CHAPTER ONE
1.9 BACKGROUND OF THE STUDY
Auditing is derived from the Latin word Audire which mean to hear. In the ancient days, the owner of a business would hear a report made by the auditor about the book keeping and financial records of business. This was because at that time, financial records keeping was done in primitive ways using objects such as boards and woods. And according to J.U.B Azubike (2005:5) Auditing can be defined as an independent examination of an expression of opinion on the financial statement of an enterprise by an appointed auditor in pursuance of that appointment and in compliance with any relevant statutory obligation. Also Taylor (1982: 4) state that an audit is an investigation by an auditor into the evidence from which the final revenue accounts and balance sheet, or other statement, of an organization have been prepared in order to ascertain that they present a true and fair view of the summarized transaction for the financial state of the organization at the end date to enabling the auditor report thereon. Finally, the major important need for auditing and investigation is to make sure that the business is growing with its little financial backup and error.
An auditor also helps in ensuring that other financial material are useful. Auditor is the holy person authorize by law to conduct in any financial matter in any organization e.g small-scale business. Since small-scale business is the business that has a little fund and materiel is very crucial to employ the service of an auditor in their business. The auditor is concerned mostly to ascertain the true sum of the money received and distrusted, checking the accuracy of individual entries in a cash record and verifying the balance of cash in hand at a particular time. By doing this; the frauds, and errors can be easily detect and prevent. An audit team company of inspector and team of leader that would visit the organization to carry out the examination of the organization book and record. A specific audit would also need to be conducted or to what extent view of evidence management activities is sufficient to support an independent and objective audit opinion.
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