ABSTRACT
This research project is designed to bring out the importance of audit to the effective working of the organization using First Bank Nigeria Plc Okpara Avenue, Enugu state.
In pursuant to this, data were collected by personal interview, questionnaires and through researcher’s observation. Secondary data were collected from journals, publications and related works.
Also, findings showed that all the strategies for effective working operations are applicable in the case study. It was revealed that because of the laws guiding auditors, the attitude and perception of auditors to effective working operation in my case study was adequate.
Finally, based on these findings, various recommendations were made amongst which include, that for auditor’s work to be relied upon by other or for the work of auditors not to be subjected to any loss or damage, they should not accept gifts or packages, have personal relationship with clients and should carry out their duties in compliance with statutory requirements.
CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF STUDY
Auditing as a discipline or profession arises primarily because of separation in the ownership as well as the administration of a business enterprise. The owners of a business that is shareholders pool their resources together for the purpose of establishing an enterprise, with a common goal of profit making or otherwise. These shareholders may not be available for the day to day administration of the, company hence the need to appoint professional managers, whose main responsibility is to utilize the shareholders fund effectively. The managers are expected to prepare an account that is, a quantitative statement stating how the shareholder’s resources were utilized during a period being referred to as accounting year. This statement is referred to as stewardship account.
In order to make the owners of the business place reliance on members of management as regard the true and fair view of the financial statement, the shareholders will appoint an auditor.
Conclusively, auditing may be seen to have arisen primarily as a result of separation of ownership from control; however, this does not connote that independent examination of financial statement may not be necessary where there is fusion of ownership with control.
Auditing was derived from Latin word “AUDIRE” which means to hear. Initially, auditors are made to listen to income and expenditure of account prepared.
An international body by name the Consultative Council of Accounting (CCA) defined Auditing as “The independent examination of, and 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”.