ABSTRACT
The primary objective of carrying out this research was to have an overview of “The Effect of Auditing in the development of Nigeria Economy”.
Fifty subjects were used as the population for the research. This research work has been logically divided into five chapters.
The first chapter entails the aims and objective of the study, scope of the study, statement of research problem, statement of hypothesis and research questions and definition of terms.
Chapter two emphasizes on literature review. Under this, opinion of different writers in journals, magazines and texts in relation to the issues at hand are considered.
Chapter three will focus on Data Research Methodology which includes Research Design, Data Collection method, Research problems, Reliability and Validity.
Chapter four is on Data Analysis and interpretation of data. This covers how the researcher collected the data recorded and analyzed to put right the issue at hand.
Chapter five highlights the summary of the researchers, conclusion and recommendation.
CHAPTER ONE
1.0 INTRODUCTION
Auditing is derived from a Latin word “Audire” which means “To Hear”. In the olden days, owners of business used to hear the report of how their business progresses from the manager of the business. But due to the fact that the primitive ways of keeping financial records which include making signs on board, keeping figures off hand without documentation and lack of mechanical aids for calculation had a lot of problems associated with it.
Also, the manager may deliberately decide to hide vital information for the owner of the business or even make fraud. Then the need to employ another worker to act as a watch dog to the manager arises. The new employee is known as “THE AUDITOR”.
The process by which the auditor gives the report of the position of the financial statement of a business in a true and fair manner to the owner of the business is known as “AUDITING”.
The development of auditing could be traced to the importance of scrutinizing the financial statement of an organisation. To that effect, auditing is regarded as one of the most recently established profession born out of complexity of modern business world.
However, it can be traced to an ancient time. Indeed, since men have entered into contractual relationship with one another, thereby establishing a master-servant relationship, the quest to ensure the accuracy and reliability of the resulting information has always existed.
The emergence of auditing from a historical perspective was necessitated to protect, the shareholder’s capital investment from dubious promoters. Auditing has been revolutionary and ethical in nature right from the beginning.
In the Nigerian perspective, the entire society is so worried about rising waves of theft, robbery, smuggling, corruption abuse of office, nepotism and deculturisation which hinder the country’s economic development.
This breakdown in our society discipline which can be said to have accelerated in the last decade has now assumed an alarming dimension; in fact, so alarming that the future destiny of this country is bleak. And if nothing is done to check this ugly and stupendous shameful trend, then the end product of it will better be ignored than experienced. The issue of some act of individuals having some idle funds and some others not being financially buoyant, but have the technicalities to manage business entities led to the operation of limited liability company which are owned by their shareholders and managed by directors appointed by the shareholders.