Auditing As An Instrument For Ensuring Accountability Shetty.docx

AUDITING AS AN INSTRUMENT FOR ENSURING ACCOUNTABILITY ABSTRACT This piece “AUDITING AS AN INSTRUMENT FOR ENSURING ACCOUNTABILITY” is carried out to explore the roles of auditing. It extends to identify and evaluate the roles of auditing as an instrument to ensure accountability. To do this, the researcher took necessary steps in ascertaining those factors that militate against the roles of auditing in this company. It is based on these factors that recommendations and appropriate remedies to that effect were suggested. Therefore, the researcher is of the belief that if and only if, the staff and the management of the company should adhere to these recommendations therein, it will definitely have a remarkable impact on the management to preserve the reputation of the company.

CHAPTER ONE       

Background of the study Statement of the problems Purpose of the study Significance of the study Research questions Scope of the studies Definition of terms

CHAPTER TWO REVIEW OF LITERATURE      

Definition of internal Audit The internal Audit Department Authority relationship Fraud- definition classification and types Fraud methods- theft conversion and concedments Types of Audit activity

CHAPTER THREE RESEARCH METHODOLOGY        

The design of the study The population of the study The source of data The oral interview The direct observation Location of data Method (s) of investigation Tools of analysis

CHAPTER FOUR  

Data presentation and analysis Analysis of data

CHAPTER FIVE SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS    

Findings Conclusion Limitations Recommendations

References CHAPTER ONE

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BACKGROUND OF THE STUDY

This piece “AUDITING AS AN INSTRUMENT FOR ENSURING ACCOUNTABILITY” is embarked upon to explore the roles of auditing in an organizations. In recent years, the size and complexity of both the industrial and commercial activities in many companies in Nigeria have increased tremendously. It is with a view to this corresponding effect on the operations there in that have resulted in the inadequate examination and verification of books of account, assets of the company.

These inadequacies, which usually lead to misappripriation and embazzlementof funds in ost of these companies, prompted the researcher to investigating the problems. Many of them today are closed down due to ineffective control measures that could have curbed such anomalies. Nevertheless, all these observation and irregularities, and how to remedies would be properly applied, made this piece worthy of pursuit. It is necessary to try into these investigations and explore ways of putting a stop to it. Too, auditing applied as a solution avoiding these peculiar problems in companies alike. Therefore, auditing is needed in piece with particular reference to many companies in general, to look into their books of account and the assets of the company. This piece will assist to determine the extent on how auditing ensures proper accountability and possibility exhume the problems of this company. This is because proper accountability will keep the company in good shape. Therefore, to understand this thesis very well, it is necessary this take a look at the qualities of a good company auditing to streamline the minds of the readers.

QUALITIES 1. He must be skilled and experienced in the science accountancy with the ability to apply its principles to business concerns he is auditing. 2. Must have a thorough grasp of the general principles of law, which govern the matters likely to be brought into intimate contact. 3. An auditor must understand the practical business endeavours always to grasp the technicalities and too the business methods of any concern whose accounts he undertakes.

4. He must indicate all these qualities too, tack, caution, firmness, fairness, good temper, courage, integrity, honesty, discretion, industry, judgment, patience, clear headedness, reliability. 5. Must not be suspicious but neither must be credulous. 6. He must have passed any recognized professional accountancy examination and be admitted as a member of a professional body such as ICAN, ICAEW, CPA, etc.

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STATEMENT OF THE PROBLEM

A lot of problems have been envisaged in many business organizations in Nigeria. They include: 1. Chiefly among these problems is the political climate in the country, which had not been stable for quite sometime now. 2. The problems of in cooperative attitudes of the staff of some organization 3. The problems of misappropriation and embezzlement also hamper the progress of the company. 4. Low turn over also sets the hands of the clock back in this country. 5. The problems of inadequate and ineffectiveness application of enhanced production. 6. Low qualities of the breweries the company is producing. 7. Low compliances to policies and programme of the company 8. the problems of competition in marketing these goods

1.3

THE PURPOSE OF THE STUDY

The main objective of this study is to assist all members of management in the effective discharge of their responsibilities by providing then, with analysis appraisals , recommendations and relevant commentary on the activities reviewed.

To ascertain the extend of compliance with the established polices, plans and procedures. To review and appraise the soundness, adequacy and application of operating control and making recommendations for improvement. In this regards, to obtain a proper understanding of the operation under review, that is, go beyond financial on accounting duties.

1.4 LIMITATION, DELIMITATION AND SCOPE OF THE STUDY In most profit making organization, this is type of problems are encountered in relation to data collecting by most officials in the organization. They often think that the researcher is trying to expose their deficiencies or making an attempt to expose the official documents of the company. They also look at the researcher as one who obtains information for their competitors or tax officials in order tax their profit and therefore refuse to expose most of the relevant documents needed by the researcher. In effect, this leads to a shallow research working and limits the researcher to the make use of only the available data. Other problems encountered are mainly that case study. As a matter of fact, it is very difficult to gat a case study . the reason is that most business organization said that the documents and information for this particular topic are confidential . Another major problem is that of financial which actually slower the pace of the research work.

SCOPE

This research is aimed at examining the balance sheet and income statement the whole business organization with particular reference to premier breweries \limited Ninth mile corner Ngwo.

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RESEARCH QUESTIONS

What recommendations should be made for an improved performance in the business organization?   

How can one obtain a proper understanding of the operation under review? What is the extent of compliance with the established policies, plans and procedures? What will be done to assist the management for the effective discharge of their responsibilities?

1.6

SIGNIFICANE OF THE STUDY

The researcher study will be a great importance to every student in financial school. The study will not only be of immerse help to students of financial studies but also to individuals and to the entire business organizations.

DEFINITION OF THE WORD AUDITNG “ An audit is an investigation by an auditor into the evidence from which the final revenue accounts and balance sheet, or other statements of an organizations have been prepared, in order to ascertain that they present a true and fair view of the summarized transactions for the period under review and the financial state of the organizations at the end date so enabling the auditor to report thereon”

Moreso, auditing is the official examinations of accounts to see that they are in order or can as well be defined as the examination by qualified persons of the books and accounts of a business or an undertaking to prevent frauds or inaccuracy on the part of the person keeping it.

NOTES F.R.M De Paula et el (1979, “The principle of Audiitng” Pitman publishers, London, 1970 p.3)