The Role Of A Statutory Auditor In Controlling Fraud In Government Owned Establishment
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The Role Of A Statutory Auditor In Controlling Fraud In Government Owned Establishment
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ABSTRACT: This topic that is being treated (the role of a statutory auditors in controlling fraud in government owned establishments) is very important to our present economic condition if people will blend with the results and findings of this term paper.  In the chapters of this project, it is clear that an auditor is very important in all government establishment.  This is because the Nigerian citizens, see government properties as nobody’s property.  The auditor is just an impartial critic and observer.  He is a “watch dog” and not a “bloodhound”.  He displays all the skills and care which is expected from him as a professional. The view of the auditors about the topic were also examined.  The role of a statutory auditors in controlling fraud is a vast topic which has been dealt by many professionals in different fields and vocations.  He work of an auditor is backed up with the provisions of the company and allied matters decree (CAMD) 1990.  This means that the auditor has legal rules to follow in carrying out his work.  It is compulsory for all government establishment under the provision of the (CAMD) 1990 or the state/edit of creation to audit their accounts and other financial year. In summary, the role of auditors is vital and indispensable in government owned establishment so as to imbibe sanity and fairness in the operations of the government official and subordinates.

 

TABLE OF CONTENTS

CHAPTER ONE

  1. Introduction

1.1 Background of the study

  1. Objective of the study
  2. Significance of the study
  3. Scope of the study

 

CHAPTER TWO

  1. Literature Review - Origin of Auditing

2.1 Auditing in Nigeria

  1. Auditing definition
  2. Independent of auditors
  3. Who is an auditor
  4. Qualities of an auditor
  5. Duties and rights of an auditor
  6. Auditors report
  7. Resignation of an auditor
  8. Classification of audit
  9. Prevention of fraud
  10. Audit planning control and documentation
  11. Fraud, error and irregularities defined

 

CHAPTER ONE

 

  1. INTRODUCTION

1.1 BACKGROUND OF THE STUDY:

It is widely known traditionally that the role of financial accounts was to give account of stewardship to the owner of the business.  In this regard, the professional bodies such as (ICAN), Companies and Allied Matters Decree 1990, and the qualification of auditors who has to be independent to investigate the report on  his findings and ensuring a true and fair view of their report on financial matters.  To ensure that the financial position portray true and fair view, the auditor will have to inquire with the help of internal control questionnaires, whether:

  1. The company is well armed
  2. The directors may be negligent
  3. The directors may be incompetent
  4. The board of directors are energetic men tends to appoint as colleagues, people who are also competent and energetic.

 

The basic responsibility of an auditor under the Companies and Allied Matters Act (CAMA) of 1990 are to make report to the members of the financial statement audited.

However, the auditor should recognize the possibilities of material, misstatement or irregularities or fraud, and see that errors which could distort the trueness and fairness of the financial account are not committed.  Therefore, a statutory auditor is said to be a watch dog and not a blood hound.

 

  1. OBJECTIVE OF THE STUDY:

In regards to this study, is set forth to present fresh insight into the nature and role of a statutory auditor in controlling fraud in government owned establishment with a view to enabling the public appreciate the various limitations and weaknesses, inherit their effort in fraud detection and control in government owned establishments.

The responsibility (primary) of a statutory auditor is not to detect fraud and irregularities but to examine the financial statement presented to him by the management and give his professional opinion whether or not the accounts show a true and fair view of the state of affairs of the business.

  1. SIGNIFICANCE OF THE STUDY:

The significance of this study is that, it will teach the inherent disabilities and limitation of auditing in government owned establishment.   This research work could also be beneficial in respect to the following categories.  As to the academic society will be to broaden, enlighten, encourage the knowledge of the students of accountancy of the competency of accountability and the extent of versatility of auditors as regards auditing of financial statement.

 

  1. SCOPE OF THE STUDY:

This auditor will only be limited to the statutory roles of an auditor in respect of frauds.  This topic was picked or chosen to clear every shadows of doubts in the mind of people towards aud9tors as fraud detectors.



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