ABSTRACT
This research work is aimed at evaluating the
role of independent auditors in ensuring public accountability in Enugu State
with particular reference to some selected audit firms and state ministries in
Enugu metropolis, this work examined the following: The role of independent
auditor on public account ability in Enugu State. The problems and challenges
faced by the independent auditors in ensuring public accountability in Enugu
State. Data for the study was sourced from two main sources which include Primary
and Secondary sources of data collection. Primary data: Questionnaires and oral
interviews were used to collect information from the respondents. Secondary
data: Journals, magazine and other relevant materials relating to the area of
my investigation will be review. Extensive literature review was carried out on
direct literature and indirect literature on books, journals and past works.
The research instrument used in this study includes oral interview and
questionnaire. The questionnaire is structural as to contain both close and
open ended question. Simple tables, pie-charts and percentages were used in
treatment of data while chi-square was used in the research work. The
researcher found out that independent auditor has significant role to play in the
development of Enugu State Ministries. Based on the findings I recommend that
Client should allow the auditors to exercise his independent, free from bias
and compromise in the discharge of his duties. All government establishments
should as a matter of urgency embark on yearly auditing of their books and
records and fraud early.
TABLE OF CONTENTS
Title page
ii
Certification Page
iii
Dedication
iv
Acknowledgment
v
Abstract
vii
Table of contents
viii
CHAPTER ONE
INTRODUCTION
1.1
Background of study 1
1.2
Statement of problem
7
1.3
Objectives of study
8
1.4 Research Questions 9
1.5 Research hypothesis 10
1.6 Significance of study 11
1.7
Scope and limitation of the study 12
1.8 Definition of terms 14
CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1
Historical Background of Auditing in Enugu State 15
2.2
Local Literature of Practicing Accountants 17
2.3
History and Development of Audit 24
2.4
History of Accounting Practice 25
2.5
The Independence Auditor and Companies
and Allied Matter Act (CAMA) 1990 32
2.6
What Does it take to Become an Independent
Auditor
39
References
CHAPTER THREE
RESEARCH DESIGN AND METHODOLOGY
3.1
Research Design
47
3.2
Source of Data
48
3.3
population and sample size determination 50
3.4 method of investigation 58
References
CHAPTER FOUR
PRESENTATION AND INTERPRETATION OF DATA 4.1. Data presentation and analysis 61
4.2
Hypothesis Testing
72
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSION AND
RECOMMENDATIONS
5.1
Summary of Findings 80
5.2
Conclusion
81
5.3
Recommendations 82
Bibliography
Appendix I
Appendix II
CHAPTER ONE
INTRODUCTION
1.1
BACKGROUND OF THE STUDY
In an economy where resources abound, funds
are being disbursed for the government to effectively carry out its
assignments. Since a lot of public funds are being disbursed for government
assignment it calls for accounting that is of the receipts and disbursements of
these funds. The accountants in these units perform these assignments by
preparing the profit and loss accounts and also balance sheet showing the state
of affairs of the years in reviews.
It is important to note that inspite of the
accountant and the internal auditors (who serves as the custodian of financial
resources and watch-dog respectively). There are still reports of large scale
fraud in most of there government unit. The organization had to be addressed
and it also needs various attentions Again, it is the requirement of law that
the financial activities of the state should be subjected to audit section 83
(2) of the 1989 constitution states that the public accounts of the federal and
state government shall be audited by the auditor-General of any person
authorized on his behave shall have access to all book records, return and
other documents relating to his accounts. Also some of government institutions
has public influence like government companies allowing interesting members of
the public to own a share.
Section 148 (2) of companies and Allied
Matters Act of 190 states that a companies must be audited these people who has
interests need to know about the operations of these companies through, the
instance of audited reports. So, in the view of the above and also for the
state government to maintain an effective financial base in the system. The
role independent auditors in Enugu State cannot be over-emphasized the need for
indigent bias free examination of the financial records books and accounts of
Enugu State by an auditors is not only a matter of compliance with the law but
also a means of protecting detecting and correcting of errors and frauds.
An audit has been defined by many authors
such as: According to Clive an Attwood 1999 auditing is an examination by the
auditor of a balance sheet and profit and loss account prepared by other so as
to be able to express his opinion that such a balance sheet and profit and loss
account have been properly drawn up to show a true and fair view of the state
of affair and of the particular concern and comply with the relevant states.
According to Bigg (2001), an audit is an
examination of the books, account and voucher of any business, as will enable
the auditor to satisfy himself that the balance sheet is properly drawn up so
as to the a true and fair view of the state of affairs of the business
according to the best of his information and explanations given to him and as
shown by the books and if not in what respects he is not satisfied.
Sontochi (2001) defined audit as an
examination and evaluation of the authenticity and therefore the reliability of
an organization business documents and records it also involves making inquires
to ascertain that financial statements on which the auditor is reporting and
which have been prepared form the records display a true and fair view of state
of affairs at the years end.
The auditing standard and guideline define
audit as the independent examination of the financial statement of any
enterprise by an appointment auditor in pursuance of that appointment and in
compliance with any relevant statement obligation from all these definition
given above, an auditor is one whose job is to examine the records of a
business in order to be able to give an opinion on the state of affairs of the
business at a particular time. He may also examine the records of non-trading
organization. Club sets for the same purpose. He may also perform specialized
investigation work when asked to do so by proprietor of business or by court.
It can be seen from the above definitions
that the auditor is presented with the account and balance sheet himself, his
role is to complete and audit work.
In the course of his work, if the auditor
notice any form of inefficiency and weakness in the working system he has to
bring such matters to the notice of the client or his staff. Here, he is doing
the sense that since as the auditor, it is his duty to advocate certain methods
of working. But never the less, with his still and experience, the auditor can
be most helpful to these by whom he is engaged but any accounting work he does
must always be considered a part from the audit. Auditing of public funds entrusted
to him. Auditing in that sense serves as deterrent to public officers and those
in fiduciary.
1.2
STATEMENT OF PROBLEMS
In stating the problems, it is divided into
two main problems:
Major problem
Sub problem
MAJOR PROBLEM:
Since this study loitered towards
ascertaining the role of independent auditors in Enugu state, attempted to find
out whether independent auditors roles affect the economy of the state in
resent time.
SUB PROBLEM:
1. The
problem of liabilities, remuneration and removal of independent auditors.
2. The
problem encounter by the auditors, in the course of their audit work.
3. The
duties, rights and powers of the auditors.
4. The
ascertainment of history and development of audit.
5. The
problem of quality consideration in the appointment of auditors.
1.3
OBJECTIVE OF THE STUDY
The aim of this research work is to evaluate
the role of independent auditors in ensuring public accountability in Enugu
State with particular reference to some selected audit firms and state
ministries in Enugu metropolis, the specific of objective of this project work
includes:
1. To
determine the role of independent auditors in the development of Enugu State
ministries.
2. To
determine the role of independent auditor on public account ability in Enugu
State.
3. To
examine the problems and challenges faced by the independent auditors in
ensuring public accountability in Enugu State.