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

 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.

 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.

 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)