1.9 BACKGROUND OF THE STUDY
Auditing is derived from the Latin word Audire which mean to hear. In the ancient days, the owner of a business would hear a report made by the auditor about the book keeping and financial records of business. This was because at that time, financial records keeping was done in primitive ways using objects such as boards and woods.
And according to J.U.B Azubike (2005:5) Auditing can be defined as an independent examination of an expression of opinion on the financial statement of an enterprise by an appointed auditor in pursuance of that appointment and in compliance with any relevant statutory obligation.
Also Taylor (1982: 4) state that an audit is an investigation by an auditor into the evidence from which the final revenue accounts and balance sheet, or other statement, of an organization have been prepared in order to ascertain that they present a true and fair view of the summarized transaction for the financial state of the organization at the end date to enabling the auditor report thereon.
Finally, the major important need for auditing and investigation is to make sure that the business is growing with its little financial backup and error. An auditor also helps in ensuring that other financial material are useful. Auditor is the holy person authorize by law to conduct in any financial matter in any organization e.g small-scale business. Since small-scale business is the business that has a little fund and matierla is very crucial to employ the service of an auditor in their business.
The auditor is concerned mostly to ascertain the true sum of the money received and distrusted, checking the accuracy of individual entries in a cash record and verifying the balance of cash in hand at a particular time. By doing this; the frauds, and errors can be easily detect and prevent.
An audit team company of inspector and team of leader that would visit the organization to carry out the examination of the organization book and record. A specific audit would also need to be conducted or to what extent view of evidence management activities is sufficient to support an independent and objective audit opinion. An audit is an independent examination by a statutory person who the auditor to investigate an organization.
1.10 STATEMENT OF THE PROBLEM
The problem in a small-scale business are in an enviable position because they have the ability to be agile and fluid in their procedure and practies compared to larger businesses that have many layers of bureaucracy. However, small-scale business face many challenges due to their size and owners need to address these problems and come up with unique solutions for their small business to survive and prosper.
1. Difficult to attract customers: Small-scale business typically has a more difficult time attracting customers than companies. They have smaller marketing and advertising budgets. Also some potential costumers are reluctant to do business with small business, especially new business without a loyal following, since they believe that this business may not be around for a long time on they will not be able to provide the appropriate level of service.
2. Hand to Attract Employees: Small-scale business as face challenges when having employers. It is difficult for much small-scale business to compete with the salaries and benefits that large corporations provide. Many potential employers are also hesitant to work for a small-scale business because they feel that there is not the opportunity for advancement.
3. Difficult to Grow: in small-scale difficult to grow. They have limited budgets to use for expansion and marketing campaigns. They also have limited human resources to work on growing the company.
Small business owners must find creative ways to use their limited resources to grow the business while running the day-to-day operations of the company difficult to finance expansion-small-scale business face challenges obtaining money for expansions. Larger corporation have many more resources available to them to obtain capital to expand, and banks and leader are much more willing to lead money to a large company with tangible assets that can be used for collateral
1.3OBJECTIVE OF THE STUDY
The objective of the study is as follows
1, to ascertain why small-scale industries are unable to attract reasonable customers to them self.
2. To determine why small-scale industries experience difficulty in attracting well trained and qualified employees.
3. To ascertain the reasons for the redundant growth in terms of market expansion, profitability and size.
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