Key Features:

- No of Pages: 81

- No of Chapters: 05

- Well researched and organized

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Introduction:

Abstract

External auditing is an independent, objective assurance and consultancy activity systematically designed to add value and improve an organization operations, performance, efficiency and effectiveness. It helps the organization to achieve its objectives and goals by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of governance, risk control, planning and management control (IIA Report, 1999).



In the past, auditors complained of fraud and theft as an objectives of auditing and it was the auditors duty to report to shareholders of all the dishonest acts that were observed and had affected the propriety of the contents of the financial statement and by early 1930s, it was recognized that the auditing objective was for the verification of accounts (Carey, 2000).

Table of Content

abstract

chapter one

chapter two

chapter three

chapter four

chapter five

Introduction

The term audit is derived from the Latin verb “audire” which means ‘to hear’. The origin of audit dates from ancient times when the landowners allowed tenants farmers to work on their land whilst the landowners themselves did not become involved in the business of farming. The land lords relied upon an overseer who listen’ to the accounts of stewardship given by the tenants. At this period the word audit is described as:

‘The independent examination of, and expression on, the financial statements of an enterprise by an appointed auditor in pursuance of that appointment an in compliance with any relevant statutory obligation’. Adeniyi, 2004.

Since then auditing developed over the years, but it was not until the late nineteenth century (with the formation of joint stock companies) that auditing became widely accepted in the United Kingdom and by extension, in other parts of the world.

The Joint Stock Company Act of 1844 was the first legislation in Britain to require all incorporated businesses to have their annual financial statements examined by an auditor. Early auditors were, in many cases, non-accountants who were required to state whether the accounts showed a ‘true and correct’ view of the state of affairs of the company.