In an attempt to analysis the importance attached to auditing as a tool for certifying the financial statement of business enterprise, the researcher had to be very briefly re-cap the origin of auditing and above all those factors that in the first instance necessitated it. Auditing, it was noted became very prominent in the business cycle the world over precisely in the 17th century following the inception of company form of business. The birth of this form of business arrangement allowed for the severance of this severances the need for accountability arose, and auditing has to be employed to give credibility to such stewardship reports.
Furthermore, the concept of auditing was defined and subsequently classified under two board groups namely according to the nature of work. Also, audit objectives were identified and analysed into primary and secondary objectives respectively. More so, light was shed on elements and content of every audit report, type of audit reports and opinion as well as the meaning significance and those factors.
CHAPTER ONE INTRODUCTION
1:1 BACKGROUND OF STUDY
The concept of auditing data back to antgenty, the earliest traces of its existence was found in Italy and Egypt amongst great landowners of the middle ages.
However, according to afounka (1993), statutory audit which incidentally forms the main thrust of the research “arose sequel to the inception of company form of business in the 17th century for trading and other purpose”.
This development made it possible for investor to commit their resources in a business without necessarily getting involved in the administration and management of such business. With the passage of time, this practice was further modified such that there was a total split between the ownership and management thus, while share holders retained ownership, the board of director took change of management . under this arrangement it is required that the management should report back to predetermined intervals to the owners of the business they hold in trust. But there are chances that such stewardship report might contain errors, misleading by deliberately or failure to disclose relevant. Information, it then follows that these possibilities will naturally give management periodic report insufficient credibility.
Therefore, it is such probability that under scores the essence of auditing and exercise carried out in accordance with the law to give
’´a stamp approval on the stewardship report” the need for auditing is heavily on the fact that by giving justification to he accounts of stewardship, users off accounting information namely:. Shareholder, investors, employee, government agencies such as accountants, economists e.t.c. can conveniently rely on such reports for sound economic decision making. It is this understanding that necessitated the making of auditing very imperative to all corporate bodies on annual basis by such government legislations as company and allied matter degree 1990. to ensure that auditor discharge this responsibility efficiently and satisfactorily, they are given unimagination powers and rights.
1:2 HISTORICAL BACKGROUND OF NIGER GAS LIMITED
niger gas ltd. Commenced operation in 1962 following it official commissioning by government of the then fastern Nigeria.
However due to change in the political structure of Nigeria occasioned via states creation, Enugu state government at present holds controlling shareholding interest with others S.O ALINTA, E.M MICHILLETLE, AND CENTRAL INVESTMENT COMPANY LIMITED (C.I.C) ENUGU CONSTITUTING THE MINORITY SHAREHOLDERS.
The company was established to manufacture and at the same time market industrial and medical oxygen. Thus staff strength of the company, presently is put at one hundred and eight (180) employees. Twelve (12) of them belonged to senior management staff with the rest forming the junior and medium level manpower.
1:3 OBJECTIVE OF THE STUDY
the objective of this research are not for fetched especially when the provisions of section359 (2) of the companies and allied matter
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