ABSTRACT
The project titled “Auditing as an aid to accountability on the public sector” A case study of diamond bank in Enugu state, was to examine auditing as an aid to accountability on the public sector performance by Diamond Bank Plc in the area of operation (Enugu State). The researcher reviewed literatures done by other authors for the purpose of this study. Data were collected from questionnaire and other information gathered were presented on tables, analyzed and conclusion drawn from percentage variations. The research findings includes marginal auditing as an aid to accountability is well adopted by Diamond Bank. The response conclude that this accountability is very essential in organization, though no particular auditors in itself at a lasting panacea to all organizational ailment or problems but depends on what the management needs. The researcher recommends for the provision of raw materials in advance, which will assist in reduction of customers dissatisfaction.
CHAPTER ONE
INTRODUCTION
1.1 BACK GROUND OF THE STUDY
This seems to be a national issue. The increasing incidence of fraud, embezzlement and misappropriation of funds and property by accounting officers and chief executives in the public sectors of the Nigeria economy pose pertinent questions as to whether auditing plays any significant role towards ensuring proper accountability and judicious use of funds.
Investors and other people concerned, therefore, deserved to be assured that the resources which they put at the disposal of those accounting officers are efficiently, effectively and economically managed, since it is known that not all of us are judicious in the management of our own private affairs and much less so, the public affairs assigned on to us.
Accountability has dearly manifested itself as a principle to be pursued if the status quo is meant to be perpetrated.
Various users can define accountability in many ways, thus, accountability as contained in Longman dictionary contemporary English is the condition or quality of being able to give an explanation for one’s actions.
Accountability is also defined as the tendering off return on stewardship relating to the management of funds and other assets of which individuals or institutions had been custodians.
Auditing is regarded as one of the more or recently established professions born out of the complexity of modern business world. It becomes relevant so as to discourage men from erring and to expose those who erred when they give account of how they managed the funds and property entrusted to them.
This account is usually done by means of financial statement. In order to verify the true and fairness of this reports independence person – an auditor – will audit the account.
WHAT THEN IS AN AUDIT?An audit is an investigation by an auditor into the evidence from which the final revenue accounts and balance sheets or other statements of an organization have been prepared in order to ascertain that they present a true and fair view of the summarized transactions for the period under review and of the financial state of the organization at the end date, so enabling the auditor to report thereon.
1.2 STATEMENT OF THE PROBLEM
Business organizations are economic agents, which have certain objectives to achieve. Primary among them is profit, but however, thus primary objectives might not materialize as a result of increasing the nature of fraud in the financial organization, which is as a result of perceived neglect either real or imaginary by the companies or by any of financial organization concerned.
The nature of fraud in the financial organization have forced the companies to combine both their primary objective of profit making with audit responsibilities is faced with such problems:
1. Performance procedure of audit responsibility service
2. Determining the extent auditing work
3. Reporting of auditing activities
4. Should auditor or accountant be responsible for solving all manner of fraud problem?
1.3 OBJECTIVE OF THE STUDY
The role of auditing as an aid to accountability on the public sector cannot be over–emphasized. It is very clear from the problem that banking institution require an articulated corporate auditing work in the course of their operation for survival in the light of the above, our objective for this research shall include:
1. To critical examine auditing as an aid to accountability on the public sector performance by Diamond Bank Plc in the area of operation (Enugu State)
2. To evaluate the usefulness and adequacy of existing methods/techniques of auditing performance of Diamond Bank.
3. To identify major shortcoming and assess the impact of non-performance of auditing in Diamond Bank area of operation.
4. To suggest measures aimed at achieving optimal auditing performance for Diamond Bank so as to ensure true and fair view in their operation.
1.4 SCOPE OF THE STUDY
The purpose of this study is to examine the auditing as an aid to account ability on the public sector of Diamond Bank as it relates to the banking institution. Therefore this study will be specially limited to Diamond Bank Plc and other banking organization. However, the general operations of Diamond Bank will be covered.
1.5 RESEARCH QUESTIONS
In other to properly articulate the study and the address the problems earlier stated the study would be guided by the following research questions.
1. Is auditing necessary in banking organizations performance?
2. Does the performance of auditing by banking organization reduce external conflicts?
3. Is Diamond Bank auditing to its area of operation?
4. What are the auditing techniques put in place by the Diamond Bank to stem of external conflicts?
5. How worthwhile is auditing as an aid to accountability on the public sector in relation to profitability of the company?
