THE AUDIT DEPARTMENT AND ACCOUNTABILITY IN THE MINISTRY OF FINANCE ENUGU STATE

CHAPTER ONE

INTRODUCTION

1.1            BACKGROUND OF STUDY

In the past, when audit or auditing is not well known, many account used the opportunity to look public companies because there was no one to examine and give evidence to what they have done, but this has changed since everybody has know known the importance of audit department.

          So this chapter examines the regulatory framework for enforcing accountability in the ministry of fiancé Enugu state and Infact in the entire civil service.

          In finance management, this is to account that is to furnish a reckoning (to someone) of none received and paid out and audit is seen as an exercise which is carried out in order to lend credence to statement prepared by directors of the company (who are not the owners) for use by the owners of business (shareholders), the creditors, the employees, the government, etc.

          What accountability does is to provide answers related to stewardship. What why whom, whose, which and how.

vWhat is to be accounted for

vWhom is to account for it

vTo whom should the account be submitted

vDoes responsibility go with commensurate authority

vWhy should accounts be rendered?

These questions are necessary to satisfy a host of interest such as policy makers, public officers, social scientists, the general public audits, on the other hand attempt to state that the account (or accountability) is satisfactory.

1.2            DISTINCTION BETWEEN ACCOUNTANCY AND AUDITING

Originally the work of professional accountants was confined largely to the checking of the arithmetical accuracy of the detailed records in books of account. The agreement of the trail balance, and the preparation of account I Infact, to what may be described as “accountancy work”, but nowadays a very large part of a professional accountants work is that of auditing.

          The difference between accountancy and auditing is not clearly understood by many business men, it being thought that if accounts are prepared by a professional accountant, be necessary guarantee their accuracy.

          This however, is far from being the case it is necessary to draw a distance line of demarcation between accountancy thing complication of the accounts therefore and auditing which is the examination of the completed records and the subsequent submission of a report thereon.

          If an accountant is instructed merely to prepare account from a set of books the work involved would be that of agreeing the tried balance, and thereafter preparing the profits and loss account and the balance sheet.

          He would be acting simply as an expert accountant, and not in any way as an auditor. Auditor examine the balance sheet and profit it and loss account prepared by accountant as a result of his examination of the books, account, vouchers etc. and of his inquiries, the auditor must satisfy himself that such balance sheet and profit and loss account are properly drawn up so as to exhibit a true and fair view of the state of the affairs and of the earning of the particular concern.

          The difference between accountancy and auditing was an important factor in the case of Apfel V Annan doctor and company.

          Other difference include that accountant is employed by the management on a salaries basis, the auditor is responsible to the shareholders and engaged on a contract basis.

          An audit is not conceded with writing up of any books of accounts or preparing profit and loss account and balance sheet or any other statement of account.

          An audit begins only when the statement of account is ready and handed to the auditor.

1.3            DEFINITION OF TERMS

Accountability is furnishing satisfactory reliable, verifiable and accessible records, reasons, and explanation for action of those having custody of power, human resources public money and other resources.

1.4     STATEMENT OF PROBLEM
internal control
problem arise in the application of normal auditing principles and procedures to the audit of companies employing a small number of administrative staff.

          These problem derived from two main cause includes the following

vSubstantial domination of the accounting and financial management function by one person

vLimitation on the effectiveness of internal control owing to the small number of employee etc.

1.5                      SIGNIFICANCE OF THE STUDY

The significance of this study is to achieve a great success in contributing the little I have in solving the problem that faces the audit department and accountability in the ministry of finance Enugu state and to find a means to tackle most of the inherent problem effectively.

1.6     SCOPE OF AND LIMITION

Financial constraint

As a student there was not enough capital to spend in transport and fact finding and borrowing of necessary literature that would have helped in the writing of this research work.