The Role Of Auditors In Bank Failure In Nigerian Banks

The Role Of Auditors In Bank Failure In Nigerian Banks

Chapter One

Preface

Background Of The Study

Bank’s superintendences are ladened with the responsibility of preparing the accounts and fiscal statements of a bank. An inspection is anticipated to be carried out annually to insure that the statements of accounts that have been prepared and presented as needed by law.( CAMA 1990)

According to Webster’s English Dictionary, an inspection is “ an examination intended to serve as a base for an expression of opinion regarding the fairness, thickness, and conformity with accepted account principles of statements prepared by a pot or other reality for submission to the public or to other interested parties ”.

In another way, an inspection is defined as “ an independent examination of the books and records of an reality in order to express an opinion as to whether the accounts and fiscal statements represents a true and fair view of the state of affairs of the reality ”( Clinton, 2006). From these delineations, it’s clear that an inspection is an independent examination and expresses an opinion on the fairness, conformity and verity about the statements as to the state of affairs of an reality.

The Adjudicator thus plays a fiduciary part in the handling of a bank, as similar; they owe the bank and its stakeholders a duty of care in the performance of their duties. The Nigerian law made giant strides in guaranteeing the independence of the Adjudicators which is important for his position as a trustee. similar strides have been made in the area of Appointment, Remuneration, Rights, Powers and renewal of term section 359, 360, 361, and 363 independently of company and kindred Matters Act( CAMA 1990).

Auditing in Nigeria is regulated by colorful bills and norms of Account and Auditing. But inspite of this, allegations has been made against the professional Adjudicator as to it failure to express a truly independent opinion as to the true and fail view of fiscal statement of banks presented before her. The veracity of these allegation is the object of this study.

IN THE LIGHT OF THE ABOVE THE EXPLORATION QUESTIONS ARE

Do the being laws permit the adjudicators to do what the stakeholders anticipate of them?

Have banks adjudicators actually contributed to the torture and failure of their customer banks?

To what extent may an adjudicator be held responsible for a banks failure?

Ideal Of The Study

The ideal of this study is to establish an independent opinion on the argument that banks adjudicators have contributed to the failure of their customer banks

To examine the effect of fraud on a bank performance

To find out the effect of directors exploitation on the investors in bank.

To determine programs, laws and institutions necessary to regulate and sanitize the Nigeria banking assiduity

· To Ascertain whether the adjudicators have any part to play in checking the abuse of powers and icing effective reporting Ascertain whether adjudicators collaborates in bank failure

· Statement Of The Exploration Thesis

thesis one

H0 it isn’t true that adjudicators have banded to the torture and failure of their customer banks

H1 it’s true that adjudicators have banded to the torture and failure of their customer banks

thesis two

H0it isn’t true that adjudicators have contributed the failure of their customer banks

H1 it’s true that adjudicators have contributed the failure of their customer banks

thesis THREE

H0 The relationship between adjudicator and bank operation enhances

bank failure.

H1 The relationship between doesn’t enhance bank failure.

Scope Of The Study

The study examines the being legal vittles in Nigeria on auditing particularly.( CAMA 1990, NDIC Decree of 1998 and BOF1A 1991 as amended to date). The study questionnaire is administered on possessors and depositors within Benin megalopolis to ascertain their opinion on the allegation against the adjudicators

Secondary data on bank torture from the NDIC publications are used in the study

Applicability And Significance Of The Study

The significance of this study are multitudinous. The result of the study could be useful to the following due to the coexisting reasons;

The result of the study will help professional like ICAN, BOFIA and CBN in drawing up more strict codeof ethics and robust professional conditions for members.

The professional accountants will find the outgrowth of the study helpful in that he’ll come completely apprehensive of the consequences of his conduct or quiescence on his integrity more so as me ac- a is now a globalvillage.However, it’ll help to ameliorate their administrative sweats and place less reliance on adjudicators report, If the assertion is set up true.

These set of stakeholders will be enabled to estimate the being legal vittles and make necessary correction or enactment of farther law if necessary

Limitation Of The Study

The limitations of this study reveal certain problems that wasencountered during the information gathering process to problem of the data itself. They include

1. inadequate and dread related accoutrements to make the work more robust

2. Time constraints there was inversely the problem of time constraints which inhibits the period of study or disquisition ought to have been done.

iii. Un united and intimidating station of repliers during the course of interview militated against the speed of time

iv Absence of uniformity in fiscal time consummations of fiscal institutions is another constraints