ROLE OF AUDITOR IN SMALL BUSINESS
Abstract
This bachelor’s thesis deals with analysing the importance of internal auditors for the
company. It aims to solve the issue about the way the new management of John Holt
Nigeria Plc perceives the internal audit department. The management of the company
believe that the organization can function effectively without the internal audit department.
Therefore, as a result of the ongoing downsizing process in the company, the
management is considering scrapping the audit department. The main objective of this
research is to ascertain the impact and values of internal auditors as well as their roles
and responsibilities to John Holt Nigeria Plc.
This thesis consists of a theory and empirical section. The theory section will discuss
about auditing, accounting, internal auditing and characteristics of an internal auditor
which will be established by studying relevant literature, books, articles and internet
sources. The empirical part will focus on the result of interviews conducted. The study
will be based on qualitative method and will adopt interview as the main research tool
which will be carried out with some senior managers who has experience about the
subject matter.
The findings will enable the management to decide if the internal audit department will
be useful and beneficial to the organization or not. The conclusion will be based on the
result of the research while recommendation will be drawn from conclusion which will
assist the management to decide if the functions, roles and responsibilities of the internal
audit department are vital to the overall effective performance of the organization
or maybe the department should be scrapped.
It is imperative for John Holt Plc to know the impacts and values of the internal audit
department. The author therefore recommend that the management of John Holt Nigeria
Plc should consider carefully several risks that might occur if the internal audit department
is eventually scrapped without any alternative in place
Chapter one
Introduction
Background to the study
Over the past years, the scope of auditing has broadened due to the dramatic changes in its impact to organizations. It has always been carried out in diverse environment within organization depending on the structure, size and purpose (Faudziah, Haron & Jantan 2005). Compulsorily, all registered companies under the Companies and Allied Matters Act in Nigeria must audit their financial statements after a certain period of time. Companies benefit from the audited financial statement in a large variety of ways. Users of financial information such as investors, stockbrokers and financial experts sees the audited financial statement as a major thing to look out for when deciding on a choice of company to invest. These people rely on the auditor’s report because they believe it gives a true and fair view of the financial statement.
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