THE ROLE OF STATUTORY AUDITOR IN GOVERNMENT OWNED INSTITUTIONS

Project Abstract

Government-owned institutions play a crucial role in the economy and society, providing essential services and infrastructure to the public. As custodians of public funds, these institutions are subject to strict regulations and oversight to ensure transparency and accountability. One key oversight mechanism is the statutory audit, conducted by external auditors to provide an independent assessment of the institution's financial statements and operations. The role of the statutory auditor in government-owned institutions is multifaceted and carries significant responsibilities. The auditor is tasked with evaluating the institution's compliance with relevant laws and regulations, assessing the effectiveness of internal controls, and providing assurance on the accuracy and reliability of financial reporting. Through their audit procedures, auditors identify risks, errors, and irregularities that could impact the institution's financial health and integrity. In addition to financial audits, statutory auditors in government-owned institutions may also perform performance audits to evaluate the efficiency and effectiveness of operations. These audits help identify areas for improvement and support decision-making processes within the institution. By providing objective and evidence-based assessments, auditors contribute to enhancing governance, risk management, and internal control systems. Furthermore, statutory auditors play a critical role in promoting accountability and transparency within government-owned institutions. Their independent assessments help stakeholders, including government authorities, investors, and the public, gain confidence in the institution's financial management and reporting practices. By highlighting areas of concern and making recommendations for improvement, auditors drive positive change and support the institution in fulfilling its mandate effectively. Challenges may arise in the execution of statutory audits in government-owned institutions, including complex organizational structures, diverse operations, and potential conflicts of interest. Auditors must navigate these challenges with professionalism, integrity, and adherence to professional standards to maintain their credibility and effectiveness. Collaboration with internal auditors and management is essential to ensure a comprehensive audit approach and address issues proactively. In conclusion, the role of the statutory auditor in government-owned institutions is vital in upholding accountability, transparency, and good governance. By conducting rigorous financial and performance audits, auditors help safeguard public funds, identify areas for improvement, and support informed decision-making. Through their independent assessments, auditors contribute to the overall effectiveness and sustainability of government-owned institutions in serving the public interest.

Project Overview

<p> </p><p><strong><br>INTRODUCTION</strong></p><p><strong>1.1 &nbsp; &nbsp; BACKGROUND TO THE STUDY</strong></p><p>It has been said that the traditional role of financial account was to give account of the stewardship to the owner of business who was divorced from management of business. There is always the tendency for the owners to debt the content of the report presented to them. They fear that the report may contain errors, conceal fraud, deliberately misleading or lack in the information content. To solve this problem of credibility in reports and accounts there is always the need to appoint an independent person to investigate the report on his findings. Therefore, auditing can be defined as the independent examination of the books of account of individual organization etc with a view to conforming or refusing the assertion in the report. It is for the purpose that the professional bodies such as (ICAN) companies and Allied matters Decree 1990, stipulates the mode of appointment of auditors (sec. 357) (1) of 1990. And the qualification of auditors is to ensure a true and fair view of their report on financial matter to ensure that the financial position portray true and fair views, the auditor will enquire whether the institution is well ruled, in particular way.</p><p>The aim of the management audit is therefore to inquire into and report on how well the institution has fallowed the view of its member and carried them out completely. It is quite surprising, that irrespective of all the stipulated roles of statutory auditors, in controlling of fraud in government institution jet, misappropriations in government owned institution to extend that some of the establishment are put into bankruptcy. The problematic question government of this structure and procedure in which the researcher would attempt to give some answer are: Does the statutory auditor in the state audit person their actual responsibility as stipulated. Flow efficient is then in making sure that fraud is put to an end mostly in government institutions. The basic responsibilities of an auditor under companies and allied matters act (CAMD) of 1990 are to make report to the members on the financial statement audited. The report should state whether: Proper books of account have been kept proper returns adequate for the purpose of audit have been received from branches not visited by the auditor. Whether financial statement agree with the accounting records and returns.</p><p>The aim of this research project is to verify, enlightens and analyze express by the statutory auditor with respect to fraud. However, the auditor should recognize the possibilities of material misstatement or irregularities of fraud, which state of affairs shown by the financial statement. The auditor should also see that errors, which could distort the trueness and fairness of the financial statement, are corrected. Therefore, a statutory auditor is said to a watchdog and not a blood hand. Finally, the basic fraud on the management who may often obtain researcher assurance that the duties will be discharged by establishing an adequate system of internal control.</p><p><strong>1.2 &nbsp; STATEMENT OF PROBLEM</strong></p><p>The statement of the problem is as follows:</p><p>1. Inadequate finance</p><p>2. Inadequate base for auditing</p><p>3. Lack of trust</p><p>4. Inadequate cooperation.</p><p><strong>1.3 &nbsp; OBJECTIVE OF THE STUDY</strong></p><p>The objectives of the researcher among other things are the following:</p><p>1. To ascertain the impact of fraud control in government owned institution and the economy.</p><p>2.To ascertain the level of help, which the auditor derives from the government.</p><p>3. To determine the constant hindering of fraud control in government owned institutions.</p><p>4. To identify the benefits, which the economy will enjoy from the control of frauds in government owned institutions.</p><p><strong>1.4 SIGNIFICANCE OF THE STUDY</strong></p><p>This will enlighten and encourage my fellow students in banking to take the study more serious and our knowledge to the extent that the impact of auditors and their roles. It will also help us to appreciate the reason for the studying auditing as course and to understand the course to the end. To the society at large, the significance is to expose to the public how important auditors are to the society, their integrity and the abilityof the auditors to give professional advice.</p> <br><p></p>