ANALYSIS OF AUDIT PROCEDURE IN A PUBLIC SECTOR ORGANIZATION (A CASE STUDY OF KADUNA STATE WATER BOARD)


ANALYSIS OF AUDIT PROCEDURE IN A PUBLIC SECTOR ORGANIZATION (A CASE STUDY OF KADUNA STATE WATER BOARD)   

ABSTRACT:   

Auditing is an essential tool for proper governance in the public sector. It constitutes an indispensable control mechanism for ensuring proper management of economic resources and for ensuring compliance with prescribed financial policies and regulations.

Effective audit procedures become important to the public sector organization in order to curtail the rate of financial mis-management and abuse which hampers the growth and proper administration of the organization.

Auditing in the public sector has extended more than the traditional financial statement audit to the value for money audit. This audit is concerned with the economy, efficiency and effectiveness of a particular function or department within the body whose affairs are being audited.

For the purpose of the study, data were collected through the use of questionnaire, observation and other written documents.

Major findings of the research shows:

⦁    That auditing cannot exist without the preparation of accounts.

⦁    That auditing has helped to uncover irregularities, error and other financial mismanagement.

⦁    That auditing is imperative in public sector as it would help them motivate and maintain operational autonomy and will alongside help them ensure economic stability.  

TABLE OF CONTENTS

PAGES

Title page                                            i   

Certification                                         ii

Dedication                                            iii

Acknowledgement                                        iv

Table of Content                                          v

Abstract                                            vi

CHAPTER ONE: INTRODUCTION

1.1    Background to the Study                            1   

1.2    Statement of Problems                                3

1.3     Aims and Objectives of Study                            3

1.4    Scope of the Study                                4

1.5    Significance of the Study                            5

1.6     Limitations of the Study                             6

1.7    Statement of Hypothesis                             7

1.8    Definition of terms                                8

1.9    Historical Background of Case of Study                    9

CHAPTER TWO: LITERATURE REVIEW

2.1    Origin of Audit                                    10

2.2    Development and Growth of Audit in Nigeria Definitions of

Audit purpose of audit                                10

2.3    Types of audit                                    11

2.4    External audit                                    13

2.5    Auditing guidelines Planning Controlling and Recording Internal

Audit Value for Money Audit            14

2.6    Distinction between Accounting and Auditing Functions        14

2.7    Auditing Guidelines and Procedures: Planning, Controlling

And Recording Planning                                20

2.8    Audit Evidence                                    25

2.9    Internal Controls                                    29

2.10     Internal Audit                                    35

CHAPTER THREE: RESEARCH METHODOLOGY

3.1    Introduction                                    48

3.2    Research Design                                    49

3.3    Population Description                                50

3.4    Sample Description and Techniques                        50

3.5    Research Materials/ Instruments                        51

3.6    Method of Data Collection and Organization of Data.            51

3.7    Organization of Data                                53

3.8     Statistical Treatment of Data                            53

CHAPTER FOUR: DATA PRESENTATIONS AND ANALYSIS

4.1    Introduction                                    55

4.2    Analysis and Evaluation of Data                        55

4.3    Test of Hypothesis                                    62

4.4    Findings of the Study                                 68

CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS.

5.1    Summary                                         71

5.2    Conclusion                                        71

5.3    Recommendations                                72

Appendix

CHAPTER ONE

INTRODUCTION

1.1    BACKGROUND TO THE STUDY

As it will be practically impossible to talk of a building without a foundation, so also it will be professionally imbalance to talk of Audit procedure in a public sector organization” without actually bringing to time light what public sector organization portrays.

Public sector organization refers to those organizations set up by government for the purpose of providing social services with profit motive if any, at the background.

“organization” in the eyes of the law is an actual being. It is an intangible person with many of legal rights, powers and obligations of an individual. It may take contracts, hold and sell property, sue and be sued in its own name. Organizations therefore, owe their births to creation and they are owned and managed differently precisely because of their unique artificial legal make up. Such organizations include Kaduna State Water Board, National Electric Power Authority, to mention but few.

Every human organization, however, simply require written records which the management or administration needs to keep decisions formulation of general rules, the making of policies and the legal validation of the organization status, procedures and relationships with other organizations or individuals.

Every civilization, ancient or modern that had a commercial background or that which had any difficult problems of governmental organization or administration to solve had to have financial or at least numerical records of some sort.

Auditing being the exercise aimed at ensuring that the accounts being reported on show the auditor’s opinion, a true and fair view of the financial position as at the balance sheet data and of the profit and loss for the period ended the date, it is suffix to say that as erroneously being carried about, it is not the objective of an audit to detect fraud, although fraud or defalcation may surface during audit.

The auditing of an organization financial statements involves the verification of the balance sheet and the income and expenditure accounts and the examination of the underlying records to test their reliability and the basis from which these statements had been prepared. It means going through financial transaction which had given rise to the records.

In a public sector like Kaduna State Water Board, auditing, and audit programme has to be drawn up and this will be a guide for the audit work. The audit programme will seek to verify the efficient working of internal control system with particular reference to the internal check, division of duties and managerial supervision.

The proper working of the system of book keeping and accounting with particular reference to the accuracy, completeness and reliability of the records being compiled and the extent of the true and fair view of the financial statement as produced there from.

In analyzing an audit, it involves a set of procedures which include: general financial control procedure, cash controls and the procedures involving receipt and payment, salaries and wages control, sales and trade debtors control procedure contract award procedure and fixed asset and investment control.

1.2    STATEMENT OF PROBLEMS

This research work is set out to examine effective analysis of Audit procedure in a public sector organization so as to have an insight into how it affect individual, and government as well as how proper analysis of audit procedure helps in attracting and retaining the financial position in public sector.

The following are the statement of problems:

i.    To what extent do the auditors exercise procedures in a public sector organization.

ii.    What constraintsare there that inhibit auditors procedure on internal control.

iii.    What is the relationship between the company’s auditing process and the level of accountability.

1.3    AIMS AND OBJECTIVES OF THE STUDY

Auditing in the public sector organization especially those in public corporations like Water Board, have been so neglected by government these days. Most of the relevant books consulted so far in the field of auditing, little or nothing have been said about auditing of public corporation. Major concern has been towards the audit of limited liability companies.

This research however, is designed to enable the readers understand the procedure in the auditing process in the public sector organizations with reference to Kaduna State Water Board and also, to know the role of auditors of public sector organization.

1.4    Research Questions

1. Does your organization prepare financial statement?

2. Does the organization have an internal audit?

3. Does the organization have external auditors that audit her accounts?

4. Are there normally any irregularities discovered by the auditor in the course of his audit?

5. What type of internal control system does the organization operates?

6. Does the organization have operational policies and financial regulations?

7. How often does the internal audit review the adequacy and efficiency of internal control system?

8. Does the external auditor review and test your work before giving his opinion?

9. What are the levels that the organization’s policies and financial regulations have been adhered to by the internal control system?

1.5 STATEMENT OF HYPOTHESIS

In order to have a bearing for this study, formulation of hypotheses is necessary which is an opinion statement on research question and data to be obtained during the research work will be used to test the hypothesis.

Nnadozie and Akuzuito (1995 P.32) “The research hypothesis is a tentative answer to a research problem/question. It is an educated or intelligent guess of an answer to the problem of the research under investigation. It is however, an answer which has no evidence supporting it until a full investigation is carried out. The research hypothesis may therefore be seen as an opinion statement”.

Considering the problems already stated data gathered during this study will be used to test the following hypothesis:

Hi:     Auditing process has a positive and significant relationship with the level of accountability in a public sector organization.

Ho:     Auditing process has no positive and significant relationship with the level of accountability in a public sector organization.

Hi:     Lack of effective and efficient performance of internal control inhibit auditor’s procedures.  

Ho:    Lack of effective and efficient performance of internal control does not affects auditor’s procedures.

Hi:    Lack of independent mind of most internal auditors does not affect effectiveness of internal control system.

Ho:    Lack of independent mind of internal auditors affects the effectiveness of internal control system.

1.6    SIGNIFICANCE OF THE STUDY

With the rapid growing of economy crises in the country, the effect of audit procedure can be highly detrimental to the users of a company’s report if not properly carried out.

Kaduna State Water Board being one of the public sector organization in Nigeria economy. It is necessary to work into how the audit procedures is been carried out in such public organization.

The effect of this audit procedures to individual investors, customers and other governmental agent are of paramount importance. it is with the believe that the research work will bring about relevant questions that will require further analytical investigation, thereby increasing the existing knowledge on the subject matter.

1.7    SCOPE AND LIMITATIONS OF THE STUDY

The study has been basically limited to areas that is concerned by Kaduna State Water Board that is, the analysis and the procedure in a public sector organization. The process of this study covers the control and procedure of expenditure of the Board as well as that of receipts. it is also pertinent to mention that the project research is purely an academic exercise.

Time Constraint: Time is an important factor in a research work. For a researcher to exhaust all the requirements for a particular study, a lot of time must be invested. However, the time allowed for this research work is short coupled with other academic activities.

Financial Constraint: Closely following the above constraint was finance. Research of this nature requires large fund, indequate fund does not allow for a large scale research to include the organizations.

Respondent Constraint: Most of the audit and account staffs confronted for information felt somehow skeptical to release them for fear of leaking official secret, this actually make it difficult for the researcher to obtain adequate information needed to the study.

1.8    DEFINITION OF TERMS

The following are some terms used in this project work.

Audit Programme: Is a schedule of operation to be carried out in the course of any particular audit exercise.

Audit Planning: Audit planning refers to the plan of work by a firm of accountants or a government audit department to ensure that during a year it covers the entire audit job it has at hand.    

Audit Evidence: All information obtained by the auditor in arriving at his conclusion on any matter within the scope of his audit.

V.F.M: Means value for money audit

Audit Working Papers: Working papers consit of file of evidence obtained during audit work, the details of the methods and procedures the auditor followed and the conclusion he has reached concerning the object of the audit.

Testing: Selecting and examining representative items from a large set of similar items for the purpose of drawing conclusions about the charactertics of the set.

Audit Procedures: The acts performed by the auditor in the course of attaining the objectives of the examination.

1.9    HISTORICAL BACKGROUND OF KADUNA STATE WATER BOARD

The Board was created by Kaduna State (then North Control State of Nigeria) through Edict No. 2 of 1971. Since then the Board is operating separate set of books of Accounts and treasury, for payment of vouchers, time to time new set of procedures and accounting system were introduced through circulars while sometime through instruction on the job training, to bring the Board’s Accounting system on modern lines. However, all these circulars and instructions are in lose form and some are unwritten too. The introduction of commercial accounting system at Kaduna State Water Board is to provide suitable, sufficient and authentic management information to help in decision making and planning of operation.

This data falls under two categories viz:

i.    Financial and management information

ii.    Control and flow of financial data for future planning.

Classification and coding of accounting data is necessary to process the data speedily. In pursuance to this objectives revenue and expenditure have been coded and classified.

The general managed/chief executive, is the accounting officer of the Board. Any officer expending money within the board does so on behalf of the chief executive. The limits of power of the chief executive in this regard are stipulated in circulars issued from time to time by the government and in conformity with the edict.

REFERENCES

Milichamp, A.H (2000) Auditing Continuum London and New York. The Edition

Ekwere A. B. (1991) Contemporary Auditing, Fab Education Book, Jers, Nigeria.AAT Study Pack Paper 14, Public Sector Accounting and Auditing/2 Published September.

Akuezuilo E. O. And Nnadozie B. M. (1995) Research Methods and Statistics in Education, Social and Management Sciences, NuelCenti (Nig) Publishers Akwa.

.

ANALYSIS OF AUDIT PROCEDURE IN A PUBLIC SECTOR ORGANIZATION (A CASE STUDY OF KADUNA STATE WATER BOARD)



TYPE IN YOUR TOPIC AND CLICK SEARCH.






RESEARCHWAP.NET

Researchwap.net is an online repository for free project topics and research materials, articles and custom writing of research works. We’re an online resource centre that provides a vast database for students to access numerous research project topics and materials. Researchwap.net guides and assist Postgraduate, Undergraduate and Final Year Students with well researched and quality project topics, topic ideas, research guides and project materials. We’re reliable and trustworthy, and we really understand what is called “time factor”, that is why we’ve simplified the process so that students can get their research projects ready on time. Our platform provides more educational services, such as hiring a writer, research analysis, and software for computer science research and we also seriously adhere to a timely delivery.

TESTIMONIES FROM OUR CLIENTS


Please feel free to carefully review some written and captured responses from our satisfied clients.

  • "Exceptionally outstanding. Highly recommend for all who wish to have effective and excellent project defence. Easily Accessable, Affordable, Effective and effective."

    Debby Henry George, Massachusetts Institute of Technology (MIT), Cambridge, USA.
  • "I saw this website on facebook page and I did not even bother since I was in a hurry to complete my project. But I am totally amazed that when I visited the website and saw the topic I was looking for and I decided to give a try and now I have received it within an hour after ordering the material. Am grateful guys!"

    Hilary Yusuf, United States International University Africa, Nairobi, Kenya.
  • "Researchwap.net is a website I recommend to all student and researchers within and outside the country. The web owners are doing great job and I appreciate them for that. Once again, thank you very much "researchwap.net" and God bless you and your business! ."

    Debby Henry George, Massachusetts Institute of Technology (MIT), Cambridge, USA.
  • "Great User Experience, Nice flows and Superb functionalities.The app is indeed a great tech innovation for greasing the wheels of final year, research and other pedagogical related project works. A trial would definitely convince you."

    Lamilare Valentine, Kwame Nkrumah University, Kumasi, Ghana.
  • "I love what you guys are doing, your material guided me well through my research. Thank you for helping me achieve academic success."

    Sampson, University of Nigeria, Nsukka.
  • "researchwap.com is God-sent! I got good grades in my seminar and project with the help of your service, thank you soooooo much."

    Cynthia, Akwa Ibom State University .
  • "Sorry, it was in my spam folder all along, I should have looked it up properly first. Please keep up the good work, your team is quite commited. Am grateful...I will certainly refer my friends too."

    Elizabeth, Obafemi Awolowo University
  • "Am happy the defense went well, thanks to your articles. I may not be able to express how grateful I am for all your assistance, but on my honour, I owe you guys a good number of referrals. Thank you once again."

    Ali Olanrewaju, Lagos State University.
  • "My Dear Researchwap, initially I never believed one can actually do honest business transactions with Nigerians online until i stumbled into your website. You have broken a new legacy of record as far as am concerned. Keep up the good work!"

    Willie Ekereobong, University of Port Harcourt.
  • "WOW, SO IT'S TRUE??!! I can't believe I got this quality work for just 3k...I thought it was scam ooo. I wouldn't mind if it goes for over 5k, its worth it. Thank you!"

    Theressa, Igbinedion University.
  • "I did not see my project topic on your website so I decided to call your customer care number, the attention I got was epic! I got help from the beginning to the end of my project in just 3 days, they even taught me how to defend my project and I got a 'B' at the end. Thank you so much researchwap.com, infact, I owe my graduating well today to you guys...."

    Joseph, Abia state Polytechnic.
  • "My friend told me about ResearchWap website, I doubted her until I saw her receive her full project in less than 15 miniutes, I tried mine too and got it same, right now, am telling everyone in my school about researchwap.com, no one has to suffer any more writing their project. Thank you for making life easy for me and my fellow students... Keep up the good work"

    Christiana, Landmark University .
  • "I wish I knew you guys when I wrote my first degree project, it took so much time and effort then. Now, with just a click of a button, I got my complete project in less than 15 minutes. You guys are too amazing!."

    Musa, Federal University of Technology Minna
  • "I was scared at first when I saw your website but I decided to risk my last 3k and surprisingly I got my complete project in my email box instantly. This is so nice!!!."

    Ali Obafemi, Ibrahim Badamasi Babangida University, Niger State.
  • To contribute to our success story, send us a feedback or please kindly call 2348037664978.
    Then your comment and contact will be published here also with your consent.

    Thank you for choosing researchwap.com.