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AUDITING EFFICIENCY FOR IMPROVING COMPANIES PERFORMANCES

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CHAPTER ONE

1.0            INTRODUCTION

Company performance is very important if such a company

want to achieve its purpose of starting its business without positive impact of any organization, it means that the way of achieving the objectives when the business has commenced will be a difficult situation for that organization.  It is obvious that the performances of companies sis not unto expectation. That is why the researcher wants to know the impact auditing create in improving companies performances.

          Since companies have been encountering some problems like fraud, misappropriation of funds and properties, lack of effective management and others that made people to be asking whether auditing plays any significant role towards ensuring efficiency and judicious use of funds set aside for various purposes.

Some activities and programmes organized by people as re- assumed to be done on behalf of the people.  They are deserved to be assured that eh resources which they put at the disposal of these programmes are effectively, efficiently and economically managed since it is known that not all are judicious in public affairs entrusted to them.

          Therefore, for proper and efficient accountability, it is obvious that auditors will manifest their principles to be able to arrive at what is expected of them in order to be convinced that the financial position of the organization as presented show a clear and fair view of the organization.

          Consequently, because of biased nature of the organization as a result of poor investigation of the organization position, past rulers have pledged to introduce a more responsible system of government with accountability but their subsequent conduct has shown that they have little or no understanding definition and application of efficiency in the improvement of companies performances.

          Auditing which is regarded as one of the recently established professions turn out of the complexity of modern business world.  It becomes relevant so as to discourage people from erring and to expose those that gave wrong account of how they managed the funds and properties under their custody.  The account or report is usually done by means of financial statement.  In order to verify the true and fair view of this report an independent person is needed to audit the account.

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