THE ROLE OF AUDITORS IN A DEPRESSED ECONOMY

(A CASE STUDY OF SELECTED BANKS)

ABSTRACT

The depress in Nigeria economy and the role of auditors has played to revamp the economy is a concern to all.  This particular study therefore studied the whole phenomenon of depress as to the causes procedures for classifying the economy as depressed and them evaluating critically the roles plays by the auditors.  After evaluating all these the roles of the auditor was then examined to determine if to date the auditors has lived up to expectation or of he should be held liable for depress.

Depressed economy is therefore a condition where the whole economic system ahs decline in order of magnitude.  Developing countries where generally an open economies because of the fall in capacity to import in the third world which was magnified by perverse capital flows the payments problem of developing countries were very server and their import volume was cut on an average peak-to –trough basis.

To achieve the objectives of this study sixty (60) questionnaires were distributed thirty (30) wee satisfactorily collected and used for data analysis in this study. The analytical  tools used were chi-square frequencies and simple percentage.

Chapter one this research work starts with a brief introduction and  background statement which gives an overviews of the depress economy.  The hypotheses used are stated.

In chapter two related texts as regards to depression in economy and the role of auditor are stated.

Chapter three shows the various processes involved in obtaining analyzing and interpreting the necessary data gathered.

In chapter four the analysis of the finding based on the data collected is made.

Chapter five includes the summary of finding of the study which shows that;

a.                 The internal auditor and internal audit departemnt of most banks are no independent.

b.                 The external auditors of most banks lack a full and proper understanding of the activities of their client and also the inert related ship of those activities and others.

The conclusion stressed on the importance of the auditors to initially appraise these lacking areas in order to improve its liquidity profitability and general financial strength.  The regulatory authorities the management and staff of the bank should also be blamed.

Finally in this chapter sir the recommendation which state that under no situation should the auditor allow his independence to be impaired? The management of the banks should recruit honest and qualified staff in order to control fraudulent etc.                   

TABLE OF CONTENT

Cover page

Title page

Approval page

Dedication

Acknowledgement

Abstract

List of table

Table of content

CHAPTER ONE

1.0            Introduction

1.1            Purpose of the study 

1.2            Statement of problem

1.3            Significance of study

1.4            Statement of hypotheses

1.5            Scope / Limitation of study

1.6            Limitation of study

1.7            Definition of terms

CHAPTER TWO

2.0            Review of related literature

2.1            What is a depressed economy

2.2            Bank in recession

2.3            The state of Nigeria Economy from 1990-2004

2.4            Major problems constraining the Nigeria economy

2.5            Who is an auditor 

2.6            Objective of an auditor 

2.7            Advantages of audit

2.8            Qualities of an auditor

2.9            Nature of the work undertaken by auditor

2.10       Rights of the auditor 

2.11       The roles of auditors

CHAPTER THREE

3.0     Research design and methodology

3.1            Sources of data

3.2            Sample used

3.3            Methods of investigation

3.4            Research problems and limitation

CHAPTER FOUR

4.0     Date analysis

4.1     Presentation and analysis of data

4.2            Test of hypotheses using chi-square  

CHAPTER FIVE

5.0     Summaries of finding conclusion and recommendation   

5.2     Finding

5.2     Conclusion

5.3     Recommendation

Bibliography

Appendix 

Questionnaire

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.