ROLE OF AUDITORS IN PUBLIC AND PRIVATE COMPANIES
ABSTRACT
This work examines the roles auditors play in public and prelate companies WALCON Nig Ltd is benign used as a case study because it happens to be a company with an audit department and also ahs grid reliance on the work of both the internal and external auditors. The sample for this work includes some library materials and also source data were collected through responses to the questionnaires distributed to staff of the company.
The findings show that auditors have made a very good impact in most companies and there is no don’t that moral companies will recommend the performance of the auditors. The finding also show that in future more companies will require the services of auditor and third parties liabilities on auditors will be few.
This work also points out the hindrance which the auditors encounter in their bid to carry out the duties and responsibilities given to than by the act and also made some recommendation on some measures to be taken to solve the problems.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The origin of auditing had its roots in the necessity for the institution of some system check upon persons whose business it was to record the receipt and payment of money on behalf of other. In any stages of civilization the method of account were crude and transactions small individuals were able to check their transactions. But as soon as ancient states and emprise acquired coherent organization records were found of system of checks being applied to public accounts.
The ancient Egyptians the geeks and the roans utilized system of checks and counter checks as between various financial officials. The ancient record of auditing were confined primarily to public account. But there are indication that it was customarily for the audit of accounts of memories and estates to be performed. The person whose duty it was to make such examinations of the accounts became known as the auditor
With industrial revolution their was increase in business truncations and there emerge partnership and joint stock companies. The evolution of mechanized industries involved the provision of finance for in excess of what it used to be. Business became more complex and required more formal and improved accountability.
Under the company of organization the shareholder as a body delegated the management of the undertaking to a board of directors and periodically the board submitted to the shareholder the accounts of the company in order that the member might be enabled to see a true and fair view of the financial position and the profit and loss of the undertaking in which they were interested.
In these circumstances the need arose for some means by which the shareholder as a body might be satisfied that the accounts presented to them by their board of directors did in fact show a true and fair view of the financial position and earning of the company. It was for this reason therefore that the practice developed of appointing auditors whose duty it was to verify on behalf of the shareholder the account of the directors and to report thereon to the shareholders.
It was the British company act 1906 which first made it legally compulsory for every company to appoint independent auditors as we now know them and provided for their remuneration. In Nigeria
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