AUDITING AS AN INSTRUMENT FOR DISCLOSING ACCOUNTABILITY IN AN ORGANIZATION (A CASE STUDY OF UBA PLC IN ENUGU STATE)

CHAPTER ONE

INTRODUCTION

1.1   Background of the Study

This seems to be a national issue. The increasing incidence of fraud, embezzlement and misappropriation of funds and property by accounting officers and chief executives in the public sectors of the Nigeria economy pose pertinent questions as to whether auditing plays any significant role towards ensuring proper accountability and judicious use of funds.

        Investors and other people concerned, therefore, deserved to be assured that the resources which they put at the disposal of those accounting officers are efficiently, effectively and economically managed, since it is known that not all of us are judicious in the management of our own private affairs and much less so, the public affairs assigned on to us.

Accountability has dearly manifested itself as a principle to be pursued if the status quo is meant to be perpetrated.

Various users can define accountability in many ways, thus, accountability as contained in Longman dictionary contemporary English is the condition or quality of being able to give an explanation for one’s actions.

Accountability is also defined as the tendering off return on stewardship relating to the management of funds and other assets of which individuals or institutions had been custodians.       

Auditing is regarded as one of the more or recently established professions born out of the complexity of modern business world. It becomes relevant so as to discourage men from erring and to expose those who erred when they give account of how they managed the funds and property entrusted to them.

This account is usually done by means of financial statement. In order to verify the true and fairness of this reports independence person – an auditor – will audit the account. 

What then is an audit?

An audit is an investigation by an auditor into the evidence from which the final revenue accounts and balance sheets or other statements of an organization have been prepared in order to ascertain that they present a true and fair view of the summarized transactions for the period under review and of the financial state of the organization at the end date, so enabling the auditor to report thereon.  

1.2      Statement of the Problem

Business organizations are economic agents, which have certain objectives to achieve. Primary among them is profit, but however, thus primary objectives might not materialize as a result of increasing the nature of fraud in the financial organization, which is as a result of perceived neglect either real or imaginary by the companies or by any of financial organization concerned.    

The nature of fraud in the financial organization have forced the companies to combine both their primary objective of profit making with audit responsibilities is faced with such problems:

1.          Performance procedure of audit responsibility service

2.          Determining the extent auditing work

3.          Reporting of auditing activities

4.          Should auditor or accountant be responsible for solving all manner of fraud problem?

1.3   Objectives of the Study

The aim of this research work is to evaluate auditing as an instrument for disclosing accountability in an organization with particular reference to United bank for Africa. The specific objectives of this research work include the following;

1.          To critically determine the impact of auditing on the accountability in Nigerian banking industry. 

2.          To determine the relevance of auditing ensuring in accountability in bank.

3.          To determine the significant relationship between the functions of an auditor and the performance of Nigerian banks.

4.          To determine the role of auditor by organization in reducing external conflict.

1.4       Research Questions 

In other to properly articulate the study and the address the problems earlier stated the study would be guided by the following research questions.

1.  What are the impact of auditing on accountability in Nigerian banking industry?

2.  What is the relevance of auditing in ensuring accountability in bank?

3.  What are the relationships between the functions of an auditor and the performance of Nigerian banks?

4.  What are the role of auditor by organization in reducing external conflict.