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Auditing And Fraud Controlling In Government Sector
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1.2 STATEMENT OF THE PROBLEM
Since the early 80’s the country has been experiencing increase
fraudulent practices in Government sectors despite the fact that these
companies are annually subjected to audit. The bureaucratic nature of
Government sectors causes a lot of unnecessary delays, which allows
enough space and time for fraud to be conceived and perpetrated. Some of
the fraudsters take advantages of this set back to explore all avenues
that will help them succeed in their shameful acts. Inefficiency of
company staff results in improper book- keeping system and in cases
where they refuse to co-operate fully with the auditor’s, vital
information may elude him and consequently he is left cross road.
One cannot also ignore the great threat posed to be the auditor by the
manipulation of money as a form of “settlementâ€. Nigeria’s banking
sector was rocked in August, when the regulatory bank initially injected
over N400 to bail out five (5) banks considered distressed.
Unfortunately, IMO STATE UNIVERSITY OWERRI convocation and bank
managements are generally unwilling to release details of fraud that may
have been perpetrated for fear of losing their corporate image.
1.3 OBJECTIVES OF THE STUDY
This research work is aimed at achieving the following:-
1. To identify the causes of fraud in Government sectors.
2. To examine the statutory principle of auditors in relation to fraud.
3. To seek how the scope of present day audits can be entered to include prevention and not only discovery of fraud.
4. To suggest solution for combating fraud in Government sectors.
1.4 SIGNIFICANCE OF THE STUDY
The role of the auditor and his influence on the decisions made by
users of financial statement cannot be over emphasized. Shareholders,
bankers, creditors, government agencies, and private investors’ e.t.c
all rely on the auditor’s report to base their investment decisions.
They require that they are not being mislead by the financial statements
and this assurance be provided by the auditor (external) who in his
capacity is viewed to be an expert in the impartial and above all
independent. The big question remains, why is fraud on the increase in
Government sectors despite the continuous audit of financial statements?
The contribution of this study is to the improvement of the role of
auditor’s in the prevention and total eradication of fraud in Government
sectors. Audit will no longer be a periodic affair but a routine
exercise which will keep every employee, not only financial staff as in
case of normal audit aware that any deed within and outside the working
environment is being monitored.
It is placed that at the
end of this study, the following resultant benefits will accrue to
companies, shareholders, other researchers and the Nigerian economy at
large.
(i) Further classification on the role of auditors in fraud
prevention and detection as these had been a prolonged mis conception
by many that is the duty of the auditors to prevent and detect fraud.
(ii)
Users of financial statement will after the study know whom to hold
responsible for any loss/losses incurred upon reliance on audited
financial statements.
(iii) Suggest ways to make auditors more relevant in fraud prevention and detection.
(iv) Further encirclement of available literature on the subject matter and other related works.
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ABSRACT - [ Total Page(s): 1 ]In recent years the importance of good corporate governance has received significant public and regulatory attention. A crucial part of an entity’s corporate governance is its internal audit function. At the same time, there has been significant public concern about the level of fraud within organizations. The purpose of this study is to assess whether organizations with an internal audit function are more likely to detect fraud than those without.the technique to be employed in testing t ... Continue reading---
