ABSTRACT
This study is an attempt to discover the need for an internal auditing in an organization for better performance. The research involved getting the opinion of accountants of three categories namely, Head of department of chief accountants, organization and practicing accounting in the federation. The researcher will make use of primary and secondary data. The methods of data collection would includes oral interview, observations and questionnaire scores standard deviation and normal curve would be use to investigate while percentage table and mean would be used in the analysis of response from respondents. It was generally discovered that the internal auditing should be encouraged in corporate organization to improve organizational performance restore probity, accountability and integrity in our national life.
TABLE OF CONTENTS
Title i
Approval ii
Dedication iii
Acknowledgement iv
Abstract v
Table of contents vi
Chapter One – Introduction
1.1 Background of the study 1
1.2 A Brief History of Union Bank of Nigeria plc 2
1.3 Statement of problem 3
1.4 Objective of the study 4
1.5 Significance of the study 5
1.6 Scope of the Study 6
1.7 Limitation of the Study 7
1.6 Definition of Terms 8
Chapter Two – Literature Review
2.1 Definition of Fraud 11
2.2 Type of Fraud 11
2.3 Auditors, His Rights, Duties and Status 12
2.4 Roles of Auditors 14
2.5 The Auditor and Fraud Detection 17
2.6 Indications of Fraud 18
2.7 The Auditing Guidelines Concerning Fraud Detection 19
2.8 Reporting to Members and Management 20
2.9 Liabilities of an Auditor 21
Chapter Three – Research methodology
3.1 Introduction 31
3.2 Research design 31
3.3 Sample Size 32
3.4 Sample Techniques 32
3.5 Research Instrument 32
3.6 Validation of Instrument 32
3.6 Reliability of the Instrument 32
3.7 Method of Data Collection 33
3.8 Questionnaire Design 33
Chapter Four – Data Analysis and Presentation
4.0 Introduction 34
4.1 Data Presentation 34
Chapter Five – Summary Conclusion and Recommendations
5.1 Summary of the Study 36
5.2 Conclusion 37
5.3 Recommendation 39
5.4 Suggestions for Further Studies 39
Bibliography 41
Appendix 43
Questionnaire 44
CHAPTER ONE
INTRODUCTION
BACKGROUND OF THE STUDY
An audit is the independent examination of an expression of the opinion of the financial statement of enterprises by an auditor. In pursuance of this objective, he may disclose defalcation and irregularities, which are capable of impairing the truth and fairness of the financial statement.
In recent year there has been considerable debate over the extent of the statutory auditor’s responsibility for the dictation of fraud. This has been stimulated by the continued uncertainty over the extent of the auditor liability to third parties for negligent audit work. It is obvious that failure to detect a major fraud may lead to a loss for the client or some third party to whom a duty of care is owned. The important question is low for do the auditor responsibility.
The auditing profession had always held tight to the opinion that the primary responsibility for both prevention detection of fraud and other irregularities rest with management.
The auditor duty does not require him especially to search for fraud unless required by stature or the specific term of his engagement. In accordance with normal practice audit, will be planned primary to enable us to express our professional opinion, and auditor merely obliged to plan his work end design his procedures so that he has a reasonable chances of detecting those, illegalness which might impaired the truth and fairness of the financial statement.
A Brief History of Union Bank of Nigeria Plc
Union bank is one of the foremost commercial bank today with every strong capital ban.
The bank which was formally known as dominion colonial overseas (DCO) started banking business in Nigeria in 1917 the bank today world has no many branches scattered all over the world. The bank also branched into their business such as union assurance company ltd. Union home savings and loan ltd, union on March into union stock broke etc.
STATEMENT OF THE PROBLEM
It is a test to this research work to investigate on the positive effects and influences the auditors most emphatically the external auditors have financial organization like banks.
Auditing has the basic means to control the financial system organization sill prevent fraudulent financial statements, financial and report to the public and certainly there has been persistent gradient practices in the bank which at the end gets the banks distressed.
However it would be questioned how this situation could persist while auditing process has been in existence in carrying out his research work some problems has attracted special attention. They are as follows;
What have been the reasons for consistent fraudulent practices in the bank?
What are the identified reasons why most financial report has not been and the other financial institution and Allied Mater decree (CAMD) 1990?
To what extent should the external auditors play in bank to enhance the growth of the bank for bank to keep standard as required by CAMD
OBJECTIVES OF THE STUDY
The aim of the study is to critically look or examined the banking business in Nigeria and identifying the role the external auditors play in fraud detection.
It is well know that one of the problem facing banks in Nigeria is mismanagement of fraud or inappropriate accounting for receipts and payment. Based on the problem identified above the objectives of the research work include.
To highlight the need for appropriate review and report upon the account and balance sheet for banks by external auditors
To educate on the necessity of banks to keep in mind the essence to comply with the provision of the bank and other financial institute decree 1971.
To reach the banks to ensure compliance with the company and Allied Matters decree (CAMD) 1990 as amended.
To educate auditors land credence to the account of the bank and to ensure compliance with SAS to and IAS 30.
RESEARCH QUESTION
What are auditors land credence to the account of the bank?
How can we educate on the necessity of banks to keep in mind the essence to comply with the provision of the bank?
What are the appropriate review and report upon the account and balance sheet for banks by external auditors?
THE ROLE OF EXTERNAL AUDITING IN FRAUD DETECTION A CASE STUDY OF UNION BANK ASABA DELTA STATE
