AN ASSESSMENT OF THE IMPACT OF ASSET AND LIABILITY VERIFICATION IN A COMPANY (A CASE STUDY OF GLOBAL SOAP AND DETERGENT INDUSTRY NIGERIA LTD)
TABLE OF CONTENTS
Table of contents
1.2 Statement of the problem
1.3 Objective of the study
1.4 Scope of the study
1.5 Limitation of the study
1.6 Plan of study.
1.7 Definition of terms
2.0 Review of related literatures
2.2 Verification procedures
2.3 Principles of verification of fixed asset and liabilities
2.4 Types of evidence available for verification
2.5 Verification procedures of fixed asset
3.0 Research methodology
3.2 Population of the study
3.3 Sample and sampling desicin
3.4 Source of data
3.5 Method of data collection.
3.6 Limitation of the study
4.2 General discussion
4.3 Verification of fixed assets
4.4 Verification of motor vehicle cost
4.6 Verification of building cost
4.7 Verification of bank loan
5.0 Summary, coclussion and recommendation
Traditionally accounting of asset and liability verification is different from application of economic theory. In the past fixed asset and liability were of ten verified in term of their market value. But recently, historical method has been in use by referring to invoices and primary date available. However, this method suffers for major limitation of liability to consider price change created inflation which at present had been affecting our economy greatly.
Despite the supremacy of market value which in dictates the current replacement
Cost, htsforical cost method of cost ascertainment would be used . this simple
Because inability to obtain market value and due to the fact that market value has been changing at an alarming and irregular manner, moreover, such method may not be useful for purpose of preparing annual financial statement, but useful for presentation .
Appropriate verification enable correct financial position to be disclose and also help in knowing where a company presently stands such information do reveal general strength his and weakness of a company.
However over the past years, most company were not verifying their asset and liabilities, the deficiency had lead too problems
Inability of discover the effect of manipulation of the asset and viability by staff and management personnel inability to show actual financial position and many other understanding the value of asset were an assets purchase in a particular tear maybe recorded in the book of the company
If the asset and liability are not accurately verified in accordance with accounting principles, and discourse is made it may lead to wrong figures being given to the
Inland, revenue Revenues board, if discovered, it may lead to count case with all the problem lightened above, it could be seen that verification is an important aspect of any business that intent to successfully operation in the modern and culture business environment.
A flow chart of the system of authorization custody and record leaping may be constructed in order to explain control over leaping may be constructed in order to explain control over our asset and liabilities transaction at each point in flow chart where an explanation of some action given, documentary evidence must be available.
Verification of asset and liabilities is also relevant to the economy in that, it reduces the level of fraud to be performed in the company
1.2 STATEMENT OF THE PROBLEM
Asset and liabilities verification is a means by which asset and liability of a company are determined by of relevant proof.
Die to unrealistic of the market value method in verifying asset and a liability, historical method is now adopted. Some problems are often faced in the absence of verifying asset and liability, such as false declarations of ownership and existence of fixed asset and declaration of liabilities incurred
The above mentioned problem are been reduce to the ninimum with the impact of assets and liabilities verification.
1.3 OBJECTIVE OF THE STUDY
The purpose of the study is to provide useful and material as to correct people with erroneous believe and to educate such people on the importance of fixed asset and iiability and how it aid management goal and objective its also intended to correct the wrong speculation of show mimded individual or as a resuit of their ignorance that asset of publk.
Organization are not always cared of internal audit or the role. Internal audit plays in the formulation of managerial
1.4 SCOPE OF THE STUDY
This stud will focus it attention on the assessment of the impact of asset and liabilities verification of global soap and detergent industries (Nig) limited ilorin and it with cover area relatives to cost, authority valuation, existence beneficial, ownership and presentation of asset and liability. The study will be try to ascertain the impact of verification methods if any adopted by the company in the past.
1.5 SCOPE OF THE STUDY
This study will focus it attention on the assessment of the impact of asset and liabilities verification of global soap and detergent industries (Nig) limited ilorin and it will cover area relatives to cost, authority valuation, existence, beneficial, ownership and presentation of asset and liability. The study Will be try to ascertain the impact of verification method, If any adopted by the company in the past.
1.5 LIMITATION OF THE STUDY
Certain limitation of the study needs to be recognized from on set.
The research is limited to a private company in ilorin the quaintly of this research depends fully in the nature and quality of data obtains from the company. Their fore, secrecy in realizing requires data will badly affect the output to be obtained. Other limitations include shortage of Find and timing.
1.6 PLAN OF STUPY.
This project will divide into five chapter one, discuss the introduction, statement of problem, objective of study scope, limitation and plan of the study as well as definition of some term.
Review of related literature will examine in chapter two. Chapter three discusses research methodology and given historical background of the study a case study of global soap and Defer ground industrial limited ilorin
Chapter four will discuss presentation and analysis of data while chapter five will be on summary of findings, conclusion and recommendation
1.7 DEFINITION OF TERMS
ASSTS : Asset may define as a specific right which can be acquire as a current result past transaction.
Asset classified into this one accounting period. eg freehold land and buildings plant and machinery. Furniture and fittings motor vehicles
2. Current asset: These are asset produce or acquire for resale. These are the category of asset are either inform of cash or rate meant to be converted into cash e.g cash at hand stock in hand at the end of asset are either inform of cash or rate meant to be convert into cash e.g cash at hand, at the end of the period, sundry debtor repayment etc asset can be tangible or intangible. Tangible asset are the asset that have material existence and can be seen or touch and they are real in nature, intangible asset have on material existence eg. Good will,copyright patient, preliminary expanses.
Asset can be also faction. These is a fiction asset is andtangible asset that have no values. Goodwill and patient through intangible. They are not valueless; they have values that can be exchanged for money.
LIABILITIS; THESE are the obligation that a business has to meet depending on the tunes span of such obligation. Liabilities are divided into two ;
1. Current Liabilities; these are the obligation that must be met within a short period of time which should not exceed one year. They are bank overdraft short term loan, trade creditor
2. Log-term LIABILIKES; these liabilities have longer life time liabilities more than one year are rgarded as long term liabilities e.g long ter loan on mortgage, bond etc..