THE IMPACT OF AUDIT REPORT ON THE USERS OF FINANCIAL STATEMENT. A CASE STUDY OF FIRST BANK OF NIGERIA PLC

THE IMPACT OF AUDIT REPORT ON THE USERS OF FINANCIAL STATEMENT. A CASE STUDY OF FIRST BANK OF NIGERIA PLC

 

CHAPTER ONE

1.1     BACKGROUND OF STUDY

As a result of the good performance of the African Banking Corporation in 1894, the bank of British West African (now known as first Bank of Nigeria Plc) opened its branch office in Lagos. The bank was registered in London in 1892 with an authorized share capital of 100,000 pounds. The Bank enjoyed monopoly over banking business in Nigeria until 1916 the bank (BBWA) was the sole agent for the custody and distribution of British silver currency in West African as issued by the West African currency Board which was established in 1912.

During the era of indigenization in Nigeria 1970 to 1977, the indigenization of Nigeria Banking and 1973 the federal government took 40% ownership in the three biggest foreign bans, which are union Bank Plc, UBA and First bank Plc. The second indigenization excuse which took place in 1976 federal government increases is shows to 60% and also took 60% share in other foreign banks to achieve 60% indigenous ownership to these banks.

The first Bank of Nigeria Plc which was then are among the three biggest foreign banks in Nigeria, which is able to withstand all the predicaments imposed on it by the federal government during the time of 1952 ordinance and 1973-1976 indigenization exercise and the name first bank of Nigeria was originated.

From the industrial revolution up to the turn of the 19th century, the intricacies and exigencies of human business interaction have given rise to the need for accountability. This process has assigned a formable dimension and is today profession and description of notable impact.

Accountability can be defined as presenting information in a clear form which would give the users a ready understanding of the organization financial position and performance and enable them to see at a glance how the performance is composed with that comparable organization.

Accountability is the process of identifying and analyzing, classifying, interpreting and communicating of financial information to permit or enable informal judgement of the users of the information.

Auditing therefore, is one of recent professions established as a result of complexity of modern business people have entered into contractual relationship with one another the desire to ensure and accuracy and reliability of the financial statement has always existed the divagation of public treasure and the collapse of business being to create doubt as to the effective nears of audit report and its contribution to economic development. Being a feedback information, the averting now is whether an audit report does actually, have some effects on the users of financial statement of the first bank of Nigeria Plc.

This project will try to find out.

1.2     STATEMENT OF PROBLEM

It is not surprising that in many cases of performance evaluated there is always a general expression of dissatisfaction after examination and investigation of an organizational record the auditor expresses opinion as to the credibility of the financial statement but my aim will be on the following:

  1. How reliable is an audit report to the users of the financial statement?
  2. Who does audit report satisfy the desire of its users?

3        Who effective is audit report on the growth of the economy?

4        Does audit report show a true and fair view of the organization?

5        Does audit report have any effect on the users of the financial statement?

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