Key Features:
Chapters: 5
No of Pages: 138
Methodology: Chi Square
Abstract:
The purpose of this research project was to find out external another and published accounts. A study of some selected limited liability company in rivers states. The method used to carry out this research is primary data which is questionnaire distribution to the respondents. The research design used is quasi-experimental design. Yaro Yamen’s formula used to determine the sample size. 50 questionnaires distributed and 48 of them were duly returned. The statistic tools used is chi-square the three hypotheses were accepted because they meet the necessary requirement for acceptance of an alternate hypothesis.
It was found out that the reliability of published accounts affect investment decision. Finally, from the analysis we saw that firms evaluate the work done by the external author.
Based on the analysis, we conclude that the published accounts have a significant relationship with the true position of the enterprise.
Finally, we recommended the external auditors and management relationship should be at arm length to ensure adequate degree of independent work and only competent external auditors should be engaged to prepare financial report
Table of Content:
CHAPTER ONE
1.0 Introduction - - - - - - -
1.1 Background of the Study - - - - -
1.2 Statement of the Problem - - - - -
1.3 Purpose of Study - - - - - - -
1.4 Objective of Study - - - - -
1.5 Research Question - - - - -
1.6 Hypothesis - - - - - -
1.7 Significance of the Study - - - - -
1.8 Scope of the Study - - - - - -
1.9 Limitation of the Study - - - - -
1.10 Definition of Terms - - - - - -
1.11 Organization of Study - - - - -
References
CHAPTER TWO
2.0 Literature Review - - - - - -
2.1 Introduction - - - - - - -
2.2 Nature of Audit and External Auditors
Independence - - - - - --
2.3 Published Financial Statement - - - -
2.4 Published Financial Statement Disclosure - -
2.5 Basic Content of the Audit Report - - - -
2.6 Opinion of External Auditor’s and Financial
Statement User - - - - - -
2.7 Unqualified Opinion - - - - -
2.8 Opinion Based in Part on Report of
Another Auditor - - - - - -
2.9 Departure from recognized Accounting Standards -
2.10 Emphasis on a Matter - - - - -
2.11 Qualified Opinion - - - - - -
2.12 Uncertainty - - - - - - -
2.13 Disagreement - - - - - - -
2.14 Materiality and Fundamentality - - - -
2.15 Limitation on Scope of Examination - - -
2.16 Qualified Audit Report - - - - -
2.17 Auditors Report to the Members - - - -
2.18 Major Uncertainty Affecting a Clients Business -
2.19 Qualification as to Accounting
Procedure and Disclosure - - - - -
2.20 Adverse Opinion - - - - - -
2.21 Disclaimer Opinion - - - - - -
2.22 Restriction imposed by Client - - - -
CHAPTER THREE
3.0 Research Methodology - - - - -
3.1 Research Design - - - - - -
3.2 Sampling Procedure - - - - - -
3.3 Determination of Sample Size - - - -
3.4 Data Collection Method - - - - -
3.5 Primary Data - - - - - - -
3.6 Secondary Data - - - - - -
3.7 Questionnaire Design - - - - - -
3.8 Operational Measure of Variables - - - -
3.9 Data Analysis Techniques - - - -
References - - - - - - -
CHAPTER FOUR
4.1 Introduction - - - - - -
4.2 Return of Questionnaires - - - - -
4.3 Testing Hypothesis - - - - - -
CHAPTER FIVE: FINDINGS, DISCUSSION, CONCLUSION & RECOMMENDATION
5.1 Finding - - - - - - -
5.2 Discussion - - - - - - - -
5.3 Conclusion - - - - - - - -
5.4 Recommendation - - - - - -
Bibliography - - - - - - -
Appendix - - - - - - - -
Introduction:
Recent business failure involving or caused by inaccurate published Accounts or Financial Reporting have focused worldwide attention on the external auditors. Roles and responsibilities with respect to his ability to separate himself both physically and mentally from the clients company. It is important to note that, in obtaining a general understanding of the external Auditor (the legal and regulatory framework applicable to the entity and industry) and how the entity and industry complies with that framework. The external auditor is in a better position to cause operations or call into question the entity continuance as a going concern, thus the external auditor can achieve on a strict basis of being independence.
The need for financial information cannot be over-emphasized. This was noted by Asechemie [1994] that a lot of money is spent on setting up and operating managerial accounting systems in the hope of making available useful information in the management process. But why information at all? Can managers not operate without information? Why is it important? Three identifiable conditions exist for the explanation of the importance of information.
These are the off the scene condition, uncertainty condition. This in effect, point to the fact that society would integrate without information and information would help in creating awareness about the unknown.
Information as an important component that leads to social economic and political development of society needs to be regulated especially those that are financial in nature so as to deduce relevant information. Lee [1982] states that the complexity or an economic structure regulates the types and amount of information which flows through the system.
However, the identity of such information depends not so much on its volume as on its quality. Its user must be confident of its reliability and credibility. This quality basically explains the importance of information to a society. The problem associated with the financial information and external Auditor’s independence is unique that a basic understanding of auditor’s role and duties will help to clear the puzzle that surrounds the audit function.
In addressing the issue, Lee [1982] noted that the degree of confidence held in the Auditors opinion and in the annual financial statement he is attesting by the shareholders and other users of the statement varies directly with his ability, physically and mentally to disregard and to disassociate himself from the client company and its management.
Published Accounts should be studied carefully by users before making use of it. He went further to say that the particular use will determine the method of analysis to be used in evaluating the published accounts.
Auditing as a concept can be defined as an independent examination of an expression of opinion on the financial statement of an enterprise by an appointed auditor and in compliance with any relevant statutory obligation. Audit can also be defined as an independent review and investigation of the Financial Statement of the underlying transaction with a view to reporting thereon.
Eton (1996) states that Audit given credibility to accounts and third parties tend to rely more on audited accounts than unaudited accounts especially where finance is being sought or business is being offered for sale.
Also, he said that it is not the main purpose of audit to detect errors and fraud. It is the director’s task to device procedures to minimize such risk and discover them as they occur.
However, the fact that an audit is regularly undertaken will act as a moral detriment against fraud, while persistent error or serious fraud should be discovered if a reasonably competent audit has been conducted. In this context an external auditor is the appointed person by shareholder management of the company to carry out an audit function.
This study is aimed at reviewing, evaluating the roles of external auditors in the public accounts of some selected Limited Liability Company in Rivers State.
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