Internal Audit was formally set up as unit and part of checking processes of the then Finance Department {now Bursary Department} in 1960’s. The Unit examined payment vouchers before they were paid. It also carried out some accounting functions like checking monthly salaries, rending of various returns and stock taking exercise.

After the Council enquiry by Professor Ola’s Committee into the losses of stock of various rations especially of Jerry and Mammalade which resulted into loss of colossal sum of money in the Catering Department of the University of Ibadan, the council at its meeting of 18th and 19th November 1974 decided to establish an Independent Audit Department. The Governing Council therefore accepted the recommendation of Professor Ola’s Committee on Internal Audit Unit which include the following;

I. that a complete Independent Internal Audit Unit should be set up with immediate effect. Its duty would be to audit regularly and without prior notice, the account of all the spending departments and unit in the University.

II. that the unit should be independent of the Bursar and be responsible to Vice-Chancellor. It should be submitting reports to the Vice-Chancellor at least once in a quarter. However, the reports are now being forwarded to the Council through the Vice-Chancellor and this confers greater level of Independence on Audit Department.

III. that the head of the Internal Audit department should be a well-qualified accountant.