ABSTRACT
Auditing
therefore, is one of recent professions established as a result of complexity
of modern business people have entered into contractual relationship with one
another the desire to ensure and accuracy and reliability of the financial
statement has always existed the divagation of public treasure and the collapse
of business being to create doubt as to the effective nears of audit report and
its contribution to economic development. Being a feedback information, the
averting now is whether an audit report does actually, have some effects on the
users of financial statement of the first bank of Nigeria Plc.
TABLE
OF CONTENTS
CHAPTER ONE
1.1 BACKGROUND OF STUDY
1.2 STATEMENT OF PROBLEM
1.3 PURPOSE
OF THE STUDY
1.4 SIGNIFICANCE OF THE STUDY
1.5 STATEMENT OF HYPOTHESIS
1.6 RESEARCH QUESTION
1.7 SCOPE OF THE STUDY
1.8 LIMITATION
1.9 DEFINITIONS OF TERMS
CHAPTER TWO
LITERATURE REVIEW
2.1 RESEARCH
QUESTIONS / HYPOTHESIS MODEL / THEORIES
2.2 CURRENT LITERATURE ON THEORIES MODELS
2.3 THE
SUMMARY OF THE LITERATURE REVIEW
CHAPTER THREE
RESEARCH
METHODOLOGY
3.1 DESIGN OF STUDY
3.2 AREA OF STUDY
3.3 POPULATION OF THE STUDY
3.4 SAMPLE OF THE STUDY
3.4 SAMPLE OF THE STUDY
3.5 INSTRUMENT FOR DATA COLLECTION
3.6 VALIDATION
OF THE INSTRUMENT
3.7 DISTRIBUTION AND RETRIEVAL OF THE
INSTRUMENT
3.8 METHOD OF DATA ANALYSIS
CHAPTER FOUR
4.1 DATA
PRESENTATION AND ANALYSIS
4.2 TEST
OF HYPOTHESIS
4.4 DISCUSSION OF THE FINDINGS
CHAPTER FIVE
5.1 SUMMARY,
CONCLUSION AND RECOMMENDATION
5.2 CONCLUSION
5.3 RECOMMENDATIONS
5.4 SUGGESTION FOR FURTHER RESEARCH
CHAPTER ONE
1.1 BACKGROUND OF STUDY
As a result of the good performance of
the African Banking Corporation in 1894, the bank of British West African (now
known as first Bank of Nigeria Plc) opened its branch office in Lagos. The bank
was registered in London in 1892 with an authorized share capital of 100,000 pounds.
The Bank enjoyed monopoly over banking business in Nigeria until 1916 the bank
(BBWA) was the sole agent for the custody and distribution of British silver
currency in West African as issued by the West African currency Board which was
established in 1912.
During the era of indigenization in
Nigeria 1970 to 1977, the indigenization of Nigeria Banking and 1973 the
federal government took 40% ownership in the three biggest foreign bans, which
are union Bank Plc, UBA and First bank Plc. The second indigenization excuse
which took place in 1976 federal government increases is shows to 60% and also
took 60% share in other foreign banks to achieve 60% indigenous ownership to
these banks.
The first Bank of Nigeria Plc which was then
are among the three biggest foreign banks in Nigeria, which is able to
withstand all the predicaments imposed on it by the federal government during
the time of 1952 ordinance and 1973-1976 indigenization exercise and the name
first bank of Nigeria was originated.
From the industrial revolution up to the
turn of the 19th century, the intricacies and exigencies of human
business interaction have given rise to the need for accountability. This
process has assigned a formable dimension and is today profession and
description of notable impact.
Accountability can be defined as
presenting information in a clear form which would give the users a ready
understanding of the organization financial position and performance and enable
them to see at a glance how the performance is composed with that comparable
organization.
Accountability is the process of identifying
and analyzing, classifying, interpreting and communicating of financial
information to permit or enable informal judgement of the users of the
information.
Auditing therefore, is one of recent
professions established as a result of complexity of modern business people
have entered into contractual relationship with one another the desire to
ensure and accuracy and reliability of the financial statement has always
existed the divagation of public treasure and the collapse of business being to
create doubt as to the effective nears of audit report and its contribution to
economic development. Being a feedback information, the averting now is whether
an audit report does actually, have some effects on the users of financial
statement of the first bank of Nigeria Plc.
1.2 STATEMENT OF PROBLEM
It is not surprising that in many cases
of performance evaluated there is always a general expression of
dissatisfaction after examination and investigation of an organizational record
the auditor expresses opinion as to the credibility of the financial statement
but my aim will be on the following:
1. How reliable
is an audit report to the users of the financial statement?
2. Who
does audit report satisfy the desire of its users?
3 Who
effective is audit report on the growth of the economy?
4 Does
audit report show a true and fair view of the organization?
5 Does audit report have any effect on the
users of the financial statement?
1.3 PURPOSE
OF THE STUDY
As
regard to our economy, there is need for us to evaluate the impact or effect of
audit report on the uses. If there are no effects whatsoever why is the
situation like this in the country in general and first Bank Plc in particular
the success of the auditor lies in how effectively he discharges his public
trust. The researcher is desirous to find out of the quest for materialism
affect the integrity of the auditors and in turn economic development.
1.4 SIGNIFICANCE OF THE STUDY
Knowledge
and facts form this study will help the research to perform as a good auditor
and to recommend to other in the profession, the need for the credibility and
reliability of an audit report such as to satisfy the needs of the users and
thus create positive impact on the users decisions.
A good audit report contributed to prudent
management of available resources, greater accountability and control auditor
report should create greater confidence in the auditing profession of the members
of the public (users) since the report is a made of recommendation between the
entity and the external parties.
Both
management and external users of financial statement attach values to unqualified
audit report because it assures them of the future prospects of the
organizations.
1.5 STATEMENT OF HYPOTHESIS
HYPOTHESIS
HI: Audit report will help in the economic development
of an organization especially in banking industry.
H0: Audit report
will not help in the economic development of an organization especially in
banking industry.
H1: Audit report
will influence banking system in Nigeria.
H0: Audit report
will not influence banking system in Nigeria.
H1: Audit report
prevent fraud and error in the organization
H0: Audit report
cannot prevent fraud and error in the organization
1.6 RESEARCH QUESTION
a How
can audit report influence banking system in Nigeria?
b To what extent will audit report improve
the standard of our economy?
c Will audit report help in the economic
development of an organization especially in banking industry?
d Do you think that users make use of audit
report ?
e Do you think external audit do not
influence fraud prevention and control which may also result improve accounting
records?
f Does shareholders used audit report to
know the standard of the organization?
1.7 SCOPE OF THE STUDY
Since
a nation economy is not more than the aggregation of the individual entities within
it the overall financial condition of the bank should determine the health of
its economic affairs it is the researcher intension to reach as many users of
financial statement as possible both in the public and private sector since the
growth of the banking economy is a joint contribution of the individual and
banks.
It is
my view that, it a leviable audit report are produced uses will take better
economic decisions that will help in review the present economic situation of
the banks.
Thus,
our economic growth and stability is heavily dependence upon reliable economic
information on which decision should based upon.
1.8 LIMITATION
It is
impossible to interview all the users of financial statement due to time and
financial conditions. Despite the above mentioned problems, it is hoped that
the study will cover a representative of users of the report in managerial and
customers held interview with the management and employees of first bank of
Nigeria Plc some customers were also interviewed.
This study involved gathering data within
specifies time limit. This situation tended to make the researchers work
obstructive since he could not accept long appointment or delayed meetings with
officials.
1.9 DEFINITIONS OF TERMS
1 Accounting standard: This is a rule
or set of rules which prescribes the method(s) by which accounts should be
prepared and presented. They may be referred o as “working regulation” and are issued
by a national or international body of accounting profession.
2. Auditing: Is an independent
examination of financial statement or books of account to ascertain that they
present the truth and fairness of the transaction of an organization within the
audit period.
3. Audit Report: Is an account of an
independent examination of and expression of an opinion on the financial
statement of an enterprise by an appointed auditor in pursuance of that
appointment and in compliance with any legal or statutory obligation.
4. Financial statement: Are part of a
company annual report the purpose of which is to communicating information
about the company to those who have a right to receive it. They provide an
indication of the organization performance and of aspect of its financial
position at a particular date example profit and loss account, balance sheet
cash flow statement and others.
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