TABLE OF CONTENTS
1.1 BACKGROUND OF THE STUDY
1.2 STATEMENT OF PROBLEM
1.3 OBJECTIVE OF THE STUDY
1.4 SCOPE OF STUDY
1.5 LIMITATION OF STUDY
1.6 DEFINITION OF TERMS
2.0 LITERATION REVIEW
2.1 REVIEW OF RELATED LITERATURE
2.2 WHO IS AN AUDITOR
2.3 DUTIES OF AN AUDITOR
SUMMARY OF FINDINGS
In this study the researcher’s intention is
to know the auditors role on reporting on illegal acts.
We all know that both private and public or
government organizations are involve on one irregularity or the other and
nobody checks the organization to know their financial standard. This makes the
people celebrating their positions and at the same time leads the company or
organization to it’s grave by winding in up.
That is why an auditor is set up by the law of Nigeria to check the
financial statement of all the registered company’s.
The researcher have wants to know the
auditors role and other things as provided by the law that enable the auditor
to give a perfect report on irregularities in any place he founds himself.
BACKGROUND OF THE STUDY
The practice of an auditing in a primitive
form can be traced
back to ancient times accounting existed
before the advert of reading and writing in those early stages metal records
where adequate demand. Audit is derived
from Latin word “Audire” meaning to “here” the word auditor soon acquired a
secondary meaning i.e. one who examines the accounting statement and satieties
himself as the truthfulness and fairness of the statement.
Under the method of primitive forth but with
the advert of writing and increasing complexity of business activities.
Stewards began to keep some forms of writing records and the master examine
such records so that act of book keeping and the practice of auditing involved
side by side originally most enterprises where owned by individuals who finance
privately and so the capital available to industry was strictly limited, there
was therefore no need for audit as it exist today as enterprises greatly
expanded and due to the evolution of mechanized factories provision for finance
has to increase, as a result of this, men who entered into contractual
relationship with one another, there arose the need to ensure the accuracy and
liability of the resulting information.
Under the method o limited liability, share
holders are usually disposed and majority of them do not have the technical
knowledge of understand how their funds are being used. The share holders appoint a body to which
then delegate the day to day running of the business to enable the share
holders know the financial positions and performance of the company.
This body know as the board of directors
present an account to them at the end of each financial period, a problem was
then problem is that of believing that they funds have been honestly and
prudently managed to take care of the practice of appointing auditor whose duty
it was to verify on behalf of the share holders the account of directors and to
report there on to ht share holders developed.
The joint stock company act of 1844 was the
first enactment in the UK to require all incorporated company’s to have their
annual financial statement audited.
Under the act professional qualification was not a prerequisite to the
auditing assignment. The auditor should
also not be independent on the management.
It was the company act of 1990 which first
made if legally compulsory for every company to have an independent auditor and
provided for him a remuneration, but the auditor was required to report on the
“truth and correctness” of the company’s financial affairs as shown in the
balance sheet this at recognize the need for him to be professionally
Auditing is not limited to liability
company’s account only, it also extends to government accounts, therefore
auditing also has its origin form formation of nations and the need to account
properly to the citizens who own the resources.
Auditing usually arise when a group of persons handle money or money
worth on behave of some other group of persons.
This is done to satisfy the
beneficial owners of the funds that their funds are being honestly and