AUDITING AS AN INSTRUMENT FOR ENSURING ACCOUNTABILITY

ABSTRACT

This piece “Auditing as an instrument for ensuring accountability is carried out to explore the roles of auditing in Premier Breweries Ltd, Onitsha.  It intends to identify and evaluate the roles of auditing as an instrument to ensure accountability in Premier Breweries and the likes in general.

To do this, the researcher took necessary steps in ascertaining those factors that militate against the roles of auditing in this company.  It is based on these factors that recommendations and appropriate remedies to that effect were suggested.

Therefore, the researcher is of the belief that if the management and staff of this company can adhere to these recommendations herein, definitely it will have a remarkable impact on the reputation of the company.

CHAPTER ONE

1.1     BACKGROUND OF THE STUDY

          This piece auditing as an instrument for ensuring accountability is embarked upon to explore the roles of auditing in Premier Breweries Limited, Onitsha and other similar organizations is general.

          In recent years, the size and commercial activity in any companies in Nigeria have increased tremendously.  It is with a view of this corresponding effect on the operations there in that have resulted to the inadequate examination and verification of books of account and the asset of the company.

          These inadequacies which usually lead to misappropriation and embezzlement of funds researcher to investigating the problems.  Many of them are closed down today due to ineffective control measures that could lead curb such anomalies.

Nevertheless all these observation and irregularities and how the remedies would be properly applied, made this piece worthy of pursuit. It is necessary to pay into these investigations and explore ways of putting a stop to it. Auditing applies as a solution to avoiding these peculiar problems in companies like premier breweries limited Onitsha and likes would play a major role. Therefore, auditing is needed in this piece with particular reference to premier breweries Ltd. Onitsha to look into their books of account and the assets of the company.  This piece will assist to determine the extent and how auditing ensures proper accountability and possibly remove the problems of the firms or companies.

          Therefore to understand this thing very well it is necessary to take a look at the qualities of a good company auditor to stream line the minds of the readers.

          The qualities are thus:

He/she must be skilled and experienced in the science of accountancy with the ability to apply its principles to business concerns he/she is auditing.

Must have a thorough grasp of the general principles of law which govern the matters likely to be brought into intimate contact.

Must understand the practical

CHAPTER ONE

1.1     BACKGROUND OF THE STUDY

          This piece auditing as an instrument for ensuring accountability is embarked upon to explore the roles of auditing in Premier Breweries Limited, Onitsha and other similar organizations is general.

          In recent years, the size and commercial activity in any companies in Nigeria have increased tremendously.  It is with a view of this corresponding effect on the operations there in that have resulted to the inadequate examination and verification of books of account and the asset of the company.

          These inadequacies which usually lead to misappropriation and embezzlement of funds researcher to investigating the problems.  Many of them are closed down today due to ineffective control measures that could lead curb such anomalies.

Nevertheless all these observation and irregularities and how the remedies would be properly applied, made this piece worthy of pursuit. It is necessary to pay into these investigations and explore ways of putting a stop to it. Auditing applies as a solution to avoiding these peculiar problems in companies like premier breweries limited Onitsha and likes would play a major role. Therefore, auditing is needed in this piece with particular reference to premier breweries Ltd. Onitsha to look into their books of account and the assets of the company.  This piece will assist to determine the extent and how auditing ensures proper accountability and possibly remove the problems of the firms or companies.

          Therefore to understand this thing very well it is necessary to take a look at the qualities of a good company auditor to stream line the minds of the readers.

          The qualities are thus:

He/she must be skilled and experienced in the science of accountancy with the ability to apply its principles to business concerns he/she is auditing.

Must have a thorough grasp of the general principles of law which govern the matters likely to be brought into intimate contact.

Must understand the practical business, technicalities and methods of handling the account of any company which he/she undertakes.

Must inculcate all these qualities cautious, firmness, fairness, good temper, courage, integrity, honesty, discretion and reliability.

Must not be suspicious but be credulous.

Must have passed any recognized professional accountancy examination such as ICAN, ICAEW etc.

STATEMENT OF THE PROBLEM:

A lot of problems have been envisaged in many business organisation in Nigeria as would be seen in Premier Breweries Limited, Onitsha.

Chiefly among these problems are the political climate in the country which had not been stable for quite sometime now.

The problems of inco-operation, attitudes of the staff of Premier Breweries Limited, Onitsha.

The problem of misappropriation and embezzlement also hampers the progress of the company.  Low turnover recorded in the recent years also sets the hand of the clock back in this company.

The problem of inadequate and ineffective application of tools and machineries to enhance production.

Low qualities of the breweries the company is producing.

Low compliance to policies and programmes of the company.

The problem of competition in marketing these goods.

THE PUPROSE OF THE STUDY:

The main objective of this study is to alert all members of the management in the effective discharge of their responsibilities, by providing them with analysis, appraisals, recommendations and relevant commentary on the activities reviewed.

To ascertain the extent of compliance with the established policies, plans and procedures.

To review and appraise the soundness and application of operating control and making recommendations for improvement.

To obtain a proper understanding of the operation under review, that is, go beyond financial or accountancy duties.

LIMITATION AND SCOPE OF THE STUDY:

In most profit making organization, this type of problems are encountered in relation to data collecting by most officials in the organization.

They often think that the researcher is trying to expose their deficiencies or making an attempt to expose official documents of the company.

They also looked at the researcher as one who obtains information for their competitors or tax officials in order to tax their profit and therefore refuse to expose most of the relevant documents needed by the researcher.  In effect, this leads to shallow research work and limits the researcher to make use of only the available data.

This research work is aimed at examining the balance sheet and income statement of the whole business organizations with particular reference to Premier Breweries Limited, Onitsha.

SIGNIFICANCE OF THE STUDY:

The research study will be of great importance to every student in financial schools. The study will not only be of immense help to students of financial studies only but also to individuals and indeed to the entire business organizations.

DEFINITION OF TERMS:

In this piece, there are some words that might appear confusing to the readers, therefore these words brewery and auditing are literally explained thus:

BREWERY:

This is the preparation of liquor such as beer and malt.  It can also be defined as the making of drinks such as beer, tea by infusion, plot and contrive.

AUDITING:

This is the official examination of accounts to see that they are in order or can as well be defined as the examination by qualified persons of the books and accounts of a business or an undertaking to prevent fraud or inaccuracy on the part of the person keeping it.