CHAPTER ONE
INTRODUCTION
1.0 BACKGROUND O F THE STUDY
As we have been witnessing in recent times, there has been drastic change in customer’s trends in Nigerian. Some of the reasons for these abnormalities in business trends which resulted in the general economic downturns, ranged from inflation, mismanagement of foreign exchange reserves, high prices of essential commodities, lack of raw materials for use in industries, misappropriation of excessive expenditure in compatible with real budgets, lack of accountability, rapidly escalating debts, corruption, craze for imported goods and general economic crisis on a global basis. Investigations however, have suggested that probably the role of auditing has not been well appreciated in the management structure in Nigeria economy. In view of this fact, an attempt will be made to highlight, the technique and auditing principles and their application the general economic behaviour system, in relation to the Nigeria experience.
1.1 STATEMENT OF PROBLEMS
Professional firms whether small, medium or large in a developing economy like Nigeria face special problems of ensuring profitable operation, practice development and maintain professional standards. In a country where spurious organization spring up now and gain to challenge properly constituted professional organization purely on non-professional, non-academic basis but primarily on ill-motivated necessary grounds. Professional bodies and practitioners naturally face special problems of compliance with laid down standard and ensuring profitable practice. Auditing roles in Nigeria have been characterized by some problems of incomplete recording of accounts and the problem of compliance or strict adherence to the accounting standards and auditing guidelines complied with the incessant waves of corporate crime undermine the role of auditing in Nigeria.