TABLE
OF CONTENTS
CHAPTER
ONE
1.1 Introduction
1.2 Statement
of the problem
1.3 Research
Question
1.4 Objective
of the study
1.5 Research
Hypothesis
1.6 Significance
of the study
1.7 Scope of
the Study
1.8 Definition
of terms
1.9 Plan of
the study
CHAPTER
TWO
Literature review
CHAPTER
THREE
RESEARCH METHODOLOGY
3.1 Source
of Data
3.2 Population
of the study
3.3 Sample
Size
3.4 Methods
of data collection (Instruments)
3.5 Method
of Data Analysis
3.6 Limitation
to Methodology
CHAPTER
FOUR
Data presentation, Analysis and Interpretation
CHAPTER
FIVE
Summary, Conclusion and Recommendation
5.1 Summary
of Findings
5.2 Conclusion
5.3 Recommendations
Reference
CHAPTER ONE
1.1 INTRODUCTION
Audit itself is a Latin word from the word Audire i.e. to “Hear” in those ancient times, the account of an estate domain or manor prepared by managers are to be head to the owner in the presence of an outside know as auditor.
According to the auditing standards, auditing is defined as the expression of opinion on the financial statement and understanding records of an enterprise by an appointed auditor in pursuant of the audit objectives and in compliance with his appointment and any relevant statutory obligation like laws and regulation.
Also
in this modern time, an audit is a process carried out by a suitable qualified
auditor who has undergone a professional examination by a professional body
well known and recognized in the country, and also who has been given license
to practice as an auditor where by the accounting record of a business entity
are selected to scrutiny in such a way that will enable the auditor to form an
opinion, the embodied in an audit report addressed to those interested parties
who commission the audit or whom the auditor is
responsible to under the status.
1.2 STATEMENT OF THE PROBLEM
Evidence has shown that the banking industry facing
a lot of problems through unqualified or incompetent auditor, a competent
auditor should be able or capable to assessing of auditing procedure in the
banking industry, well, there should be suitable qualified auditor who has
undergone a professional examination by a professional body well known and
recognized in the country, in which the financial statement of the bank
industry will be audit well.
Also another problem facing in assessment of auditing procedure in banking industry is the management, if the management are not well informed there will problem if they cannot provide a well qualified external auditor not internal auditor.
1.3 RESEARCH QUESTION
In order to give his research work some degree of
validity the following question were formulated
- To
establish whether the procedure can reduce the degree of errors.
- To
ascertain the practically of standard auditing in banking industry.
- To
investigate the bank’s accountings systems of internal control and the impact
of audit on this.
- To
establish whether the introduction of audit had aids to detect all kind of
fraud in the banks accounts.
- And
finally, to find out the importance and standard of auditing in banking
industry.
1.4 OBJECTIVE OF THE STUDY
In the early history, it is popularly believed that
the primary purpose of auditing was to detect errors but with development of a
new intellect about the primary objectives of auditing, the purpose is report
which includes the following.
The question of fraud and implementation of account
have been a major problem in the banking sectors today. How far has the respond
to curb this?
- To examine
the auditing procedures being practiced or being carried out in the bank.
- To examine
the problem areas such as “ bottle neck” on the part of the bank, in achieving
their desired goals examine area such as internal control system of the bank
and how strong it is.
- Computerization
of bank transaction common errors in the bank account and many others.
- Finally, to
evaluate the performance of the bank and make contribution to knowledge as
regards operation.
1.5 RESEARCH HYPOTHESIS
The research hypothesis used in this project is as follows:
Ho: An assessment of auditing
procedure in the banking industry is very vital
Hi: An assessment of auditing
procedure in the banking industry is not very vital
1.6 SIGNIFICANCE OF THE STUDY
The auditing procedure is very significance in the
sense that the need for an independent audit arose principally from the
separation of ownership from management and the consequent need to safeguard
the interest of the owners of the company making in the management.
It protect the interest of investing public
provides that company in incorporated under the decree which is the company and
allied company (CAMD) and finally to ensure the shareholder that the directors
have fulfilled their statutory for keeping book and account and safeguarding of
asset.
1.7 SCOPE OF THE STUDY
The study is intended to carried on keystone bank
Nigeria limited the geographical limit is intended to be only at Ilorin branch,
so the study will not cover the population of bank keystone.
The study will be confirmed to a particular section
which is the financial report for a period of six (6) years which are divided
into two, firstly (1985-1988) and secondly (1988-1990) which will give us an
insight into how the bank has fared over the years.
1.8 DEFINATION OF TERMS
1. INTERNAL CONTROL: This is said to be whole system of controls financial and otherwise established by management in order to carry on the business of the enterprises in an order and efficient manner, ensure adherent to management policies safeguard secure as far as possible the completeness and accuracy of the record.
2.
INTERNAL CHECKING: This is
defined as the check on the day to day transaction which operates continuously
as part of the routine system where the work of one person is proved
independently or is seen to be complimentary to that of another the objective
is the prevention or early detection of fraud and errors.
3.
INTERNAL AUDITS: This is
defined as an independent appraisal of activities within the organization for
the review of operations as a service management. Internal audit is normally
conducted by the company’s own specially assigned staff.
4.
AUDITOR REPORT: This is
said when an auditors has finished his audit work, there must be a report by
him which will be the end product of work done such as a standard report should
be expressed in fairly uniform language and depending on circumstance, may be
two, three or more paragraph length.
1.9 PLANS OF THE STUDY
This study consist of five chapter one as the introduction of the study, Chapter two contains Literature review, Chapter three is the Historical background and financial report of the case study bank keystone, chapter four consist of the accounting policies and account of the bank while chapter five consist of the summary of the research as well as conclusion and recommendation.
AN ASSESSMENT OF AUDITING PROCEDURE IN THE BANKING INDUSTRY (A CASE STUDY OF KINGSTONE BANK TAIWO BRANCH, ILORIN.)
