ABSTRACT
This researches the challenges facing the internal auditors in public corporation. A case study of Nigerian Port Authority, Lagos is impartial fulfilment of the condition for the award of Higher National Diploma in Accountancy. It contains useful information on the Internal Audit procedure to the entire department in the authority coming with the scope of audit function. It discusses the weaknesses in the system and suggests way of improving these weaknesses. The recommendation contained there in if prudently implemented will go a long way in alleviating the problem passed by these weakness, facts and figures used in this research work were derived from published journals and various book use in the Authority including questionnaire. The management should make the implementation of the recommendations contained in this research a matter of urgency, so as to remedy the weaknesses in the system.
CHAPTER ONE 1.0            

INTRODUCTION
This research is a study of the challenges facing the internal Auditors in Government parietals.  It attempts to highlight the role and functions of Internal Auditor in an organisation. The Internal Auditor is regarded as a watchdog to the management and the whole organisation.  To what Extent, and with what degree of independence he performs the duty of a watchdog is the subject of this study. In order to get a clear picture of the role of Internal Auditor in an organisation vis-à-vis the challenges facing him.  Research effort is directed at drawing the distinction between internal Auditor and External Auditor in terms of responsibility.  
Scope of work and their approach to work, it is therefore, hoped that this study will give an in sight into the role of Internal Auditor in Government parastatals in general and NPA in particular, and also serve as reference for those who Intend to conduct research in similar fields in future.
1.1     HISTORICAL BACKGROUND OF THE NIGERIAN PORT   AUTHORITY
The history of the Nigerian ports Authority dates backs to the time of the slave trade or the colonial masters when the ports/ Territorial waters.  In 1862, a department known as marine department then had regional headquarters established and located at the following places.
(a)              Lagos colony marine – 1862 – Lagos
(b)             Southern Nigeria marine – 1993 – Calabar but later transferred to Akasa in 1902
(c)              Northern Nigeria marine-1900-Lokoja in 1960, two of the Regional Head Quarters, i.e.
Lagos Colony marine were merged to become Southern Nigerian marine.In 1908, a separate Government department know as port department was formed to take charge of civil Engineering works in Lagos and Port Harcourt ports.  This was followed with the creation of the Nigerian marine in 1914 with two Regional Head Quarters as founding members.