ACCOUNTING RECORD KEEPING AND AUDITOR’S PERFORMANCE
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
Table of content
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
2.1 Source Document
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
2.6.3 Disclosure Requirements of Company and
Allied Matters Decree (CAMD 1990)
2.6.4 Disclosure Requirement of Banking Decree
2.6.5 Accounting standards
2.7 Users of Accounting Information and their
2.7.1 Investors group
2.7.3 Creditors and suppliers
2.7.6 Trade Union
2.7.7 The Public
2.8 The Attributes of an idea Financial Statement
2.8.3 Representational Faithfulness
2.8.5 Secondary Decision Relevance Qualitative
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
2.16 Record Keeping and Internal Control a
Case of Akintola Willams Delloitte and
Cadbury Nigeria plc
2.16.1 External auditors Akintola Williams
2.16.2 Issues involved in AWD
2.16.3 SEC final decision on Akintola Willams
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
3.0 Research Methodology
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
4.1 Data Presentation and Analysis
4.2 Percentage analysis
4.3 Hypothesis testing
4.3.1 Hypothesis one
4.3.2 Hypothesis two
5.0 Summary, Recommendation and Conclusion
5.1 Summary of findings
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
1.5 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
H1 management keep accounting records
H1 proper record keeping enhance
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