People tend to erroneously think that auditing is a sub-division of accounting probably because that is how it was introduced to them and every auditor as we know is also an accountant. But, every accountant is not an auditor. Auditing has its roots elsewhere. The relationship of auditing and accounting is close but they are not the same.
Accounting is concerned with the collection, classification, summarization and communication of financial information. It involves the measurement and communication of business events and conditions as they affect the particular enterprise. The task of accounting is to provide a detailed financial information that will be manageable and understandable about an enterprise. Auditing does more of these things.
Auditing is the independent examination and expression of opinion on the financial statements of an enterprise by an appointed or employed auditor in pursuance of that appointment and in compliance with the relevant statutory obligation, hence the role of internal auditors in stock taking. It involves critical and thorough investigation of the financial books prepared by the accountants as to whether those financial statement show a discipline department on logic and accounting is part of its utilities.
An auditor must exercise reasonable care and skill in carrying out his audit work of stock taking.
This was fully stated in the case of RE KINGSTON COTTON MILL (1896). This case considered the degree of care and skill required of an auditor. It stipulated than an auditor is a watch dog and not a blood bound. That, it is the duty of an auditor appointed to carry out the work of stock taking to ensure that skill, care and caution which a reasonable, competent, careful and cautious auditor will use has been applied in stock taking. The auditor has to ensure in stock taking or physical verification of stock either by full count or measurement as incase of bulky stock taking that the stock taking with the bin card record.
Stocktaking could be done in three ways namely:
a. Counting of stock at the end of the year, before the end of the year or after the end of the year
OTHER SIMILAR ACCOUNTING PROJECTS AND MATERIALS
AN APPRAISAL OF THE IMPLICATION OF ELECTRONIC BANKING IN NIGERIA BANKS (A CASE STUDY OF ACCESS BANK)
CHAPTER TWO REVIEW OF RELATED LITERATURE Electronic banking in Nigeria has overtime been viewed by many especially economists as having a lot of implications on the economy of Nigeria and especially...Continue reading »
A CRITICAL ANALYSIS OF THE USE OF FINANCIAL STATEMENTS IN ASSESSING THE PERFORMANCE OF AN ORGANIZATION (A CASE STUDY OF FIRST BANK NIGERIA)
ABSTRACT The study was carried out to analyse how an organization performs making use of the financial statements with First Bank of Nigeria Plc serving as the case study. the study disclosed that th...Continue reading »
AN EVALUATION OF THE PERFORMANCE OF NIGERIAN STOCK EXCHANGE IN THE ECONOMIC DEVELOPMENT OF NIGERIA ( A CASE STUDY OF NIGERIAN STOCK EXCHANGE)
HISTORICAL BACKGROUND OF THE NIGERIA STOCK EXCHANGE IN THE ECONOMIC DEVELOPMENT OF NIGERIAN. The nigeria stock excahnge denoted by NSE is a government establishment where stocks are traded on a daill...Continue reading »
APPLICATION OF BUDGETS AND BUDGETARY CONTROL MEASURES IN A NON-PROFIT ORGANIZATION: A CASE STUDY OF APOSTOLIC CHURCH, DELTA
2.1 CONCEPTUAL FRAMEWORK A budget is can be defined by accountants as “a planned outcome to be generated and for the expenditure to ensure during that period and the capital to be employed to a...Continue reading »
ASSESSING BOOK-KEEPING PRACTICES OF SMALL AND MEDIUM SCALE ENTERPRISES IN CALABAR LOCAL GOVERNMENT AREA
ABSTRACT The economy of Nigeria cannot function properly or thrive without the micro, small and medium scale enterprises (SMEs). These small scale enterprises cannot function properly if they are not ...Continue reading »
ASSESSMENT OF ADEQUATE RISK RECOGNITION AND MANAGEMENT IN NIGERIAN INSURANCE COMPANIES (A CASE STUDY OF UNION ASSURANCE COMPANY, UYO)
THE CONCEPT OF RISK Risk has been the subject of study by different scholars over the years with several meaning and definitions. But the most accepted definitions are that of J.E Banister and P.A Baw...Continue reading »
What are looking for today?
THE EFFECT OF TREASURY SINGLE ACCOUNT ON THE ECONOMY OF NIGERIA
35,307 people found this useful
THE IMPACT OF HUMAN RESOURCE PLANNING ON ORGANIZATIONAL PERFORMANCE
27,835 people found this useful
THE EFFECT OF SOCIAL MEDIA ON STUDENTS PERFORMANCE IN LEARNING LISTENING COMPREHENSION
26,746 people found this useful
TAX ADMINISTRATION IN NIGERIA: CHALLENGES AND PROSPECTS, A CASE STUDY OF LAGOS STATE BOARD OF INTERN...
26,088 people found this useful
FACTORS AFFECTING LANGUAGE CHOICE IN A MULTILINGUAL SOCIETY
21,158 people found this useful
PARTY SYSTEM AND NIGERIA POLITICAL DEVELOPMENT
20,565 people found this useful