CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Due to the problem that arrives from the shareholding employees, investors and other body urgencies in the act of been doubting on report presented to them, an auditor will be of good help because it serves as an inappeasable a profitable business organization. However, the auditor is regarded as the eyes and ears records of the organization in order to encore that the financial statement are a reflection of the affairs of the organization as appeared in these records. Since this records are summary of generation for a specified period. The auditor also goes behind these records to the source document in other to confirm the accuracy, completeness and validity of the records transaction.
According to A.W. Honliness (1959) p.21, he stated that “there is a requirement that all registered limited liability companies must have their financial records audited annually by a firm of auditors so appointed.” He further stated that the law concept compel the auditor to express his opinion to the authoritative, the auditor must be seen to be independent. The duty of preparing the financial statement is placed on the directors, white that of reporting is on the auditor who is responsible to the shareholders all these are aimed towards achieving project in the business organization. Finally, Rogers Adams rightly defined auditing as “the independent examination of and expressing of opinion on the financial statement of an opinion on the auditor practice committee (APC) 1989. This opinion is expressed in the form a report. The person who carries out such examination is known as an auditor.
1.2 OBJECTIVE OF THE STUDY
(a) To ascertain the impact of audit on business. (b) To examine the performance of accounting system in business organization, if it to up to standard. (c) To examine if a good internal control is being practice in the business. (d) Identify the problems organization face as a result of the introduction of audit. (e) To examine the facts contained in the audit of business finance.
1.3 SIGNIFICANCE OF THE STUDY
(a) Business organization will through this research work, improve on their performance since the researcher will let the public know all that in required of the guidelines. (b) Fraud identification Another significance is to identify frauds misappropriation or embezzlement of business fund usually in the form of cash or of its other assets.
1.4 STATEMENT OF HYPOTHESIS
A hypothesis is a testable tentative and probable explanation of the relationship between two or more variable that creates a state of affairs or phenomena. For the purpose of this project, the following pertinent hypotheses have been formed. 1. H0: The Auditor is not an indispensable part of a profitable business organization H1 : The Auditor an indispensable part of a profitable business organization 2. Ho: Auditors opinion does not assist management in decision making. H1: Auditors opinion assist management in decision making 3. HO: Auditing does not help in minimizing fraud in an organization. H1: Auditing help to minimize fraud in an organization 4. Ho: Auditing is not a mirror of shareholders investment and the turn over achieved in an organization. H1: Auditing is a mirror of share holders investment and the turn over achieved in a company.
