Accounting Record Keeping and Auditor's Performance

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ACCOUNTING RECORD KEEPING AND AUDITORS PERFORMANCE
Accounting (B.S.C) Chapters No of pages Price 1-5 130 pages N 5, 000
For more project materials Log on to www.grossarchive.com Or call +2348130686500 +2348097682691 Terms and Condition 1
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www.grossarchive.com ABSTRACT
This research work focused on accounting record keeping and auditors 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 auditors function and auditors need accounting records to carry out their work effectively.
www.grossarchive.com CHAPTER ONE
INTRODUCTION 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 pharaohs 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 4
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 5
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 auditors actual standard of performance.
www.grossarchive.com 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 auditors performance? 2. Does management keep such records? 3. Does proper record keeping enhance auditors
performance?
1.4
RESEARCH OBJECTIVES
The following are the objectives of this research 1. To find out the records that is necessary for auditors performance.
2. To find out whether management keep such records. 3. To find out whether proper record keeping enhance auditors performance
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 auditors performance in the banking industry in EDO STATE .This study specifically focuses on the roles played by 8
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
1.
H0 management does not keep accounting records H1 management keep accounting records
2.
H0
proper record keeping does not enhance auditors performance
H1 proper record keeping enhance auditors performance 1.8 LIMITATION OF THE STUDY There is no research study no matter how well conducted that is free from certain constraint. Time which is not our best friend compelled this research to be restricted to the respondent from the above mentioned state. Staff not usually or easily cooperating forced the researcher to visit their offices severally before they 9
could complete the questionnaire. Cost is another factor that bore greatly on this research .Fuel hike influenced transportation greatly, thus movement to and fro sourcing for materials was great in convenience.
1.9
DEFINITION OF TERM
RECORDS- it is the basic information which documents financial personnel, Inventory supply or customers activities. ACCOUNTING RECORD- it can be defined as all documentation and books used during the preparation of financial statement AUDITORS PERFORMANCE- It can be defined as how well an auditor carries out the audit of a clients financial statement.
Accounting (B.S.C) 10
www.grossarchive.com Chapters No of pages Price 1-5
130 pages N 5, 000
For more project materials Log on to www.grossarchive.com Or call +2348130686500 +2348097682691
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