CHAPTER ONE
1.0 INTRODUCTION
In the 60’s especially before the civil war in Nigeria cash crops from Agricultural sectors mining and a few others provide much of the foreign exchange earnings. In this period 70 percent (70%) of the nation’s labour price was on agriculture and this contributed to about 70 percent of the gross domestic product (GDP) this contribution of agriculture to GSP saw a decline in the agricultural sector led the nation into important of food this means a compete reverse in trend of averts. However the decline is attributable to the over dependence of the economy on oil revenue in the 70’s and early 80’s this was know as the era of oil boom. When the oil gut of the 80’3 hit the world, the revenue according to the government declined sharply and this revenue declining continued despite all efforts made by successive government to diversify the sources of revenue. This era was known as the oil-boom in Nigeria. This oil boom compelled many individuals company. Small-scale industrial large scale and many corporate organizations to either completely close down their operations or reduce their operations to about one- third or less of their capacity. There is a great pressure in the industrial sectors to develop new strategies if they are to remain in business. One sector of the economy that portrayed an interesting scenario was the banking industry. The economy today is bad that saving has become difficult for majority of the populace that the things those who can afford to see want to hear of is economic depress. It has therefore become necessary to study the whole phenomenon of depress as to ascertain empirical evidence of its causes and proper solutions.
Our intention is that the efficiency of auditing system particularly in a developing economy like ours depends on the extent to which auditors role is effectively and efficiently discharged in terms of the achievement of economic goals of the country. But when the auditors role is not properly discharged in terms of achieving the economic goals this will definitely lead a nation into “economic depression” An economy can be seeing as any specified collection linter-related set of marketed and non- marketed productive activities (LIPSEY 1983). This the Nigeria economy could refer to all such economic activities taking place in the geographical domain of Nigeria or all such economic activities perform that activity (parkin1982) Nigeria economy can be structurally be classified into four (4) such as;
– Production
– General commerce
– Services
– Other.
According to Guttered Haberler “economic depression” is a decline in economic activity on order of magnitude of the depressions of the inert war period and earlier. In every major inflation government deficits have been blame as a prime sources of the trouble as well as the auditors. Austerity programs prescribed by the international monetary fund (IMF) for trouble countries that ask the fund for help invariably include provisions for fiscal discipline according to (Sach 1979) the proximate cause of the recession were two;
– The rise in oil prices and;
– The strong emphasis on disinflation of the monetary authorities in most major industries countries.
Therefore auditors role in depressed economy cannot been over emphasized as we know auditors are those whose duty is to conscientiously and objectively examine inquires into any statement of accounts and other documents and the physical assets where possible in order to assertion or form an opinion. An auditor has to play a role in preparing their report to carry out investigations as may enable them to form an opinion. They have to state in their report if in their opinion proper companies not visited by them have received returns. Again it shall be auditor’s duty to include in their report if the requirements of parts V and Vi of schedule and part I to iii of schedule 4 of the decree are not complied with in the accounts. Finally it shall be the auditors duty to consider whether the information given in the director’s report in respect of the year for which the accounts are prepared are consistent with those accounts and of they are of the opinion that it is not they shall state the fact in their report. Therefore in a depress economy the role of auditors should be intensified and they should put more effort order to help to revamp the economy.