THE RELEVANCE OF STATUTORY AUDIT IN GOVERNMENT ESTABLISHMENT (A CASE STUDY OF KWARA STATE INDEPENDENT ELECTORAL COMMISSION KWASIEC)
This project work were be written on the reference of statutory audit in government establishment. Since an organization is an integrated system of activities in achieving some aims or objectives, it is therefore necessary to involve some plans, processes for the effectiveness and efficiency of the organisation. Due to complexity nature of business in terms of size growth and development nowadays make personal supervision by owners because in effective. Hence most business are delegated into the hands of the management who must render report to the owners or providers of capital for the business.
In order to safeguard the interest of the providers of capital and other shareholders in the business organization, an independent examination of accounts is necessary and this brings about the work of external auditor to an organization specifically, it is obvious that poor management and sharp practical are attributed 85 any government establishment and to wipe off this, the work of external auditors is relevant to check and examine the financial records and form an opinion as to the truth and fairness of the book of account.
In an organization where auditing work functions very effective, most of the staff of such organization focus that the auditors interferes two much in their affairs and some who are devoted accept it as the only way to fornicate them and expose the treacherous.
However, the focus of this research will identify the relevance of the statutory audit in government establishment and provide a lasting solution to the problems and challenges faced by the statutory auditor in examing the book of account of any government establishment.
The data will be collected through primary and secondary datas. Primary data will be collected from the staff of the kwara state independent electoral commission (KWASIEC) responsible for administration of financial records through personal interview. The secondary data will be collected through reviewing of past project textbook, the on the relevance of statuary audit in government establishment.
The method to be used in analyzing the data will be descriptive method involves the use of table while the inferential statistics method involved the use of datas
The sample of 80 respondents are to be used and the method of sample will be random sampling.
This study will be carefully planed to look into the significance, important and relevance of statutory audit in business organisation especially or specifically the government establishment the research has been divided into five chapters for easy presentation of fact and figure gathered.
Chapter one contain introduction, statement of research problem, objective of the study, significance of the study, research question, organization and plan of the study and also definition of term use.
Chapter two contain, literature review, origin and development of auditing , main purpose of auditing, availability of a statutory audit, relationship between internal and statutory auditor right and duties statutory auditor.
Chapter three contain, research methodology, introduction research designed, sample design and sampling technicians, method of data collection, producer of data collection, problems encountered, historical background of independent National electoral commission kwara state.
Chapter four contain, presentation and analysis of data, function of statutory audit making of returns accountability keeping of accounting records, preparation of financial statement.
Chapter five contains, summary, conclusion, recommendation, limitation of the study and bibliography.
TABLE OF CONTENTS
Title page i
Table of contents x-xi
1.1 Background of the study 1-4
1.2 Statement of the problem 4-5
1.3 Objective of the study 5-6
1.4 Significance of the study 6-7
1.5 Research question 7-8
1.6 Organisation and plan of the study 8-9
1.7 Definition of terms 9-10
2.1 Origin and development of auditing 11-13
2.2 Main purpose of auditing
2.3 Qualities required of a statutory auditor 13-15
2.4 Relationship between internal auditor and statutory
3.1 Historical background of the case study 22-25
3.2 Research design 25-26
3.3 Sample design and sampling techniques 26-27
3.4 Method of data collection 27-28
3.5 Procedure of data collection 31-32
3.6 Method of data analysis 31
4.1 Introductions 33-34
4.2 Presentation and data analysis according to research question 34-43
4.3 Presentation and data analysis according to test of hypothesis 43
4.4 Generalizations 49
5.1 Summary 50
5.2 Conclusion 52
5.3 Recommendation 53
5.4 Limitation of the study 57
1.1 BACKGROUND OF THE STUDY
An organization is an integrated system or combinations of activities but on achieving some aims or objectives the achievement of these aims or objective involves same plan and process which must have a good bearing on the effectiveness and efficiency of the organization.
Complexity nature of business, in term of its organisation volumes and progress, nowadays make personal supervision by owners becomes ineffective, hence business are delegated into the hands of the management who must render report to the owner or providers of capital for the business.
Aims growth in size and complexity of business organization and the need to safeguard the interest of the providers of capital who on their own part want to be assured that the business is effectively and efficiently run, create the need for an independent examination of account and reports rendered by the management of business reports of which shall be presented to the providers of the capital in order to reveal unto the providers of the capital the true financial position of the business organization. This independent examination of account and records of management ascertain the accuracy and reability of the accounts and records by the business organisation. Hence it can be said that auditing emerged out of the organisation it them follows that if checks and balances are not made, things would than left to change and the end result become unfavourable.
In this present world of commerce, some will established organizations private or government have an aim the organization called internal and it department whose operation is also to examine the accounts and records by the organization but is controlled by the limitation of the freedom of the internal audit department pose by the management control necessitate the need for the establishment to call in third party or expert who are independent of the management of the organization to audit the operation of the organization and express their independent opinion which will enhance proper accountability as well aid the number of the establishment in a approving the performance of the organization.
Hence in order to safeguard the interest of the investors, the companies decree provides that an independent auditor must be appointed to check and examine the financial records and to form on opinion as to the truth and fairness of the book of accounts.
This form audit that the law or decree requires to be carried out in term of statutory audit by CAMA 1990.
In this research work a through study of importance and relevance of statutory audit in government establishment of any form to see how it can aid the achievement of their pre-determined goals or objective easily.
1.2 STATEMENT OF THE PROBLEM
In an organization where auditing work function very well, most of the such organization staff regards the auditor as (NUISANCE) they always feel that the auditor unnecessarily interferes too much in their affairs, some think of auditing as a checking function carried on a clerical operation, while other belief is to be an effective aids to the management and also to give their shareholder an assurance that the business is well manage by the management and the director of the organization.
However, the focus of this research will identity the relevance of the statutory audit in government establishment. In the case of the research answer will be provided to the following problems.
1. The main purpose of audit?
2. What are the qualification of statutory audit?
3. What are the relationship between the internal auditor and the statutory auditor?
4. What are the qualities required of statutory auditor?
5. What are the right and duties of a statutory auditor?
1.3 OBJECTIVES OF STUDY
The main purpose of this research work cannot be over-emphasized at its expected to aid to assist many groups, especially government established in the successful of their operations, the main objective of this write up are.
1. To highlight the major role played by the statutory audit in assisting management.
2. To examine how the interest of the owner of a business can be safeguard by the statutory audit.
3. To highlight in a more clearer picture to practicing statutory auditors their role and duties in any organization are establishment.
1.4 SIGNIFICANCE OF THE STUDY
It is hoped that the study would be found useful by organization who has already mentioned through that statutory audit is a more checking functional unit of the organisation, the report is also aim at dispelling those wrong impression and establish, desirability for the audit department in all organisation either government or private.
Furthermore, it is hoped that the study will help the organization understudy by highlighting areas of weakness in the control devices employed by them and making suggestion for improved performance, it will help in arresting the problem of frauds and misrepresentation brought about by in effective internal control system in the organization under the study as well as other organisation.
This project will be of lmmense to help the director to know the importance and the relevance of a statutory audit.
Student can make reference to it, there by having a clear understanding of the concept of statutory auditing its relevance or service and importance in any organisation.
1.5 RESEARCH QUESTIONS
Any research whatsoever, especially if this type, no doubt must have methods of data gathering. As a result therefore, personal interview with same employees of the establishment (INEC) is embarked on in gathering the relevant data and facts needed this system helped in taking care of the financial and time constraints likely to be encountered in circulating typewriting questionnaire.
Also, our knowledge in the public rector accounting and auditing and the consultation of relevant textbooks serve as an advantage in the data or facts gathering and analysis for the purpose of this research work.
1.6 ORGANISATION AND PLAN OF THE STUDY
This study is carefully planed to look into the significance important and relevant of statutory audit in business organization especially or specifically the government establishment, the research has been divided into five chapters for easy presentation of fact and figure gathering.
Chapter one contain, introduction, statement of research problems purpose of the study, significance of the study, research question, organization and plan of the study and also definition of term use.
Chapter two contain, literature review, origin and development of auditing, main purpose of auditing, qualities of statutory audit, relationship between internal and statutory auditor, and right and duties of statutory auditor.
Chapter three contain, research methodology introduction research designed, sample design and sampling techniques, method of data collection, producer of data collection, problem encountered, historical background of the case study.
Chapter four contain, presentation and analysis of data function of statutory audit, making of returns, accountability keeping of accounting records and preparation of financial statement.
Chapter five contain, summary, conclusion, recommendation, limitation of the study and Bibliography.
1.7 DEFINITION OF TERM
Statutory audit:- this con be described as an audits that is
required by the law.
CAMA:- Company and Allied matter Acts.
INEC:- Independent National Electoral Commission
Capital:- It is the money used for the running of business.
Volume:- Process that things entail.
Complexity:- System consisting of large number of closely related parts.
Hindrance:- difficulties on the ways.
Shareholders:- This are the people that contribute money for the purpose of running the business.
Efficiency:- doing things at the least cost.
Effective:- Producing the desired result.
Accuracy:- The qualities of being accurate.
Nuisance:- Thing that cause inconvenience..