ABSTRACT
Auditing is continually changing and developing to meet the needs of the business environment it serves. The role of auditing towards ensuring accountability have attracted comment on the front pages of national newspapers, rather than in just the financial pages have even led on occasion to question and statement in parliament. This coverage has not always been good news for the auditing profession, but it does indicate a heightened awareness in society of the potential importance of what auditors do. It also reflects the way in which auditing practice and the activities of audit firms have developed and expanded business especially Alyumma Venture Nigeria Ltd, Jigawa State. While at one time auditing was generally regarded as a procedural activity involving the application of mechanical techniques, there is now greater realization that both the purpose an the execution of an audit are far from simple matters. In view of the above fact the study was designed to examine Auditing as an instrument for ensuring accountability in Alyumma Venture Nigeria Ltd, Jigawa State. In the course of the research oral interview and questionnaire were adopted as the main instruments for collecting data for the study. The data collected were tabulated, analyzed and interpreted. From the revelations some recommendations were made to eliminate or ameliorate Audit department of the corporation.
TABLE OF CONTENTS
Title Page……………………………………………………………………………………....i
Approval Page……………………………………………………………………………........ii
Dedication…………………………………………………………………………………….iv
Acknowledgement…………………………………………………………………………….v
Abstract……………………………………………………………………………………….vi
Table of Content ……………………………………………………………………………..vii
CHAPTER ONE
1.0
INTRODUCTION………………………………………………………………………..1
1.1 Statement of Problem……………………………………………………………………...2
1.2 Objective of the Study…………………………………………………………………….3
1.3 Statement of Hypotheses ……………………………………………………………….....3
1.4 Significance of the study………………………………………………………………….4
1.5 Scope of the Study………………………………………………………………………...4
1.6 Limitation of the Study……………………………………………………………………4
1.7 Definition of Terms………………………………………………………………………..5
CHAPTER TWO
2.0 Literature review…………………………………………………………………………..6
2.1 Introduction ……………………………………………………………………………....6
2.2 An overviewed of Auditing…………………………………………………………….....6
2.3 Objective of Auditing …………………………………………………………………….8
2.4 Types of Auditing …………………………………………………………………………8
2.5 Reliance of Internal Auditing to External
Auditors……………………………………...11
2.6 Auditing as a measure for Controlling Fraud…………………………………………….12
2.7 The Future of Auditing Audit Report……………………………………………………14
2.8 Auditors Liability………………………………………………………………………...15
2.9 Empirical Review ...……………………………………………………………………...19
CHAPTER THREE
3.0 RESEARCH DESIGN AND METHODOLOGY……………………………………….21
3.1 Introduction………………………………………………………………………………21
3.2 Research design…………………………………………………………………………..21
3.3 Population of the study…………………………………………………………………...21
3.4 Sample size and sampling Techniques…………………………………………………...22
3.5Sources & method of data collection……………………………………………………..22
3.6Method of data Analysis………………………………………………………………….23
CHAPTER FOUR
4.0 DATA PRESENTATION AND ANALYSIS……………………………………………24
4.1 Introduction………………………………………………………………………………24
4.2 Questions, Presentation and Analysis……………………………………………………24
4.3 Test of Hypothesis……………………………………………………………………….34
CHAPTER FIVE
5.0 SUMMARY OF FINDINGS, CONCLUSION AND …………………………………...36
RECOMMENDATIONS…………………………………………………………………….36
5.1 Summary of Findings…………………………………………………………………….36
5.2 Conclusion………………………………………………………………………………..38
5.3 Recommendation…………………………………………………………………………38
5.4 Suggestion for further study……………………………………………………………...39
Bibliography
Appendix (Questionnaire)
CHAPTER ONE
1.0 INTRODUCTION
The practice of auditing in the
primitive form can be traced back to Ancient times where the receipts and
payments of an estate or a manor were read to the head or proprietor, or the
Lord of a manor. The word Auditing originated fr4om the Latin word Audile
(meaning to hear). The Business of this period was characterized by sole
proprietorship.
But
with industrial revolution,
there was an
increase in business Transactions and there emerge
partnership and joint stock companies. The Evolution of mechanized industries
involved the provision of finance far In excess of what it used to be. Business become more complex and required
more formal and improved accountability.
Under the company form of
organization, the shareholders as a body delegated the management of
the undertaking to a board
of body delegated the
management of the
undertaking to a
board of directors and
periodically the board submitted to the shareholders accounts of the
company in order that the members might be able to see a true and fair view of
the financial position and the profit or loss of the undertaking in which they
were interested.
Because of these circumstances the
need arose for some means by which
the shareholders as a body
might be satisfied
that the accounts, Presented to them by their board of
directors, did in fact show a true and fair view of the financial position and
earnings of the company. It was for this
reason therefore that
the practice developed
of appointing auditors Whose duty it was to verify on
behalf of the shareholders the accounts of the directors and to report there on
to the shareholders. Under the early British companies Acts, the auditors
appointed
were
one or two
of the shareholders
of the company.
As however, the Chosen auditors commonly had insufficient technical
qualifications, there Were probably not able to carry out a very effective
audit nor were there Paid anything for the work they did although a later Act
did provide for them to employ a clerk to do some work, whose remuneration
should be provided by the company. It was the British companies Act, 1900,
which first made it legally compulsory
for every company
to appoint independent
auditors, as we now know them, and provided for their remuneration.
It was undoubtedly the rapid increase
in the number
of joint - stock companies
that took the rapid
increase in the
number of joint - stock
companies that took place at this
time, and the compulsory professional audit thus provided for in
the companies Act,
1900, that gave
the great impetus
to the development of the
partnerships are audited accountancy
profession. In Nigeria
today the accounts of every
company and the majority of by
professional accountants and
in recent years
the accountancy profession has
expanded greatly in many other directions.
1.1 STATEMENT OF PROBLEM
This
study entitled “Auditing
as an instrument
for organizational accountability”
attempts to determine how auditing enhances organizational
accountability and growth and to determine the growth and survival of an
organization whether it depend on auditing or not, to examine internal control
and auditing whether it contribute to the smooth implementation of management
policies, and to know whether poor and inefficient internal control and
auditing encourage fraud and mismanagement or not.
1.2 OBJECTIVES OF THE STUDY
The objective of this study is to
put across how auditing enhances organizational accountability and growth. And
the specific objectives are:
i. To determine the growth and survival of an
organization whether it depend on auditing or not.
ii. To examine internal control and auditing whether
it contribute to the smooth implementation of management policies.
iii. To know whether poor and inefficient
internal control and auditing encourage fraud and mismanagement or not.
1.3 STATEMENT OF HYPOTHESES
This study is required to test among
other things the following:
Ho:
Growth and survival of Al-Yumma Ventures Ltd. does not depend on
auditing and internal control.
Hi:
Growth and survival of Al-Yumma Ventures Ltd Depends on auditing and
internal control.
Ho:
Auditing and internal control does not contribute to the smooth
implementation of management policies.
Hi: Auditing and internal control
contribute to the smooth implementation of management policies.
Ho: Poor and inefficient internal
control and auditing does not encourage fraud and mismanagement.
Hi: : Poor and inefficient internal
control and auditing encourage fraud and mismanagement.
1.4 SIGNIFICANCE OF THE STUDY
The significance of the study is to
highlight the importance
of auditing to the growth and accountability of a manufacturing company.
This study will also add to the
advancement of knowledge in the
field of
auditing in an
organization. Future researcher in
these areas will also benefit from the study.
1.5 SCOPE OF THE STUDY
This study concentrates solely on a
manufacturing company in Jigawa state, with special reference to the Jigawa
Manufacturing Company (AL-YUMMA) Jigawa.
The organization undertakes business in motor manufacturing especially
Mercedes Benz’s products. Particular attention
will be paid to the methods and procedures employed by the accounting
department in performing its duties.
1.6 LIMITATION OF THE STUDY
Time factor imposes a big constraint
on this study as research of this scope can hardly be completed within the two months’
time limit set for it. This factor no
doubt made some aspects that would have been included to be left out. Such aspects include inter-company comparison
and the corporation to the industry.
Another big constraint on the
research is finance. Financial problems
to a great extent hampered the gathering of data (information) for the study.
This is more so when are considers the cost of moving from the school to the
site of the organization used as a case study. One also had to face the
difficulty of conviction of the officials taken as specimen, a lot
of explanation and
persecution to get
the co-operation of
such respondent.
1.7 DEFINITION OF TERMS
To ensure a proper understanding of
what the study is all about some unfamiliar words to those who are not in the
same field are explained as they appear in the project.
AUDIT - an independent examination
of an expression of an opinion on the financial statements of an enterprise.
INTERNAL AUDIT - The act of ensuring
that control measures set up by management are complied with.
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