CRITICAL ANALYSIS OF THE IMPORTANCE OF AUDITING IN THE AUTHENTICATION OF FINANCIAL STATEMENT OF BUSINESS ORGANISATION (A CASE STUDY OF NIGERCIAS LTD EMENE ENUGU) (STATISTICS PROJECT TOPICS AND MATERIALS)
1:1 BACKGROUND OF STUDY
The concept of auditing data back to ant genty, the earliest traces of its existence was found in Italy and Egypt amongst great landowners of the middle ages.
However, according to afounka (1993), statutory audit which incidentally forms the main thrust of the research “arose sequel to the inception of company form of business in the 17th century for trading and other purpose”.
This development made it possible for investor to commit their resources in a business without necessarily getting involved in the administration and management of such business. With the passage of time, this practice was further modified such that there was a total split between the ownership and management thus, while shareholders retained ownership, the board of director took change of management . under this arrangement it is required that the management should report back to predetermined intervals to the owners of the business they hold in trust. But there are chances that such stewardship report might contain errors, misleading by deliberately or failure to disclose relevant. Information, it then follows that these possibilities will naturally give management periodic report insufficient credibility.
Therefore, it is such probability that underscores the essence of auditing and exercise carried out in accordance with the law to give’ a stamp approval on the stewardship report” the need for auditing is heavily on the fact that by giving justification to he accounts of stewardship, users off accounting information namely:. Shareholder, investors, employee, government agencies such as accountants, economists e.t.c. can conveniently rely on such reports for sound economic decision making. It is this understanding that necessitated the making of auditing very imperative to all corporate bodies on annual basis by such government legislations as company and allied matters decree 1990. to ensure that auditor discharge this responsibility efficiently and satisfactorily, they are given unimagination powers and rights.
1:2 HISTORICAL BACKGROUND OF NIGER GAS LIMITED
niger gas ltd. Commenced operation in 1962 following it official commissioning by government of the then fastern Nigeria.
However due to change in the political structure of Nigeria occasioned via states creation, Enugu state government at present holds controlling shareholding interest with others S.O ALINTA, E.M MICHILLETLE, AND CENTRAL INVESTMENT COMPANY LIMITED (C.I.C) ENUGU CONSTITUTING THE MINORITY SHAREHOLDERS.
The company was established to manufacture and at the same time market industrial and medical oxygen. Thus staff strength of the company, presently is put at one hundred and eight (180) employees. Twelve (12) of them belonged to senior management staff with the rest forming the junior and medium level manpower.