ABSTRACT: Today in the public sectors, staffs have decided in involving themselves in fraud, misappropriation of fund mismanagement of assets entrusted on them, and abuse of their profiles for their different personal interests. But, auditing has become a tool for ensuring good accountability. Through auditing, the account of individuals, partnership, co-operative and public sectors can at any time be examined by an auditor which enables him to express his opinion of true and fair view, by the use of auditing standards. However, it is through this auditing, that those errors, frauds and other accounting mal-practices or irregularities can be easily traced out and be corrected. Through this auditing, spin off effect can easily be provided. Though all the secondary objective of auditing. In conclusion, auditing has become an indispensable instrument through which the funds and assets entrusted in the hands of directors in public sector could be examined and make sure that those whom properties are entrusted were tested and reliable staff. Moreover, this work is arranged in such a way that one chapter flows and naturally leads to next. It organized in three chapters. Chapter one: includes, introduction, objective of the study, significance of the study, scope of the study, auditing standard, destinations between auditing and accounting function and definition of terms. Chapter two: what is auditing, who is our auditor types and objectives of auditing qualities of an auditor fraud in the public sector, internal control and internal check. Chapter three: findings, conclusion, Recommendation Suggestion for further studies, bibliography.
TABLE OF CONTENT
CHAPTER ONE
1.1 Introductions 1
1.2 Objective of the study 8
1.3 Significance of the study 9
1.4 Scope of the study 10
1.5 Auditing standards 11
1.6 Distinction between Auditing and Accounting Job 11
1.7 Definition of terms 12
CHAPTER TWO
2.1 What is auditing? 15
2.2 Who is our Auditor? 17
2.3 Types and objectives of Auditing 18
2.4 Qualities of an auditor 20
2.5 Fraud in the public sector 22
2.6 Internal control, internal check and internal audit 24
2.7 Classes of audit 26
CHAPTER THREE
CHAPTER ONE
INTRODUCTION
Currently, taking a glance look into our public sector establishments, one can easily notice that all their activities revolved round the pivot of the auditing principles. Just as the auditors carry out their work on the state of affairs of the financial statement in order to enable him express his opinion of true and fair view of the accounts they purports to represent. Most of public sector establishment are engaging in audit work internally without knowing. Take for instance where the work of one personnel is being complemented by another personnel inured to ensure effective check for prevention of misappropriation and other irregularities on the assets entrusted on them, which refers as internal check on audit terminology.
In a nutshell, auditing can be seen as a through investigation and examination of an opinion on financial statement that hand prepared by an accountant thus, auditing work starts where accounting work stopped. In the view of audit operational standard audit is defined as the independent examination of financial statement and expression of opinion on the financial statement and expression of opinion on the financial statement of any enterprise in assurance of that appointment are in compliance with any relevant statutory. From the above definition, it can be seen that auditor has to deal with pure independent. This term of impendent of an auditor, enables him to carry out his audit work without any conflict of interest, fear and favors or any interference by the management.
At this juncture, it is necessary to know that auditing work has to be done by an auditor, who is a qualified accentuates having sat and passed the professional examination which is only the bring of institute of chartered accountant that is empowered by (CAMA) Company Allied Matters act to conduct such exams. In addition, such person must be of good character, conduct and must have a verse knowledge which helps him in easily understanding the practical business and be in position for easily ascertainment of the suitable procedure and methods of any concern he undertakes to audit.
Before the commencement of an audit work the dent must state the nature of the audit work. Precisely, the auditor on his side will write an engagement letter thereafter to the management to define the work which the management expects him to do. On no account should and auditor go beyond or allow to go beyond the scope specifically stated in the letter of engagement.
On appointment of an auditor, the remuneration will be fixed and it includes all the cost of materials and any wages. Ethical law and company allied matters act of 1990 (CAMA) states it specifically that auditors should not received gift inform of lairs, allowance grants from client immediately remuneration in fixed.
In the similar view auditor does not expect to have any personal relationship with his clients. In other wise where the auditor has a relationship with his client, the auditor should cease to carryout the audit work of the client company.
However, an auditors owes his clients the following understated duties . with reference to section 360 of the company allied matters Act 1990, it provide the followings as auditors duties.
i proper accounting record have been kept by the company and proper returns toquate for their audit have been received from branches they do not visited
Finally, the significance of auditing in the public sector simply means the need of importance of auditing in the public sector simply means the need or importance of auditing in the public sector. The question now is then what is public sector?
When we talk of public sector, we then refer to government. In other wise, public sector is that type of enterprise that is established, owned and being operated by the government or its agencies, distinguishable form private sector purpose of establishment is to the whole citizen. Public sector purpose of establishment is to fulfill her social responsibilities to the masses. Profits are needed from the public sector not only for their self selfish personal interests but also for the establishment of new enterprises. In most cases government run there enterprises at a loss just for the fact that it is an obligation to be carried out in order to better for the general and social welfare of the masses.
The primary concern her is the ability of public sector in Nigeria to, at least break even in comparison of their private counterparts that make adequate profits. No wonder the government stance on public enterprises termed “privatization” is gaining ground.
In poweralisation, apart from increasing efficiency, will also provide the government with fund to engage in other priority activities.
Also the accounting of public sector when they are socialism, is aimed to show the correctness, accountability minimizing of misappropriation, fraud, irregularities and reasonableness of transaction and their agreement with established rules and to give sound and evidence accountability to the stewardship of government resources.
Therefore auditing becomes a very indispensable tools through which the efficiency and effective appropriate management of assists entrusted in the hand of officers in public sectors can be enhance. Also
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