THE ROLE OF STATUTORY AUDITOR IN GOVERNMENT OWNED INSTITUTIONS

THE ROLE OF STATUTORY AUDITOR IN GOVERNMENT OWNED INSTITUTIONS

chapter One

Foreword

1.1 Research background

The traditional role of financial accounts is said to have been to account for management to company owners divorced from the board of directors.

Owners always tend to be responsible for the content of the reports presented. They are concerned that reports may contain errors, conceal fraud, be intentionally misleading, or lack information.

To solve this problem of credibility of reports and accounts, an independent person should always be appointed to investigate reports for findings.

An audit can therefore be defined as an independent examination of an individual organization’s accounts, etc., for the purpose of confirming or rejecting the contents of a report. To this end, professional bodies such as the (ICAN) Companies and Allied Affairs Decree 1990 have established procedures for the appointment of auditors, 1990 (Section 357)(1). Auditors especially check whether the institution is properly managed if the financial situation gives a true and fair view.

The purpose of a management audit is therefore to ask and report on the extent to which the Institute has followed the opinions of its members and carried them out perfectly. Despite all the mandated roles of statutory auditors to crack down on agency fraud, it is very surprising that embezzlement at government-owned agencies is causing some agencies to go bankrupt. Government questioning questions of this structure and procedure that researchers seek to answer are:

1. Do statutory auditors of national inspection bodies perform their actual responsibilities as intended?

2. Efficient flow means ensuring fraud is stopped, especially in government agencies.

Under the Companies and Related Matters Act 1990 (CAMD), the basic duty of a Chartered Accountant is to report to Members on audited financial statements. The report should show:

1. Adequate accounting records were maintained and adequate and reasonable representations for audit purposes were obtained from branches not visited by the auditor.

2. Whether the financial statements are consistent with the accounting records and accounts.

The purpose of this research project is to have auditors investigate, elucidate and analyze cases of fraud. However, the auditor should recognize the possibilities of material misstatement or irregularities of fraud, which state of affairs shown by the financial statement.

The auditor should also see that errors, which could distort the trueness and fairness of the financial statement, are corrected. Therefore, a statutory auditor is said to a watchdog and not a blood hand.

Finally, the basic fraud on the management who may often obtain researcher assurance that the duties will be discharged by establishing an adequate system of internal control.

1.2 STATEMENT OF PROBLEM

The statement of the problem is as follows:

1. lack of funds

2. Insufficient audit evidence

3. Lack of trust

4. Poor cooperation.

1.3 Purpose of the survey

A researcher’s goals include:

1. Determine the impact of anti-fraud measures on government agencies and businesses.

2. Determine the level of support the auditor receives from the government.

3. Identify persistent obstructions to anti-fraud in government agencies.

4. Identify the benefits that companies can gain from controlling fraud in state-owned institutions.

1.4 Importance of research

This enlightens and encourages my fellow banking students to take their studies more seriously and influence our knowledge to the extent that accountants and their roles function.

It will also help you understand why the course is taught as an auditing course. It is important for society as a whole to demonstrate to the public how important accountants are to society, their integrity, and their ability to provide professional advice.