+234 813 0686 500
+234 809 3423 853
info@grossarchive.com


ACCOUNTING RECORD KEEPING AND AUDITOR'S PERFORMANCE

(Accounting)

ACCOUNTING RECORD KEEPING AND AUDITOR’S PERFORMANCE

ABSTRACT

This research work focused on accounting record keeping and auditor’s performance .The effects of inadequate accounting record keeping can never be over emphasized. Accounting records has its end point in the financial statements hence, management should ensure that the financial statements they prepare portray the true position of an organization. This can only be achieved when adequate accounting records have been kept. Using questionnaires we gathered data from primary source and secondary from text books, journals, internet etc. Data obtained were gathered using tables and analyzed using chi-square. Hypotheses were also tested using chi-square. Our findings indicates that accounting records play important role in the performance of auditor’s function and auditors need accounting records to carry out their work effectively.

 

 

TABLE OF CONTENTS

Title page                                         

Table of content                                                   

Abstract                                                               

CHAPTER ONE

1.0   Introduction                                      

1.1   Background to the Study                           

1.2   Statement of Research Problem 

1.3   Research Question              

1.4   Research objective                                        

1.5   Significance of the Study                                 

1.6   Scope of the Study                                        

1.7   Research Hypothesis          

1.8   Limitation of the Study                               

1.9   Definition of terms                                         

         References                                                  

CHAPTER TWO

2.0    Introduction                             

2.1   Source Document                      

2.2     Bookkeeping                   

2.2.1    Single Entry                  

2.2.2    Double entry                 

2.3     Significance of Bookkeeping and Account  

2.4     Books of Account                             

2.4.1 The Subsidiary Books                        

2.5    Financial Statement                  

2.6    Sources of Authority Guiding the Preparation

and Presentation of the Financial Statement   

2.6.1   Generally Accepted Accounting Principles     

2.6.2 Legislation                               

2.6.3   Disclosure Requirements of Company and

Allied Matters Decree (CAMD 1990)    

2.6.4   Disclosure Requirement of Banking Decree

 of 1991                           

2.6.5 Accounting standards                

2.7   Users of Accounting Information and their

Information Needs                    

2.7.1 Investors group                                

2.7.2 Government             

2.7.3   Creditors and suppliers           

2.7.4   Management                          

2.7.5    Employees                    

2.7.6    Trade Union                                  

2.7.7     The Public                            

2.8     The Attributes of an idea Financial Statement

2.8.1    Reliability                                     

2.8.2   Verifiability                    

2.8.3   Representational Faithfulness          

2.8.4    Neutrality     

2.8.5 Secondary Decision Relevance Qualitative

Characteristics                          

2.8.5.1 Consistency                           

2.8.5.2    Comparability     

2.9        Objectives of Financial Information        

2.10   Merits of Financial Information          

2.11     Limitation of Financial Information

2.12    Components of Financial Statement         

2.12.1   The Statement of Accounting Policies     

2.12.2    Balance Sheet                             

2.12.3   The Profit and Loss               

2.12.4    Notes on the Accounts         

2.12.5    Auditor’s Report                  

2.12.6    Director’s Report                          

2.12.7   The Statement of Value Added

2.12.8     Five Year Historical Summary      

2.13     Statutory Frame Work of an Audit           

2.14     Internal Control in an Organization  

2.14.1 Types of Internal Control                 

2.14.2   Internal Control Weakness     

 

2.15 Relationship between Management and

Auditors           

2.16 Record Keeping and Internal Control a

Case of Akintola Willams Delloitte and

Cadbury Nigeria plc                           

2.16.1 External auditors Akintola Williams

Delloitte                                   

2.16.2  Issues involved in AWD          

2.16.3 SEC final decision on Akintola Willams

Delloitte                                           

2.16.4 Audit lesson from AWD and Cadbury Plc   

2.17   Relevance of Accounting Record Keeping in

the Preparation of Financial Statement

2.18          Impact of Accounting Record Keeping

 in the performance of audit function               

 Reference                                                       

CHAPTER THREE

3.0    Research Methodology                      

3.1    Introduction                                     

3.2   The Research Design                         

3.3     The Population                                

3.4     The Sample Size                             

3.5      The Sampling Techniques       

3.6      Source of Data                                       

3.7      Method of Data Analysis                          

3.8      Measurement of Data              

            Reference                                           

 

CHAPTER FOUR

4.0   Introduction                                      

4.1   Data Presentation and Analysis          

4.2   Percentage analysis                   

4.3   Hypothesis testing                            

4.3.1 Hypothesis one                                 

4.3.2 Hypothesis two                                 

CHAPTER FIVE

5.0   Summary, Recommendation and Conclusion

5.1   Summary of findings                                

5.2   Recommendation                                                

5.3   Conclusion                                                

        Bibliography                                   

        Appendix                                                

       

CHAPTER ONE

INTRODUCTION

1.1   Background to the study

According to Punkett (1979) accounting is the oldest profession. Infact since prehistoric times families had to account for food and clothing to face the cold season. Later as man began to trade we established the concept of value and developed monetary system. Evidence of accounting records can be found in the Babylonian empire (4500bc) in pharaoh’s Egypt and in the code of Hammurabi (2250b.c). Eventually with the advent of taxation record keeping became a necessity for government to sustain social orders.

The Italian renaissance brought the artistic accomplishment of man to new height. At this time Venice was the business cradle of Europe and it was here among merchants that double entry accounting was invented and practiced.

However auditing started when ownership was separated from administration .this was first seen in Ancient Greece where government al accounting records (for the monarchs) were certified as true and fair only after a public hearing in which the account s were read aloud to the hearing of the people based on whose response (i.e. either affirmation or denial) the monarch either affirm by saying “I hear” or reject by being silent.

According to Oladipupo (2005) the social relevance of  auditing in this crude form was mainly to detect if such public officers have upheld their stewardship position and the basis of which their  reappointment into earlier occupied position  lies. From the Medieval times on through the industrial revolution audits were made to determine whether persons in position of fiscal responsibility in government and commerce were accounting and reporting in an honest manner. During the industrial revolution as manufacturing concern grew in size their owners began to use the service of hires managers. With this separation of ownership from management the absentee owners turned increasingly to auditors to protect themselves against the dangers of fraud by both manager and employees.

             In Nigeria or elsewhere in the world, the shareholders (owners) are separate from the management. This is more pronounced where such companies are quoted in the stock exchange. The day to day running of the business is however vested on management who help to implement policies of the board while the owners’ responsibility is just to pool their resources together to fund the activities of the company and they bear the ultimate risk in the event of failure. Therefore the owners appoint auditors or need audit of financial report in order to have confidence or faith in such report prepared by management and know if the drafted financial statement gives a true and fair picture of the financial position operating result and changes in the financial position.

               Improper accounting record keeping by management is aimed at reporting the financial statement of a firm in a wrong position which conflict with the basic aim of accounting regulation to provide consistent and comparable financial information to users. Improper record keeping has been the root of a number of accounting scandal like ERON and WorldCom. When discovered at any time that proper accounting records where not kept by management they should be made to face the wrath of the law. The effect of improper record keeping is enormous. Keeping of improper accounting records could mislead the auditor thereby making their report n not to be reliable. This could reduce the auditor’s actual standard of performance.
1.2   STATEMENT OF RESEARCH PROBLEM

       Presently we observed that companies that are being audited and shown to be healthy run into financial crisis within a short time. It happens probably because management do not keep proper accounting record that will be sufficient for an auditor to carry out his work.

1.3   RESEARCH QUESTION

          In the light of the above the following questions were asked

1.   What are the records that are necessary for auditor’s performance?

2.   Does management keep such records?

3.   Does proper record keeping enhance auditor’s performance?

 

4.   1.4   RESEARCH OBJECTIVES

  The following are the objectives of this research

  1.    To find out the records that are necessary for auditor’s performance.
  2.    To find out whether management keep such records.
  3.    To find out whether proper record keeping enhance auditor’s performance

1.5   SIGNIFICANCE OF THE STUDY

    The significance of accounting records lies in the fact that it holds true for all uneven situation and keeping a proper note of financial transaction can prove useful for a company in times of problematic condition. So whether business is big or small accounting records prepared in the proper manner will never lose value and is always recommended so that the business can potentially grow and outgrow others and stand as a reputable organization.

1.6   SCOPE OF THE STUDY

       The scope of the study is limited to accounting record keeping and auditor’s performance in the banking industry in EDO STATE .This study specifically focuses on the roles played by management of banks in preparing proper accounting records and how auditors perform in the examination of such records.

1.7   RESEARCH HYPOTHESIS

        The following statement of hypothesis was tested in this research

  1.            H0   management does not keep accounting records

        H1   management keep accounting records

  1.            H0   proper record keeping does not enhance auditor’s performance

        H1 proper record keeping enhance

 

 

DISCLAIMER

 
Grossarchive.com will only provide papers as a reference for your research.  The papers ordered and produced should be used as a guide or framework for your own paper. The contents of the papers should be able to help you in generating new ideas and thoughts for your own project.  
It is the aim of Grossarchive.com to only provide guidance by which the paper should be pursued. We are neither encouraging any form of plagiarism nor are we advocating the use of the papers produced herein for cheating.

 

 

TERMS AND CONDITIONS

Using our service is LEGAL and IS NOT prohibited by any university/college policies

You are allowed to use the original model papers you will receive in the following ways:

1. As a source for additional understanding of the subject

2. As a source for ideas for your own research (if properly referenced)

3. For PROPER paraphrasing (see your university definition of plagiarism and acceptable paraphrase)

4. Direct citing (if referenced properly)

Thank you so much for your respect to the authors copyright.

 

For more project materials

Log on to www.grossarchive.com

Or call

+2348130686500

+2348093423853

 

500
Leave a comment...

    Project Details

    Department Accounting
    Project ID ACC0001
    Price N5000 ($29)
    CHAPTERS 1-5 Chapters
    No of Pages 141 Pages
    Methodology Chi-Squaresss
    Reference YES
    Format Microsoft Word