TABLE OF CONTENTS
Title page
Certification
Dedication
Acknowledgement
Table of contents
CHAPTER
ONE: INTRODUCTION
1.1 Background of the study
1.2 Statement of problems
1.3 Significance of the Study
1.4 Research question
1.5 Working hypothesis
1.6 Scope and limitation of the study
1.7 Definition of the Study
Reference
CHAPTER
TWO: LITERATURE REVIEW
2.1 Introduction
2.2 Auditors reports
2.3 Effect of auditors report
2.4 Roles of auditors
2.5 Relevance of auditing information to users of a accounting
2.6 Prevention of fraud, errors and irregularities by an auditor
CHAPTER
THREE: RESEARCH METHODOLOGY
3.1
Introduction
3.2
Research design
3.3
Sample and sampling method
3.4
Data collection instrument
3.5
Research statistic
3.6
Restatement of the research hypothesis
3.7
Characteristics of the study population
3.8
Administration of data collection instrument
3.9
Procedure for analyzing collection data
3.10 Limitation
of the methodology
CHAPTER
FOUR: DATA PRESENTATION AND ANALYSIS
4.1
Introduction
4.2
Data analysis
4.3
Interpretation of result
CHAPTER
FIVE: SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION
5.1 Summary of findings
5.2 Summary of findings
5.3 Conclusion
5.4 Recommendation
5.5 Suggestion for the further research
CHAPTER
ONE
BACKGROUND
OF STUDY
1.1 INTRODUCTION
According
to Company and Allied Matter Act (CAMA) 1990, as amended to date “every limited
liability companies must appoint an auditor to examine and report on the
accounts prepared by the directors”. A point often mis-understood is that the
auditors does not act for the directors, rather he acts on behalf of the
shareholders.
The
relationship between the shareholders and auditors can be considered as that of
principals and agent (a point made in the case of Spacemen V. Evans 1868).
Hence, his principal objective is to form an opinion on the truth and fairness
of the accounts prepared by the directors.
However,
it must be emphasized that nowadays the directors are seen as having a much
wider responsibility especially where the shares are available to be the general
public on a stock exchange. It then follows that this duties to own by the
auditor is relied upon to set the seal on credible financial information.
Audited
accounts are required to be filed with the registrar of companies so that the
financial position of the business can be disclosed to the general public. Upon
enquiry the council of the stock exchange reserves the right to refuse to grant
a quotation to those companies whose accounts have attracted serious negative
comment from the auditors. Also, the auditors’ recognized the need to adhere to
certain standard of practice in order to demonstrate the high level of
competence and regard for standard that his role demands.
To
understand the role of auditors in the business and economic life of an organization
there is the need to understand what auditors are their responsibilities, their
qualities, their code of conduct, how they are appointed, their rights and
duties in a manufacturing business and the advantage of the report to the
manufacturing organization.
1.2
STATEMENT
OF PROBLEM
Admittedly,
there are various guideline published both locally and internationally that are
applicable and relevant to the roles of auditors in the business and economics
life a manufacturing business. The guidelines are:
• Auditing Standard and Guidelines
• International Auditing Guidelines
• Statement of Accounting Standard
• Generally Accepted Auditing Standards
• Generally Accepted Accounting Principles
However,
the uniqueness of this study is that it will attempt to examine how the
auditors.
• Adhere to policies prescribed by
government
• The extent to which internal control
measures is been followed as a means of fraud prevention
• To see to what extent the books of
account have been kept by the company
• To see whether the wealth of the
shareholders have been adequately protected.
1.3 SIGNIFICANCE
OF STUDY
It
is considered necessary to study the roles of auditing in the business and
economic life of a manufacturing industry in order to identify both primary and
secondary aims of audit because both aims expressed their roles in an
organization.
The
primary aim of an audit is the production of a report by the auditor on his
opinion on the truth and fairness of financial statement so that any person
reading and using such report can have assurance in them. Emanating from)this
main aim is the “detection and prevention of errors and fraud as well as
provision of spin off affects such as writing up books, preparing final account
and text returns, financial advice, management and systems advice in
liquidation and investigation.
In
summary, the significance of this research is to examine the role of the
auditor in the economic framework of a
manufacturing business as a means of enhancing the overall growth of the
organization.
1.4 RESEARCH
QUESTION
This
research seeks to find answered to a number of pertinent questions relating to
the roles of .an auditor in the business and economic life manufacturing
business.
These
questions include:
• What are the advantages of auditing
report to the company?
• How can the responsibilities of auditors
benefit the shareholders?
• Does their work give effective business
protection and safeguard against fraud?
1.5 WORKING
HYPOTHESIS
Hypothesis
is defined as a proposed explanation for an observable phenomenon, fact or
circumstance. The hypothesis is designed to test whether.
• The auditors really prevent and detect
fraud errors and irregularities
• The auditors abide by the rules and
regulation laid down by law in carryout their audit activities
• The auditor general responsibilities to
an organization are well furnished and established
• The auditors protect the interest of
shareholders and investors by their report
1.6 SCOPE
AND LIMITATION OF THE STUDY
Time,
financial constrain etc as well as know has been the greatest constraints of
researchers in protect writing. This research is however explanatory and will
pave way for further research.
The
above mentioned constrains makes it difficult for us gather adequate data.
Intact it would have involved extensive travels to some of the branches of UTC
Nigeria Plc but time will not permit us to do so.
1.7 DEFINITION
OF TERMS
AUDIT: is a process (carried
out by qualified auditors) whereby the accounts of business enterprises
including limited compares, charities, trustee and professional firms are
subjects to scrutiny in such details as will enable the auditors to form an
opinion as to their truth and fairness.
INDEPENDENCE AUDITOR:- n
this research work independent auditor means external auditor
AUDITING:- it
involves a detailed examination embracing review of the system of book keeping
accounts and internal control and making such test and inquiries as he deems
fit to enable him form an opinion of the reliability of the records as a basis
for the preparation of the accounts to compare the profit and loss account and
balance sheet with the underlying records in order to determine whether they
agree therewith, to make a critical review of the profit and loss account and
balance sheet in order that a report be made to the member or shareholders
stating whether in the opinion of the auditor the accounts are prepared as the
items are described in such a way that should not only reflects a true and fair
view but also are prepared in accordance with the statutory provisions.
AUDITOR:
Oxford Advance learner Dictionary defined an auditor as a person who officially
examines the accounts of a company. An auditor visualizes whose system and
report on the account prepared by the directors.
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