Ads: Get Admission into 200 Level and Study any Course in any University of Your Choice. Low Fees | No JAMB UTME. Call 09038456231

Auditor’s Legal Responsibility and its Effect on Accounting Profession

ADS! Diabetes Permanent Solution! Only 15 Packs Left. HURRY!!!


Auditor’s Legal Responsibility and its Effect on Accounting Profession.

ABSTRACT

The study investigate auditor’s legal responsibility and its effect on accounting profession. A survey research design was adopted in the course of the study. The study used a sample size of 49. The total population from which the samples size was derived are the population who of legally registered  and practicing accounting firm.

Questionnaire was the main data collection instrument used for the collection of field data from the respondents. Field data were collected from respondent in three different states (Anambra state, Enugu and Akwaibom state)   all in south east and south south Geo-political zones of Nigeira.

The field data collected from the respondent were all presented in tables and analysed using mean, standard deviation and analysis of variance(ANOVA).

The finding shows that auditor’s legal responsibilities such as detection of fraud, prevention of  fraud and error etc have  positive effect on accounting profession.

The result also indicated that  auditors play vital role in auditing financial record of organization in other to  balance financial account, check and detect financial fraud and also authenticate the  correctness of financial information passed to it end users as one of the functions of the legal responsibilities of auditors in accounting profession.

It is recommended in the research that auditors should be conscious of their legal responsibilities in accounting profession during auditing activities, it was also recommended that auditors should be  free from the influence of internal or external factors which could affect  their profession negatively, hence, auditors should always authenticate financial statements in order to be credible in accounting profession.

INTRODUCTION

Background to the Study

Auditing is a systematic examination of books, accounts, documents and vouchers of an organization to ascertain how far the financial statements present a true and fair view of the concern. It also ensures that the books of accounts are properly maintained by the concern as required by law.

Auditing is defined as a systematic and independent examination of data, statements, records, operations and performances (financial or otherwise) of an enterprise for a stated purpose.

In any auditing the auditor perceives and recognizes the propositions before him/her for examination, collects evidence, evaluates the same and on this basis formulates his/her judgment which is communicated through his/her audit report

Auditors’ auditing of a financial record provides third party assurance to various stakeholders that the subject matter is free from material misstatement.

The term is most frequently applied to audits of the financial information relating to a legal person. Other areas which are commonly audited include: internal controls, quality management, project management, water management, and energy conservation.

As a result of an audit, stakeholders may effectively evaluate and improve the effectiveness of risk management, control, and the governance process over the subject manner.

That an auditor has the responsibility for the prevention, detection and reporting of fraud, other illegal acts and errors is one of the most controversial issues in auditing, and has been one of the most frequently debated areas amongst auditors, politicians, media, regulators and the public (Gay et al, 2013).

This debate has been especially highlighted by the collapse of both small and big corporations across the globe.

The auditing profession in Nigeria has caught the media’s attention following financial scandals in some of the Nigerian banks such as Intercontinental Bank, Oceanic Bank, Afribank, and Bank PHB among others.

REFERENCES

Abiodun, E. (2008), “How shareholders’ association Terrorise quoted Companies”, This Day, 1(112):4638 Accessed: 15 February 2010.

Adeduro, A.A. (2012): “An investigation into frauds in banks”. An unpublished thesis of University of Lagos.

Anakudo N.E(2007) Auditing  and investigates ugo press, Achara layout Enugu Pp17

Adeniji, A. (2011 ): Auditing and Investigation. Lagos, Value Analysis Publishers the jurisdiction of accounting in the United Kingdom. Accounting, Organizations and Society, 20: 547-581.

Aderibigbe, P. (2013): Auditing: Conceptual Emphasis. Ibadan, Lyons Ltd

Aderibigbe, P. and Dada, S. O. (2007): Microauditing Principles. Lagos ICAN Students Journal, 11 (1): 23.

Adeyemi and Uadiale (2011)The impact of structure, environment and interdependencies on the perceived usefulness of management accounting systems. Accounting Review, 61:16-35.

Enter your email address:

Delivered by TMLT NIGERIA

Join Over 3,500 000+ Readers Online Now!


=> FOLLOW US ON INSTAGRAM | FACEBOOK & TWITTER FOR LATEST UPDATES

ADS: KNOCK-OFF DIABETES IN JUST 60 DAYS! - ORDER YOURS HERE

COPYRIGHT WARNING! Contents on this website may not be republished, reproduced, redistributed either in whole or in part without due permission or acknowledgement. All contents are protected by DMCA.
The content on this site is posted with good intentions. If you own this content & believe your copyright was violated or infringed, make sure you contact us at [[email protected]] to file a complaint and actions will be taken immediately.

Tags: , , , , , , ,

Comments are closed.