TABLE OF CONTENTS

CHAPTERS

TITLE PAGE

CERTIFICATION PAGE

ACKNOWLEDGEMENT

ABSTRACT

TABLE OF CONTENT

CHAPTER ONE

1.0  INTRODUCTION

• BACKGROUND OF THE STUDY
• STATEMENT OF PROBLEM
• OBJECTIVE OF THE STUDY
• RESEARCH QUESTION
• STATEMENT OF HYPOTHESIS
• SCOPE OF THE STUDY
• STATEMENT OF PROBLEM
• SIGNIFICANCE OF THE STUDY
• DEFINITION OF TERMS

REFERENCES

CHAPTER TWO

2:0  REVIEW OF RELATED LITERATURE

2:1  MEANING AND IMPORTANT OF AUDITING

2:2  TYPE OF AUDIT

2:3  AUDIT OBJECTIVE

2:4  ELEMENT AND CONTENTS AUDIT REPORT

2:5  AUDIT REPORT AND / OR OPINION

2.6     TYPES OF AUDIT OPINION

2:7  LEGAL LIABILITY OF AUDITORS

2:8  TRUE  FAIR VIEW AN ABSTRACTION OR REALITY

CHAPTER THREE

• RESEARCH DESIGN AND MCTHODOGY

3.1     THE DESIGN OF THE STUDY

3.2     AREA OF STUDY

3.3     THE POPULATION OF STUDY

3.4     SAMPLE AND SAMPLING  TECHNIQUE

3.5     INSTRUMENT FOR DATA COLLECTION

3.6     VALIDATION OF INSTRUMENT

3.7     RELIABILITY OF INSTRUMENT

3.8     METHOD FOR DATA COLLECTION

3.9     METHOD FOR DATA ANALYSIS

REFERENCES

CHAPTER FOUR

• PRESENTATION ANALYSIS AND INTERPRETATION OF DATA

4.1 DATA PRESENTATION

CHAPTER FIVE

• SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS

5.1 DISCUSSION OF FINDINGS

• CONCLUSION OF THE STUDY
• RECOMMENDATION OF THE STUDY
• IMPLICATION OF THE FINDING
• SUGGESTIONS OF THE STUDY
• LIMITATIONS OF THE STUDY

APPENDIX

BIBLIOGRAPHY

ABSTRACT

In an attempt to analysis the importance attached to auditing as a tool for certifying the financial statement of business enterprise, the researcher had to be very briefly re-cap the origin of auditing and above all those factors that in the first instance necessitated it. Auditing, it was noted became very prominent in the business cycle the world over precisely in the 17^th century following the inception of company form of business. The birth of this form of business arrangement allowed for the severance of this severances the need for accountability arose, and auditing has to be employed to give credibility to such stewardship reports.

Furthermore, the concept of auditing was defined and subsequently classified under two board groups namely according to the nature of work. Also, audit objectives were identified and analysed into primary and secondary objectives respectively. More so, light was shed on elements and content of every audit report, type of audit reports and opinion as well as the meaning significance and those factors.

CHAPTER ONE

INTRODUCTION

1.1     BACKGROUND OF STUDY

The concept of auditing date back to antgenty, the earliest traces of its existence was found in Italy and Egypt amongst great landowners of the middle ages.

However, according to afounka (1993), statutory audit  which incidentally forms the main thrust of the research “arose sequel to the inception of company form of business in the 17^th century for trading and other purpose”.

This development made it possible for investor to commit their resources in a business without necessarily getting involved in the administration and management of such business. With the passage of time, this practice was further modified such that there was a total split between the ownership and management thus, while share holders retained ownership, the board of director took change of management . under this arrangement it is required that the management should report back to predetermined intervals to the owners of the business they hold in trust. But there are chances that such stewardship report might contain errors, misleading by deliberately or failure to disclose relevant. Information, it then follows that these possibilities will naturally give management periodic report  insufficient credibility.

Therefore, it is such probability that under scores the essence of auditing and exercise carried out in accordance with the law to give

’´a stamp approval on the stewardship report”  the need for auditing is heavily on the fact that by giving justification to he accounts of stewardship, users off accounting information namely:. Shareholder, investors, employee, government agencies such as accountants, economists e.t.c. can conveniently rely on such reports for sound economic decision making. It is this understanding that necessitated the making of auditing very imperative to all corporate bodies on annual basis by such government legislations as company and allied matter degree 1990. to ensure that auditor discharge this responsibility efficiently and satisfactorily, they are given unimagination powers and rights.

• HISTORICAL BACKGROUND OF ANAMMCO

Daimler Ben A.G of Germany, the parent company of ANAMMCO LTD started its export to Nigeria since 1952.  Mercedes – Benz commercial vehicles have been successfully marketed throughout Nigeria since then utilizing a distributive network, which has  particularly laid emphasis on services this brand of vehicles had been made market lender in the country through imports.

The then federal military government of Murtala/Obasanjo came up with the bold plan of negotiating a joint venture association with other manufacturers of commercial vehicles in Nigeria.  The series of negotiations evolved into signing of partnership agreement between the federal military government and the Daimler Benz AG of Germany was thus incorporated as a private limited liability company with an authorized share capital of N7000,000 (seven million Naira) on 17^th January, 1977 to carry out the terms of agreement.  The then military governor, vol. John Atom Kpera, then laid the foundation stone of the company, in the then Anambra state on 12^th may 1978.  The official commissioning of the plant was later performed on 8^th July, 1980 by the then president of the federal republic of Nigeria, Alhaji shehu shagari

Location

The company is located on a 31-hectre piece of land situated 8km east of Enugu, very close to the Enugu Air port in Enugu state of Nigeria.

Staff strength

Anammco has a total staff strength of about 580 current in its payroll with over 75% forming as their Junior staff.

Production range

The multi-million Naira plant was initially planed to produce trucks for the Nigeria market.  But today, the plant has diversified its production range to include the full range of commercial vehicles for the rapid industrialization of the country.  He only produces trucks as originally planned, but has gone a step further in fabrication, manufacturing and the production of buses and other utility vehicles.  Part of its product range today includes:

MB trucks of 5-38 metric tons gross weight

MB o131 (42 seater  city/Intercity buses)

MB 0400R (intercity bus-49 seats)

MB 0400RS (intercity bus – 54 seats)

MBO 911 (56 seater bus)

MBO 114 (61 seater bus)

MBO 1520 (52 seater bus)

Fire fighting vehicles

Ambulances

Mobile clinics

Refuse disposal vehicles

Vehicle refurbishment

The company has made an enviable mark on the nations industrial growth, adding over 30,000 (thirty thousands) vehicles to the nation’s transport sector, backed up effectively with a network of over 36 after sales service points and spare parts supply depots.  The company’s central spare parts Depot in Enugu stocks over 35,000 line items.

1.2     STATEMENT OF PROBLEM

Primarily, all categories of investors (individuals and government) make capital budgeting decisions chiefly for the profits they expect will accrue from such venture that is to say that, “investments are not taken for the simple reason of investing but in anticipation of a return”

However, the extent to which the above principle is maintained in our own context, especially since the re-regulation of the economy in 1986 appear not to be stares factory.

Consequently breaking even to most business enterprises have become an illusion not to talk of satisfying the clientele effect of most investors.

This prevailing though, abnormal situation necessitated calls to rally together and deliberate on how to salvage the dwindling fortune of this once very vibrant. Really “in a period of economic crisis, need for accountability become more pronounced. The question of effective audit is therefore, worth examining in the Nigeria context.

Though, in the business cycle, the appointment of auditors is assumed to fully quadrants and protest the interest of shareholders and other third parties, there are ever increasing doubt as to how well these presume watchdog of the investing public have fared.

Credence is given to these fears as management keeps complaining of low capacity utilization, poor turnover or high turnover but with ridiculously high cost of sales-all depicting no returns on investment and yet auditors keep repeating their jargon in our opinion, the financial statements as examined by us present a true and fair view of the state of affairs and the profit and the source and application of funds as the year needed 31^ST DECEMBER 19XX.

The aftermath of the forgiving is accusations that auditors are colliding with management to hold back form investors knowledge that they should have. This explains the basis for the intensified litigations in law courts against auditors.

It has also lead to gross loss of confidence in such body corporate, it management and above all auditors by all and Sunday, little won 1BB (1990) carried out saying.

“However upon all these enumerated scared requirements of your (auditors) duty our experience in this country has been that in both public and private sectors of our economy there have been fraudulent transactions, cover up of tax evasion and some inexplicable losses of physical assets”

“ultimately , it is such accusation as carrying out audit evidence and of being deliberately misleading”

that informed this research work.

1.3     OBJECTIVE  OF THE STUDY

The objective of this research are not for fetched especially when the provisions of section 359 (2) of the companies and allied matter decree 1990 which made it compulsory that auditors, is brought to bear.

Among other things, therefore, the main focus of this research will include the following:-

1 ascertaining whether there has indeed become the need to reorder the priority of  auditing as is being propounded by Owo (1992) in the following words:

 considering the emergent business environment in this country, it has become extremely unavoidable now to re-order the audit objective is that of establishing the truth and fairness of which the books and accounts for the company have reflected its transactions within a give period, the society’s objective is that the audit objective should be concerned with establishing whether a fraud have accrued or not.

(2) To determine if auditing has been serving its principal objective of re-enforcing public confidence in the stewardship reports of management.

• To ascertain if the management for whatever reason have been convincing with auditors to defraud the establishment at the expense of the investing public.

1.4     RESEARCH QUESTION

1. Is there any need for auditing in the authentication of financial statement of business organization?
2. What role has Auditing in the authentication of financial statement of business organization?
3. Do you think that the process of auditing has been useful to your organization?
4. Are there any need to re-order the priority of auditing in an organization?

1.5     STATEMENT OF HYPOTHESIS

In the course of carrying out this research work, the following research hypotheses are being considered.

Ho:    Auditing does not help in the authentication the financial statement of the business organization.

Hi:     Auditing helps in the authentication the financial statement of the business organization.

Ho:    Process auditing is not useful to ANAMCO ltd Emene.

Hi:     Process auditing is very useful to ANAMCO ltd Emene

1.6     SCOPE AND LIMITATION OF THE STUDY

Auditing as a practice applying to virtually all organization and institution where financial matter arise. It applies to profit making organization as well as to non-profit making organization like churches, club, and co-operative societies.

For the sake of adequate coverage, the researcher had wished that information were sourced from a cross section of these organized bodies. However, owing to constraints researcher could not cover Enugu-State talkless of Nigeria as a whole in pursuance of the objectives of this research. As a result, the work is limited not just to Enugu State but further to Niger gas ltd.

In the process of trying to realise the lotly aims of this research, some difficulties were experienced by the researchers such set backs include:-

• Time:- Naturally, a task as demanding as this one requires a lot of time, but in our context such academic exercise is hardly given enough time. Consequently, the researcher had to battle seriously with time in a bid to battle seriously with time in a bid to meet up.
• Finance:- It is a truism that enormous funds are needed to see through every research process, but in the face of galloping inflation as our economy is currently experiencing the situation is made more pathetic. Thus, it was not easy to control costs of transportation, typing and binding, as they charge on hourly basis.

Finally, and more importantly, is the reluctance of most respondents in giving honest feed backs for fear of being accused of releasing classified information to competitors and even tax authorities.

1.7     SIGNIFICANCE OF THE STUDY

The important of this research will rest squarely on the fact that through it solutions and controversies that surround the concept of auditing in it entirely put differently, the outcome of this endeavor will,

(1) either role in auditors, the more on the ground that they eroded rather dangerously public confidence on their reports.

• if enumerated will show that the accusation are in founded, and thus based on the blatant refusal of auditing and
• if indicated, will serves as warning signal to all classes of users of accounting information while at the same time calling for an in-house-mending by the relevant accountant regulatory bodies in Nigeria.

• DEFINITION OF TERMS

AUDITING:  This is an act of investigation by an auditor into the evidence from which the final revenue accounts and balance sheet or other statements of an organization have been prepared in order to ascertain that they present true and a fair view of the affairs and operation of the organization during a period under review.

EFFICIENCY:  According to Oxford Advanced Learner’s Dictionary.  This is the act of being able to work well without wasting time or resources. OR a way of achieving much things with less resources.

FINANCIAL STATEMENT: According to Nigeria Accounting standard Board (1984) is a report which consist of Balance sheet, profit and loss account or income statement, the notes of the account, source and application of funds statement, value added statement and historical financial summary.

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.

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.

REFERENCES

Okorie, O. (2001)  Understanding Practical Auditing and Investigation.

1. C. Onyia & D. C. Oleka (2000) Business Finance: A Fundamental

Approach.

1. 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.

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