1.1 Back ground of the study.
An audit is the examination and checking of financial statements by a professional auditor or accountant who has had no part in its preparation. The process involves an examination of the evidence from which the final revenue accounts and balance sheet, or other statements of an organization have been prepared, in order to ascertain that they present a true reflection 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. The objective of the ordinary audit of financial statements by the independent auditor is the expression of an opinion as to the fairness with which…show more content…
Auditor’s business and professional futures depend on integrating attest services with, the information user’s demand and delivery systems they can use. This integration will involve developing attest services to deal with 1) relevance as well as reliability 2) non-financial information as well as traditional financial statements 3) electronic databases as well as printed financial reports. Traditional attest functions have therefore expanded resulting in an equally expanded assurance function to involve the expression of written or oral conclusions on the reliability and / or information systems.
We can summarize the main objectives of auditing therefore as: 1. The confirmation of the accuracy of accounts and statements 2. Detection of errors and frauds. 3. Prevention of errors and frauds.
However, to qualify as an auditor, one must be a member of the institute of Chartered Accountants as defined under the Chartered Accountants Act 1963 (170) and must not have been disqualified from acting as an auditor by any legislative instrument by the registrar. An auditor, therefore, is a person who reports on the accounts of an organization or enterprise. Nevertheless; there are two types of audit, namely Internal and External audit. But for the purpose of our study; we would want to concentrate much on internal audit.
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