CHAPTER ONE
1.0 INTRODUCTION
Auditor plays a greater roles in the state and the entire nation as a whole, for the development of public sectors in the states, it constitute nearly 80% in terms of financial management for fraud prevention and control in the public sector. Auditing in its modern form, has attended a primitive existence since the 16th century when the division first started to grow between those who provide capital and those who managed the business. The introduction of the joint stock companies, has greatly widened the possibility of raising capital for industry as a result of the limited liability of share holders it became possible to offer shares to the public and thus the availability of capital to industry and commerce.
Under the company form of organization, the government put more emphasis on financial management in the public sector to ensure proper record keeping that the accounting book has always show the true and fair view of the financial statement and operation are being carried out successfully as such problem of financial misconduct and misappropriation through fraudulent by all means should be identified and taken care of. This has necessitated for the insight of this project in which the auditor detect how fraud is detected and looking for prevention method and controlling it in the public sector. The primary responsibility for detection, control and prevention of fraud rest with the management, this responsibility arises at contractual duty of care directors and mangers of an organization becomes directors and managers, act in stewardship capacity with regard to the property entrusted to them by the government and stock holders and others owners. How they exercise this duty of care is a matter for them in most cases their duty may be discharged by institutions and maintaining a strong system of internal control. Therefore, internal control can be seen as the whole system of control; financial and other wise, established by the management in order to carry on the business in an organization in an orderly and efficient manner to ensure adherence to management policies control and safeguards the assets and secure as far as possible the competence and accuracy of the records, in an organization for internal control to be effective the following should be specified.
Leave a Reply
You must be logged in to post a comment.