CHAPTER ONE
1.1 INTRODUCTION
An audit is the independent examination of, and expression of Opinion on the financial statements of enterprises by an auditor. In pursuance of this objective, he may disclose defalcations and irregularities, which are capable of impairing the truth and fairness of the financial statement. In recent years there has been considerable debate over the extent of the statutory auditors responsibility for the detection of fraud. This has been stimulated by the continued uncertainty over the extent of the auditors liability to third parties for negligent audit work. It is obvious that failure to detect a major fraud may lead to a loss for the client or some third party to whom a duty of care is owned. The important question is low far do the auditor’s responsibilities.
The auditing profession had always hold tight to the opinion that the primary responsibility for both prevention detection of fraud and other irregularities rest with management. The auditor’s duties do not require him specially to search for fraud unless required by stature or the specific term of his engagement. In accordance with normal practice, audit will be planned primary to enable us to express our professional opinion, and auditor merely obliged to plan his work and design his procedures so that he has a reasonable chance of detecting those, illegalness which might impair the truth and fairness of the financial statement.
A BRIEF HISTORY OF UNION BANK OF NIGERIA PLC.
Union Bank is one of the foremost commercial bank today with every strong capital ban. The bank which was formerly known as Dominion Colonial Overseas (DCO) started banking business in Nigeria in 1917. The bank today has so many branches scattered all over world. The bank also branched into other business such as Union Assurance Company Ltd. Union Homes Savings and Loan Ltd. Union on March into union stock broke etc.
1.2 PURPOSE OF THE PROBLEM
The aim of the study is to critically look or examined the banking business in Nigeria and identifying the role the external auditors play in fraud detection. It is well known that one of the problem facing banks in Nigeria is mismanagement of fund or inappropriate accounting for receipts and payments. Based on the problem identified above, the objectives of the research work include: – 1. To highlight the need for appropriate review and report upon the accounts and balance sheet for banks by external auditors. 2. To educate on the necessity of banks to keep in mind the essence to comply with the provision of the bank and other financial institute decree, 1971. 3. To teach the banks to ensure compliance with the company and Allied Matters Decree (CAMD) 1990 as amended. 4. To educate auditors to land credence to the accounts of the bank and to ensure compliance with SAS to and IAS 30.
1.3 SIGNIFICANCE OF THE STUDY
To appreciate the overall significance of this research work, one will have to put into consideration the roles of the external auditors of fraud detection. In considering this, the importance of this study is dressed by the head to ascertain that banks keep up to the requirements of the banks. 1. It creates room for possible assessment of the banks financial reports enabling the entire public to receive what they bargained for, that is a true and fair received report. 2. Also the auditor’s role is established in the view to assessing in general the financial background of the banks dining at putting to a stop the issue of distress. 3. The government regulations on banks are being acknowledged by the external auditors, however making sure that they are continuously put of effect by banks. 4. The project will provide for any student carrying out a similar topic or further research work on this subject a solid foundation for the realization for his other research purpose or work. 5. The study is also in partial fulfillment of the requirement for the award of degree in accountancy to the researcher.
