CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Every sector of the economy both the public, private and the manufacturing firms has its own objectives and goals to achieve. Anosike, (2009) for the manufacturing firms of the economy, their goal is to satisfy the social needs of citizens and in the effort to achieve these purposes, auditing more often play a vital role. The size and scope of these sectors have sometimes made it clear for the executor to exercise personal and first hand supervision of operation. It clears for the light that value for money audit established by management is initiated. For any organization to carry out its efficiently and effectively. There must be factors that will be put in place for the smooth running of the organization like materials, machine, human labor, and money etc. Anyanwu(2009) Ebubechukwu (2009) Egbulonu (2007) and the (2006).Auditing is seen to play an intermediary function in between management and the resources of the organization.It’s also fundamental to any business, the public or private sector which will help the business to keep its adequate financial records. Alugbus, (2002). These financial records are kept in response to the demand by a system control which requires that the business enterprises must be carried out in an orderly manner.
Ensure adherence to management policies, safe guard the assets and secure possibly the completeness and accuracy of the records. Irrespective of these facts of system of control established by the management of the organization, fraud still thrives. Although value for money auditing is relevant in both the private sector and manufacturing firms. It is the public sector that has taken the lead because of the special need for government organization to demonstrate their accountability and their regard for economy. In the early 1970s, the role of the state auditors began to change dramatically, Changes began in USA, Canada, and in several European countries. The representative of the people started demanding information on the efficiency and effectiveness of public expenditure. In Nigeria no specific legislation has been put in place to empower auditors to carryout value for money audit.However, the 1999 constitution section 88(2) Empowered both the two federal house and the state house of Assembly to conduct investigation to expose corruption, inefficiency or waist on the executive or administration of law within the legislative competence and in the disbursement or administration of fraud appropriated by it, Albrechf, (2001). However, value for money audit will be wildly concerned with the economy and efficiency of an organization and the effectiveness of the internal control system within the organization,Anyanwu, (2002).
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