The Effect Of Auditing And Investigating In Small Scale Business Organization

The Effect Of Auditing And Investigating In Small Scale Business Organization

Chapter One

Preface

Background To The Study

The work of an adjudicator in any association can not be looked beyond or over emphasized. This is because in earlier times when there was no adjudicator to take proper care of the organizational fiscal statement, numerous associations like small scale business association, manufacturing companies and indeed private companies suffered frauds and crimes in their business.

The enterprises that was at the time were substantially common gambles with a limited life. In similar cases, the ascertainment of profit was simple. It was equal to the fat of cash in hand at the end of the adventure. One should also flash back that where checkups were conducted at this time, it wasn’t because of any statutory vittles, and that liabilities and duties of an adjudicator hadn’t been easily defined. utmost of fraud is being committed by the staff of those associations especially small- scale business association because of this, there’s need for auditing and disquisition in small scale business association.

Since small scale business is a business that has little fund and accoutrements . It’s veritably pivotal to employ the service of an adjudicator. The adjudicator is concern simply to ascertain the correctness of totalities of plutocrat entered and expended, checking the delicacy of individual entries in a cash record and vindicating the balance of cash in hand at a particular point in time. In so doing, frauds, and crimes can be fluently descry and help.

An adjudicator is the only person authorized by law to conduct auditing and probe on any fiscal matter concern association( including small scale business).

disquisition is a special inquiry into the fiscal affairs of a business. An adjudicator need proper disquisition to help him accomplish his auditing duties.

Eventually, the major important need for auditing and disquisition in small scale business association is to make sure that the business grow with its little fiscal back over coupled with total minimum of frauds and crimes. Auditing help in icing that o material, fiscal or else is misused.

2 Statement Of The Problem

Problem arise in the operation of normal auditing principles and procedures to checkups of small scale business association employing a lower number of executive staff.

Substantial domination of the account and fiscal operation functional by one person is also one of the major problem that the association is suffering from.

Limitations on the effectiveness of internal control owing to the small number of workers. therefore, the provision of check whereby the work of one person is proved singly( or is reciprocal to the work of another) be absent to a considerable extent. Whilst internal control including internal check may be effective for it’s primary purpose as a check on operation itself.

shy operation support for internal auditing is also one of the major problem the organisation is encountering. We had to assume that the operation and adjudicator were in conflict also the task of the adjudicator would not be suitable to calculate in any way on the explanations and information given to him by operation. He was likely to be false and the inspection process would come both expensive and detailed.

The association is also suffering from shy account records since one person is handling the fiscal operation function, we find out that frauds and crimes can be fluently committed by that person.

PURPOSE OF THE STUDY

The purpose of this study is

To find out the extent of substantial domination of the account and fiscal operation function by one person affect the association’s internal control system.

To ascertain the extent of limitation on the effectiveness of internal control owing to the small number of workers.

To find out if proper auditing and examinations were made by the adjudicators by all the information and explanations attained to the stylish of their knowledge and belief were necessary for the purpose of their inspection.

To determine to what extent the association suffered from shy account records.

To ascertain the extent of shy operation support for internal auditing.

THE compass OF THE STUDY

Considering the circumstance and predicaments of business, it’s supposedly egregious that there’s no business that can survive without encountering one kind of problem especially in small- scale business association. According to James Bades, all enterprises ’ faces threat but they’re proportionally lesser in the small establishment.

The failure of a product batch in small enterprises may spell disaster while a analogous failure or problem in a large association.

Causes of frauds and crimes by the operation staff are one of the major problems that the association is encountering.

fiscal problem is a major problem for small- scale business association in Nigeria sources of fund for this order of business. incapability to adopt is delicate because of the small quantum of asset they have.

The association is also seriously suffering from marketing problems due to lack of experience in the field, poor mortal relations, unfit to meet client’s demand.

Since the association is operating with small quantum of fund and asset they’re suffering from product problem due to lack of product installations, inadequate of raw accoutrements for product, poor product planning, lack of copping policy and sources of force and also lack of earthenware casing.

The association is seriously suffering from exploration problems similar as ignorance and mortal geste .

Major sins in the system of internal control is minor crimes which is caused by the operation staff of the association by not keeping the applicable fiscal statement due to false manner of entering account sale.

THE SIGNIFICANCE OF THE STUDY

The applicability of the study can not be over emphasized as a successful completion of this study.

The need for auditing and disquisition in small scale business association help the association to employed a good adjudicator to enable the operation staff of the association to keep acceptable account record. So that the fiscal statements prepared by the operation can only be accurate and reasonable. If the association employed a good adjudicators it’ll help the association to descry and help crimes and frauds easier.

Eventually, the need for auditing and disquisition will help for survival and substantial growth of the association.