CHAPTER ONE
1.0 INTRODUCTION
Auditing is an independent checking, investigation, examination and expression of the books of accounts and vouchers of a business enterprise with a view to enable the appointed auditor to report whether the trading, profit and loss accounts and balance sheet are properly drawn up so as to show a true and fair view of the state of affairs and the profit or loss of the business according to the best information and explanation obtained by the auditor and that they comply with the laid down rules and regulations of the statement of standard accounting product (SSAP) and other statutory regulations.
Internal control system: This can be described according to auditing guideline (AG 204) as “the whole system of controls, financial and otherwise, established by the management in order to carry on the business enterprise in an orderly and efficient manner, ensure adherence of management policies, safeguard its assets and secure as this as possible the completeness and accuracy of records” therefore this involves both internal check and audit. Internal Check: This briefly refers to the method (techniques) of organizing and arranging the entire operation of office, factory and en-housing and the duties of respective staff so that risk of fraud, errors, irregularities and mismanagement will almost be impossible without conclusion. That is day-to-day transactions, segregation of duties and job performance in an organization. Internal Audit: This is refers to an independent appraisal of activities within the organization of the check of certain operations as a service to the management, therefore, it is the management control to functions by the means of evaluating and measuring the efficiency and effectiveness of other controls or checks. Meanwhile, the internal audit will ensure that some specific routine work are carry out by the departments and that the laid down procedures is adequately carry-out by all applicable areas as well as making recommendations to the management.
1.1 BACKGROUND OF THE STUDY
Auditing in its daily and primitive stage can in an existence since 16th Century, start when the first relationship began between those who provided capital and those who managed the business.
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