The Impact Of Auditing In The Prevention Of Frauds In The Nigerian Public Sector

The Impact Of Auditing In The Prevention Of Frauds In The Nigerian Public Sector

Chapter One

Preface

Background Of The Study

The term fraud is generally used to describe a wide variety of dishonest actions similar as deception, bribery, corruption, phony , false representation, conspiracy and concealment of material data. It’s generally to describe the act of depriving a person or commodity by decent, which may involve the abuse of finances or other coffers, or the force of false information. factual gain, benefits or loss to another doesn’t do for an act to be fraudulent but these does have to be intent to make a gain or beget a loss.

Over the times, checked fiscal statements have established an emotional record of trustability. All business realities whether private or public, irrespective of size, nature or compass of operation have expert or written programs and surely keep records.

similar records to be kept constitute valuation information and therefore, subject to some form of independent verification in order to confer reasonable credibility on them. The task of the independent verification constitutes in providence of auditing and the person who perform this task is appertained to as the adjudicator.

Auditing has been defined by Glyne( 1981) as the independent examination and disquisition of the book, accounts and testimonial of a business with view to enabling the adjudicators to report whether the balance distance and profit and loss account are duly drawn up so as to present true and fair view of the state of the affairs of the business according to the stylish of the adjudicators.

In the course of this study, it’s significant to separate between the public and private sector. The public sector whose wealth is possessed inclusively by the public, it consists of ministries departments, public pot, the parastatals and the three categories of government( Federal, state and original government) of which the sole end is to give useful services to all the citizens irrespective of their status in the society.

The legal base in the public sector constitute, Audit Act 1958, Finance Regulations, Treasury Circular, Appropriation Act of the time in question, and all form of the legal base.

The public sector account is the compound conditioning of recording, assaying, recapitulating, reporting and interpreting fiscal financial deals of the government and its agencies.

It reflects all situations of deals involving the bills, guardianship and disbursement of fund and the druggies of public sector account. While the private sector consists of power and shareholders and the report of their sale is to the possessors, shareholders and the outlanders.

The cash base system of account is used in the public sectors while the addendum base is used in the private sector. In addition, the equity or share interest of the public sector can not be possessed, bought or vended and profit timber doesn’t contribute to its survival unlike the private sector where profit timber is the main stay and driving force.

The private sector on the other hand has its bulk of wealth possessed inclusively by individualities or groups of individualities. The sole motive of the sector is for profit timber. The legal base in the private sector is formed by the companies and Allied Matter Act 1990, the cooperation Law,etc.

Statement Of Problems

The cash base system employed in the public sector account has been linked to have serious goods through its simple operation. Some of the goods are as follows

Problem of compliance with operation law and regulation.

Problem of effectiveness in achieving the program result.

Problem of effectiveness frugality of operation.

Problem of time constraints.

ideal OF THE STUDY

The primary ideal of the exploration work is to estimate the effect of auditing in the forestallment of fraud in the Nigeria public sector.

Exploration Questions

This exploration work will give answer to the following questions

How stylish can fraud in the public sector be averted?

What part does proper accounts records play in the effective prosecution of public sector inspection?

What are the factors that hamper or promote the proper auditing of the public sector?

How stylish are the adjudicators to carry out public sector inspection?

How stylish can the current problems faced by the adjudicators in auditing public sector or solves?

Statement Of Thesis

H0 There’s no relationship between auditing and fraud forestallment.

HI There’s a relationship between auditing and fraud forestallment.

Significance Of The Study

The exploration will be salutary to numerous sectors of frugality due to it’s significance in the sense that it’ll help in knowing whether all the legal base of government account are rigorously followed by the functionary in the medication of fiscal statement in the public sector.

It’ll point out and proffer to the sectors of frugality the results, similar ways and similar areas that could help in the forestallment of fraud in any association especially in the public sectors. The exploration will also draw clear lines of distinctions between public sector and private sector account that profit isn’t the main drive of the public sector, unlike private sector where profit is the main drive.

Compass Of The Study

This design is confined to the impact of auditing in forestallment of fraud in the Nigerian public sector, a case study of National Judicial Council Abuja. Attention will be given specifically to the inspection Unit and Accounting Department independently.

Description Of Terms

Auditing This is a methodical process of objectively carrying and assessing substantiation/ regarding assertion that profitable action and events are ascertain and communicate the results to interested parties.

Adjudicator Adjudicator is a statutory professional body that’s concerned with giving the independent opinion of the fiscal statement. Adjudicator can be internal or external.

Internal Adjudicator These are adjudicators that are concerned with the internal review of the fiscal statements within the association. They’re workers of the association and they’re involved in the day to day checks of account in an association.

External Adjudicators External Adjudicators are members of the public account enterprises or government agencies and serve as independent pundits of the account system of guests or regulated enterprises.

Financial Statement This is the record that an adjudicator give information on. It includes profit and loss, the balance distance and means of the business.

Fraud Fraud has been appertained to as irregularities in the fiscal statement and they’re deliberate conduct that are taken by the operation or hand of an association. Fraud could through manipulation of account by the directors or outright theft of the company’s means which involves defalcation.

crimes The word crimes is used to relate to unitentional mistake in fiscal statements whether of fine nature or electronically or whether due to over sight or misapprehension of the applicable data.

Independent It’s the state of characterized by objectively and integrity by an adjudicator.

True and Fair This adjudicator’s statement that the information entered and the treatment and donation of similar information are in agreement with the account records and returns true. By true, it means that fiscal statement are

It’s free from material misstatements.

Base on verification substantiation show. “ By fair ” it means that the fiscal statements are

Objectively presented

Free from operation bias

Applicable to the requirements of the druggies.