1.1 BACKGROUND TO THE STUDY

According to Dinapoli, (2017)  a management tool for ensuring company accountability and transparency is audit. Since there was a need to separate ownership from control prior to the industrial revolution due to the growth of large firms and limited liability companies, auditing became a major industry after this time. Managers and shareholders consequently formed two distinct partners.. The need for managers to provide accounting of their stewardship to individuals who had pooled their resources for the business thus became obvious. It is notable that an impartial person should be chosen to represent the shareholders' interests while assessing the manager's report to ensure accuracy and transparency. This is the history of auditing.

  Matarneh, (2016) audit is described as an impartial evaluation function within an organisation for the review of control systems and the quality of performance as a service to the organization. Every organisation, public or private, is required to use its resources wisely in an effective and efficient manner (Dinapoli, 2017). Sunbeam Microfinance Bank Efon Alaaye is responsible to its shareholders, the same is expected of other financial organizations. Thus, the managers of public funds should be responsible to the shareholders (Dinapoli, 2017).

Accountability is therefore necessary for the performance and management of financial organizations. It is the duty of managers to show excellent stewardship of the financial resources given to and entrusted to them. One is supposed to look for appropriate steps to be taken in order to accomplish this. Accountability emphasises keeping track of money, property, and other values given to managers of organisations. The capacity of an organization's members to behave dependably and effectively in order to accomplish its goals is a crucial requirement for the organization's sustainability (Cashed, 2005). According to Matarneh, (2016) due to the significance of global rivalry, business performance is a big problem nowadays. One aspect of the best performance is the actors' moral conduct . But at the end of the 20th century, the Enron and WorldCom scandals revealed that there was a lack of control and accountability of funds  in organizations both private and public  organizations (Bertin, 2017). Following these financial crises, steps were done in Nigeria to establish checks and balances in public and private organisations. In order to overcome the shortcomings of economic difficulties through legal assistance, it has become vital to establish an ethical control in the interest of organisations, leading to the introduction of Audit system. Due to a shared interest, methods to assess how moral choices affect the organisation have been implemented in order to support management activities through the effective implementation of internal control measures through internal auditing (Bertin, 2017).

According to Bouquin, (2008) Organisational performance can also refer to a company's capacity to recognise and put into practise the best tactics within the parameters of its mission statement and goals. Organisations may desire to become the biggest firm in the world, stay a successful specialised business, or even be able to reach the aims it has established as one of its goals.. Success depends on the capacity to formulate appropriate plans and put them into action when the goals have been established. It's important to regularly evaluate the suitability and effectiveness of a specific external control measure. The process of researching and assessing internal control, some of its components, and its anticipated performance is called auditing. (Cashin, 2018).

According to Dinapoli (2017)Internal auditing is an assessment of the quality and compliance of the information flow and is primarily concerned with the dependability and sufficiency of the accounting system through: Assessment of compliance with procedures and regulations and ensure that the financial statements reveals the true and fair view. b. Asset protection c. Error detection d. Fraud prevention Performing tests, comparing the results, and delivering the final conclusion are all steps in the auditing process. In its own right, this fact makes auditing a social responsibility because it evaluates how effectively resources are used in a financial operation with the goal of ensuring that an entity's financial management is free from fraud and errors. It is on this the study examines the impact of auditing in an organization problems and prospects

1.2 STATEMENT OF PROBLEM

It is incontrovertible that financial institutions  have invested huge amount of money and material resources in several financial reform programes in order to improve their sector audit in Nigeria as well as enhance their contributions in financial discipline and accountability of the performance of their organizations. Regrettably, conferences, research workshops and seminars on audit are very scanty. It is for this reason that this study examines the impact of auditing in an organization problems and prospects, with a view to determine whether or not audit can contribute to economical management of funds in microfinance banks.

1.3 Objectives Of The Study

The general objective of this study will be to examine the impact of auditing in an organization: problems and prospects as a case study of sunbeam microfinance bank Efon Alaaye. Other specific objectives are:

1)To examine the impact of auditing on organizational performance in sunbeam micro finance bank

2)To determine the effect of auditing on fraud control and prevention  in sunbeam micro finance bank

3) To outline the problems of implementation of effective audit measures in sunbeam micro finance bank

4) To recommend ways of improving audit quality  in sunbeam micro finance bank

1.4 RESEARCH QUESTIONS

1) What is the impact of auditing on organizational performance in sunbeam micro finance bank?

2) What is the effect of auditing on fraud control and prevention  in sunbeam micro finance bank?

3) What are the problems of implementation of effective audit measures in sunbeam micro finance bank?

4) What are the ways of improving audit quality in sunbeam micro finance bank?

1.5 SIGNIFICANCE OF THE STUDY

The analysis will be extremely helpful to the investors who provided the money for the business and need to be compensated in the form of dividends. This is possible if inefficiency and corrupt behaviour, including fraud, income loss, unethical behaviour, and lack of transparency in the private sector, are reduced or even eliminated.. The study's conclusions will be extremely helpful to the economy, which is known for having a thriving private sector. The work will also be interesting to future auditing research projects.

1.6. Scope of the Study

As the study is centered on the impact of the audit in Sunbeam Microfinance Bank Efon Alaaye, the research covers all department under the firm in other to ascertain whether auditing has an effect in the private firm and if not what is the cause.

1.7       Limitation of the Study

The researcher in the course of carrying out the research was faced with the following problems and constraints.

(a) Time factor: Time shortage posed serious challenges, since it was indeed very short considering the enormity of the research work.

b)Lack of information and data due to unavailability of materials and other vital information. Libraries are either out of stock or scanty in their content of relevant materials.

c)Financial problem was also a deterrent in carrying out the research since the available fund was not enough to sustain the vast research proposals, it was also a challenge in that regard.

1.8 OPERATIONAL DEFINITION OF TERMS

Audit: Audit can be define as the independent examination of a financial statement and expression of opinion on the financial statement of enterprise by an appointed auditor in pursuance of that appointed and in compliance with any relevant statutory obligation.

Internal Auditing: "Internal auditing has to do with the independent examination of the books of account so as to ascertain whether the books of accounts are in agreement with the organization transaction.

Private sector: Private sector includes the part of the economy that is fully controlled and managed and financed by private individuals.