This research examines the impact of auditing in enhancing
business survival, a case study of guaranteed trust bank (GTBank) and united
bank for Africa (UBA), katsina state.
The work is aimed at determining the aims, objective, and
achievement of auditing and how auditing through a well planned work of an
auditor can have impact in the development of business and its profitability.
It was also highlighted that auditors who confronted with
some problems should demonstrate adequate skill, care and independent as to
prove business development, survival and corporate accountability and by so
doing will propel the enhancement in business and other sectors of the economy.
This research work is
on the impact of auditing in enhancing business survival: A case study of guaranteed trust bank (GTBank) and united
bank for Africa (UBA).
Auditing has been the
backbone of the complicated business world and has always changed with times.
As the business world grew strong horizontally and vertically, auditors’ role
becomes more complex and challenging. The auditors’ job becomes more difficult
and complicating as the accounting principles and standards changes.
Organizations application of internal control software and use of internal
controls specialists, which introduces the need for testing, makes audit
assignments fairly easy and reduces the scope covered as reliance is placed by
the auditor on the works done by the internal control specialists. Scandals and
stock market crashes, failure of some financial institutions and sudden
failures of many companies highlighted to the auditors the deficiencies in
auditing and loopholes in audit work. This also led to several innovations
which made the auditors and the auditing community to quickly review their
operations and fix the anomalies.
The practice of auditing existed even in the Vedic period.
Historical records show that Egyptians, Greeks and Roman used to get this
public account scrutinized by and independent official. Kautaly in his book
“arthshastra” has stated that “all undertakings depend on finance; hence
foremost attention should be paid to the treasury”.
Auditing as it exists today can be associated with the
emerging of Joint Stock Company during the industrial revolution.
word “audit” was derived from the Latin word “audire”, meaning “to hear”.The
practice of auditing has existed since the primitive days when men were
required to account for their transactions. This was developed from the concept
of stewardship, where by productive resources were supplied by person or group
of persons. These providers of funds would in turn require the stewards of the
business to give an account of stewardship accordingly at the end of a
particular period of how the resources given to them were been expected.
The practice of
stewardship can be linked to present day limited liability companies, which are
owned by shareholders, who provide the finance for running the business and
managed by directors appointed by them.