Is the auditor truly a watchman or a gate keeper in Nigeria?

This study conceptually appraised the legal and regulatory instruments that created the Internal Audit Unit in the Nigeria Public Sector finance and the environmental operational analysis of the Internal Audit as well as the offices of the Auditors-General of the States and the Federation. Also, the perception of fraudulent practices among staff of MDAs has necessitated this study to ascertain if the Internal Auditor is really a Watchman or Gatekeeper in line with Section 85(5) of the 1999 Nigerian Constitution as amended. The study employed conceptual review of the extant laws, circulars and related studies on the subject matter. The study revealed the lack of independence and security for the Auditors, ambiguous clauses prone to manipulation by officials in the current laws regulating the public sector financial operation and the offices of the Internal Auditor and Auditor-General. The study recommends the establishment of Audit Service Commission to handle operational matters relating to recruitment, training, and welfare, disciple of Internal Auditors and staff of the Auditors-General in Nigeria. Also review of the Audit Act, the Financial Regulation Law and other extant laws to guarantee Auditors independence, capacity and capability to detect and report fraudulent practices in the Public Sector finance management.