AUDITING EFFIECIENCY FOR IMPROVING COMPANIES PERFORMANCES
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1.1 BACKGROUND OF THE STUDY
1.2 STATEMENT OF PROBLEM
1.3 OBJECTIVES OF STUDY
1.4 SCOPE OF STUDY
1.5 LIMITATIONS OF STUDY
1.6 DEFINITION OF TERM
2.0 LITERATURE REVIEW
2.1 REVIEW OF RELATED LITERATURE
2.2 MEANING OF PUBLIC SECTOR AND SERVICE
2.3 AUDITING PROCEDURES
2.4 MEANING OF INTERNAL CONTROL
2.5 THE ROLE OF INTERNAL CONTROL DEPARTMENT
2.6 OBJECTIVES OF AUDITING
Company performance is very important if such a company
want to achieve its purpose of starting its business without positive impact of any organization, it means that the way of achieving the objectives when the business has commenced will be a difficult situation for that organization. It is obvious that the performances of companies sis not unto expectation. That is why the researcher wants to know the impact auditing create in improving companies performances.
Since companies have been encountering some problems like fraud, misappropriation of funds and properties, lack of effective management and others that made people to be asking whether auditing plays any significant role towards ensuring efficiency and judicious use of funds set aside for various purposes.
Some activities and programmes organized by people as re- assumed to be done on behalf of the people. They are deserved to be assured that eh resources which they put at the disposal of these programmes are effectively, efficiently and economically managed since it is known that not all are judicious in public affairs entrusted to them.
Therefore, for proper and efficient accountability, it is obvious that auditors will manifest their principles to be able to arrive at what is expected of them in order to be convinced that the financial position of the organization as presented show a clear and fair view of the organization.
Consequently, because of biased nature of the organization as a result of poor investigation of the organization position, past rulers have pledged to introduce a more responsible system of government with accountability but their subsequent conduct has shown that they have little or no understanding definition and application of efficiency in the improvement of companies performances.
Auditing which is regarded as one of the recently established professions turn out of the complexity of modern business world. It becomes relevant so as to discourage people from erring and to expose those that gave wrong account of how they managed the funds and properties under their custody. The account or report is usually done by means of financial statement. In order to verify the true and fair view of this report an independent person is needed to audit the account.
The question that is normally asked is in spite of all those provisions and safeguards why is it that one still experience the alarming rate of fraud and misappropriation of public funds and properties by those they are entrusted to safeguard. That is why a great emphasis has to be laid on proper auditing to improve companies performances in public sectors.
- BACKGROUND OF THE STUDY
The practice of auditing commenced on the day that an
individual assumed stewardship over another one’s property. Stewardship is a name given to the practice by which productive resources owned by one person or group are managed by another person or group of persons. In reporting on his stewardship, accuracy, efficiency and reliability of that information would have been subjected to some sort of critical review. Evidence has shown that many years ago, Egyptians, Greeks, Romans and others utilized their opportunities of using check and counter check on the accounting of public funds in order to maintain efficient and effective accounting of public funds committed to them.
Historically, the Auditor had the accounts read to him since the word audit originated from the Latin ‘audire’ meaning the hear.
The original skill required by the Auditor is that which would enable him to carry out an exhaustive examination of the documents and the books which is from the financial transactions of the business especially with the intention of ensuring that all are in order and that no fraud was committed by the employees.
The main objective is to ensure that he account reveal a true ad fair view of the business and its transactions so that all the activities in the organization will be moving smoothly without any obstacle.
Therefore, since the above mentioned countries were successful on the method they used, this economy has to borrow a leaf from them or even find a better way of accounting for public funds since this is the only way the performance of the organizations will enhance.
in this section, the researcher wants to know how auditing
efficiency helps to improve the performances of the companies. The effectiveness of an independent is not however limited to statement of credibility derived directly from audit itself. There is a side effect of the prospective audit on employees who might be tempted to defraud their employers and also on the side of management that might find it expedient to endeavour to deceive third party by preparing a misleading financial statement.
The problem is that the funds and properties of the organizations are entrusted to certain individuals in the organization and in most cases., those individuals are not brought under thorough surveillance. The result is that much funds and properties are diverted to personal.