ASSIGNMENT: ABRIDGED PROPOSAL
RESEARCH TOPIC: AUDITING ON THE PERFORMANCE OF FIRMS IN NIGERIA NAME: IJASANMI PHILIP TIMILEYIN
COURSE TITLE: RESEARCH METHODOLOGY
COURSE CODE: MBA 632
LECTURER: PROF. ADETAYO
DEPARTMENT OF MANAGEMENT AND ACCOUNTING
FACULTY OF ADMINISTRATION
OBAFEMI AWOLOWO UNIVERSITY
ILE IFE , OSUN STATE.
Proposal table of content
1.1 Background to the study
1.2 State of the problem
1.3 Research questions
1.4 Objective of the study
1.6 Significance of the study
1.7 Scope of the study
1.8 Limitation of the study
1.9 Operational definition of terms
1.10 Theoretical and literature review
1.1 BACKGROUND TO THE STUDY
Auditing is the independent examination of the financial statement of organization with a view to expressing an opinion as to whether these statements give a true and fair view and comply with the relevant statutes. This opinion is expressed in the form of a report. To be able to carryout a meaningful examination of the affairs of an organization as appear in its records. Since most records of organizations are a summary of the transactions for a specified period, the auditor also goes behind these validity of the recorded transaction by performing various tests to ascertain their validity. This has a great impact on the profitability, accountability and performance of the firm in Nigeria. Hence, the process of auditing will involve three distinct procedures which are: 1. Ascertaining the validity of the original documents
2. Confirming the completeness and accuracy of the recording of these transactions and 3. Ensuring that the financial statements have been prepared from and are in agreement with the records. From all the illustrations above , the auditor is expected to express an opinion. In doing this, the auditor is expected to exercise care, skill and diligence. This is necessary in order to satisfy him that the report he makes is based on an informed opinion. His desire will be to satisfy himself not only as to the accuracy of the records but also, validity of the transactions recorded therein. To be able to carry out what may be regarded as a thorough audit, it will be expected that the auditor carries out a complete review of all the transactions of the organization. In practice however, this may not be necessary. By adopting the right approach, the auditor can significantly reduce his examination to a level which is both consistent and acceptable for a valid audit work. This level will depend on the circumstance of each case as decided by the auditor’s terms of reference which may be the statute or the specific instruments of the clients. A free and fair view opinion of the financial statement examined by the auditor is significant indicator that the organization is performing well. Auditing has also made the management of a firm more accountable as the effective use of resources put in their care by the owner of the firm.
Especially, when the financial statement and opinion given by the external auditor as to the test of the financial statement is in line with the objective of the firm.
1.2 STATEMENT OF THE PROBLEM
The major problem of firm in relation to accountability and performance is fraud and errors. There has been a controversy from whose duty is to detect frauds errors. Although, there is a misconception in the profession as to the role of the auditor in relation to error and frauds. Management puts in place a system of internal control adequate to its circumstances in order to help it ensure the reliability and accuracy of the records and to safeguard the assets. Section 331 of the companies and Allied Matters Decree require every company to keep accounting records which will be sufficient to show and explain its transaction such as to: * Disclose with reasonable accuracy the financial position of the...
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