THE ROLE OF THE AUDITOR IN SMALL BUSINESS ORGANIZATIONS
ABSTRACT
A
significant contribution to the development and survival of business
organization is the role that auditors play. This research work, The Role of
Auditors in Small business organizations, give a broad understanding of what
the auditors role entails.
In the course of this research, data was
collected by means of questionnaire. The collected data were analyzed with the
aid of percentages. Further analysis was done on relevant information. The
statement of research hypothesis was tested using chi-square distribution.
The use of internal control
questionnaire and evaluation forms by auditors, to ascertain and evaluate the
strengths and weaknesses of internal control systems of business organization,
with a view to determining the degree of reliance to be placed on the internal
control system, is a major finding of this research.
The recommendation made in respect of
the above finding, is that internal control questionnaire and evaluation forms
which auditors use in ascertaining and evaluating internal control system
should be constantly reviewed and revised in light of current changes made in
clients internal control systems.
TABLE OF CONTENT
Title page…………………………………………………………..ii
Certification………………………………………………………iii
Dedication………………………………………………………..iv
Acknowledgement………………………………………………v
Abstract…………………………………………………………..vii
Table of contents………………………………………………..ix
CHAPTER
ONE: Introduction
1.1
Background
of the study……………………………….1
1.2 Statement of
the problem………………………………4
1.3 Objectives of
the study………………………………….6
1.4 Scope of the
study………………………………………..7
1.5 Statement of
research hypothesis…………………….8
1.6 Significance
of the study………………………………..9
1.7 Limitations of
the study……………………………….10
1.8 Method of data
analysis……………………………….10
1.9 Definition of
terms……………………………………...11
References……………………………………………………….15
CHAPTER
TWO: Literature Review
2.1
Introduction…………………………………………….16
2.2
Business
organisation- an over view……………..16
2.3
Nature
of auditing…………………………………….17
2.4
Purpose
of auditing…………………………………..19
2.5
Objectives
of auditing………………………………..20
2.6
Types
of audit………………………………………….22
2.7
Qualities
of an auditor……………………………….23
2.8
Responsibilities
of auditors…………………………24
2.9
Appointment
of auditors…………………………….25
2.10 Removal of auditors………………………………….28
2.11 Qualification of an auditor………………………….29
2.12 Rights of an auditor………………………………….30
2.13
Remuneration of auditors…………………………..32
2.14
Duties of an auditor………………………………….32
2.15
Resignation of appointment………………………..34
2.16
Auditors report………………………………………..35
2.17
Professional considerations………………………..36
2.18
Role of auditors in business organisation………41
2.19
Qualities of financial accounts……………………48
2.20
Internal auditing in business organisation…….49
2.21 What internal auditors do…………………………..50
2.22
Audit approach………………………………………..51
References……………………………………………………….53
CHAPTER
THREE: Research Methodology
3.1 Introduction…………………………………….………..55
3.2 Research
design………………………………………...55
3.2.1 Sources of
data collection…………………………….55
3.2.2 Instrument for
data collection……………………….56
3.2.3 Data
presentation and analysis……………………..57
3.2.4 Chi-Square (x2)…………………………………………..58
3.2.5 Decision
rule……………………………………………..60
References……………………………………..………………..61
CHAPTER
FOUR: Data Presentation and Analysis
4.1 Introduction……………………………………………...62
4.2 Analysis and
interpretation of data…………………63
4.3 Test of
hypothesis………………………………………90
4.4 Accounting
services…………………………………..103
4.5 Verification
of financial statement………………..103
References……………………………………………………..105
CHAPTER
FIVE: Summary of Findings, Recommendation and Conclusion
5.1 Introduction…………………………………………….106
5.2 Summary of
findings…………………………………106
5.3 Recommendations…………………………………….109
5.4 Conclusion……………………………………………...113
References……………………………………………………..116 Bibliography…………………………………………………..117
Appendix……………………………………………………….121