Title page
Certification
Dedication
Acknowledgement
Table of content
CHAPTER ONE: INTRODUCTION
1.1 Background of the study
1.2 Statement of problems
1.3 Significance of the Study
1.4 Research question
1.5 Working hypothesis
1.6 Scope and limitation of the study
1.7 Definition of the Study
Reference
CHAPTER TWO: LITERATURE REVIEW
2.1 Introduction
2.2 Auditors reports
2.3 Effect of auditors report
2.4 Roles of auditors
2.5 Relevance of auditing information to users of a accounting
2.6 Prevention of fraud, errors and irregularities by an auditor
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Introduction
3.2 Research design
3.3 Sample and sampling method
3.4 Data collection instrument
3.5 Research statistic
3.6 Restatement of the research hypothesis
3.7 Characteristics of the study population
3.8 Administration of data collection instrument
3.9 Procedure for analyzing collection data
3.10 Limitation of the methodology
CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS
4.1 Introduction
4.2 Data analysis
4.3 Interpretation of result
CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION
5.1 Summary of findings
5.2 Summary of findings
5.3 Conclusion
5.4 Recommendation
5.5 Suggestion for the further research
CHAPTER ONE
BACKGROUND OF STUDY
1.1 INTRODUCTION
According to Company and Allied Matter Act (CAMA) 1990, as amended to date “every limited liability companies must appoint an auditor to examine and report on the accounts prepared by the directors”. A point often mis-understood is that the auditors does not act for the directors, rather he acts on behalf of the shareholders.
The relationship between the shareholders and auditors can be considered as that of principals and agent (a point made in the case of Spacemen V. Evans 1868). Hence, his principal objective is to form an opinion on the truth and fairness of the accounts prepared by the directors.
However, it must be emphasized that nowadays the directors are seen as having a much wider responsibility especially where the shares are available to be the general public on a stock exchange. It then follows that this duties to own by the auditor is relied upon to set the seal on credible financial information.
Audited accounts are required to be filed with the registrar of companies so that the financial position of the business can be disclosed to the general public. Upon enquiry the council of the stock exchange reserves the right to refuse to grant a quotation to those companies whose accounts have attracted serious negative comment from the auditors. Also, the auditors’ recognized the need to adhere to certain standard of practice in order to demonstrate the high level of competence and regard for standard that his role demands.
To understand the role of auditors in the business and economic life of an organization there is the need to understand what auditors are their responsibilities, their qualities, their code of conduct, how they are appointed, their rights and duties in a manufacturing business and the advantage of the report to the manufacturing organization.
1.2 STATEMENT OF PROBLEM
Admittedly, there are various guideline published both locally and internationally that are applicable and relevant to the roles of auditors in the business and economics life a manufacturing business. The guidelines are:
• Auditing Standard and Guidelines
• International Auditing Guidelines
• Statement of Accounting Standard
• Generally Accepted Auditing Standards
• Generally Accepted Accounting Principles
However, the uniqueness of this study is that it will attempt to examine how the auditors.
• Adhere to policies prescribed by government
• The extent to which internal control measures is been followed as a means of fraud prevention
• To see to what extent the books of account have been kept by the company
• To see whether the wealth of the shareholders have been adequately protected.
