THE ROLE OF AUDITOR IN CONTROLLING FRAUDS IN GOVERNMENT OWNED ESTABLISHMENT

ABSTRACT

This topic that is being treated (The role of a statutory auditor in controlling fraud in government owned establishments) is very important to our present economic condition if people will blend with the results and findings of this research work.

In the chapters of this project, it is clear that an auditor (statutory) is very important in all government establishments. This is because the Nigeria citizens see government properties as “Nobody’s property” the trend now is that they perpetrate fraud regularly with the above mentioned motive in the back of their minds.

The auditor is just an impartial critic and observer; he is a “watchdog” and not a “blood hound” He displays all the skills and care which is expected of him as a professional.

The view of other auditors about the topic was also examined. The role of statutory auditors in controlling fraud is a vast topic which has been dealt with by many professionals in different fields and vocations. The work of a statutory auditor is backed up with the provisions of the company and allied matters decree (CAMD) 1990. This means that the auditor has legal rules to follow in carrying out his work. It is compulsory for all government establishments under the provision of the CAMD 1990 or the statute edit of creation to audit their accounts and other financial statement at the end of every financial year.

In summary, the role of a statutory auditor is vital and indispensable in government owned establishments so as to enable sanity and fairness in operations of the government officials and their subordinates.

TABLE OF CONTENTS

Title page                                                                      

Approval                                                            

Dedication                                                                    

Acknowledgment                                                

Abstract                                                                        

Table of content                                                            

CHAPTER ONE  Introduction

1.1            Background of the study                                              

1.2            Statement of problem                                                   

1.3            Objectives of study                                                       

1.4            Significance of study     

1.5            Scope of study                                 

1.6            limitation of the study                               

CHAPTER TWO

Literature review

2.1            Origin of Auditing                                                                  

2.2            Auditing in Nigeria                                                                 

2.3            Auditors defined                                        

2.4            Independence of auditor                                               

2.5            Classification of audit                                                   

2.6            Nature of works                                                            

2.7            Who is an auditor                   

2.8            Qualities of an audit

2.9            Duties of an audit

2.10       Right of an auditor

2.11       Fraud, errors and irregularly defined                                                         

CHAPTER THREE

 Summary, conclusion and recommendation

3.1            Summary of findings                                                    

3.2            Conclusion                                                                    

3.3            Recommendation                                                

Bibliography.                                                                

CHAPTER ONE

INTRODUCTION

1.1     BACKGROUND OF THE STUDY

 The traditional role of financial accounts was to give account of stewardship to the owners of business who were divorced from management of business.

There is always the tendency for the owners to doubt the content of the report presented to them. They fear that the report may contain errors, conceal fraud, deliberately misleading or lack in the informational content.

To solve this problem of credibility in reports and accounts, therefore, auditing can be defined as the independent examination of the books and accounts of individuals, organization etc. With a view to confirming or refusing the assertion in the report. It is for this purpose that the professional bodies such as (ICAN) companies and Allied matters decree 1990, stipulates the mode of appointment of auditors (sec 357) (i) of 1990 and the qualification of auditors, all to ensure a true and fair view of their report on financial matters.

However, every organization sets up accounting techniques and procedure that will suit its purpose with an eye to established accounting principle and guideline. A manufacturing industry introduces such accounting techniques that will take care of every stage of manufacturing firms, medical, clinics, legal parishioners etc run their outfit using such accounting techniques as would adequately take care of money received and expenses paid.

To ensure that the financial position portray true and fair views, that auditor will inquire whether the company is well runned. In particular whether:

i.                   The directors maybe ineloquent

ii.                 They may exercise bad judgment

iii.              The directors may be incompetent

iv.              Board of directors are competent necrotic men tend to appoint as colleagues people who are also competent and energetic. Whole boards of mediocre tend to prefer colleagues who are also mediocre