This study is intended to find out the impact of legal audit requirements on the auditors performance in Nigeria context specifically. The literature review describes the various audit requirements in conjunction with the professional standards, and how they are applied to secure the auditor’s competence and independence that are vital to the auditors if they are to effectively execute their responsibilities to their clients.
1.1 statement of the problem 4
2.1 The concept of Auditing and the auditor’s environment20
3.1 Research design 79
Questionnaire 89
CHAPTER FIVE
Bibliography 127
Appendix (questionnaire) 130
INTRODUCTION
“Business without auditing stifles public confidence and auditing without law is a force”
(Emile Wolf)
Auditing occupies a very critical position in the business life of any society both industrialized and non industrialized countries like Nigeria and other West Africa countries. This implies that auditing plays a critical and important role in the economic development of any nation.
This is more importance as business, which is the mainstay/ bedrock of the economy, is fast growing. It has grown beyond what may be described as “purely personal management that were common in the olden days. Such business establishments are small in size, personally owned, financed and managed by the owners.
However, there is a changed situation in this modern time. The hallmark of most business is no longer owner’s management. The owner and financers are separate person (shareholders and investors) and controlled by outsiders (director and managers), because of the increase in size and comparity of business activities. This practice is known as “stewardship” the stewardship position of business management entails, as its fundamental features, that shareholders and other parties to the business will like to know how their resources entrusted in the care of management are being used to achieve the corporate aim. This is therefore done by employing the services of person’s who are professionally qualified, and referred to as independent public auditors to attest on the effective utilization or otherwise, of the financial resources, after examining the accounts prepared by the management. It was this motive that gave rise to the birth of this profession auditing with vital role and heavy responsibilities.
It would be right to stress that the dawn of auditing era is the wake into consciousness and disciplines in business operations, the quest to maintain sanctity in the conduct of business.
But to have auditing profession void of legal backing is a despicable attempt to accord the practice a persuasive influence but not authoritative status.
Auditing without the law is a farce, a contradiction in terms. To this extent, the law becomes a fundamental aspect of the profession and practically speaking too, bears conspicuous implications. For example, in performing the attest functions., problems and hardships may arise and both the law and the professional body are not silent on these effect.
It is therefore the legal prescriptions and their consequences on auditing that constitute the terms of reference of this research work. The legal framework presently applicable to auditing in Nigeria is the companies and Allied matters Act (CAMA) 1990. This is normal reviewed in the light of the regulatory codes issued by the authorities in auditing profession both within and outside Nigeria.
The investigation with expose any difficulties in the legal environment of auditing which the law can solve and suggest ways of improving the deficiencies.
1.1 STATEMENT OF THE PROBLEM
in this system, we shall examine the situation which exist in the Nigeria auditing scene as the basis for the problem which has been chosen for investigation. These problems are summarized below:
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