AUDIT REPORT AND ITS IMPACT ON BUSINESS FIRM

By

UJADUGHELE. E . I. STELLA

Presented To

Department of Accountancy

TABLE OF CONTENTS

TITLE PAGE II

APPROVAL PAGE III

DEDICATION IV

AKNOWLEDGEMENT V

TABLE OF CONTENTS VI

CHAPTER ONE

1.1 INTRODUCTION 1

1.2 STATEMENT OF PROBLEMS 10

1.3 DEFINITION OF TERMS 2

1.4 SIGNIFICANT OF THE STUDY 3

1.5 SCOPE AND LIMITATION OF STUDY 5

CHAPTER TWO

2.1 CONTENT OF THE REPORT 6

2.2 THE AUDITORS OPINION 8

2.3 TYPES OF REPORT 11

2.4 ENFORCEMENT PROCEDURES 20

CHAPTER THREE

3.1 CONCLUSION 41

 BIBLIOGRAPHY

CHAPTER ONE

BACKGROUND OF THE STUDY

These statement are presented inform of annual report to achieve accounting goals. Which finally serve in instrument to wards achieving profit in any business organisation.

Virtually when managers report to share holders, some problems always existed such as, can the shareholder believe the report? Some of the reasons why these shareholders employees , investors and other body agencies became doubled about the report are as follows:

1. Such report contain some error e.g error of omission commission, principle etc

2. such report can be unintentionally misleading or deliberately misleading.

The solution to the above problem of reliability and validity in the report and accounts lie in the appointment of an independent expert called an Auditor to investigate the reports.

According to Pugh Michael (1992) p.12 it in the auditors responsibility to as certain that all financial statement of the business original are followed because the accounting profession require of its member integrity, transparent, honesty, independence and objectively of performance as well as struct adherence to accepted professional conduct .

STATEMENT OF THE PROBLEM

Today in the country people view the auditor in different ways. Some recognize them as a body that check the fraudulent acts in a present business organization while others regard the auditor as somebody who approaches his work with suspicion or with foregone conclusion that there is something wrong.

Present business organization are filled with stores of 419ners, fraud, ducks and drake of public fund etc. fraudulent acts has become so rampant that one wonders if there is no means of limiting if not eliminating it completely.

It has been said that the management of a business enterprise are the custodians of its assets and are therefore responsible for any act that result in loss or mismanagement of assets.

However, the accountants who prepare or keep the books of the enterprise is under the control of the management and thus, it is possible for the management to alter the records, the books cover, fraudulent acts, deliberately given an unfair and untrue view in their statement of accounts etc.

1.3 SIGNIFICANCE OF STUDY

The primary goals of an Audit as required by the company and allied matters decree (CAMD) of 1990 is that the auditor must satisfy himself that:-

a. The accounts have been prepared in accordance with the decree.

b. The balance sheets shows a true and fair view the results of the period.

c. Proper accounting records have been kept.

The secondary goals of an audit according to CAMD is:

a. The provision of assistance to amangement by way of drawing managements attention is weakness in the course of audit exercise.

b. If fashion out a way where by auditing will not be restructed to inspections of books as show in the primary goals of an audit, rather it will involve a well organized system of preventing and detecting fraud.

c. It shows that the secondary goals of auditing are indeed the foals that make the auditors relevant in a profitable business organisation.

d. The prevention and direction of fraud, errors and irregulation.

1.4 SCOPE AND LIMITATION OF STUDY

a research of this nature should not be viewed pegin whollically rather it should involve a wide view of professional working in every norks and cranny of the world to ascertain its relevance.

Moreover, this particular study was limited to the country, Nigeria and in particular Enugu and Imo state.

The major limiting factors of this study was finance which is one of the motivating factors to go round which in one of the motivating factors to go round the dock in view of collecting date especially those filled up questionnaire.