THE AUDITOR AS AN INDISPENSABLE PART OF A PROFITABLE BUSINESS ORGANIZATION

Project Abstract

The auditor plays a crucial role in ensuring the financial health and success of a business organization. This research explores the significance of the auditor as an indispensable part of a profitable business organization. Auditors provide an independent and objective assessment of a company's financial statements, internal controls, and overall operations. By conducting audits, they help identify areas of improvement, detect errors or fraud, and provide valuable insights for decision-making. Auditors contribute to the credibility and reliability of financial information presented to stakeholders, such as investors, creditors, and regulators. Their expertise and scrutiny help maintain transparency and accountability within the organization, fostering trust among stakeholders. Moreover, auditors help businesses comply with legal and regulatory requirements, reducing the risk of financial penalties or legal repercussions. Auditors also serve as advisors to management, offering recommendations for enhancing efficiency, reducing risks, and improving financial performance. Their insights can lead to cost savings, process improvements, and strategic planning that contribute to the organization's profitability. By providing an independent perspective, auditors can identify potential weaknesses in internal controls and operational processes, helping management mitigate risks and enhance operational effectiveness. Furthermore, auditors play a key role in enhancing corporate governance practices within a business organization. Through their audits and recommendations, they promote ethical behavior, integrity, and accountability among employees and management. By ensuring compliance with laws, regulations, and ethical standards, auditors help businesses build a strong reputation and sustainable competitive advantage in the market. In conclusion, the auditor is an indispensable part of a profitable business organization due to their role in ensuring financial integrity, transparency, and compliance. Their independent assessment and recommendations contribute to the overall success and sustainability of the organization. By partnering with auditors and valuing their insights, businesses can strengthen their financial position, mitigate risks, and achieve long-term profitability. Recognizing the importance of auditors and investing in their expertise can lead to a competitive edge and enhanced reputation in today's complex business environment.

Project Overview

<p> </p><h3><strong>INTRODUCTION</strong><br><strong>1.1 &nbsp; BACKGROUND OF THE STUDY</strong></h3><p>Due to the problem that arrives from the shareholding employees, investors and other body urgencies in the act of been doubting on report presented to them, an auditor will be of good help because it serves as an inappeasable a profitable business organization. However, the auditor is regarded as the eyes and ears records of the organization in order to encore that the financial statement are a reflection of the affairs of the organization as appeared in these records. Since this records are summary of generation for a specified period. The auditor also goes behind these records to the source document in other to confirm the accuracy, completeness and validity of the records transaction. &nbsp;</p><p>&nbsp; &nbsp; &nbsp; &nbsp; <br>According to A.W. Honliness (1959) p.21, he stated that “there is a requirement that all registered limited liability companies must have their financial records audited annually by a firm of auditors so appointed.” He further stated that the law concept compel the auditor to express his opinion to the authoritative, the auditor must be seen to be independent. The duty of preparing the financial statement is placed on the directors, white that of reporting is on the auditor who is responsible to the shareholders all these are aimed towards achieving project in the business organization. Finally, Rogers Adams rightly defined auditing as “the independent examination of and expressing of opinion on the financial statement of an opinion on the auditor practice committee (APC) 1989. This opinion is expressed in the form a report. The person who carries out such examination is known as an auditor.</p><h3>&nbsp;<br><strong>1.2 &nbsp; OBJECTIVE OF THE STUDY</strong></h3><p>(a) &nbsp; &nbsp;To ascertain the impact of audit on business.<br>(b) &nbsp; &nbsp;To examine the performance of accounting system in business organization, if it to up to standard.<br>(c) &nbsp; &nbsp;To examine if a good internal control is being practice in the business.<br>(d) &nbsp; &nbsp;Identify the problems organization face as a result of the introduction of audit.<br>(e) &nbsp; &nbsp;To examine the facts contained in the audit of business finance.</p><h3>&nbsp;<br><strong>1.3 &nbsp; &nbsp;SIGNIFICANCE OF THE STUDY</strong></h3><p>(a) &nbsp; &nbsp; Business organization will through this research work, improve on their performance since the researcher will let the public know all that in required of the guidelines.<br>(b) &nbsp; &nbsp; Fraud identification Another significance is to identify frauds misappropriation or embezzlement of business fund usually in the form of cash or of its other assets.</p><h3><br><strong>1.4 &nbsp; STATEMENT OF HYPOTHESIS </strong><strong>&nbsp; </strong></h3><p>A hypothesis is a testable tentative and probable explanation of the relationship between two or more variable that creates a state of affairs or phenomena. For the purpose of this project, the following pertinent hypotheses have been formed.<br>1. &nbsp;H0: The Auditor is not an indispensable part of a profitable business organization<br>&nbsp; &nbsp; &nbsp;H1 : The Auditor an indispensable part of a profitable business organization<br>2. &nbsp;Ho: &nbsp;Auditors opinion does not assist management in decision making.<br>&nbsp; &nbsp; &nbsp;H1: &nbsp;Auditors opinion assist management in decision making<br>3. &nbsp;HO: &nbsp;Auditing does not help in minimizing fraud in an organization.<br>&nbsp; &nbsp; &nbsp;H1: &nbsp;Auditing help to minimize fraud in an organization<br>4. Ho: &nbsp; Auditing is not a mirror of shareholders investment and the turn over achieved in an organization.<br>&nbsp; &nbsp; &nbsp;H1: &nbsp;Auditing is a mirror of share holders investment and the turn over achieved in a company.</p><h4>&nbsp;<br><strong>1.5 &nbsp; &nbsp; SCOPE OF STUDY</strong></h4><p>This research work covers the facts contained in the business finance auditing and organization welcome the auditing processes, the impact the auditing have made so far and problem facing the organization as a result of this business organization finance.</p><h4>&nbsp;<br><strong>1.6 &nbsp; &nbsp; LIMITATION OF STUDY</strong></h4><p>This research work on the problem and prospects of an auditors as an indispensable profitable business organization has been a major literature to write about for grassroots transparency. It could be useful if it is properly evaluated, but some limiting circumstance might prevent not to have adequate information. The shortest duration for submission of the research work could also be a great problem for a proper cover. The organization could also be a problem. &nbsp;</p><h5><br><strong>1.7 &nbsp; &nbsp; DEFINITION OF TERMS</strong></h5><p>FRAUD – It is used to refer to irregularities obtain an unjust or illegal benefit.<br><strong>AUDIT EVIDENCE –</strong>&nbsp;This audit evidence on information obtained by the audit in arriving at the conclusion on which he bases his opinion on the financial statement.</p><p><br><strong>REVIEW OF FINANCIAL STATEMENTS-</strong>&nbsp;The auditor should carry out such review of the financial statements as is sufficient, in conjunction with the conclusion draw form the other auditor evidence obtained, to give him a reasonable basis for his opinion on the financial statements. &nbsp;<br><strong>ACCOUNTING EVIDENCE-</strong>&nbsp;The auditor should ascertain the enterprises system of recording and processing transaction and asses its adequacy as a basis for the preparation of financial statements. &nbsp;<br><strong>LETTER OF ENGAGEMENT-</strong>&nbsp;This provide the auditor with an opportunity to place on record the understanding of the responsibilities management in relation to internal control and fraud and at the same time define the auditor objective and responsibilities.</p> <br><p></p>