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SIWES REPORT FOR INTERNAL AUDIT
DEPARTMENT
BY
SHITTU SIKIRU
NOU110159310
BS.C. ENTREPRENEURIAL AND BUSINESS MANAGEMENT
NATIONAL OPEN UNIVERSITY OF NIGERIA, APAPA STUDY
CENTRE
YEAR 400
PLACE OF ATTACHEMENT
FLOUR MILLS OF NIGERIA PLC
APAPA, LAGOS STATE
(INTERNAL AUDIT DEPARTMENT)
PERIOD OF ATTACHEMENT
4TH
APRIL, 2016 – 30TH
OCTOBER, 2016

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ABSTRACT
This report serves as my personal experience during the student industrial work experience
scheme program at Flour Mills of Nigeria plc. Apapa Lagos. Internal Audit Department. This
report can be of great help to students of Business Management and Entrepreneurship both in
National Open University of Nigeria (NOUN) and even outside the school who may wish to
undertake their training in a similar establishment and to any other readers who could gain one or
two things from my experience. The methodology of this report was based majorly on practical
observation. However, some of the details in this report were from the organizational framework
and documented texts within the organisation. The overall activities in the organization includes,
wheat products milling, sugar refineries, packaging product, operating of port terminals, logistics
business, fertilizer blending, agro-allied activities, job creation and also holds high social
responsibility towards its environs and community. The students’ industrial work experience
scheme is a skill training programme designed to expose and prepare students for the industrial
situation they are most likely to meet after graduation. Therefore this has to involve employers in
the process of preparing students for employment in industries. Thus, I prepared this report to
give the full details of all activities undertook during my six (6) months training at FMN PLC.

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ACKNOWLEDGEMENT
My gratitude goes to God almighty Allah, who made everything concerning my
education most successful one.
I am most grateful to my loving wife Mariam Abimbola Shittu for are support, my
gratitude also goes to the entire staff of Flour Mills of Nigeria plc. Apapa Lagos,
most especially Mr. Adesanmi Idowu Peter my industry based supervisor for their
support and for making my SIWES training period worthwhile. Lastly, I want to
appreciate my colleagues for taking me through some aspect of the jobs.

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TABLE OF CONTENTS
Title page 1
Abstract 2
Acknowledgement 3
Table of content 4
List of table 4
1.0 INTRODUCTION 5
1.0.1 VISION 5
1.0.2 MISSION: 5
1.1 STAFF STRENGTH OF COMPANY 5
1.1.1 Corporate Services Job Family 6
1.1.2 Commercial Job Family 6
1.1.3 Manufacturing and Operations Job Family 6
1.2 Purposeof the Report 7
1.2.1 Objective of the department 7
1.2.2 Function of the department 7
1.2.3 Internal Control System of an organisation 8
2.0 EXPERIENCE GAINDED DURING SIWES 9
2.1 Duties Performed include 9
2.2 Skill Acquired 9
3.0 CONCLUSION 10
REFERENCES 10

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1.0 INTRODUCTION
Flour Mills of Nigeria Plc (FMN) is one of the largest and most successful industrial
conglomerates in Nigeria. The Company’s activities span flour milling, pasta manufacturing,
refined sugar, port operations, cement trade & manufacturing, fertilizer blending, bags & other
packaging materials manufacturing and agricultural business, edible oil and livestock feeds,
farming and other agro-allied activities, operation of terminals A and B at the Apapa Port,
customs clearing, forwarding agents, shipping agents and logistics, and management of third
party mills the company has also made investment in power generation, it has 11 General
Electric (GE) jenbacher gas generators at its Apapa mills.
Flour Mills Nigeria was founded by George Stravos Coumantaros on September 29, 1960
and is headquartered in Lagos, Nigeria and was converted to a public liability company in
November, 1978. Its registered head office is located at 1 Golden Penny Place, Apapa, Lagos.
Since its incorporation in 1960, FMN has not only survived all macroeconomic challenges but
also grown into a market leader with popular and highly recognizable brands.
1.0.1 VISION:
“To be the undisputed market leader in our selected industries by offering
our customers consistent value through innovative, high quality and
affordable products supported by exceptional service”
1.0.2 MISSION:
“To produce and supply products of superior quality and value to the
Nigeria market thereby enriching the lives of consumers, customers,
employees and shareholders”.
1.1 STAFF STRENGTH OF COMPANY
The organisation has a good number of staffs within its various business locations in the
Country which they operate, with research from the company’s website I have been made to
understand that they employ over 2500 employees across their job families, qualified and
educated staffs and they also motivate their staffs in terms of wages, training and development
and staff welfare services.
As a result, roles within the company have been structured into 3 Job Families. These Job
Families have been further categorized into Disciplines which are similar occupations within a
job family. Outlined below are the Job families and their various disciplines:

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1.1.1 Corporate Services Job Family
Role-holders in this job family provide information, administrative and other specialist
support across the organization. At junior levels, role-holders supply information or other
administrative support in the form which is available to them, whist higher roles, present,
analyze and interpret information or apply knowledge of a specialist, technical or professional in
nature. Outlined below are the various disciplines under Corporate Services job family;
1. Administration Discipline
2. Finance Discipline
3. Internal Audit Discipline
4. Human Resources Discipline
5. MIS Discipline
6. Company Secretariat Discipline
1.1.2 Commercial Job Family
Role-holders in this job family develop, manage and maintain the relationship with both
potential and existing customers. Service levels are important in these jobs areas. Outlined below
are the various disciplines under Commercial job family;
1. Sales Discipline
2. Marketing Discipline
3. Logistics Discipline
4. Material Management Discipline
1.1.3 Manufacturing and Operations Job Family
Role-holders in this job family are people and process managers, who are also
responsible for the management and operation of resources such as budgets, systems and
products. These roles deliver the operational context and results of the business. Outlined below
are the various disciplines under Manufacturing and Operations job family;
1. Production Discipline (Flour Operations and other Production units)
2. Technical Discipline
3. Quality Assurance Discipline
4. HSE Discipline
5. Shipping/Terminal Operations Discipline.

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1.2 Purpose of the Report
The purpose of this report is to give a summary of the skills, knowledge and experience I
was privileged to acquire at Flour Mills of Nigeria Plc. (Internal Audit Department) throughout
my six (6) months of industrial training. I also use this medium to write to offer useful
suggestions based on experience to both the programme centre and the institution on ways of
improving the programme.
In an organization like Flour Mills of Nigeria Plc., the effective use of internal audit system as a
control tool is to ensure adherence to company’s policy and carry out special investigation on
actual or suspected fraud. The understanding of internal audit activities will help to proffer a
greater solution to the organization weaknesses and ensure that the monitoring activity of
internal audit is a good management tool in preventing fraudulent acts. Internal audit is a
management tool applied to ensure that the organizational policy and control is carried out as
specified. Where there is no control in an organization, there is possibility of fraud. Therefore,
the need for internal audit system becomes imperative for all sections of an organization.
1.2.1 Objective of the department
Internal Audit Division is committed to provide reliable, valued, and timely
assurance to the board and management over the effectiveness of control mitigating
current and evolving high risks and enhancing the controls culture within the FMN
group.
1.2.2 Function of the department
Internal audit department performs a number of functions in manufacturing firms. These
functions also prove to be equally valuable in non-profit oriented organizations. An internal audit
function should exist separate and distinct from the work of the control group in the data
processing department since the internal auditors are interested in evaluating the overall
efficiency of data processing operations and the related internal control Adikwu (1984).
The internal auditor of every organisation (especially the manufacturing firms) should
participate in the design of the data processing system to ensure that the system (information
technology) provides a proper audit trail and included adequate controls. Among other things,
the internal auditors will try to determine that no changes are made in the system without proper
authorization, ensure that programming personal are functionally separate from computer
operating personnel, ensure that adequate documentation is maintained, input controls are
functioning effectively, and that the control groups are performing their assigned functions. The
chief internal auditor has to lay down rules and procedures that will guide the performance of
their duties and also control the department. He has to provide an outline for those under him to
know how they should execute their assigned functions accordingly. This outline is known as
audit plan.

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Audit plan may be described as a statement of objectives or targets to be attained by the
department of internal audit in future, together with an outline of the steps necessary to attain
each of them. Audit plan prepared in the planning stages of the engagement, usually include such
matters as the objectives of the engagement, nature of the work to be done, a time schedule for
major audit work and completion of the engagements and staff requirements.
1.2.3 Internal Control System of an Organisation
Management has recognized internal control as a valuable tool in effectively carrying out
its responsibility and auditors have pressed for improvement in internal control in their effort to
be of assistance to their clients, as well as to permit reduction in audit work made possible by the
accounting records. The effect of auditing therefore is to reduce the need for routine mechanical
verification of book-keeping accuracy. It permits substitution of a less time consuming approach
that involves seasoned judgment and stresses such activities as reviews, analysis, evaluation and
statistical samplings. Most of the information needed by management about finances and the
progress of operations come from the accounting records. For the information to be of value, it
must be reliable, complete and available as quickly as possible and at the same time adhering to
policies and directives. Management is far removed from the scene of operation in a typical large
business organization and so personal supervision of employees is an impossible task. As a
substitute, management must rely on various control techniques to implement its decision and
goals, and to regulate the activities for which management has ultimate responsibility.
Internal control system is therefore a key factor in the effective management of public
sector setup.

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2.0 EXPERIENCE GAINDED DURING SIWES
The SIWES programme undergone at the Flour Mills of Nigeria Plc. had given me an in-
depth exposure to some practical industrial aspect of Internal Audit/ Internal Control profession
of an organisation. During the six (6) months of undergoing the SIWES programme I was
equipped with the knowledge of internal control officers’ profession of a company, which is
been carried out in the internal audit department,
During the six (6) months of training I learnt that the purpose of an internal control officer is to
ensure that the internal control processes are effectively monitored in order to reduce wastages, it
revolves around four key performances areas of effective records keeping, accuracy of daily
financial transactions reconciliation, effective monitoring of stores/supplies, and adaptability to
set tasks.
2.1 Duties Performed include
During the six (6) months of my training I was deployed to internal audit as internal
control clerk and the following duties was performed:
 To ensure that local goods/materials purchased by either staff or supplier of FMN are
checked before such items are used and paid for by the company, purchasing order of any
inventory bought by the company must be checked and confirm that it’s still valid before
payment is made.
 To check and ensure that invoiced products (sugar, wheat, fertilizer products etc.) agree
with the gate pass and weighbridge dockets and maintain a register for all load-out
products.
 To observe delivery of AGO/Petrol/Gas discharge, to ensure that the right quantity and
quality are received by the company.
 To monitor carting of scraps and ensure that only authorized scrapped items are taken
away at time of collection.
 Participated in the monthly stock taking exercise.
 Typing and editing reports to be sent for proper decision making for other functional
department of the organization.
2.2 Skill Acquired
Effective communication skills: during this period my communication skills improve
because I had to interact with staff from different department and also with the staffs of some
external company which are the company’s’ stakeholders and this made me to do away with any
form of shyness.

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Being proactive: being practical at my duty post where I was deployed to and thinking ahead of
how I could help the team when the need arise, to make sure we carry out the job role
effectively.
Good ICT skills: ICT skills like Microsoft Word, Excel and Microsoft dynamic AX 2012(an
enterprises resource planning software.) with these skills I was able to deliver all paper work
within a specified time frame.
3.0 CONCLUSION
I have bountifully benefited from the student industrial work experience scheme
(SIWES) undergone in the last six months in Flour Mills of Nigeria Plc. Apapa, because it has
provided me the opportunity to apply my theoretical knowledge to real work situation; thereby
bridging the gap between university work and the real world business management practices.
Undertaking the Student Industrial Work Experience Scheme at Flour Mills of Nigeria Plc. has
given me a deeper understanding of what the real working experience in an Industrial
environment is all about, what their culture entails, the structure of the company, their policies,
code of conduct and many more, I have clearly understood what its expected of any managers of
any department of an organization to meet the goals and objective of the organization and the
interest of their stakeholders. I will say I will like to be part of the management team of this great
organization (Flour Mills of Nigeria Plc.) in other to apply what I have leant during my industrial
training programme with them to be one of their team PIILOT a unique acronym of the
organisation which stand for Performance, Integrity, Initiative, Leadership, Ownership, and
Teamwork.
REFERENCES
Adikwu, M.A (1984). Internal control- the Hallmark of Bank inspection programme
Business times.
The company’s web site www.fmnplc.com (2016) Profile Of Fmn Group Job Families