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IMPACT OF EXTERNAL AUDITORS REPORT ON CORPORATE GOVERNMENT PRACTICE IN NIGERIA (A CASE STUDY OF LAFARGE CEMENT COMPANY)

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Project Topic:
IMPACT OF EXTERNAL AUDITORS RE ON CORPORATE GOVERNMENT PRACTICE IN A (A CASE STUDY OF LAFARGE CEMENT COMPANY)

CHAPTER ONE

1.1      BACKGROUND OF THE STUDY

1.2      STATEMENT OF PROBLEM
Generally, most business failures in the recent past have been attributed to failure in corporate governance such as insider related credit abuse, poor risk appreciation and internal control system credit failure. The impact of external auditor, particularly with regard to corporate governance, can only be fully appreciated if the external auditing function within the profession is properly understood. The principle authority and responsibility of the external audit activity must be formally defined in an external audit charter, consistent with the definition of external auditing, the Code of Ethics, and the Standard. External auditors report has become one of the means of enhancing corporate governance in organizations. This implied that the corporate governance performance cannot be effective without effective external auditors report. The civil liability of fraud and economic crime of the company, when it is not due to the incorrect audit review, in principle, falls on the internal organs of the company. As a result, the civil liability of the external auditor is safeguarded vis-àvis the company’s bodies by means of signature by the person in charge of the Management Body and the Supervisory Body of the “Statement of the Management Body” of the work of the external auditor. It is against this backdrop that the study examines, the impact of external auditors report on corporate government practice in Nigeria (a case study of Lafarage cement Company)
1.3 AIMS OF THE STUDY
The major aim of the study is to examine impact of external auditors report on corporate government practice in Nigeria (a case study of Lafarage cement Company). Other specific objectives of the study include;
1.  To examine corporate governance practices in Lafarage cement company.
2.  To examine the measure of external audit in Lafarage cement company.
3.  To examine impact of external auditors report on corporate governance practices in Lafarage cement company.
4.  To examine the of the external auditors in Lafarage cement company.
5.  To examine the relationship between external auditors report and corporate governance practices in Lafarage cement company.
6.  To examine the problems frustrating effective of external auditor in Lafarage cement company.
1.4 QUESTIONS
1.  What are the corporate governance practices in Lafarage cement Company?
2.  What are the measures of external audit in Lafarage cement Company?
3.  What is the impact of external auditors report on corporate governance practices in Lafarage cement Company?
4.  What is the of the external auditors in Lafarage cement Company?
5.  What is the relationship between external auditors report and corporate governance practices in Lafarage cement Company?
6.  What is the problems frustrating effective of external auditor in Lafarage cement Company?
1.5 HYPOTHESES
Hypothesis 1
H0: There are is no significant impact of external auditors report on corporate governance practices in Lafarage cement Company.
H1: There is a significant impact of external auditors report on corporate governance practices in Lafarage cement Company.
Hypothesis 2
H0: There is no significant relationship between external auditors report and corporate governance practices in Lafarage cement Company.
H1: There is a significant relationship between external auditors report and corporate governance practices in Lafarage cement Company.
1.5 SIGNIFICANCE OF THE STUDY
The study will be of profound benefits to enlighten the management of Lafarage cement Company on the importance of external audit report in an organization. This study would also be of immense benefit to students and scholars who are interested in developing further studies on the subject matter.
1.7 SCOPE AND LIMITATION OF THE STUDY
The study is restricted to impact of external auditors report on corporate government practice in Nigeria (a case study of Lafarage cement Company).
LIMITATION OF THE STUDY
Financial constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview)
Time constraint: The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.
1.8 OPERATIONAL DEFINITION OF TERMS
Corporate governance: is the system by which companies are ed and controlled. Boards of ors are responsible for the governance of their companies. The shareholders’ in governance is to appoint the ors and the auditors and to satisfy themselves that an appropriate governance structure is in place.
Auditors report: is an independent external auditor as a result of an internal or external audit, as an assurance service in order for the user to make decisions based on the results of the audit. An auditor’s report is considered an essential tool when reporting financial information to users, particularly in business.

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