THE RELEVANCE OF AUDITING IN THE ENCHANCEMENT OF ACCOUNTABILITY IN THE PUBLIC ORGANISATIONS
This research work is designed to show the importance of auditing in the enhancement of accountability in the public organization. It is worthy to say that audit is necessary and indispensable for the enhancement of accountability in the public organization. This discussion in this project is done in three chapters, reading in summary conclusion and recommendations. In order to achieve success on the study, face to face interview which were basically for the role of audit in enhancing accountability in public service.
TABLE OF CONTENTS
Title of page
Approval page ii
Table of contents vi
1.0 Introduction 1
1.1 Statement of Problems 3
1.2 Objectives of the Study 3
1.3 Significance of the Study 5
1.4 Scope of Study 6
1.5 Assumption of the Study 6
1.6 Definition of Terms 7
2.0 Introduction 9
2.1 The Historical Development of CAN Audit 9
2.2 The Objectives of Audit in Public Organization 10
2.3 Reasons of Audit 12
2.4 The Essential Features of an Audit 14
2.5 Audit Evidence Source and Types 15
2.6 Audit and Accountability 18
2.6.1 Auditor’s Professional Ethics 19
2.6.2 Auditors Legal Responsibility 22
2.7 Internal Control 23
2.8 Standards of Reporting 25
2.9 Advantages and Debates on Audits 26
3.0 Summary Conclusion and Recommendation 28
3.1 Introduction 28
3.2 Summary of Findings 28
3.3 Conclusion 29
3.4 Recommendation 30
Initially accountability of public funds did not receive very serious public notice of concern. The citizen did not have to worry to contribute to their governments, but with development of the scale and scope of governments, expenditures to finance those obligations consequently, the citizen we required to raise funds monthly or at intervals and as a result taxing too off officially. This is the management of the public organizations funds were entrusted into the hands of some group of people who carry out the day to day running of the business of the organization. The shareholders who light not participate in the operation of the organization would need a third person (an auditor) to audit the submitted statement of account and check whether they show a true and fair view or not.
Audit has since its inception, received a lot of definitions and interpretations both from authors and auditing bodies. There is little or no need to say that it has suffered a lot of misinterpreted. Most of these misgiving interpretations see it as aimed at “fraud and error detection” De Paula, et at (1983: 19).
But auditing essentially involves much more than that one of the most involved and most acceptable definition so far, in that issued by the consultative council of accountability Bodies, (CCAB), which sees audit “as an independent examination of an expression of opinion of the financial statement of an enterprise by an appointed auditors in pursuance of that appointment and in compliance with any relevant statutory obligation” (Howards, 1982:1).
Deductively, an audit is “the objective scrutinization of someone’s work or presentation by a third part (an auditor) that is different from the users and prepares of the presentation. The general essence of an audit is to ascertain compliance of organization’s records and operational polices of organization record and operational policies with certain prescribed standards (IBID, 1983:12). Further, it aims at increasing the usefulness acceptability and dependability of financial statements.
Accountability on the other hand as given by Webster Encyclopedia Dictionary of English is the state of been accountable, liable and responsible. The same dictionary goes for her to define accountable as liable to make good case of loss, responsible for a trust, liable to be called to account.
1.1 Statement of the Problem
The increasing have of fraud and embezzlement of public funds and properties by offices in the public services has brought to limelight problems that are associated with accountability in the public service. In this project, it is proposed that auditing will be help to enhance the much needed accountability to the public service.
1.2 Objectives of Study
Based on these problems stated above, the purpose of this study can be stated as follows:
- To ascertain the role of audit in enhancing accountability
- To determine whether audit can actually make any difference to the deplorable state of accountability in the public service.
- To enable the employers of auditors have a good knowledge of what audit is all about and much to expect from audit. This is necessary because most of the employers do not see the audit job as aimed at confirming the preparation of financial statement in keeping with the statutory requirements, guiding the preparation and presentation of such statement, rather, the employer’s notice about the auditors is that of fraud detection which is from his primary function.
- To ascertain the problem independent auditors’ encounter in the discharge of their duties, the reason why accountability is yet to be achieved in the public companies or government parastatals.
- To plug the loopholes that have for some time now denied the public companies and parastatals the much needed accountability.
1.3 Significance of the Study
The misconception of the functions of audit has no doubt ended in most minds, the confidence on auditor’s report and has depressed the creditability with which the audit profession was owned.
The researcher has therefore taken to this study with that it will bring about the following:
- Restore people’s confidence and reliance on auditor’s report
- Emphasize on the need for government and top management compliance on auditor’s report.
- Bring back to full flame, the dividing image of the noble profession
- To reassure the employers of auditors on the indispensability of audit on the much towards the achievement of accountability in the public service.