AUDITOR’S CONTRIBUTION TOWARDS EFFECTIVE MANAGEMENT OF BUSINESS ORGANIZATION. A CASE STUDY OF FIRST BANK PLC OZORO

CHAPTER ONE

INTRODUCTION

Background of the Study

The crux of the project is to highlight the auditor contribution towards effective management of the business organization. Auditors according to Agbawe (2010) can be define as an examination and inquiry into a statement of account the underline records, document, assts and liability by an independent person with a view to express an opinion as to the compliance and correctness of the financial statement to relevant act and regulation and communicate the opinion to interested users. With this definition, the function and importance of auditing and the role of auditors on an enterprise include the prevention of fraud and irregularities, it may also help to detect fraud, error and all forms of irregularities in an organization. It also help in giving professional advises in the area of internal control with this the owners of the business organization can be sure that their funds are well managed and that the same time the public can have trust in the company and invest in it.

Statement of the Problem

In cases where customers are been debited without cash payment in First Bank Plc, Ozoro, reduction of fund from customers account without any reason and also the inability of the ATM to pay cash to it customer. These are some of the problems that this project work will give answers to and also correct error, fraud and irregularities on the bank, if they are able to maintain the following;
Good, strong and reliable internal control
Installation of an effective internal audit
Proper accounting records, and the works of one person should be supervised by another.
Authorization and approval limits should be stated duties and function without each department and section should be defined also they should be good promotion and remuneration prospect that will motivate the employees.
Management should deal decisively with any case of fraud with all this in place various report on fraud, error and irregularities will be a thing of the past.

Objectives of the Study

To appraise the contribution of the external auditor to the stability of both incorporation and unincorporated companies.
To render other services to the organization such as accounting system formulation, taxation, financial etc. If only they are stated on the letter of engagement
To produce a report of opinion of the true and fairness of the financial statement so that whoever that is reading and using then may believe in them.