This study was to assess the significance external auditor‟s in the examination of financial statement of first Bank of Nigeria Plc., Enugu. The banking sector in Nigeria and elsewhere in recent times have become so diversified, challenging, highly competitive and has been characterized by persistent, fraud, errors and misappropriation of funds in the bank, the impact of which has undoubtedly shaken the whole economy of the nation. For this work to be effectively and efficiently carried out the use of primary and secondary methods was adopted for the collection of data, where in primary data, the researcher designed and advanced questionnaires to first Bank Enugu for collection of primary data while secondary data was gotten from textbooks, journals, manuals lecture notes, etc. the data collected from the questionnaire was analyzed in tables with simple percentage and interpreted for the understanding of the study the formulated hypothesis were tested using Z – test formula. The result of the study shows that, external auditors examination of first banks financial statement or records aids in checking and monitoring as well as stopping frauds errors, misappropriation of funds in the Banks. Recommendations were made to the management of First Bank of Nigeria Plc, Abuja.
TABLE OF CONTENTS
Approval Page iDedication iiAcknowledgments iiiAbstract iv
1.0 INTRODUCTION 11.1 Background of the Study 11.2 Statement of the Problem 31.3 Objectives of the Study 41.4 Research Questions 41.5 Research Hypotheses 51.6 Significance of the Study 61.7 Scope/ Limitations of the Study 61.8 Definition of Terms 7Reference 10
2.0 REVIEW OF RELATED LITERATURE 112.1 The Concept of Auditing 112.2 Extent of an Auditors investigation Responsibilitiesof Audit organizations 172.3 Responsibilities of Audit Organizations 182.4 Evaluating the Significance of an External Auditors 192.5 External auditors Role in Detecting Fraud 202.5.1 Types of Fraud 222.5.2 Weakness in the Internal Control System andLack of Co-operation by Client Staff 322.5.3 Lack of Monitoring System in the Organization 352.5.4 Unexplained Discrepancies in Accounts 352.5.5 Tolerance of Accounting Errors and Differences 362.5.6 Document of Unique Reliance on the Staff 372.2.7 Chaotic Accounting System 372.6 External Auditors Role in Ensuring theKeeping of Proper Accounts 382.7 The Significance of External Auditors in Reporting tothe Shareholders (Public Limited Companies) 39Reference 41
3.0 RESEARCH DESIGN AND METHODOLOGY 423.1 Research Design 423.2 Sources of Data 423.3 Research Instrument 443.4 Reliability/Validity of Research Instrument 453.5 Population 463.6 Sample Size and Sample Techniques 463.7 Administration of Research Instrument 503.8 Method of Data Analysis 503.8 Decision criterion for Validation of Hypothesis 51
4.1 Data Presentation and Analysis 524.2 Testing of Hypothesis 6511
5.0 SUMMARY OF FINDINGS, CONCLUSIONSAND RECOMMENDATIONS 725.1 Summary of Findings 725.2 Conclusion 735.3 Recommendations 74Bibliography 76Appendix 7812
1.1 BACKGROUND OF THE STUDY
It is obvious that enormous resources of money and material are being utilized by corporate organizations. In recent years the numbers and monetary values of public sector activities have increased substantially. This increase in activities have brought within an added demand for accountability.Auditing is one of the elements of accountability. Shareholders and government are responsible for ensuring that appropriate audit are made and reports therefore acted upon. Financial auditing contributes to public account ability since it provide independent report or whether the financial information represent a true and fair view of the organization‟s financial stand, the internal controls and the compliances with laws and regulation.