The aim of this study is to appraise Audit report and their impact on the activities of the business firms in Nigeria.
To accomplish the above objective, this work looked into and investigated the roles auditors play in the review and examination of financial statement.
Audit report is the opinion expressed by an auditor on financial statements stating clearly whether such statements presents a true and fair position of the company. It implied from the above that before such an opinion could be expressed, the auditor must have done an examination of the books of accounts.
TABLE OF CONTENTS
Title page II
Approval page III
Acknowledgement IV
Abstract VI
Table of contents VII
CHAPTER ONE
1.1 Background of study 3
CHAPTER TWO
2.1 What is auditing 9
CHAPTER THREE
3.1 Findings 23
Bibliography 27
CHAPTER ONE
Most people at one time or other would heard of an audit
and would also have general idea of what it is. Generally speaking, it is usually in the ancient time for great land owners not to manage their own land but would appoint person called stewards to manage the land for them.
Nowadays, various social clubs, student union bodies, charitable organizations etc do provide in their constitutions, the election of union officials who collect and disburse the organizations money, such constitution also invariably make provision for audit for the account of the organization.
Today most large business organizations owned by shareholders are managed by board of directors appointed by the shareholders.
However, it is expected that shareholders who appointed directors to manage their business will be concerned with what happened to their business. The process whereby the managers of a business account or report to the owners of the business is called stewardship accounting. This report is usually done by means of financial statement.
The question which has always exist when directors report to shareholders is can the shareholders rely on the report and the report may:
Then the answer to this question of credibility in reports and accounts lies in appointing an independent person called an auditor to examine and investigate the report and express opinion on his findings.
1.1 BACKGROUND OF THE STUDY
Although the objectives and concepts that guide present day audit were almost unknown in the yearly years of the 20th century audit of one type or another have been made throughout the recorded history of commerce and government finance.
The objectives and concepts that guide it were almost unknown because the accounting profession responds to the demands of the new business environment or developments. Initially, audits were performed mostly at the request of business owners who wished to be assured that the book keeping system of their business was handled accurately and all cash appropriately accounted for.
With the advent of partnership, audits became also necessary in determining the profit to be shared or distributed to the partners. In that era of auditing history, it was apparent that the main objective of auditing was the detection of fraud.
Now, the direction of audit work was moved away from fraud detection to the new goal-determining whether financial statement give a true and fair picture (view) of financial position.
Audit reports, which is the end product of an external auditors
independent examination on the financial records of a business firm is the subject matter of the study.
Financial statements prepared by management and transmitted to outsiders, without first being audited by independent accountants leaves a “credibility” gab. In fact the credibility given to an the confidence reposed in audited financial statement, from the auditors training experience professional judgement and most importantly his independence.
The responsibility for the prevention and detection of errors, irregularities and fraud rests with management and this responsibility is fulfilled mainly through the implementation and continued operation of an adequate system of internal control by evaluating the internal control system of an organization in terms of existence and continued operation. It is the fiduciary duty of the auditor to provide assurance that does not exist.
In this study, I will look at the impact of audit reports in Nigeria as it affects the users of such reports. The application or to what extent these reports are carried out, their implication and consequences on business firms in Nigeria are hence, the problem which this study is set to investigate.
Precisely, the purpose of this study is to investigate into audit
Reports and their likely impact on business firms as the increasing wave of frauds and total loss of the sense of accountability has really called to question, the role of audit and what it seeks to achieve.
The study has the following objectives includes:
Audit report is important in that the report shall state whether
in the auditors opinion the annual accounts have been properly prepared in accordance with the CAMD, and in particular, whether a true and fair view is given.
Te audit report consider also the information given in the directors’ report for the financial year for which the annual accounts are prepared is consistent with those accounts, and if they are of opinion that it is not, they shall state that fact in their report.
Also, if the auditor are of opinion that proper accounting records have not been received from branches not visited by them, or if the balance sheet (if not consolidated) the profit and loss account are not in agreement with the accounting records and returns, the auditors shall state that fact in their report.
As the edge goes, “Everything has a limit”. In this work, a part
from the envisaged limiting factors interest in the writing of such papers.
I am going to limit my stud
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