ABSTRACT
Auditing is continually changing and
developing to meet the needs of the business environment it serves. The role of
auditing towards organizational success have attracted comment on the front
pages of national newspapers, rather than in just the financial pages have even
led on occasion to question and statement in parliament.
This coverage has not always been good news
for the auditing profession, but it does indicate a heightened awareness in
society of the potential importance of what auditors do. It also reflects the
way in which auditing practice and the activities of audit firms have developed
and expanded business especially Anamco Ltd. Enugu.
While at one time auditing was generally
regarded as a procedural activity involving the application of mechanical
techniques, there is now greater realization that both the purpose an the
execution of an audit are far from simple matters. In view of the above fact the study was
designed to examine Auditing as an instrument for organizational success in Anamco
Ltd. Enugu.
In the course of the research oral interview
and questionnaire were adopted as the main instruments for collecting data for
the study. The data collected were tabulated, analyzed and interpreted. From
the analysis some revelations were made. Base on the revelations some
recommendations were made to eliminate or ameliorate Audit department of the
corporation.
TABLE OF
CONTENT
Title Page
i
Approval Page
ii
Dedication
iii
Acknowledgement
iv
Abstract v
Table of Content
ix
CHAPTER
ONE
1.0 Introduction
1
1.1 Statement of Problem
1.2 Objectives of the Study
1.3 Research questions
1.4 Significance of the Study
1.5 Scope of the Study
1.6 Limitation of the Study
1.7 Definition of Terms
7
CHAPTER TWO
2.0 Definition of Auditing
8
2.1 Objective of Auditing
11
2.2 Types of Auditing
11
2.3 Reliance of Internal Auditing to
External Auditors
2.4 Auditing as a measure for Controlling
Fraud
2.5 The Future of Auditing 22
2.6 Auditors Liability
23
2.7 Audit Report
30
CHAPTER THREE
3.0 Research Design and Methodology 33
3.1 Selection of population
3.2 Sample Used
33
3.3 Method of Investigation 34
3.4 Techniques of data collection 35
CHAPTER FOUR
4.0 Data Presentation and Analysis
4.1 Questions, Presentation and Analysis
4.2 Test of Hypothesis
49
CHAPTER FIVE
5.0 Summary of Findings, Conclusion
and Recommendations
5.1 Summary of Findings 52
5.2 Conclusion
55
5.3 Recommendations
56
5.4 Suggestion for further study 57
Bibliography
Appendix (Questionnaire)
CHAPTER ONE
1.0INTRODUCTION
The practice of auditing in the primitive
form can be traced back to ancient times where the receipts and payments of an
estate or a manor were read to the head or proprietor, or the Lord of a manor.
The word auditing originated fr4om the Latin word Audire (meaning to hear). The
business of this period was characterized by sole proprietorship. But with
industrial revolution, there was an increase in business transactions and there
emerge partnership and joint stock companies. The evolution of mechanized
industries involved the provision of finance far in excess of what it used to
be. Business become more complex and required more formal and improved
accountability. Under the company form of organization, the shareholders as a
body delegated the management of the undertaking to a board of directors and
periodically the board submitted to the shareholders accounts of the company in
order that the members might be able to see a true and fair view of the
financial position and the profit or loss of the undertaking in which they were
interested.
Because of these circumstances the need arose
for some means by which the shareholders as a body might be satisfied that the
accounts, presented to them by their board of directors, did in fact show a
true and fair view of the financial position and earnings of the company. It
was for this reason therefore that the practice developed of appointing
auditors whose duty it was to verify on behalf of the shareholders the accounts
of the directors and to report there on to the shareholders. Under the early
British companies Acts, the auditors appointed were one or two of the
shareholders of the company.
As however, the chosen auditors commonly had
insufficient technical qualifications, there were probably not able to carry
out a very effective audit nor were there paid anything for the work they did
although a later Act did provide for them to employ a clerk to do some work,
whose remuneration should be provided by the company. It was the British
companies Act, 1900, which first made it legally compulsory for every company
to appoint independent auditors, as we now know them, and provided for their
remuneration. It was undoubtedly the rapid increase in the number of joint –
stock companies that took place at this time, and the compulsory professional
audit thus provided for in the companies Act, 1900.