This study is aimed at finding and
expressing the Roles of the External Auditors on financial accountability of
managers in Nigeria
organizations play in banks, using union bank as the case study
There has been significant attempt by
the researcher to examine whether the various roles as should be carried out by
audited the being introduced in banks and adopted as required by the guiding
legislative. The result of this study
would aid, educate readers and wise up
banks on the roles of the external auditors play in banks.
To accomplish the aim of this project
work, the researcher has reviewed and reported some related literature sources
such information were duly acknowledged in the appropriate reference sections.
About three hypothesis were formulated which
were thereafter tested in other to establish theories of the end o the research
study chi-square distribution were adopted for this test. The some of data comes from both primary and
secondary modes of data collection. The
secondary data forms the certain sages on which this project was based.
Based on the data collected and analysis
some findings made which was preceded by conclusion and some
recommendation. Suggestions were also
made for further studies, summarily form the questionnaires administrated and
data collected which were analyzed and interpreted, it has been generally
concluded that role of auditors in banking operations have really contributed
to the fairness and trueness of the financial reports and statements of banks
and also check fraud in banks.
TABLES OF CONTENTS
1.1 PURPOSE OF THE STUDY
1.2 SIGNIFICANCE OF STUDY
1.3 STATEMENT OF THE PROBLEM
1.4 HYPOTHESIS FORMULATION
1.5 OBJECTIVE OF THE STUDY
1.3 SCOPE AND LIMITAITON
1.6 DEFINITION OF TERMS
2.0 REVIEW OF RELATED LITERATURE
2.1 AUDITORS, HIS RIGHT, DUTIES AND STATUS
2.2 ROLES OF AN AUDITORS AND MANAGEMENT RESPONSIBILITY
2.3 THE AUDITOR AND FRAUD DETECTION
DESIGN AND METHODOLOGY
OF STUDY AREA
3.3 FORMS OF
4.1 DATA PRESENTATION AND ANALYSIS
OF FINDINGS, CONCLUSION AND RECOMENDATION
audit is the independent examination of, and expression of
Opinion on the
financial statements of enterprises by an auditor. In pursuance of this objective, he may
disclose defalcations and irregularities, which are capable of impairing the
truth and fairness of the financial statement.
In recent years there has been
considerable debate over the extent of the statutory auditors responsibility
for the detection of fraud. This has
been stimulated by the continued uncertainty over the extent of the auditors
liability to third parties for negligent audit work. It is obvious that failure to detect a major
fraud may lead to a loss for the client or some third party to whom a duty of
care is owned. The important question is
low far do the auditor’s responsibilities.
The auditing profession had always hold
tight to the opinion that the primary responsibility for both prevention
detection of fraud and other irregularities rest with management. The auditor’s duties do not require him
specially to search for fraud unless required by stature or the specific term
of his engagement. In accordance with
normal practice, audit will be planned primary to enable us to express our
professional opinion, and auditor merely obliged to plan his work and design
his procedures so that he has a reasonable chance of detecting those,
illegalness which might impair the truth and fairness of the financial
A BRIEF HISTORY OF UNION BANK OF NIGERIA PLC.
Union Bank is
one of the foremost commercial bank today with every strong capital ban.
The bank which
was formerly known as Dominion Colonial Overseas (DCO) started banking business
in 1917. The bank today has so many
branches scattered all over world. The
bank also branched into other business such as Union Assurance Company Ltd.
Union Homes Savings and Loan Ltd. Union on March into union stock broke etc.
1.2 PURPOSE OF THE PROBLEM
aim of the study is to critically look or examined the
and identifying the role the external auditors play in fraud detection.
It is well known
that one of the problem facing banks in Nigeria is mismanagement of fund or
inappropriate accounting for receipts and payments. Based on the problem identified above, the
objectives of the research work include: -
To highlight the need for appropriate review and report
upon the accounts and balance sheet for banks by external auditors.
To educate on the necessity of banks to keep in mind the
essence to comply with the provision of the bank and other financial institute
To teach the banks to ensure compliance with the company
and Allied Matters Decree (CAMD) 1990 as amended.
To educate auditors to land credence to the accounts of
the bank and to ensure compliance with SAS to and IAS 30.
1.3 SIGNIFICANCE OF THE STUDY
appreciate the overall significance of this research work,
one will have to
put into consideration the roles of the external auditors of fraud detection.
this, the importance of this study is dressed by the head to ascertain that
banks keep up to the requirements of the banks.
It creates room for possible assessment of the banks
financial reports enabling the entire public to receive what they bargained
for, that is a true and fair received report.
Also the auditor’s role is established in the view to
assessing in general the financial background of the banks dining at putting to
a stop the issue of distress.
The government regulations on banks are being
acknowledged by the external auditors, however making sure that they are
continuously put of effect by banks.
The project will provide for any student carrying out a
similar topic or further research work on this subject a solid foundation for
the realization for his other research purpose or work.
The study is also in partial fulfillment of the
requirement for the award of dgree in accountancy to the researcher.
PURPOSE OF STUDY
This study aims at assessing the
internal audit as a subsystem of internal control being operated in the
i. The purposes are outlined below
ii. To aid good accounting system
To eliminate wastage and losses
To survey the external audit unit of union bank Plc. Head quarters
at Victoria Island so as to review the predominant audit
in the bank.
point out deficiencies in the internal control system used by
vi. To appoint out the implications of the
system and suggest
Recommendation that will bring
To evaluate the expenditure procedure of the bank.
ensure adherence management policies procedures, secure completeness and
accuracy of record and safe guard all assets.
1.4 STATEMENT OF THE PROBLEM
is a test to this research work to investigate on the positive
influences the auditors, most emphatically the external auditors have financial
organization like banks.
Auditing has the basic means to control
the financial system of organizations still present fraudulent financial
statements, financial and reports to the public and certainly there has been persistent
gradient practice in the banks which at the end gets the banks distressed.
However, it could be questioned, how
could this situation persist while auditing process had been in existence. In carrying out his research work some
problems have attracted special attention.
They are as
What have been the reasons for consistent fraudulent
practices in the bank.
What are the identified reasons why most financial
reports have not been and the other Financial Institution and Allied Mater
Decree (CAMD), 1990.
To what extent should the external auditors play in banks
to enhance the growth of the bank ad for the banks tokeep standard as required
1.5 HYPOTHESIS FORMULATION
view of the problems and questions already mentioned and
and significance set to be achieved in this research work, the hypothesis for
this may be formulated for acceptance or rejection as follows:
given Ho = null Hypothesis and
Hi = Alternative
1. Ho: Fraudulent
practices have not declined in the bank since
Hi: Fraudulent practices have declined in the
2. Ho: bank have not been employing the services
to audit and investigate their financial statements, reports and records.
Hi: Bank have been employing the services of
investigate their financial statement, report and records.
3. Ho: The
management of banks have been accepting
shows and specialized ideas or advices of auditors managing finance .
4. Hi: The
management o banks have been deception recommendation and specialized ideas or
advices of auditors in managing their finance.
1.6 SCOPES AND LIMITATION
research work is to enable the auditor discuss on union
banks Plc. And
their various affordable auditors, stating the auditors objective, roles and
services in the bank. In view of this,
the project covers the auditing of Union Bank Nigeria Plc.
work has identified the role of external auditor in fraud detection.
In as much a these are so many branches
of Union bank Plc. In specific towns and
location around the country the scope of this study has been subjected within
the Union Bank of Nigeria Plc. Akwa.
The Awka branch
was taken as the case study since it can represent the entire branches of Union
Banks, as they all exhibit and maintain similar functions, business
transactions and the some organizational frame work.
1.7 LIMITATIONS OF THE STUDY
the course of this study, some limiting factors were
The study was carried on amidst of tight academic
regents interruption with lectures, test and private studies was not in common
consequently limited time was available for the study.
Lack of funds which restrict is the researchers
investigation to a few already made work which she could lay her hands on.
The researcher’s in ability to hold talk with all the
auditors and bank managers whole she tended to have interviewed on issue
relating to bank with regards to the roles of external auditors.
The refusal of some university libraries and polytechnic
libraries to conduct a library research on the above topic.
Lastly, our ill-equipped library, which provided little
or no information on this topic, is worth mentioning.
1.8 DEFINITION OF TERMS
analogy o learning accounting, auditing and learning
language is not
perfect, but the similarities the significant.
Some terms used in auditing could have different meaning from that used
outside business hence, the need to define the following terms from auditing
perspective for clear understanding as they would be used in this study.
are the definitions of the terms used in this project work.
It is an undependable examination of and
expression of opinion on the financial statements of an enterprise by an appointed
auditor in pursuance of that appointment and in compliance with any relevant
This encourages the principles bases,
contentious, role and procedures adopted by managements in preparing and
presenting financial statement.
Are all the relevant and reliable data
or information obtaining and recorded by the auditor n arriving at conclusion
of the audit work bases in independent opinion on financial statement.
This means establishing the existence
ownership, valuation, and presentation of assets and liabilities a the balance
Are test, which seek to ensure the
auditors at the external control procedures are being applied as prescribed.
Are those test on transactions and
balance on other procedures such as analytical review, which seek to provide
audit evidence as to the completeness, accuracy and validity of the information
constrained in the accounting records or financial statements.
CHI-SQUARE TEST (X2)
test statistic used to test whether an observed serves of value differ
significantly from which was expected.
It is employed
for testing more than two population properties.
This is communicated statement of
opinion based upon convincing evidence by an independent competent
authoritative person, concerning the degree of correspondence in all material
aspects of accounting and information communicated by an entity with