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Project Topic:

THE ROLE OF AUDITOR IN CONTROLLING FRAUDS IN GOVERNMENT OWNED ESTABLISHMENT

Project Information:

 Format: MS WORD ::   Chapters: 1 - 5 ::   Pages: 70 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   1,998 people found this useful

Project Department:

ACCOUNTING UNDERGRADUATE PROJECT TOPICS, RESEARCH WORKS AND MATERIALS

Project Body:

CHAPTER ONE

INTRODUCTION

1.1     BACKGROUND OF THE STUDY

 The traditional role of financial accounts was to give account of stewardship to the owners of business who were divorced from management of business.

There is always the tendency for the owners to doubt the content of the report presented to them. They fear that the report may contain errors, conceal fraud, deliberately misleading or lack in the informational content.

To solve this problem of credibility in reports and accounts, therefore, auditing can be defined as the independent examination of the books and accounts of individuals, organization etc. With a view to confirming or refusing the assertion in the report. It is for this purpose that the professional bodies such as (ICAN) companies and Allied matters decree 1990, stipulates the mode of appointment of auditors (sec 357) (i) of 1990 and the qualification of auditors, all to ensure a true and fair view of their report on financial matters.

 

However, every organization sets up accounting techniques and procedure that will suit its purpose with an eye to established accounting principle and guideline. A manufacturing industry introduces such accounting techniques that will take care of every stage of manufacturing firms, medical, clinics, legal parishioners etc run their outfit using such accounting techniques as would adequately take care of money received and expenses paid.

To ensure that the financial position portray true and fair views, that auditor will inquire whether the company is well runned. In particular whether:

 

i.                   The directors maybe ineloquent

ii.                 They may exercise bad judgment

iii.              The directors may be incompetent

iv.              Board of directors are competent necrotic men tend to appoint as colleagues people who are also competent and energetic. Whole boards of mediocre tend to prefer colleagues who are also mediocre

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