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

The External Auditor and the Financial Statements of Public Sector in Nigeria

  • Type:Project
  • Pages:103
  • Format:Microsoft Word
(Accounting Project Topics & Materials)

THE EXTERNAL AUDITOR AND THE FINANCIAL STATEMENTS OF PUBLIC SECTOR IN NIGERIA

A Research Project Submitted By

OKELEKE, CHIDINMA EZINWA

Matric No_; RUN10-11/2987


To

The Department of Financial Studies,

College Of Management Sciences,

Redeemer’s University,

Km 46, Lagos-Ibadan Expressway, Redemption City, Mowe, Ogun State, Nigeria



In Partial Fulfillment of the Requirements for the Award of the Degree of Bachelors of Science (B.Sc.) Honours in Accounting

July, 2014.





DECLARATION

I, Okeleke Chidinma Ezinwa, hereby declare that this project titled “the External Auditor and the Financial Statement of Public Sector in Nigeria” was done entirely by me, under the supervision of Dr. Imeokparia Lawrence. This research project has never been used elsewhere in part or full for the fulfillment of the requirements for the award of B.Sc. Degree. All sources of scholarly information used for this project were duly acknowledged.






Okeleke Chidinma Ezinwa                                            ...………………………………………....

                                                                                                          Signature & Date






  



CERTIFICATION

I certify that this research project titled

The External Auditor and the Financial Statement of Public Sector in Nigeria

Was conducted and written by

………………………                                                                               …...…………………….

Student’s Name                                                                                              Matriculation Number

Under my supervisor

In partial fulfillment of the requirements for the award of the degree of Bachelors of Science (B.Sc.) in Accounting

In the college of management sciences, Department of Financial Studies,

Redeemer’s University, Redemption City, Ogun state, Nigeria.



……………………………………….                                      ...……..……………………………

    Signature & Date                                                                        Signature & Date

     Dr. Imeokparia Lawrence                                                              Dr. Onafowokan Oluyombo

     Project Supervisor                                                                        Head of Department


………………………………………

Signature & Date

External Examiner

DEDICATION

I dedicate this research work, to the Almighty God, who saw me through this journey, both financially and otherwise, whose grace and favour was abundant, and made it possible for me to see the end of this project successfully. 





















ACKNOWLEDGEMENTS

First and foremost, I humbly acknowledge God’s help throughout this work. It would not have been successful without Him. My special gratitude goes to you God.

I wish to acknowledge the most indispensable role my supervisor Dr. Imeokparia Lawrence played in this project. Your encouragement and support was what saw me through this research work. The research was only made better through your guidance, directions and contributions to the work. I cannot thank you enough for this. May the Almighty God reward you.

I also appreciate the efforts of all my lecturers in Accounting; Dr. A. Olagunju, Mr. Kenneth E. Okpala, Dr. J. Akinyomi, and most especially Dr. Lawrence Imeokparia for the knowledge impacted in me, all through my stay in Redeemers University, which also contributed to the success of this research work, and also their continuous encouragements and unforgettable words of advice.

 I also wish to express my unreserved gratitude to my loving parents Mr. and Mrs. Okeleke. Your undying love and support, both financially and in all areas, kept me going. Your encouraging words served as a motivating factor in this research work. 

My sincere gratitude also goes out to my friends Akinwekomi Folakemi, Ako-onwuzuruike Favour, Olayera Dayo, Olumide Tomiwa and Elekwa Nneoma for their support, encouragement and contributions to the success of this project. Words cannot express how thankful I am for your help.

I would also like to appreciate the staffs from NNPC, Ministry of Finance, CBN and other government parastatals who were helpful in answering the questionnaires used for this research. I cannot thank you enough for your understanding and cooperation during my research.

This acknowledgement would not be complete without appreciating the members of Redeemer’s University Choir, for your continuous support and fervent prayers. You were like a family to me. My sincere gratitude goes to you all.

God bless you all.

Okeleke Chidinma Ezinwa

July, 2014.













TABLE OF CONTENTS

TITLE PAGE………………………………………………………………………………………i

DECLARATION………………………………………………………………………………….ii

CERTIFICATION………………………………………………………………………………..iii

DEDICATION………………………………………………………….………………………...iv

ACKNOWLEDGEMENTS……………………………………………………………………....v

TABLE OF CONTENTS………………………………………………………………………..vii

LIST OF TABLES……………………………………………………………………………….xii

ABSTRACT…………………………………………………………………………………….xiv

CHAPTER ONE: INTRODUCTION

1.1 BACKGROUND TO THE STUDY…………………………………………………………..1

1.2 STATEMENT OF PROBLEM………………………………………………………………..4

1.3 RESEARCH OBJECTIVES…………………………………………………………………..6

1.4 RESEARCH QUESTIONS……………………………………………………………….......7

1.5 STATEMENT OF THE HYPOTHESIS………………………………………………….......7

1.6 SIGNIFICANCE OF THE STUDY…………………………………………………………..8

1.7 SCOPE OF THE STUDY……………………………………………………………………..9

1.8 LIMITATIONS OF THE STUDY…………………………………………………………....9

1.9 DEFINITION OF TERMS………………………………………………………………......10

      References

CHAPTER TWO-LITERATURE REVIEW

2.0 INTRODUCTION…………………………………………………………………………...13

2.1 THEORETICAL FRAMEWORK…………………………………………………………...13

2.1.1 THE POLICEMAN THEORY………………………………………………………….....13

2.1.2 THE LENDING CREDIBILITY THEORY……………………………………………….14

2.1.3 LIMPERG’S THEORY OF INSPIRED CONFIDENCE………………………………….14

2.1.4 AGENCY THEORY………………………………………………………………….........16

2.1.5 THE INFORMATION THEORY………………………………………………………….20

2.1.6 THE INSURANCE THEORY……………………………………………………………..21

2.1.7 ACCOUNTABILITY THEORY…………………………………………………………..21

2.1.8 THE ASSURANCE THEORY…………………………………………………………….22

2.1.9 POSITIVE ACCOUNTING THEORY………………………………………………........23

2.1.10 LEGITIMACY THEORY………………………………………………………………..24

2.1.11 STEWARDSHIP THEORY……………………………………………………………...25

2.2 EMPIRICAL REVIEW……………………………………………………………………...26

2.3 CONCEPTUAL FRAMEWORK……………………………………………………………37

2.3.1 CONCEPT OF EXTERNAL AUDITING….......................................................................37

2.3.2 CONCEPT OF FINANCIAL STATEMENTS…………………………………………….39

2.3.3 THE CONCEPT OF AUDITOR’S INDEPENDENCE…………………………………...42

2.3.4 CONCEPT OF PUBLIC SECTOR AUDITING…………………………………………..45

2.3.4.1 PUBLIC SECTOR AUDITORS………………………………………………………....47

2.3.5 CONCEPT OF GOOD PUBLIC GOVERNANCE………………………………….........50

2.3.6 CONCEPT OF PUBLIC SECTOR FINANCIAL MANAGEMENT……………….........52

2.3.7 CONCEPT OF PUBLIC ACCOUNTABILITY AND CORRUPTION CONTROL IN                           

         NIGERIA………………………………………………………………………………….54

         References

CHAPTER THREE-METHODOLOGY

3.1 INTRODUCTION…………………………………………………………………………...64

3.2 RESEARCH DESIGN……………………………………………………………………….64

3.3 POPULATION………………………………………………………………………............64

3.4 SAMPLE SIZE………………………………………………………………………............65

3.5 SAMPLING TECHNIQUE………………………………………………………….............65

3.6 SOURCE OF DATA COLLECTION……………………………………………………….66

3.7 RESEARCH INSTRUMENT………………………………………………………………..66

3.7.1 PILOT STUDY…………………………………………………………………….............66

3.7.2 VALIDITY AND RELIABILITY………………………………………………………....66

3.8 METHOD OF DATA ANALYSIS AND PRESENTATION……………………….............67

3.8.1 REGRESSION ANALYSIS……………………………………………………….............67

3.8.2 STANDARD ERROR OF REGRESSION………………………………………………...68

CHAPTER FOUR-DATA PRESENTATION, ANALYSIS, AND DISCUSSION OF FINDINGS

4.0 INTRODUCTION………………………………………………………………………...…69

4.1 PRESENTATION OF DATA………………………………………………………………..70

TABLE 4.1.1 DISTRIBUTION OF SEX OF RESPONDENTS………………………...............70

TABLE 4.1.2 DISTRIBUTION OF AGE OF RESPONDENTS………………………………..70

TABLE 4.1.3 DISTRIBUTION OF RESPONDENT’S WORKING EXPERIENCE…………..71

TABLE 4.1.4 DISTRIBUTION OF RESPONDENT’S ROLE IN THE ORGANISATION…...71

TABLE 4.1.5 EDUCATIONAL QUALIFICATIONS OF RESPONDENTS………………......72

TABLE 4.1.6 QUESTION SIX………………………………………………………………….72

TABLE 4.1.7 QUESTION SEVEN……………………………………………………………...73

TABLE 4.1.8 QUESTION EIGHT………………………………………………………………74

TABLE 4.1.9 QUESTION NINE………………………………………………………………..74

TABLE 4.1.10 QUESTION TEN………………………………………………………………..75

TABLE 4.1.11 QUESTION ELEVEN…………………………………………………………..76

TABLE 4.1.12 QUESTION TWELVE………………………………………………………….76

TABLE 4.1.13 QUESTION THIRTEEN………………………………………………………..77

TABLE 4.1.14 QUESTION FOURTEEN……………………………………………………….77

TABLE 4.1.15 QUESTION FIFTEEN…………………………………………………………..78

TABLE 4.1.16 QUESTION SIXTEEN………………………………………………………….79

TABLE 4.1.17 QUESTION SEVENTEEN……………………………………………………...79

TABLE 4.1.18 QUESTION EIGHTEEN………………………………………………………..80

TABLE 4.1.19 QUESTION NINETEEN………………………………………………………..81

TABLE 4.1.20 QUESTION TWENTY………………………………………………………….82

4.2 HYPOTHESIS TESTING…………………………………………………………………...82

4.2.1 TESTING OF HYPOTHESIS ONE……………………………………………………….82

TABLE 4.2.1.1 MODEL SUMMARY FOR HYPOTHESIS ONE……………………………..83

TABLE 4.2.1.2 ANOVA FOR HYPOTHESIS ONE……………………………………………83

TABLE 4.2.1.3 COEFFICIENTS FOR HYPOTHESIS ONE…………………………………..83

4.2.1.1 INTERPRETATION OF HYPOTHESIS ONE…………………………………….…...83

4.2.1.2 DECISION……………………………………………………………………………....84

4.2.2 TESTING OF HYPOTHESIS TWO……………………………………………………...84

TABLE 4.2.2.1 MODEL SUMMARY FOR HYPOTHESIS TWO…………………………....85

TABLE 4.2.2.2 ANOVA FOR HYPOTHESIS TWO………………………………………….85

TABLE 4.2.2.3 COEFFICIENTS FOR HYPOTHESIS TWO………………………………....85

4.2.2.1 INTERPRETATION OF HYPOTHESIS TWO………………………………………..85

4.2.2.2 DECISION……………………………………………………………………………...86

4.2.3 TESTING OF HYPOTHESIS THREE…………………………………………………...86

TABLE 4.2.3.1 MODEL SUMMARY FOR HYPOTHESIS THREE…………………………87

TABLE 4.2.3.2 ANOVA FOR HYPOTHESIS THREE………………………………………..87

TABLE 4.2.3.3 COEFFICIENTS FOR HYPOTHESIS THREE……………………………….87

4.2.3.1 INTERPRETATION OF HYPOTHESIS THREE………………………………………88

4.2.3.2 DECISION……………………………………………………………………………..88

4.3 DISCUSSION OF FINDINGS…………………………………………………………….89

CHAPTER FIVE-SUMMARY, CONCLUSION AND RECOMMENDATION

5.0 INTRODUCTION…………………………………………………………………………93

5.1 SUMMARY OF FINDINGS………………………………………………………………93

5.2 CONCLUSION………………………………………………………………………….....94

5.2.1 CONCLUSION OF HYPOTHESIS ONE……………………………………………….94

5.2.2 CONCLUSION OF HYPOTHESIS TWO………………………………………………95

5.2.3 CONCLUSION OF HYPOTHESIS THREE……………………………………………96

5.3 IMPLICATION OF FINDINGS…………………………………………………………..97

5.4 RECOMMENDATIONS………………………………………………………………….98

5.5 CONTRIBUTIONS TO KNOWLEDGE………………………………………………....100

5.6 SUGGESTIONS FOR FURTHER RESEARCH…………………………………………101

      References

      Bibliography 

      Appendix










LIST OF TABLES

TABLE 4.1.1: DISTRIBUTION OF SEX OF RESPONDENTS

TABLE 4.1.2: DISTRIBUTION OF AGE OF RESPONDENTS

TABLE 4.1.3: DISTRIBUTION OF RESPONDENT’S WORKING EXPERIENCE

TABLE 4.1.4: DISTRIBUTION OF RESPONDENT’S ROLE IN THE ORGANISATION

TABLE 4.1.5: EDUCATIONAL QUALIFICATIONS OF RESPONDENTS

TABLE 4.1.6: QUESTION SIX

TABLE 4.1.7: QUESTION SEVEN

TABLE 4.1.8: QUESTION EIGHT

TABLE 4.1.9: QUESTION NINE

TABLE 4.1.10: QUESTION TEN

TABLE 4.1.11: QUESTION ELEVEN

TABLE 4.1.12: QUESTION TWELVE

TABLE 4.1.13: QUESTION THIRTEEN

TABLE 4.1.14: QUESTION FOURTEEN

TABLE 4.1.15: QUESTION FIFTEEN

TABLE 4.1.16: QUESTION SIXTEEN

TABLE 4.1.17: QUESTION SEVENTEEN

TABLE 4.1.18: QUESTION EIGHTEEN

TABLE 4.1.19: QUESTION NINETEEN

TABLE 4.1.20: QUESTION TWENTY

TABLE 4.2.1.1: MODEL SUMMARY FOR HYPOTHESIS ONE

TABLE 4.2.1.2: ANOVA FOR HYPOTHESIS ONE

TABLE 4.2.1.3: COEFFICIENTS FOR HYPOTHESIS ONE

TABLE 4.2.2.1: MODEL SUMMARY FOR HYPOTHESIS TWO

TABLE 4.2.2.2: ANOVA FOR HYPOTHESIS TWO

TABLE 4.2.2.3: COEFFICIENTS FOR HYPOTHESIS TWO

TABLE 4.2.3.1: MODEL SUMMARY FOR HYPOTHESIS THREE

TABLE 4.2.3.2: ANOVA FOR HYPOTHESIS THREE

TABLE 4.2.3.3: COEFFICIENTS FOR HYPOTHESIS THREE


ABSTRACT

Financial statements are known to give information to shareholders and the general public on the activities of the organisations, but due to the presence corruption and mal-practices, especially in the public sector, they have begun to lose credibility, which would be misleading to investors and other users. It therefore led to the introduction of external auditor, to serve as a check on these activities, expressed in financial statements. This study examined the relationship between the external auditor and the financial statements of public sector in Nigeria. The study adopted a cross-sectional survey design with a total population of 250 senior staffs, out of which 100 were auditors (internal). A sample of 154 staffs was taken from both senior staffs and internal auditors. The primary source of data collection was used to collect data from respondents using a well-structured and tested questionnaire, which was presented using frequency tables and simple percentages. Data was analyzed using Regression Analysis through the SPSS version 21. The study revealed a significant relationship between the quality of financial statement and the illiteracy of government official with (p=0.00 i.e. p< 0.05), and auditor’s engagement, with (p=0.00 i.e. p<0.05), but revealed an insignificant but positive relationship with auditor’s independence, with (p=0.664 i.e. p>0.05). This study concluded that there is a significant and positive relationship between the quality of financial statements and the illiteracy of government officials, auditor’s engagement, and auditor’s independence. The study recommends proper training and education of both external auditors and the public sector officials on the importance of independence in their work, and the effect of corruption on the Nation, respectively. It also recommends that there should be another system of checks on the public sector activities asides from the external auditors. 

The External Auditor and the Financial Statements of Public Sector in Nigeria

Share This

Details

Type Project
Department Accounting
Project ID ACC2764
Price ₦3,000 ($9)
No of Pages 103 Pages
Format Microsoft Word

500
Leave a comment...

    Details

    Type Project
    Department Accounting
    Project ID ACC2764
    Price ₦3,000 ($9)
    No of Pages 103 Pages
    Format Microsoft Word

    Related Works

    COOPERATE GOVERNANCE AND FRAUD MANAGEMENT, THE ROLE OF EXTERNAL AUDITOR PUBLIC QUOTED COMPANY IN NIGERIA (THE CASE STUDY OF CARBURY NIGERIA LIMITED) ABSTRACT The rising spate of fraud in public quoted company has assumed an enormous dimension. This development has eroded public trust in financial statements. Auditors in their duty to expressing... Continue Reading
    PROPOSAL The aim of this project is to dial on the issue of external auditors independence, which has been a major concern of various financial information users and external auditors. This research work will lay emphasis on advisory role of external auditors on general business commitment, which will come in the form of preparation of accounts,... Continue Reading
    AN APPRAISAL OF THE USEFULNESS OF THE INDEPENDENCE OF EXTERNAL AUDITORS IN THE PREPARATION OF OBJECTIVE FINANCIAL STATEMENTS (A CASE STUDY OF SHELL PETROLEUM DEVELOPMENT COMPANY) PROPOSAL The aim of this project is to dial on the issue of external auditors independence, which has been a major concern of various financial information users and... Continue Reading
    AN EXAMINATION OF THE PROCEDURES FOR THE APPOINTMENT AND REMOVAL OF EXTERNAL AUDITOR BY PUBLIC LIMITED LIABILITY COMPANIES: (A CASE STUDY OF ORANGE DRUGS NIGERIA LIMITED IMO STATE) CHAPTER ONE 1.1 INTRODUCTION The need for the auditing of account for a business venture cannot be overemphasized, Even in the early 19th century, kings insisted that... Continue Reading
    ABSTRACT This study is sets out to examine the impact of external debt on public sector investment in Nigerian economy. It specifically seeks to ascertain the effect as the data for analysis were sourced from the CBN Statistical Bulletin with several issues during the period 1980-2011. The... Continue Reading
    EFFCTIVENESS OF AUDITING AND ACCOUNTABILITY IN THE PUBLIC SECTOR (A CASE STUDY OF THE OFFICE OF THE AUDITOR GENERAL OF IMO STATE). ABSRACT The study dealt on the effectiveness of auditing and accountability in the public sector. The rapid development of financial management initiative in public sector and financial control has led to the need for... Continue Reading
    (A CASE STUDY OF THREE SELECTED BANKS IN ABA) ABSTRACT This study was specifically carried out to ascertain the roles and responsibilities of external auditor in banking operation. A case study of three selected banks in Aba. In the year past, there has been a misconception of the roles of external... Continue Reading
    (A CASE STUDY OF THREE SELECTED BANKS IN ABA) ABSTRACT This study was specifically carried out to ascertain the roles and responsibilities of external auditor in banking operation. A case study of three selected banks in Aba. In the year past, there has been a misconception of the roles of external... Continue Reading
    ABSTRACT Auditors have been variously accused of profiting from violating professional standard and ethical practices. The purpose of the study is to examine the role of external auditors in ensuring effectives accountability. The required... Continue Reading
    EVALUATION OF FINANCIAL ABUSE IN THE PUBLIC SECTOR OF NIGERIA  CHAPTER ONE 1.0     INTRODUCTION 1.1     BACKGROUND OF THE STUDY The main objective of writing this project “on the evaluation of financial abuse in the federal inland revenue service” is to bring to the notice of the readers the source from which government derived its... Continue Reading