ABSTRACT This study is based on the IMPACT OF AUDITING IN A GOVERNMENT PARASTATALS using ENUGU STATE AGRICULTURAL DEVELOPMENT PROGRAMME; located at Okpara Avenue as a study guide. The entire work was divided into five(5) characters and the data for the study was collected using both primary and secondary sources, questionnaires, textbooks, literally materials and journals respectively. The population of the study is 150 – whole the sample size was derived by the use of YARO YAMANI 1964 formular and it gave 109. The data collected were presented in tables using simple percentages and averages; then the hypothesis of the study was tested using chi-square formular. The findings of the study was that auditing has great impact on the activities of government parastatals; through checkmating irregularities and that whether the management should rely on the report generated by the auditor; finally what is management perception on the role of the auditor in the prevention and detection of fraud in a government parastatals. In the end, the researcher made some useful recommendation to the parastatals; views that will encourage the full utilization of auditing and auditors as tools in their activities and actualization of accountability in the parastatal.
Table Of Contents Title Page Approval Page Dedication Acknowledgement Abstract Table Of Contents
Chapter One: 1.0 Introduction 1.1 Background Of The Study 1.2 Statement Of Problem 1.3 Purpose Of The Study 1.4 Significance Of The Study 1.5 Research Questions 1.6 Statement Of Hypothesis 1.7 Scope Of The Study 1.8 Definition Of Terms 1.9 Historical Background Of Case Study References
Chapter Two: 2.0 Literature Review 2.1 Historical Background Of Auditing 2.2 The Prevention Of Fraud Act 2.3 The First Auditor, The First Act And Class 2.4 Qualities Of An Auditor 2.5 Auditing Procedures 2.6 Uses Of Audit Reporting To Enadp 2.7 Importance Of Auditing To Enadp 2.8 Auditing In A Computer Environment 2.9 Objective Of An Audit Department In A Government Parastatals 2.10 Management Of An Audit Department References
Chapter Three: 3.0 Research Design And Methodology 3.0 Introduction 3.1 Research Design 3.2 Source Of Data Collection 3.2.1 Primary Data 3.2.2 Secondary Source Of Data 3.3 Population Of Study 3.4 Sample Size 3.5 Sample Distribution 3.6 Instrument Of Data Collection 3.7 Method Of Data Presentation 3.7.1 Method Of Data Analysis 3.8 Validity Test And Reliability Of Instrument 3.9 References
Chapter Four: 4.0 Data Presentation And Analysis 4.1 Introduction 4.2 Data Presentation 4.3 Hypothesis Testing 4.4 Brief Conclusion On Chapter Four Reference
Chapter Five: 5.0 Summary Of Findings, Recommendation And Conclusion 5.1 Summary Of Findings 5.2 Conclusion 5.3 Recommendation Reference Bibliography Appendix I Appendix Ii
1.1 BACKGROUND OF THE STUDY The term auditing came into use when accountants have to add to their existing function. It is not new though the interest shown in it is of relatively recent origin. Auditing particular task is to provide information to managers, shareholders and investors on the outcome of turnover rate in an organization. Auditing is a broad based subject drawing upon relevant Laws and Cases, financial account, taxation, costing and management accounting. It could be reasonably assumed that if there is a sound auditing department in an organization or parastatals is bound to financially perform well, if such information gotten is effectively and efficiently utilized. The extent of which the above assumption or they is true using the Nigerian parastatals as the subject of the study. It is my ultimate desire as a researcher that at the end of this thesis I should be able to show the importance of auditing to government parastatals. Hence auditing is one key to the success of any parastatal set-up. WHAT IS AUDITING: According to Okorie Onovo’s book (2001) he views auditing as the expression of an opinion on the financial statement of an organization or parastatal within a recording principles. While in NWEKE and UNEGBU (2001), views auditing to be a form of stewardship where the messenger is expected to account for what was left under him by the shareholders so as to know, if it actually increased, or reduced and if they were the way they gave it to them, just as the case in, in the Holy Book of Matthew Chapter 25:14-30. Many Directors and Managers are better and stronger when they have good idea of the actual work of auditing in what have been under their care. Their performance and reward are determined by the correctness of the shareholders during the annual general meeting of the organization or parastatals. It is however assumed in this thesis; that it is an efficient and effective auditing system that is the only high cause of financial performance in parastatals.
1.2 STATEMENT OF PROBLEM: So many managers have failed to recognize the efforts of auditing in the financial performance and as a result; it has led them to poor planning, control and decision making. IMPLICATION: - It retards the growth of the parastatals - It leads to loss in shareholders fund - It will welcome the idea of take overbid - The reputation of the company will be at stake - It will hinder corporation objectives of the company - The loss of public confidence in the company and shifting of interest to other company. It is a well known fact that officers of the parastatals i.e. (ENADEP) are entrusted with the management of both material and human resources of their establishment and in most cases, these officers are not brought under thorough control or question; the ultimate consequence of this is that much of the resources are indiscriminately mismanaged. Equally, some accountant and key personnel in most parastatals and companies do not resist the temptation of colliding with other workers to embezzle their organizations funds to the detriment of the masses and owners of business or even the shareholders. Also some parastatals do not seem to have an audit department or engage the service of the external auditor or where such a unit exist, they allow it to exist only in name as a mere compliance to the statutory requirement. An audit department of such standard will not make or have any impact as regards to internal control. This state of affairs from investigation is usually deliberate attempt by management to execute its exploitation, plans without any hindrance. Another aspect of this, is lack of adequate regulatory standards in Nigeria regarding the duties, rights, responsibility and qualification of auditors. However, am more interested in the impact which a paper auditing system will achieve under these conditions in government parastatals and other organizations. Thus the proper care is taken towards auditing, the purpose of these parastatals should be achieved, and the fear of the auditor will be for every section, department and staff of the management.
1.3 PURPOSE OF THE STUDY: The main purpose of this study will among others include: - To determine the function which an auditing department can perform in a government parastatals or other organizations. - To ascertain how far these functions have contributed in the overall performance of the parastatals. - To find out whether an auditing system exist within those parastatals or organizations. - To find out the qualifications of those who control the auditing units where it exists. - To provide a basic understanding of auditing and its procedures.
1.4 SIGNIFICANCE OF THE STUDY: It is the view of the researcher that this study will be relevant to the government parastatals, society at large and academic encouragement. Also, it will help highlight the impact of auditing in an organization or establishment; and this can be seen in the following ways: negatively and positively. - Auditing department could be seen as the “watch dog” to the management of an organization on the ground that it will contribute to the successful and timely implementation of the management policies as well as safeguarding assets and ensuring financial accountability of the employee in an organization. - It works as grease to the effectiveness of the internal control system thereby enhancing efficiency and adherence to the laid down rules. - This study will also make it clear to all, that auditing has control and impact in the effectiveness of internal control and achievement of financial accountability of all the staff of an organization. Moreso, the activities of auditing department encompasses all segments of the organization, hence a collected act between the auditors and management will have a devastating effect on the generality of the programme and the entire organization in general - Frantically, the impact of auditing is not those who benefit from the projects executed by the establishment.
1.5 RESEARCH QUESTIONS: Based on the purpose of the study, the following questions are raised to provide a guide and solution to the research problems:
i. What is the impact of auditing in government parastatal. ii. Do the management rely heavily on the reports generated by the auditor. iii. What is the management perception on the role of the auditor in the prevention and detecting of fraud and error in the parastatal.
1.6 STATEMENT OF HYPOTHESIS: In carrying out this research work these conceptual statements are made to serve as a guide on which the work will be anchored. i. Ho: Auditing has no impact in government parastatal. H1: Auditing has an impact in government parastatal. ii. Ho: The management do not rely on the report generated by the auditor. H1: The management do rely on the report generated by the auditor. iii. Ho: The management perception on the role of an auditor has not helped in the prevention and detection of fraud and error. H1: The management perception on the role of an auditor has helped in the prevention and detection of fraud and error.
1.7 SCOPE AND LIMITATION OF STUDY: In view of the financial consequences of this study and time constraint, this study was been restricted to the case study area here in Enugu State metropolis; various published and unpublished literatures, test as well as other primary sources of information should be used in gathering wanted data.
1.8 DEFINITION OF TERMS: The researcher finds it worthy to define some important terms in the research work for a better understanding of their meaning and the context in which they are applied in the work. i. AUDITING: This is an improved calling by an organization seeking to investigate on the totality of stock remaining and financial statement prepared by the company’s accountant so as to know whether or not the organization is doing well. ii. SHAREHOLDER: These are the owners of the parastatals (major contributors) who contribute their quota towards the upkeep of an organization or starting-up the parastatals. iii. EXTERNAL AUDITOR: This is the invited auditor who is elected by the shareholders so as to express its view about the account carried out by the internal accountant or the company or parastatal. Telling them if the account shows a free and fair view. iv. INTERNAL AUDITOR: This is the company’s staff (Accountant) who is elected by the management board to investigate and present the raw view of the statement of account of the company or organization and he can be seen as an auditor within the management.
1.9 HISTORICAL BACKGROUND OF THE STUDY: Following the success of earlier agricultural development projects in some states of the federation, the federal government with the assistance of the International Bank for Reconstruction and Development (IBRD), decided the extent the strategy of Agricultural Development Project (ADP) for integral oral development to all part of the country, until the first generation of (ADP), the Multi-States Agricultural Development Projects (MSADP) are phased in wide coverage. But in contrast with the earlier statewide ADPs, the MSADPs are phased in their operations. The first set of such phased programmes covered ANAMBRA, Benue, Plateau, Imo, Bendel, Cross River, and Ogun States, collectively referred to as multi-states ADPI. Anambra State ADP (ANADEP); now (ENADP) has completed projects first year of life. The sponsors of this project and indeed, the general public are interested in knowing how far the project has fared. When arrangement were made for the actual take off the project and the project year one, 1986. The first portion of the report traced the need for conceiving special policies and programmes to boost food production in Nigeria. As part of government’s rural development strategy, the Anambra State Agricultural Development Project; which is now (ENADP) was inaugurated on 5th August, 1985. It’s aim is to assist the small scale farmer in the state, increase food production, thereby raising his income and standard of living. An integrated rural development approach was adopted to reach the farmer in his location. This approach included an improved and revitalized agricultural extension, a commercialized input supply system, sponsoring and encouragement of farm produce as well as rehabilitation, spot improvement and maintenance of rural feeder roads and the provision of rural water supply. The total funds received so far (December 1986) in the project is N4.13 million of this amount. The sum of 3.86 million was contributed by the federal government and state governments and the balance was generated within the projects. The total project life is 10 years, to be implemented in three phases. The first phase of four year duration from 1980-1989 is established to cost 38.7 million. The International Bank for Reconstruction and Development (IBRD), Federal Government and Anambra State Government now Enugu State are co-operators of the project. The world bank’s contribution is expected when the project and loan agreement becomes effective. The sources of internally generated revenue were mainly from the sale of fertilizer, etc. The total expenditure stood at N1.84 million. The agricultural sector has the fundamental role of providing food in adequate quantity and quality, supplying industrial raw materials and earning foreign exchange through exports. Contemporary agriculture in Nigeria is dominated by small holder farmers using traditional methods. The agricultural sector is known to account for 20% of gross domestic product (G.D.P.) and employs about 60% of the labour force. Agricultural performance in the last few decades has been undermined by disincentives created by factor price distortions ushered in by the oil boom. In consequences the agricultural sectors lost a good number of labour to other more lucrative sector of the economy with the resultant decline in agricultural exports. Nigeria became a net importer of both food items and raw materials. The cumulative effect of the situation is that the agricultural sectors of the economy has failed to perform its traditional functions effectively. To meet this crises both the federal and state governments enunciated several policies and embarked on a variety of agricultural projects meant to improve the capacity of the sector to meet its obligations effectively. Agricultural development programme is aimed at increasing agricultural production and improving rural condition of the people. The programme was conceived in 1972, while the first projects (funtua in Kaduna, Gusaro in Sokoto and Gombe in Bauchi) commence operation in 1975. The success of these first ADPs led the federal government to accord the ADP idea quick recognition as prime contributors to incremental food production. It thus became the policy of the government to extend ADP strategy to all state of the federation. Anambra State ADP now Enugu State ADP is on the new generation of state wide ADPs to be implemented in stages or phases. The strategy of the first phase include the precision of a programs of adaptive research. The research is to be conducted on the farmers’ farm based on the stepwise approach, preceded by diagnostic surveys of typical farming systems. Services to be provided to farmers would be through a re-organised agricultural extension system, better use of fertilizers and improved planting materials. PROJECT AREA: Location: Anambra State now Enugu State ADP has an area of approximately 6,727.1sq km with an estimated population of 52,733,560. The estimate number of farm families is 1,023,270 according to the Agricultural Projects Monitoring, Evaluation and Planning Unit (APMEPU) Kaduna. GEOGRAPHIC FEATURES: The State lies partially within the semi-tropical rain forest belt of southern Nigeria. It spreads in a north earth direction with its physical features and vegetation changing as gradually from the tropical forest belt to open wood land and then to Savannah land as it approaches its northern boundary with Benue State. FARMING SYSTEM: The prevailing farming system of the State is shifting cultivation with a bush fallow to restore soil fertility. Burning of slashed fallow growth is used for rapid recycling of soil nutrients.REFERENCES Okorie, O. (2001) Understanding Practical Auditing and Investigation. A. C. Onyia & D. C. Oleka (2000) Business Finance: A Fundamental Approach. M. M. Nweke & O. Unegu (2001) Introduction to Auditing for undergraduate. Chukwuemeka, E. E. O. (2002) Research Method and Thesis Writing: A Multi-Disciplinary Approach. Nwadighoha, C. E. (2003) Guideline for Accountancy Department Research and Project Writing.
Can't find what you are looking for? Hire An Eduproject Writer To Work On Your Topic or Call 0806-703-7559.
Proceed to Hire a Writer »