.

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Agro-allied industries are categorized based on the type of raw materials they are associated with like: Beverage industry make use of: cocoa, coffee and tea; Soap industry utilize: oil seeds or crude oils, Feed mill make use of: grains and other  cereal crops, Tyre industry utilize: natural rubber latex, Sugar industry utilize: sugar cane, Paper industry make use of: wood pulp, Starch industry make use of: cassava and maize, Tobacco industry utilize: tobacco  leaves,  Textile  and  Ginnery  industry utilize:  cotton,  Breweries  utilize:  Cereals, Canned fruits industry utilize: fruits, and Oil mill utilize: oil seeds among others (Wilkinson,

& Rocha, 2009).   Many of these industries are found in Akwa Ibom State.   Agro-allied industries have the potential to provide employment for the rural population in farming, and off-farm activities such as handling, packaging, processing, transporting and marketing of food and agricultural products.   Agro-allied industries significantly impact on economic development and poverty reduction, in both urban and rural communities (Carlos, Doyle, Andrew, Chakib & Sergio, 2009).

The development of the full potentials of agro-allied industries leads to a strong and efficient agricultural sector that enable a country like Nigeria to feed its growing population, generate employment and earn foreign exchange.  The intended goals and objectives of agro- allied  industries  in  Nigeria  include  to  generate  massive  employment,  reduction of high poverty rate, ensure sufficiency in the supply of food for the teeming population, improve per capital income of Nigerians who engage in agriculture, take comparative advantage on the Nigerian agricultural products in the international markets among others (Uche, 2011). These industries strive to ensure that they satisfy their customers and make profit.  The industries also ensure proper allocation and utilization of resources and fund through internal auditing.

The Institute of Internal Auditors (IIA Global) (2013) define internal auditing as an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations.  The concept of ‘assurance’ means that the profession can add value by providing as assessment of the reliability of the data and operations in specific organizational settings.   This concept includes all the traditional audit areas (for instance, efficiency,  financial,  compliance, and  operational) as well as  newer  forms of assurance involving control and  risk  management  issues.    Consulting on the  other  hand,  is  quite

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different from assurance in its overall objective and context.  In providing consulting, various activities such as acquisitions, mergers, and strategic alliances are involved.   Consulting activities make direct improvements in the circumstances or conditions of an organization. Moreso, the new internal audit definition explicitly states that internal auditors must remain objective  in  their  performance  of  consulting  activities.     This  is  because  it  helps  an organization accomplish its objectives by using a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.  On the issues of objectivity the IIA Code of Ethics states that internal auditors must make a balanced assessment of all the relevant circumstances and ensure that they are not to be unduly influenced  by their  own  interests or by the  interests of others  in  forming their judgments, meaning that their judgments should reflect an unbiased assessment of the circumstances involved.  Internal audit is a long-standing function and an effective tool of management for control, and governance processes in many organizations.  Internal auditing has been a recognized component of organizations, in both the public and private sectors (Kyburz, 2016; Ruud & Friebe, 2013; Munro & Stewart 2010; Ho & Hutchinson, 2010).

The  main  objective  of  internal  auditing  is  to  assist  management  in  the  effective discharge of their responsibilities by furnishing them with analysis, appraisal, recommendations and pertinent comments concerning the activities reviewed (Okezie, 2004). The Institute of Internal Auditors (2017) outlined the specific functions and duties handled by the internal auditor to include: analyze and improve controls and performance, Organizational operations, work with interdisciplinary skills, the timing of his duties covers present/future, ongoing events, reports to the Board, and executive management, focus on enhancing and protecting organizational value, work on specific internal audit assignment, task, or review activity, such as an internal audit, control self- assessment review, fraud examination, or consultancy.  An engagement may include multiple tasks or activities designed to accomplish a specific set of related objectives.

Furthermore, the  internal audit  detect  wasteful spending;  identify red  flags; verify records and financial statements; assess compliance with rules and regulations; investigate fraud; promote ethics; inform senior management and the board; identify risks and provide assurance over controls.  Moreso, internal audit partners with management and the board, and

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focuses on the complete health of the organization, which includes serving the overall needs of the organization, focusing on present and future events of the organization, and ensuring the accomplishment of goals and objectives (IIA, 2017). Internal audit which is often seen as constituting a large and significant aspect of an organization’s financial control system can be a vehicle to success and survival in agro-allied industries.  Much attention has been focused on the internal audit function due to the expectation from financial reporting improprieties and business failures in agro-allied industries.

The  constant  change  in  the  internal  audit  profession,  likewise,  recent  changes  in auditing methodologies are due to the rapid changes in economic complexity, expanded regulatory requirements and technological advancements.   These changes have led to the audit profession expanding its function to support management, provide services to other organizational functions, and generate direct reporting links to the audit committee.   The audit profession is rapidly advancing in response to changes in its environment (Salehi, Gahderi & Rostami, 2012).   Internal auditing has undergone dramatic changes that have expanded its scope in a way that allows it to make greater contributions to the organization it serves with varying roles in some situations creating role ambiguity (Ernst & Young, 2008; Fadzil,  Haron &  Jantan, 2005;  Lawrence  &  William,  2007; Glascock, 2002; Flesher  & Zanzig, 2000).

The internal audit function is inseparably linked with governance given its capability of responding to all regulatory requirements within an organization (Alzeban & Sawan, 2013). However, the internal audit functions like: evaluating an organisation’s risk management culture,   assessing   the   tone,   evaluating   and   reporting   on   the   effectiveness   of   the implementation of management policies, identifying key activities and relevant risk factors and assessing their significance and reviewing operations as well as reporting the findings is not developed to the same extent in all industries.   Even in the developed countries like Australia, a large number of listed companies do not operate an internal audit function at all or employ only one or two staff for this activity (Goodwin & Kent, 2006).  Also in the United States there is evidence (Maher & Akers, 2003) that Chief Executive Officers at  senior

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management level do not generally want internal audit involvement in the development of organizational systems.

The influence of senior management is a determining force in the scope of the internal audit function in many industries including agro-allied industries (Sarens & DeBeedle, 2006). The result of the preliminary study conducted by the researcher revealed that some of the agro-allied industries visited had only a trained accountant doing the job of the accountant and that of the internal auditor, while a few others have the proprietor acting as the chief executive,  the  accountant  and  the  internal auditor  without  the  prerequisite academic  or professional  background  to  perform  accounting  control  practices  and  the  internal audit functions effectively.   In some other agro-allied industries, an employee with no internal audit background was appointed to perform internal audit functions.   This scenario portends problems to the industries especially with the management of resources (financial and material) which are frequently vulnerable to fraud, misappropriation and mismanagement. The functions of skilled internal audit staff/personnel, therefore, become imperative to those organizations.  The non-professional staff doing the internal audit job need to be trained to up skill them for effective internal audit job.

These category of semi-skilled and non-professional staff carrying out the internal audit job constitute the ‘internal audit staff’ for this study, most of them have the internal audit skill, and are capable of performing audits with the knowledge and skill for internal auditing but not optimally.  It is therefore, necessary that every individual audit staff should regularly upgrade his competencies; it is an imperative to find out the skill improvement needs of the internal audit staff in agro-allied industries in Akwa Ibom State.  Globally, limited research has been conducted on the category of internal audit staff mentioned above.  The difficulties surrounding the staffing of internal audit department are well known these days: especially with the dearth of qualified candidates with the unique set of skills required to be successful in the  modern internal audit  department.   Again, the  increase  in administrative costs is making it more expensive for industries to employ qualified people (McCafferty, 2016).  The nature of agro-allied industries with their low financial base makes it possible for them to experience situations where the proprietors work as the chief executive, the accountant and

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the internal auditor, or a situation where the internal audit department is filled up with semi- qualified audit staff making the issue of identification of internal audit skill improvement needs of internal audit staff in agro-allied industries absolutely essential for the training and development of the staff in the best practices of internal auditing to safeguard the assets of the industries.

Ensuring the best practices of internal auditing to safeguard the assets of the industries must entail identifying the internal audit staff skill needs.  Internal audit skills are the abilities an internal auditor needs to  perform his  normal duties.    Researches on the  basic skills required for effectiveness in internal auditing by IIA Standards, (2012) and Information Systems Audit and Control Association (ISACA) Standards, (2012), concluded that internal auditors need to have three areas of competencies which must include the necessary professional and technical competence, to cover the scope of the audit.   Internal auditor should  be  competent  with  respect  to  understanding:  Technical  regulatory  knowledge; Auditing skills; and Communication and interpersonal skills (IIARF, 2010).  Communication and interpersonal skills are very important for the internal audit function, because if the auditors communicate and interact well with other members of staff, the audit will more likely be successful.  Some characteristics of good interpersonal and communication skills for internal auditors are: a true respect for people, active listening (being sure you understand what is being said), spending more time listening than talking (a three-to-one ratio), oral skills, written skills etc.  (Komneniü, 2009).   Similarly, Bailey (2010) listed the general competencies consisting of the essential skills that every internal auditor needs in order to perform certain tasks, to include: Behavioural and technical skills.

Behavioural  skills  are  those  intra-  and  inter-personal skills  needed  to  manage  an internal auditor’s own actions, and those of his staff, and are assessed according to generally accepted norms.   The behavioural skills included personal skills, interpersonal skills and organisational skills.  In the technical skills category, Bailey identifies these as the individual skills needed to efficiently and effectively apply particular subject matter or concepts within a specific field.   The International Professional Practices Framework (IPPF), (2015) and the new framework for Internal Audit Effectiveness (2015) refer to two specific types of services

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that internal auditors could provide, namely assurance and consulting services (IIA 2011).  In order to be able to perform these types of internal audit services, internal audit staff should possess general and behavioural skills, as well as technical skills (Fourie, Plant, Coetzee, & Van  Staden,  2013).    Komneniü  (2009)  identified  the  following  technical  skills;  data collection and analysis, interviewing, use of information technology, identifying types of control, and understanding business.   In addition to the technical skills are the financial information verification, enterprise risks identification and minimization, adaptability and compliant, and ICT security skills of the internal auditor.  For successful performance, White (2007) stated that a relationship must exist between the skills required as a consultant and as an internal auditor. According to Pryal (2008), internal auditors are expected to improve their knowledge of business  management; risk  assessment  and risk  management;  information technology risks; corporate governance, and inter-personal skills.

The  emerging  functions and  roles  of internal auditors can only  be  undertaken by auditors with requisite knowledge and skills.  Thus, Ratliff and Reding (2002) stated that the auditors of the twenty-first century need to be prepared to do all auditing functions and operations (including those  particular  to  internal control),  performance,  information and information systems, compliance with the law, financial statements, fraud, environmental reports and performance and quality reports.  The Institute of Internal Auditors (2004) also stated that the internal audit activity should evaluate and contribute to the improvement of risk management, control and governance, thus, recognizing the assurance and consulting role of internal auditing in corporate governance.   The Institute emphasized that internal auditors need: analytical skills and critical thinking skills; an efficient method to adequately understand any entity or activity to be audited: person, organization or system; the new competences, knowledge, concepts, principles, skills and techniques specific to internal control; awareness and understanding of risks and opportunities characteristic to auditors, as well as to those to be audited (Chersan, 2016).

Furthermore, internal audit  began as  a one person clerical procedure that  consists primarily of performing  independent  verification of bills  before payment.  Verifying the nature of the organization, internal audit retains the sense of being an administrative function,

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including ensuring the accuracy of list and procedures, as well as the   supervision of the inventory of goods,  products  and  the  reporting  on  prior  events  to  responsible  persons. Presently, the globalizations of business, technological advancements, increasing business failures, and widely publicized fraud have challenged the business world to seek effective internal auditing.    Therefore,  internal audit  skills are  required to  guide  an organization towards achieving its objectives and also a tool for performance improvement.   Some demographic variables such as gender and age will be examined to determine their effects on skills of internal audit staff.

Researches had  investigated the effect  of gender, ages and other variables on the effectiveness of internal auditors.  For instance, Larkin (2000) examined the effect of gender, age,   years of employment and peer group influence on the ethical judgments of internal auditors working in a large financial services organization.  The author found out that gender has effect, indicating that females appear to identify ethical behaviour better than their male counterparts.  Christ (2016) in her analysis concluded that women are making an important impact on the internal audit profession; women bring a different perspective, skill-set and personality traits that add value to internal audit.   Furthermore, the author asserted that women are confident in themselves, their skills, and in the career they desire.  Different kinds of involvement of two genders in public and social areas cause to distinguish between two genders and increase social role of men (Ham & Gembel, 2003).  Gender and its impact on auditing  have  been  identified  as  one  of the  sources of social experiences  by evolution feminist by explaining ethnic difference and other social difference in west society (Hasas & Maghsoudi, 2011).  There are two old approaches to gender which include gender difference and gender role approach which have been explained (Ferree & Hall in Khalkhali, Jamali, & Soltani, 2014) by increasing democracy and observing individual rights and society freedom, such approach was changed and people promoted based on their abilities (Shadi, 2003). Totally, the role of women in auditing job is inventible and there are some problems in this context (Arab, 2012).   Women are in lower rank compared to  men despite equal work experience (Rashidpour, 2000).

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Furthermore, Chung and Monroe (2000) considered audit experience as the auditors unique knowledge, skills, competencies and  capabilities that  arise  from job practices  in auditing profession which lead to the enhancement of auditor’s abilities to process relevant information, make a metal comparisons of alternative way out, initiate subsequent actions and also provide decision making efficiency and effectiveness through a good memory of information necessary and an accurate judgment of audit works.  Knapp and Knapp, (2001) are of the view that the expertise of an individual’s knowledge changes as work experience increases.   Larkin (2000) stated that the work experience effect, suggests that more experienced internal auditors tend to be more conservative in their ethical judgments. Carpenter, Durtschi and Gaynor (2002) argued that having many years of audit experience, does not mean one should have the capacity of detecting fraud.  The authors stated that it is an individual’s experience in fraud detection that will give him the capability of detecting fraud.   Invariably, researches on auditor experience show that specific task experience can improve auditors’ judgments (Agoglia, Beaudoin & Tsakumis, 2006; Carpenter, et al, 2002; Chung, & Monroe, 2000; Donnell, 2002).  This is because auditing is a profession whose main functions rely largely on the judgments of trained experts which are also related to the age of the internal auditor (Ahdolmohammadi & Wright in Badara, & Saidin, 2013).

The presence of a need implies that efforts should be made to improve performance. The word ‘need’ implies that something is lacking – there is a shortfall somewhere.  Need is the gap between the current (i.e. what is on ground) and the desired (or required) results. Also need could be said to be the gap in results between ‘what is’ and ‘what should be’ (Atoki, 2013).  A need assessment is a focused examination of the way things currently are and the way things can or should be in order to fill the gap in services, (e.g., establish trainings to address a specific need).  Gupta, Sleezer and Russ-Eft, (2007) described a need as learning or performance gap between the current condition and the desired condition.  Needs assessment is a process for identifying needs and placing them in priority order on the basis of what it costs to meet the need versus what it costs to ignore it.   Moreso, an effort that analyses and diagnoses the organisation, task and person, to determine if a cure is necessary

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and what cure is the most likely to produce the desired results is needs assessment (Ghufli,

2014).

It is obvious that an effective internal audit function correlates with improved financial performance.    Effective  internal  audit  service  can,  in  particular,  help  reduce  overhead, identify ways to improve efficiency and maximize exposure to possible losses from inadequately safeguarded industry assets all of which can have a significant effect on the bottom line (Bejide, 2006).  Similarly, literature indicated that internal audit is an invaluable tool of management for improving performance, also internal auditors help run an industry more efficiently and effectively to  increase shareholders’ value and the existence of an effective internal audit function is associated with superior industrial performance, by acting as a watchdog saves the  industry from malpractices and  irregularities thus enabling the industry to achieve its objectives of ensuring high level of productivity and profit (Venables

& Impey; Fadzil, Haron & Tantan; Hermanson & Rittenberg; Prasad & Rao, in Bariyima, (2012).

The study determined the areas where improvements are needed in the skills of internal audit staff in agro-allied industries in Akwa Ibom State, Nigeria.  This study identified the gaps in internal audit skills possessed by the Internal audit staff by identifying the difference between the skills possessed and the skills needed to establish what constituents are essential for  the  successful  improvement  of  skills  needs  on  financial  information  verification, enterprise  risks  identification,  policy compliant,  communication,  ICT  security and  audit report writing skills of internal audit staff in agro-allied industries in Akwa Ibom State.  The study further determined the levels of skills needed and levels of expressed performance the difference is thus the gap which this study was set to fill.

Statement of the Problem

The possession of the right skills by internal auditors ensures the effectiveness and efficiency of controls in an organization.  It encourages accountability and transparency and determines  industrial success.   The  inadequacies and  failures in  internal audit  functions constitute the major causes of collapse of business concerns including agro-allied industries.

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For instance the slow pace of development of agro-allied industries and the incessant collapse of most of the agro-allied industries in Akwa Ibom State in spite of interventions from government and other agencies such as Food and Agricultural Organization (FAO), International Fund  for  Agricultural Development  (IFAD)  and  United  Nations  Industrial Development  Organisation (UNIDO),  means  that  there  is  misappropriation of fund  and mismanagement of resources in the industries.  These deficiencies lead to the ineffectiveness and inefficiencies in the operations of agro-allied industries in Akwa Ibom State.

Most agro-allied industries in Nigeria, including Akwa Ibom State have only one staff doing the job of the accountant and that of the internal auditor, while some others have the proprietor acting as the chief executive, the accountant and the internal auditor without the prerequisite academic and professional background to perform accounting control practices and the internal audit functions, effectively.  This is the probable cause of incessant collapse and  eventual liquidation of the  agro-allied industries in  Akwa Ibom State.    Agro-allied industries  in  Akwa  Ibom  State  have  continued  to  witness  myriad  of  financial-based challenges apparently as a result of lack of or improper internal auditing.  Researches have also revealed that internal audit departments in agro-allied industries in Nigeria including Akwa Ibom State are characterized by unqualified audit staff.   Although the internal audit staff in the agro-allied industries visited by the researcher already have the skills but not enough for optimal performance of the internal audit functions, making the issue of identification of internal audit skill improvement needs of the staff absolutely imperative to ensure better accounting control practices for the going-concern of the agro-allied industrial sector.

Purpose of the Study

The general purpose of this study was to determine the skill improvement needs of internal audit staff in agro-allied industries in Akwa Ibom State, Nigeria. Specifically, the study determined the:

1.  Financial information verification skills improvement needs of the internal audit staff.

2.  Enterprise risks identification skills improvement needs of the internal audit staff.

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3.  Policy compliant skills improvement needs of the internal audit staff.

4.  Communication skills improvement needs of the internal audit staff.

5.  ICT security skills improvement needs of the internal audit staff.

6.  Audit report writing skills improvement needs of the internal audit staff.

Research Questions

The following research questions were answered by the study:

1.  What  are  the  financial  information  verification  skills  improvement  needs  of the internal audit staff?

2.  What are the enterprise risks identification skills improvement needs of the internal audit staff?

3.  What are the policy compliant skills improvement needs of the internal audit staff?

4.  What are the communication skills improvement needs of the internal audit staff?

5.  What are the ICT security skills improvement needs of the internal audit staff?

6.  What are the audit report writing skills improvement needs of the internal audit staff?

Hypotheses

The following null hypotheses formulated for the study were tested at 0.05 level of significance:

1. There is no significant difference in the mean ratings of internal audit staff on their performance in financial information verification skills based on their educational qualifications.

2.  There is  no  significant  difference between the  mean ratings of male and  female internal audit staff on their performance in enterprise risks identification skills.

3. There is no significant difference in the mean ratings of internal audit staff on their performance in policy compliant skills based on their years of work experience.

4. There is no significant difference in the mean ratings of internal audit staff on their performance in communication skills based on their educational qualifications.

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5.  There is  no  significant  difference between the  mean ratings of male and  female internal audit staff on their performance in ICT security skills.

6. There is no significant difference in the mean ratings of internal audit staff on their performance in audit report writing skills based on their years of work experience.

Significance of the Study

The  findings of this  research would  have  some  practical  benefits  for  current  and potential internal auditors, agencies involved in training internal auditors and consultants, Ministries such as Ministry of Commerce and Industry, Trade, and Investment (MCITI), Ministry of Science and Technology (MST) and Ministry of Agriculture & Rural Development (MARD) and policymakers, educational institutions, curriculum developers, researchers and students/trainees.

The findings of this study when published would be of benefit to internal auditors as they would be able to identify the internal audit skills they need to possess to be successful on the internal audit job.  They will therefore, seek appropriate training in line with the identified skills.    The  knowledge  of  the  findings  would  help  them  meet  their  individual  career objectives, by seeking training and development which will in turn make them to be more effective and efficient in their jobs.  The internal audit training that would follow from the findings of this study would enable the internal auditors to improve their skills and performances in auditing.

Similarly, the agencies involved in the training of internal auditors including training consultants will benefit from the findings of this study as it will help them to improve on their training contents.  The findings of this study would enable the training agencies to design and redesign more effective strategies and course contents targeted at increasing the levels and quality of internal audit in industries including agro-allied industries to ensure success in financing and continuity of their activities.   The outcome of this study would provide the agencies the key priorities, competences and skills for the development of Internal Audit as well as its advancement in agro-allied industries.

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Furthermore, the findings of this study would also be of great benefit to Ministry of Commerce  and  Industry,  Trade,  and  Investment  (MCITI),  Ministry  of  Science  and Technology (MST), Ministry of Agriculture & Rural Development (MARD), as it will enable them establish policies and programmes, that will enhance the development of more agro- allied industries and ensure sustainability through effective and efficient internal auditing. Moreso, the findings of this study will aid the Ministries such as the Ministry of Commerce and Industry, Trade, and Investment (MCITI), Ministry of Science and Technology (MST) and Ministry of Agriculture & Rural Development (MARD) to make policies targeted at increasing the quality of internal auditing in agro-allied industries.

In the same vein, educational institutions will also find the results of this study useful as they will use it to improve their contents or revise their curriculum to enable them produce employable graduates in internal auditing.  Thus, the findings of this study will be beneficial to them in delineating the core competences and skills improvement needs of the present day internal audit staff and providing them better insights on the determinants of poor internal audit performance.   This will facilitate the development of strategies to enhance the performance of internal auditors and hence, reducing the gap between school activities and industry.

Similarly, curriculum developers in the area of internal auditing would benefit from the findings of this study, which highlighted and made useful discoveries concerning the process of improving internal auditing and  financial control.   This will, thus, provide empirical evidence to design better models, strategies and enhance curriculum development in the area of internal auditing in the industrial sector.  The findings of this study will assist curriculum developers in the regular review and update of the curriculum used for training internal auditors.

The findings of this study would contribute to the growing body of knowledge and literature on internal audit especially for future researches in internal audit and related area. Researchers will use the findings of this study when published as a contribution to literature for their studies in auditing skills improvement.

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Scope of the Study

This study is restricted to the skill improvement needs of internal audit staff in agro- allied industries in Akwa Ibom State, Nigeria. Specifically, the study determined the financial information verification, enterprise risks identification, policy compliant, communication, ICT security and audit report writing skills improvement needs of internal audit staff in agro- allied industries in Akwa Ibom State. The opinions of the internal audit staff were surveyed to achieve the objectives of the study.

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