CHAPTER ONE

INTRODUCTION

1.1     BACKGROUND OF THE STUDY

The impact of auditing in any organization is of vital importance that their growth and retardation depend on it. According to Nwabueze (200:2) an audit is an independent examination of and expression of opinion of the financial statement of an enterprise by an appointed auditor in pursuance of the appointments and in compliance with any relevant law and regulation. An audit is an independent examination by an auditor of the evidence from which the final revenue account and balance sheet of an enterprise have been prepared in order to ascertain that they present a true and fair view of the summarized transaction of the period under reviewed and the financial state of the organization at the year and this enabling the auditor to report thereon. It is an investigation into books of accounts and the documents and vouchers from which the books have been written up with the object of enabling the auditor to make a report on the balance sheet or other statement prepared from books, to the person or persons to whom he has been appointed to report.

Nwabueze (200:3) further stated that an audit is an independent examination, of an organizations financial records at a given time in order to ascertain the true position of the final accounts of the institution or organization. It is imperative to state that auditing is never with hunting as some establishments tend to book at it.

This study tends to look into audit conflicts its impact on auditors ability to resist management pressure. Lugli point on this study will be guard a long time management conflict in an enterprise, organization and institution as a result of unbalanced accounting records and other form of management issues boarding on the firm for example, unretired payments, incomplete records, over pricing of products usage of organizations property without proper or adequate permission, over vouching and deliberate fraud or embezzlement of funds.

At a place where auditing is appropriate and timely, such conflicts are reduced if not nipped out the bud. The relevance of auditing as it is daily guarding momentum is over emphasized. Any company organization or agency that requires growth result as a matter of fact allow periodic auditing into its final records. Such periodic exercise will enhance efficiency reliability and dependent records with a strong financial base.

According to Onovo (2001) if the auditor is to fulfill primary objective of an audit of a financial statement which is to express on opinion on such financial statement a financial statement must be prepared within a frame of a reorganized accounting principles.