The concept “source document” is a familiar term with those involved in keeping accounting records or watch dogs of limited liability and public liability companies and organizations. From time to time, most often on annual basis, the independent auditors call to review the accounting record kept by their clients this they do by studying and evaluating the internal control systems in the company. This approach makes it possible for lapses, discrepancies, deficiencies and bottlenecks to be discovered if any do exist.
However, most people do not really understand the role of the auditors in public practice. To the layman, it’s a matter of detecting for fraud, which is more or less a secondary object of fraud.
This research set out to review the role of the auditor in public practice, the statutory and regulatory frame work under which they operate and the procedures adopted in the course of their duties, to meet the standard required to them. This task has been carried out with a special references to Thomas Gamble and Co. charted Accountants a relatively small firm of charted accountants located at Bank of the North Building, 6th floor, Ahmadu Bello way, Kaduna,
Chapter one of this work, takes a critical loot at the background information relating to the concept of auditing and investigation procedures in auditing, while chapter two gives a detailed look at the concept of auditing and all other related issues under literature review.
Chapter three, Research methodologies, reviews the procedures used in carrying out the research with brief comments on the facts that could be deducted there- from.
Chapter five look at the inferences drawn from the analysis of data obtained, while the last chapter summarizes the results of research findings in more general terms.
TABLE OF CONTENTS
CHAPTER ONE
BACKGROUND
DIRECTORS AND WORK 9
AND EXPENDITURE 51
CHAPTER TWO
LITERATURE REVIEW 58
CHAPTER THREE
3.1 SOURCE OF DATA 67
3.2 DETERMINATION OF SAMPLE SIZE 68
3.3 DESCRIPTION OF THE INSTRUMENT OF DATA COLLECTIONS 69
CHAPTER FOUR
4.1 RESPONSES TO THE QUESTIONNAIRES 72
CHAPTER FIVE
FINDINGS, RECOMMENDATION AND CONCLUSION 87
5.2 CONCLUSION 90
BIBLIOGRAPHY 93
LETTER OF RESPONDENT QUESTIONNAIRE 94
CHAPTER ONE
BACKGROUND INFORMATION
INTRODUCTION
However, its pertinent to note here that whether established upon profitable or non profitable basis, its relevant that accounting is records must be maintained. Accounting is broadly defined as a process of recording, summarizing, analyzing and interpreting of business transactions in such a systematic and concise manners as t give full and detailed explanation to related parties who are interested in the financial statement. In every business transactions of the organization. However, it this records must be kept, it must follow norms, principles, conventions and standard set out by various professional accounting bodies. In Nigeria, the Nigeria Accounting standard Board (NASB) is in- charge of this duty.
Subject to the forgoing, section 357 of the company and Allied Mattes decree, makes it mandatory for every limited liability company to appoint an auditor to examine its accounts. This now brings us to the questions, who is an Auditor? With reference to Walter W. Bigg, he sees an Auditor as a person appointed by the directors (share holder authorize the directors to appoint) of a company to examine it’s book of account, and states whether it gives a true and fair view of the financial position of the entity, and also see that there is compliance with statute, and that accounting standards are strictly adhered to. In the light of the above, the auditor should be a professional and used in the accounting filed, with high integrity profile, and must be a member of a recognized professional body, and must be licensed to practice. In Nigeria to day, the institute of chartered accountants of Nigeria takes care of this. If the auditor as a professional, is aware of the fact that his work is relied upon by related third parties, he owes it a duty, so as not to expose himself to liabilities associated with negligence out of misfeasance proceedings.
In the light of the above, for the auditor to accept assurances, or to given an opinion, he must certify himself beyond all to him gives a true and fair view of the financial position of the entity as at the date of this audit.
In these regards, he has access to al the company books, and has unreserved rights as to question any maladministration, and gather al such information that would assist him in his work. However, for the auditor to formally accept assurances, his basis of acceptance must be dependent on the availability of reliable source of documents and explanations produced by the entity in question. At diverse levels of investigation, Associates source documents checks, and test are applied, and evidences shown must be very authentic and satisfying. For example, where Bank Balances are investigated, for the auditor to accept the stated figures, the certifying evidences should be, Bank statements, check stumps, cash books, authorization vouchers, etc and all such reconciliation that would enable him accept the presented to note that the presentation of figures without satisfactory evidence, or source document, is like a student graduating without a certificated, and this brings us to one of the objective of his text.
The investigation process involves making independent confirmation, example, and circularization of debtors, creditors, and other related third parties to the entity in question. Generally, so many factors which includes: cost consideration, time factors, unavailability of data, Distance, and prevailing socio –economic and political climate. In as much as this factors are highlighted and noted, the Auditor must not fail to certify himself beyond all reasonable doubts. This should be done by disclosing all lapse
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