In an attempt to analysis the importance attached to auditing as a
tool for certifying the financial statement of business enterprise, the
researcher had to be very briefly re-cap the origin of auditing and
above all those factors that in the first instance necessitated it.
Auditing, it was noted became very prominent in the business cycle the
world over precisely in the 17th century following the
inception of company form of business. The birth of this form of
business arrangement allowed for the severance of this severances the
need for accountability arose, and auditing has to be employed to give
credibility to such stewardship reports.
Furthermore, the concept of auditing was defined and
subsequently classified under two board groups namely according to the
nature of work. Also, audit objectives were identified and analysed into
primary and secondary objectives respectively. More so, light was shed
on elements and content of every audit report, type of audit reports and
opinion as well as the meaning significance and those factors.
1:1 BACKGROUND OF STUDY
The concept of auditing data back to antgenty, the earliest traces of
its existence was found in Italy and Egypt amongst great landowners of
the middle ages.
However, according to afounka (1993), statutory
audit which incidentally forms the main thrust of the research “arose
sequel to the inception of company form of business in the 17th century for trading and other purpose”.
This development made it possible for investor to commit their
resources in a business without necessarily getting involved in the
administration and management of such business. With the passage of
time, this practice was further modified such that there was a total
split between the ownership and management thus, while share holders
retained ownership, the board of director took change of management .
under this arrangement it is required that the management should report
back to predetermined intervals to the owners of the business they hold
in trust. But there are chances that such stewardship report might
contain errors, misleading by deliberately or failure to disclose
relevant. Information, it then follows that these possibilities will
naturally give management periodic report insufficient credibility.
Therefore, it is such probability that under scores the essence of
auditing and exercise carried out in accordance with the law to give
’´a stamp approval on the stewardship report” the need for auditing
is heavily on the fact that by giving justification to he accounts of
stewardship, users off accounting information namely:. Shareholder,
investors, employee, government agencies such as accountants, economists
e.t.c. can conveniently rely on such reports for sound economic
decision making. It is this understanding that necessitated the making
of auditing very imperative to all corporate bodies on annual basis by
such government legislations as company and allied matter degree 1990. to
ensure that auditor discharge this responsibility efficiently and
satisfactorily, they are given unimagination powers and rights.
1:2 HISTORICAL BACKGROUND OF NIGER GAS LIMITED
niger gas ltd. Commenced operation in 1962 following it official commissioning by government of the then fastern Nigeria.
However due to change in the political structure of Nigeria
occasioned via states creation, Enugu state government at present holds
controlling shareholding interest with others S.O ALINTA, E.M MICHILLETLE, AND CENTRAL INVESTMENT COMPANY LIMITED (C.I.C) ENUGU CONSTITUTING THE MINORITY SHAREHOLDERS.
The company was established to manufacture and at the same time
market industrial and medical oxygen. Thus staff strength of the
company, presently is put at one hundred and eight (180) employees. Twelve (12) of them belonged to senior management staff with the rest forming the junior and medium level manpower.
1:3 OBJECTIVE OF THE STUDY
the objective of this research are not for fetched especially when the provisions of section 359 (2) of the companies and allied matter