ROLE OF AUDITORS IN CONTROLLING FRAUD IN GOVERNMENT OWNED ESTABLISHMENT

ABSTRACT

According to (Chris C. Nwabueze) Auditors plan a vital role in controlling government founds. This goes a long way to give government parastatals guide and aid to achieve its goods and objectives.   Auditors from the time of investigates in the book of government to ascertain whether the financial statement of the organization present fairly and  accurately its sate of affairs in the opinion of the auditors. Secondly, to ensure a effective internal control system. Thirdly to ensure compliance with relevant statement laws setting up the organization. Fourthly, to ensure that the financial statement is based on the organization’s records. Fifthly, to detect fraud and other irregularities that most government   workers engulf themselves in after must more investigation by the auditors, the auditor may have to report in a particular formal as laid down by the civil service that the amount spent are in the lue with the amount budgeted for any period.

CHAPTER ONE

INTRODUCTION

1.1     OBJECTIVE OF THE STUDY

The study is aimed to determined the role of auditors in controlling fraud in government  owned establishment and present new insight establishment with a view to enable the public appreciate the various limitations and weakness inherit in their effort in fraud detection and control in government owned establishment. The main objective of system audit is to determine the adequacy of the  system of accounting and internal controls as a basis of the preparation of true and fair accounts with the aim of restricting the nature, extent and timing of audit procedure carried out during the balance sheet audit. The primary responsibility of an auditor is not to detect fraud and irregularities but to examine the financial statement  presented to him by the management  and give his professional pinion whether or not of the state of fairs of the business. Hence the aim of this research work is to define and analysis expressly the extent to which the statutory auditor is  responsible as regard fraud. The research work will be directed towards showing the importance of the internal and external auditor in any organization to distinguish between the duties, qualities, qualification etc. This research is mostly to show the extent of inter relationship between auditors and management  as regards prevention and detection of fraud and other irregularities. The research is also directed towards the preparatism of various groups of accounts by the management in order to show the true state of affairs of the company whose financial statement is being audited.

1.2     SIGNIFICANCE OF THE STUDY

The significance of this study is that it will show, dispose or x-ray the inherent disabilities  and limitations of auditions in government owned establishment. The study is very importance because it is enquiry but the role of auditor in controlling fraud in most of the manufacturing firms in the country. This research work could be beneficial in respect to the following categories.

a)     As to the auditors

b)    As to the academic society

c)     As to the society at large.

The significance to the auditors, it will enable them to know the limit which the will be liable in the course of a fraud being perpetuated and will also enable them to implement their professional code of conduct instituted by the institute of chartered  accountant of Nigeria (1968), Again if will attempt to define the roles and  competence of the auditor in their audit work and professionalism in respect of the fraud detections and irregularities. The significance to academic society will be to boarding the knowledge’s of students of accountancy of the competency of accountability and the extent of  versatility of auditors as regards auditing student to the financial statement. It will also enlighten and encourage accounting student to take the study more serious and will widen the impact of auditors are needed and their roles. It will also help them to appreciate the reason for which their student of auditing as a course and will help them to understand the course to the root. To large society the significance is to expose to the public how important auditors are to the society, their integrity and the ability of the auditors to give professional advice and recommendation.

1.3    SCOPE OF THE STUDY

This auditors will only be limited to the statutory roles of an auditor in respect of fraud. This topic was chirsen to clear every shadows of doubt in the mind of people towards auditors as fraud detectors.

Related Project Topics :