The Effectiveness Of Auditing And Accountability In The Public Sector

The Effectiveness Of Auditing And Accountability In The Public Sector

Abstract

The study dealt on the effectiveness of auditing and responsibility- in the public sector. The rapid-fire development fiscal operation action in public sector and fiscal control has led to the need for bettered performance dimension, reporting and individual responsibility. The experimenter tested five suppositions which stability results mat countries that. An audited work must be singly examined, opinions must be expressed by a good and appointed adjudicator in performance/ compliance with the applicable statutory scores; that an adjudicator must retain the anticipated rates the adjudicator- generals office is a watchdog of public fund and as similar, government must be meetly configured. grounded on this findings the experimenter recommended that government should at all position; employ professional accountants to insure that finances are expanded in agreement with the terms by which they’re appropriated while adjudicators should conduct their exertion singly in order to cover the interest of the public. therefore, with integrity and in full compliance with the law guiding their profession.

Chapter One

Background Of The Study

The term inspection is deduced from the Latin verb” audire”, which means” to hear” the origin of inspection allowed tenant formers to work on their land while the land possessors themselves, didn’t come involved in the business of husbandry. The coproprietors reckoned upon an overseer who” heeded” to the accounts of stewardship given by thetenants.During this period till data, and with reference to the companies and confederated matters act of 2004, the word” inspection” is described as

The independent examination of, and expression of opinion on the fiscal statements of an enterprise y an appointed adjudicator in performance of that appointment and in compliance with any applicable statutory.

In order to form an opinion as to the delicacy, verity and fairness of similar account.

The business world previous to artificial revolution in the 19th century till present day, has witnessed a lot of changes and developments. In the early profitable Developments, the mode of recording and assaying of counting dates was by homemade means. Auditing during this time was done orally because the business of jotting was get to develop. Themodernization of in the business world led to the areas where writing and retreating analysis evolved with the use of some electro mechanicals. Responsibility on the other hand is the obligation to answer for a responsibility that been concerned,( the 2006). During the period when counting system evolved, the business transitions which took place- = d to be recorded, analysis and grounded on the Dtinciples, styles and procedures laid down by theaccounting profession. Also certain development

which passed, gave rise to the right to examine the books and to gain all the information and explanation necessary for giving a report on the verity and correctness of the business’s( company) balance distance. In view of this auditing was redefinedaccording to( CAMA 2004) as an exercise whose ideal is to enable adjudicators express on opinion on whether the fiscal statement gives a true and fair view of the realities affairs at the period and; of it’s profit and loss for the period also ended and have been duly prepared in agreement with the applicable reporting frame work,, with greateremphasis placed on the information value of the business balance distance and prospective investors getting adding conscious of the need for the rejection of error and fraud was regarded as the fiefdom of the business operation. Thesedevelopment further gave rise to the restructuring account function of the possessors of the business which in turn led to the emergence of the fiscal statement legislation and recognisition of adjudicators. As needed by the company’s act, the audited( s) is meant to give a written report, expressing their opinion regarding the freeness’ and” fairness’ of words, auditing both in the history and at present is banged at enquiring that the stewardship account being centered to possessors of business is a time representation of the event that took place. Also development • in the business coupled with technological advance led to the arrival of electronic data processing( computer) as a means of processing business dates. This, in the world of business implies the robotization of account system which still demands that adjudicator should perform their part as opinionist.

Grounded on this, the question that strike one’s mind is, could effective auditing lead to proper responsibility In recent times, the conception of responsibility has it’s origin in stewardship account( especially in the state government system). The function which counting serves in the foremost times of our society is furnishing possessors of wealth, the means of safe- guarding it from embezzlement. As noted by smith( 2007). Responsibility and it binary family auditing were steered in when possessors were no longer directors of their coffers and as similar directors should look over similar business with utmost care to avoid negligence and confusion of operation in the affairs of the company, likewise auditing and responsibility in the public sector else called” public sector auditing and account”, comprises of the adjudicator- general of the” confederation, adjudicator- general of the state and adjudicator general of original government that serves as externala. bluffs to the three categories of government in Nigeria. Their approaches and ways are analogous to that of colorful enterprises of chartered accountants club different occurs in their system of appointment to those of enterprises of chartered accountants. Anyhow of this fact,( differences) and in recognition of the former, a commission called the public account commission( Pac) was formed with duty to consider the adjudicator, general’s report submitted to the assembly with functions as follows.

To meditate on the adjudicator- general’s report.

ii. To summon counting officer to appear before them

iii. To examine any offer on pledge if need to be

iv. To recommend to the chairman any action to be taken on the offending officer.

To apply the adjudicator section as needed by decree 43.

vi. To report to the chairman the recommendation’s

vii. To accomplish any duty as needed by the public assembly.

In conclusion, the effectiveness of auditing and responsibility in the public sector which refers to’ all associations which aren’t intimately possessed and operated but which are operated and established as this effectiveness has brought about good internal and external control and checks, minimized fraud; defalcations Enhanced effectives policy andimplementation and operation whilenon-effective auditing and responsibility would affect to regulates lack of there and fair representation and reporting of fiscal statementalongside, poor policy perpetration.

AUDITING AND Responsibility AS STATUTOYR scores

during which the account carried out by suitable good adjudicators during which the account records and fiscal statements of an association B- e subordinated to examination by independent adjudicators with the main ideal of expressing an opinion in accountancy with applicable terms of appointment purpose,( the, 2006).

literal BACKGROUND OF THE STUDY

The literal background of the office of the state’s adjudicator general dates back to the creation of countries, specifically Imo state from the former east central in 1976 which was also headed by Sir.S.C. Okorieafor, who haiked from Oguta from also to present date, there has been series of appointment c” adjudicator generals, employment of staff and otherchanges. After the creation of countries, utmost staff of the office of the adjudicator general of east central which was formerly at Umuahia, dislocated to Imo state to the office of the Adjudicator-general now in Owerri. It’s capital, as needed by law. The present adjudicator- general is by name, joe.E.A. Ugunwa.

DEPARTMENT IN THE OFFICE OF THE AUDITOR- GENERAL( STATE)

The office of the state’s adjudicator- general is made up of six( 6) departments videlicet.

i) General service department( GSD)- this department is in change of the generaladministration of the state adjudicator-general office.

ii) design monitoring and evaluation department( promade)- As the name suggests, its duty is to take care of the assessing in and monitoring of all government design and also, checkups, government parastatals.

iii. Government accounts department( GAD)- this department is in charge of the inspection of government ministries,

iv. profit department( RD)- this department is in charge of the inspection of governmentrevenues.

Finance and force department( FASD) this department is vested with the duty of critical monitoring of the expenditures of the office itself,i.e( the office of the AG in particular). These departments are headed by 3 directors/ 3 acting directors for effective operation of the office of the AG.

The Responsibility Of The State Auditor- General

section 125 c2) of the constitution of Nigeria, 1999 amended) authorized the adjudicator-general- to carry out of allco-operations, government ministries, government parastates and original government councils through out the country anyhow of it being either the primary or secondary responsibility, and this is periodically, according to the conditioning ofsuch association.

Association Of Reports From The State Auditor- General’s Office

The reports from the office of the adjudicator- general is systematized base on the type of opinion in recognition to the substantiation he given. This opinion could be good, unqualified, subject toetc.

Problem Enconutered In The Office Of The State( Imo) Auditor- General

Problem encountered in the state AG’s office are multitudinous but specifically, the problem of misutilization of inspection reports towards operation decision, poor collection of possessors expedient towards organizational administration, Non- isolation of functional duties and fiscal impropriety in the public sector caused by hamstrung lauding andaccountability arises due to

i) The selfish interest of the directors and overdue influence which does not allow the business to grow.( ii) shy vacuity of resource or available resource being tampered by staff or directors of similar business pretenses to their reluctance.( iii) shy internal control measures,( iv) Failure of the operation of the expectedauditing norms towards inspection exercise, ie if wrong information is communicated to the investors.

The below listed could be answered if directors and staff would be fair in their duties towards the conditioning of the basins. This calls for provocation, amenability etc as auditing which starts where counting stop is a sacred duty.

Statement Of The Problem

The conception” auditing and responsibility” has been relegated to the background in the public sector, in malignancy of it’s significance. The future of the public sector lies in it’s auditing and account. Adjudicators perform important function in those aspects of government that are pivotal for promoting credibility, equity and applicable actions of government officers which reduces the threat of public corruption. In malignancy of these important places auditing andaccountability plays, some problems are still left unsolved and new bone have been created by the inspection conditioning itself- hence problem like

• misutilization of inspection report towards operation decision.

• Poor allocation of possessors coffers and organizational administration

• Non isolation of functional duties

• fiscal impropriety in the public sector as a result of hamstrung auditing and account system.

These and numerous further problem are faces by the Nigeria public sector and enterprises. Investment are cost innon-profitable gambles and the nations resource wasted. It’s the over back hash that farther promoted the exploration to probe into the problem backing from the study of the rank and train of the adjudicator-general office of Imo state

1 3 Objects Of The Study

The general ideal of the study is to estimate the effect of auditing and responsibility in the public sector specifically,, it tends to determine the cause of poor allocation of ownersresources and organizational administration. To determine the factors that affect tonon-segregation of functional duties To being to light the fiscal impropriety lines) inthe public sector which is due to hamstrung auditing and account system.

Exploration Question

For this study, it’s material to ask some question, similar as,

· Is there any significant relationship between auditing, responsibility and the public sector?

· Is there any significant effect between misutilization of inspection report towards operation decision?

· What possible effect could poor allocation of possessors resource beget towards organizationadministration?

· Is there any reason for non- isolation of functional duties?