RELEVANCE OF NIGERIA AUDITORS IN THE MANAGEMENT OF BUSINESS ORGANIZATION (ECONOMICS PROJECT TOPICS AND MATERIALS)
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Every business out fit requires management without which, success or failure of such
business may not be easily determined. To achieve growth and expansion pre-supposed a well defined accounting of or financial system that is capable of upholding the goals of the business. Thus, accounting is an information measurement system that identifies records and commercial relevant and reliable information about an organization business activity (Cliappette 2000) an aspect of such information measurement is auditing. Accounting; to American accounting Association. (1973) auditing is a systematic process of objectively obtaining and evaluating evidence regarding assertions about economic actions and events and communicating the result to interested users. To ensure probity, organizations employ auditors who vet from time to time the statement of accounts of organizations. Konorth (1999) affirmed that auditing is a form of attestation about the reliability of someone ascertain. In order however to evaluate fairness, the auditors must gather evidence either supporting or refuting the assertion. In gathering and evaluating audit evidence the auditor adheres to a set of standards established by the auditing standards board referred to as the General Accepted Auditing standard GAAS (Alamante, 1993).
According to the professional standard New York, 2003) auditing is a
systematic process; consisting of a series of sequential steps that includes; evaluating
internal accounting control and testing the substance of transaction and balances. The
accounting system according to the Board include the necessary internal controls
produces the data appearing in the financial statement, it expresses the auditors opinion as to the fairness of those who prepared the financial statement of organization as prepared by the accountants. The professional accountant has a responsibility to the company’s and any other users of the statement. Auditors are involved in the financial system of organizations because shareholders are not actively involved in the daily affairs of the business; they must rely on the auditors to ensure that management is fairly presenting the financial statements of the business (Eneje 2006) Eneje further stated that auditors’ report is an opinion not a statement of fact. In doing this however, the auditors need to evaluate the evidence gathered which must be sufficient and competent. Thus, the job of auditor according to AKPA (1973) is to determine whether the representations are in deed fair, that is, to ascertain the degree of correspondence between the ascertain and established criteria. According to Konreth (1999) the auditor communicates the result of his
or her audit work to interested users. The attestation or the audit report is included with the financial statements in the annual report to stockholders and describes the scope of the audit and the findings of the auditors Konerth further stated that the findings are expressed in the form of an opinion concerning the fairness with which the financial statements present the firms financial position, results of operations and cash flow of company.
