Table
of Contents
Title Page
Certification
Dedication
Acknowledgement
Preface
CHAPTER
ONE
1.0
introduction
1.1 Background of the Study
1.2 Aims and Objectives of the Study
1.3 Significance of the Study
1.4 Limitation of the Study
1.5 Definitions of Terms
1.6 Organization and Plan of the Study
1.7 Statement of Research Hypothesis
CHAPTER
TWO
2.0 Introduction
2.1 Concept of Auditing and its Independence
2.2 Audit Committee as an aid to Independence
2.3 Audit Practice in the Firm and Scope of
Operation
2.4 Right, Duties and Remuneration of Auditor
2.5 Concept of Fraud and Error
CHAPTER
THREE
3.0 Introduction
3.1 Method of Data Collection
3.2 Method of Data Analysis
3.3 Historical Background of the case study.
CHAPTER
FOUR
4.0 Introduction
4.1 Presentation and of Data Analysis
CHAPTER
FIVE
Summary, Conclusion and
Recommendations
5.0 Summary
5.1 Conclusion
5.2 Recommendation
5.3 Suggestions
Bibliography
CHAPTER ONE
1.0 INTRODUcTION
1.1 BACKGROUND OF THE STUDY
A series of companies acts and decree commencing in 1844 due
to the full amount of debt of the companies so that they will meet the needs
and the account should subject to examination by independent people who claim
to be expert, i.e. auditors, who report the result of their findings to the
shareholders and consequently to their parties.
The auditor should have a recognize qualification as a mark
of competence. Before (1948) act, auditors even public companies required no
external professional qualifications.
The companies Decree of 1967, 1968 and companies and allied
matters decree CAMD of 1990, in Nigeria
have however moved steadily towards a stipulated that auditors of all limited
companies should be professionally qualified.
This is done through a professional in Nigeria called
institute of chartered accountants of Nigeria (ICAN). Progress in auditing has
been measured by the institute during the past away decades in terms of
development. This is quite natural and should continue since such abilities are
needed in Nigeria
business but this form of progress should no longer more initiative skills a
lack of which has become alarming evident of late and such skills can only
flourish in a situation of late of time independence.
In the country, in the early days of auditing the prime
qualification for the position of auditors was reputation. A man of integrity
and independence of mind would be sought for this honoured position, the
matters of the technical ability being entirely secondary and consequently his
function in those days was never confused with that of an accountant.
However, as accountancy in the country gradually become more
complex and concerned with technically become increasingly dependent upon the
expertise provide by the accountants until eventually the audit function itself
become totally dominated by the accounting profession.
1.1 STATEMENT OF THE STUDY
The ICAN in 1961 issued its first statement on auditing which
is referred to as UI. General principle of auditing. These statements tend to
outline what is considered as an applicable general principle to be followed in
the conduct of auditing. This have been subsequently withdraw may be for the
reasons of inadequacy some of the relevant ones currently in uses are:
1. V7
– Verification of debtors balance confirmation by direct communication.
2. V9
– Attendance of stock taking
3. V11
– Stock in trade and working progress
4. V14
– Internal control is a computer based accounting system
5. V15
– The auditor computer based accounting system auditing standard and guideline
publication starts in 1980 by the auditing practice committee. It consist of
the following : -
a.
As explanatory forward: this describes
the basic principle and practices which members are expected to follow in the
conduct of an audit.
b. Auditing
failure: auditing failures by members to observe this standard may result an
enquiry by appropriate committee of the institute and which may lead to
disciplinary action against an erring member.
1.2 AIMS AND OBJECTIVE OF THE STUDY
The main objectives of this research work are to look into
the roles of auditors with their clients and third party. This project is
design to enlighten the public that the work done by the qualified verification
of financial statement. Auditors need to exercise duty of care to the client
and third parties. Also, the independence of an auditor is also important is
this issue and this shows that work of professional auditor can not be over
emphasis in every sector.
In such situations, auditors, their clients and third party
generally seek ways to resolve their disagreements.
1.3 SIGNIFICANCE OF THE STUDY
The study would increase the stock of professional auditors
in terms of know ledge and professional skills on how to relate and operate
with their clients and third party. The study would also serve as a useful
reference material to students of accountancy and future research would find
this work valuable.
1.4 LIMITATION OF THE STUDY
The research of this nature involved spending on stationary,
transportation and many others. There is a problem of insufficient capital in
term of money, materials and time. Despite this constraint, enough will be put
into the write up to justify the time and resources that would be spent.
1.5 DEFINITION OF TERMS
Independence:
this means the possession of integrity, ability to be self reliant and honest,
freedom from bias and avoidance of the relationship which to a research
observer would suggest a conflict of interest on the part of the auditor.
Confidentiality: this means information acquired in the
course of professional work should not be disclosed except where consent has
been obtained from the client, employer or other proper to discharge or public
duty to disclose.
Responsibility: an auditor is not responsible for preparing
accounts. He does not guaranteeing their accuracy. An auditor does not maintain
and control the business. He does not assess the efficiency of business
operations.
Error: errors are generally agreed in auditing as
unintentionally mistakes. It makes clients account unreliable and if very
predominate in occurrence and value can impact or affect the truth and fairness
of the accounts.
Irregularities: every intentional distribution of financial
statement for whatever purpose, which includes misappropriation of assets,
whether or not accompanied by distortion of financial statements (such as
missing vouchers, payment disputes, imbalance figure) undoubtedly constitute
irregularities.
Fraud: fraud is used only to refer to irregularities
involving the use of criminal deception to obtain an unjust or illegal
advantage such as stating stock value higher than obtainable, in a deceptive
manner to be able to declare profit (when loss is actually sustained) and go
ahead to declare dividend wrongly. In order words “Fraud” refers to intentional
misrepresentations of financial information by one or more individuals among
management, employees, or third parties.
1. Manipulation,
falsification or alteration of records or documents
2. Misappropriation
of assets
3. Suppression
or omission of the effects of transaction from records or documents
4. Recording
of transaction without substance
5. Misapplication
of accounting policies
1.6 ORGANIZATION AND LAN OF THE STUDY
It spells out the number of chapters into which the
researcher wants to divide the work.
It is going to be a four or five chapter work. It has to
stated here. This will guide the investigator concern the organization and plan
of his written up.
It is usually written such that the topic to be written under
each chapter will need to be stated.
Chapter 1; Introduction
Rend other sub, heading in
Chapter 2; Literature
Review Break Down into sub-head into Reflect the topic in Question
Chapter 3; Research
Methodology
Chapter 4; Data Presentation,
Analysis and Interpretation
Chapter 5; Finding, Summary,
Conclusion and Recommendation.
1.7 STATEMENT OF RESEARCH HYPOTHESIS
This research statement is mainly focuses on the effect of
management information system on company operation in the organization in which
is stipulate on the growth, stability and profitability of the organization.
The statement of hypothesis for research work is as follow: -
1 Hi – management information system has
improved the company service by reducing the delay and stree of customers.
Ho – management information system has not improved the
company service by reducing the delay and the stree of customers.
2 Hi – management system has increased the
confidence of customer in company and there by enhanced good company habit of
the customers.
Ho – management information system has not increased the
confidence of customers in company and there by discouraged good company habit
of the customers.
3 Hi – management information system has
significantly assists in detecting and reducing fraudulent activities in
company’s
Ho – management information has not significantly assists in
detecting and reducing fraudulent in company’s
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