The study dealt on the
effectiveness of auditing and accountability - in the public
sector. The rapid development financial management initiative in public sector and financial control has led to the need for improved performance measurement, reporting and individual
accountability. The researcher tested five
hypotheses which stability results mat states that. An audited work must be independently examined, opinions must be expressed by a
qualified and appointed auditor in
pursuance/ compliance with the
relevant statutory obligations; that an auditor must possess the expected qualities the auditor-generals office is a watchdog of public fund and
as such, government must be
appropriately configured . based on this findings the researcher recommended that government should at all level; employ professional accountants to ensure that funds are expanded in accordance with the terms by which they are appropriated while auditors should
conduct their activity independently
in order to protect the interest of
the public. Thus, with integrity and in full compliance with the law guiding their profession.
Table of contents
OF THE STUDY
AND ACCOUNTABILITY AS STATUTOYR OBLIGATIONS
HISTORICAL BACKGROUND OF THE
1.1.1 DEPARTMENT IN THE OFFICE OF THE AUDITOR-GENERAL (STATE)
1.1.3 THE RESPONSIBILITY OF THE STATE AUDITOR-GENERAL
1.1.4 ORGANIZATION OF REPORTS FROM THE STATE AUDITOR-GENERAL'S OFFICE
ENCONUTERED IN THE OFFICE OF THE STATE (IMO) AUDITOR-GENERAL
OF THE PROBLEM
1 3 OBJECTIVES
OF THE STUDY
OF THE STUDY
OF THE STUDY
DEFINITION OF TERMS
2.1 NATURE OF AUDITING
2.1.1 NEED FOR AUDITING
2.1.2 USERS OF AUDITED STATEMENT
2.1.3 MERIT OF AUDITING
2.4.3 CONFORMITY WITH CONFIDENTLITY PRICIPLES
2,4. 4 CONFORMITY WITH TECHNICAL STANDARD.
2.3 MEANING OF ACCOUNTABILITY
CONCEPT OF ACCOUNTABILITY IN THE PUBLIC SECTOR
2.11.3 ACCOUNTING CONTROL
ROLE OF AUDIT IN ACCOUNTABILITY
3.2 RESTATEMENT OF RESEARCH HYPOTHESIS
3.5 METHOD OF DATA COLLECTION
3.5.2 SECONDARY SOURCE
RESULT AND DISCUSSION
SUMMARY CONCLUSION AND RECOMMENDATIONS
1.0 BACKGROUND OF THE STUDY
The term audit is derived from the Latin verb "audire", which means "to hear" the
origin of audit allowed tenant formers
to work on their land while the land owners
themselves, did not become involved in the
business of farming. The landowners relied
upon an overseer who "listened" to the accounts of
stewardship given by the tenants. During this
period till data, and with reference to the companies and allied matters
act of 2004, the word "audit" is described as:
The independent examination of, and expression of opinion on the financial statements of an enterprise :y an appointed auditor in pursuance of that appointment and in compliance with any relevant statutory.
In order to form an opinion as to
the accuracy, truth and fairness of such
The business world prior to industrial revolution in the 19th century till present day, has
witnessed a lot of changes and
developments. In the early economic Developments, the mode of
recording and analyzing of accounting dates
was by manual means. Auditing during
this time was done orally because the business
of writing was get to develop. The modernization
of in the business world led to the areas
where writing and receding analysis evolved with the use of some electro mechanicals. Accountability on the
other hand is the obligation to answer for
a responsibility that been concerned, (the 2006). During the era when accounting system evolved, the business transitions which took place
- = d to be recorded, analysis and
based on the Dtinciples, methods and
procedures laid down by the accounting
profession. Also certain development
which occurred, gave rise to the right to examine the books and to obtain all the information and explanation necessary for giving a report on the truth and
correctness of the business's (company) balance sheet. In view of this
auditing was redefined according to (CAMA 2004) as an exercise whose objective is to enable auditors express on opinion
on whether the financial statement gives a true and fair view of the entities affairs at the period and; of it's profit and loss for the period then ended and have
been properly prepared in accordance with the applicable reporting frame work, ,with
greater emphasis placed
on the information value of the business balance sheet and prospective
increasing conscious of the need for the rejection
of error and fraud was regarded as the province
of the business management. These development further gave rise to the restructuring
accounting function of the owners of
the business which
in turn led to the emergence of the financial statement legislation and
recognisition of auditors. As required by
the company's act, the audited(s) is meant
to provide a written report, expressing their opinion regarding the freeness' and "fairness' of words, auditing both in the past and at present is fanned at enquiring that the stewardship account being centered to owners of business is a time representation of the event that took place. Also development • in the business coupled with technological
breakthrough led to the advent of electronic data processing (computer)
as a means of processing business dates. This, in the world of business implies the computerization
of accounting system which still demands
that auditor should perform their role as opinionist.
Based on this, the question that strike one's mind is,
could effective auditing lead to proper accountability In
recent times, the
concept of accountability has it's origin in stewardship accounting (especially in the state government system). The function which accounting serves in
the earliest times of our society is
providing owners of wealth, the means
of safe- guarding it from embezzlement.
As noted by smith (2007). Accountability
and it twin brother auditing were ushered
in when owners were no longer managers of
their resources and as such managers should look over such business with utmost care to avoid negligence and confusion of management in the affairs
of the company, Furthermore auditing and accountability in the public sector
otherwise called "public sector auditing and accounting", comprises
of the auditor- general of the "federation,
auditor-general of the state and auditor general of local government that
serves as external a.: tors to the three tiers of government in Nigeria. Their approaches and techniques are similar to that
of various firms
of chartered accountants bat different
occurs in their method of appointment to those of firms of chartered accountants. Regardless of this fact, (differences) and in recognition of
the former, a committee
called the public
account committee (Pac) was
formed with duty to consider the
auditor, general's report submitted to
the assembly with functions as follows.
i. To deliberate on the
auditor- general's report.
ii. To summon accounting
officer to appear before them
iii. To examine any offer on oath if need to be
To recommend to the president any action to be taken on the offending officer.
v. To enforce the auditor section as required by decree 43.
vi. To report
to the president the recommendation's
vii. To carryout any
duty as required
by the national assembly.
In conclusion, the effectiveness of auditing and accountability in the public sector which
refers to 'all organizations which
are not privately owned and operated
but which are operated and established as this effectiveness has brought about good internal and external control and checks, minimized fraud;
defalcations Enhanced effectives policy and
implementation and management while
non-effective auditing and
accountability would result to regulates lack of there and fair representation and reporting of financial statement alongside, poor policy implementation.
1.0.1 AUDITING AND ACCOUNTABILITY AS STATUTOYR OBLIGATIONS
during which the accounting carried out by suitable qualified auditors during which the accounting records and financial statements of an organization B-e subjected to examination by independent auditors with the main objective of expressing an opinion in accountancy with relevant terms of appointment purpose, (the, 2006).
HISTORICAL BACKGROUND OF THE STUDY
The historical background of the office of the state’s auditor general dates back to the creation of states, specifically Imo state from the former east central in
1976 which was then headed by Sir. S.C. Okorieafor, who haiked from Oguta from then to present date,
there has been series of appointment c" auditor generals, employment of
staff and other changes.
After the creation of states, most staff of the office of the auditor
general of east central which was formerly at
Umuahia, relocated to Imo state to the
office of the Auditor-general now in Owerri. It's capital, as required by law. The present auditor-general is by name, sir. E.A. Ugunwa.
IN THE OFFICE
OF THE AUDITOR-GENERAL (STATE)
The office of the state's auditor-general is made up of six (6) departments namely.
i) General service department
(GSD):- this department is in change of the general administration of the state auditor-general
ii)Project monitoring and
evaluation department (promade):- As the name suggests, its duty
is to take
care of the
evaluating in and monitoring of all
government project and
also, audits, government parastatals.
accounts department (GAD):- this
department is in charge of the audit of government ministries,
iv. Revenue department (RD):- this department is in charge of the audit of government revenues.
Finance and supply
department (FASD): this
department is vested
with the duty
of critical monitoring of the expenditures of the office
itself, i.e (the
office of the
AG in particular). These departments are headed by 3 directors/3
acting directors for effective
operation of the office of the AG.
1.1.3 THE RESPONSIBILITY OF THE STATE
(section 125 c2)
of the constitution of Nigeria, 1999 amended)
authorized the auditor-general- to carry out of all co-operations, government ministries, government parastates and local government councils through out the country regardless of it being
either the primary or secondary responsibility, and this is periodically, according to the activities of such organization.
1.1.4 ORGANIZATION OF REPORTS FROM
The reports from
the office of the
auditor-general is organized
base on the type of opinion in recognition to
the evidence he given. This opinion could
be qualified, unqualified, subject to etc.
1.1.5 PROBLEM ENCONUTERED IN THE
OFFICE OF THE STATE
Problem encountered in the state AG's office are numerous but specifically, the problem of misapplication of audit reports towards management decision, poor collection of owners recourse towards organizational administration, Non- segregation of functional duties and financial impropriety in the public sector caused by inefficient lauding and accountability arises due to:
(i) The selfish interest of the
managers and undue influence which
doesn't allow the business to grow. (ii) Inadequate availability of resource or
available resource being tampered by staff
or managers of such business dues to
their unwillingness. (iii) Inadequate internal control measures,
(iv) Failure of
the application of
the expected auditing
standards towards audit
exercise, ie if wrong
information is communicated to the investors.
The above listed could be solved if managers and staff would be fair in their duties towards the activities of the basins. This calls for motivation, willingness etc as auditing which starts where accounting stop is a sacred duty.
1.2 STATEMENT OF THE PROBLEM
The concept "auditing and accountability" has been relegated to the background in the public sector, in spite of it's importance. The future of the public sector lies in it's auditing and accounting. Auditors perform important function in those aspects of government that are crucial for promoting credibility, equity and appropriate behaviors of government officials which reduces the risk of public corruption. In spite of these important roles auditing and accountability plays, some problems are still left unsolved and
new one have been created by the audit activities itself- hence problem like:
of audit report
towards management decision.
allocation of owners
resources and organizational administration
Non segregation of functional duties
Financial impropriety in the public sector as a result of
inefficient auditing and accounting system.
These and many more problem are faces by the Nigeria public
sector and enterprises. Investment are cost in non-profitable ventures and the nations resource wasted.
It is the above back chop that further promoted
the research to
probe into the problem assistance from the study of the
rank and file of the
auditor-general office of Imo state
1 3 OBJECTIVES OF THE STUDY
objective of the study is to evaluate the effect
of auditing and accountability in the public sector specifically,, it
tends: to determine the cause of poor
allocation of owners resources and
organizational administration. To determine
the factors that
result to non-segregation of functional duties To being to light the financial impropriety lines) in the public sector which is due to inefficient auditing and accounting system.
1.4 RESEARCH QUESTION
For this study, it is pertinent to ask some question, such as,
Is there any
significant relationship between auditing, accountability and the public
Is there any significant effect between misapplication of
audit report towards management decision?
What possible effect
could poor allocation of owners resource
cause towards organization administration?
Is there any reason
for non- segregation of functional duties?
are significant reason
why financial improperly in
the public sector should
occur with emphasis on inefficient
auditing and accounting system.
1.5 RESEARCH HYPOTHESIS
In order to successfully find solution to the problem of the study some tentative statement known as" research hypothesis" have been framed. The hypothesis will be empirically tested later while the tentative statement will be hypothesized into Null
Hoi: There is
no significant relationship between auditing, accountability and the public sector.
HA1: There is
a significant relationship between auditing, accountability and public sector.
is no significant effect
between misapplication of audit
report towards management decision.
HA2: There is a
significant effect between misapplication of audit report toward management decision.
Ho3: Poor allocation of owners resources
has no possible effect towards
organizational administration. HA3: Poor allocation of
owners recourse has
a possible effect towards organization administration. Ho4:
There is no
as to why financial impropriety in the
public sector should occur with emphasis on
inefficient auditing and accounting system.
HA4: There is
a significant as
to why financial impropriety.
In the public sector should occur with emphasis on
inefficient auditing and accounting system. Ho5: There
is no reason
for non-segregation of functional duties.
is a reason
for non- segregation of financial
1.6 SCOPE OF THE STUDY