Description
Abstract
This research work was undertaken to find the effects of misrepresentation of information in the financial statement of a business entity. Poor or lack of qualitative financial statement analysis could lead to low investment returns, low profitability and even inability to identify viable investment opportunities. The main objective of this project is, therefore, to determine factors that induce the act of misrepresenting the information in the financial statement and to avert the problems highlighted above. Primary and secondary data are employed to broaden the scope of this study. Primary data are sourced from questionnaire responses. This provided data for the validation of the hypotheses tested with the use of chi-square (X2). The test revealed as follows: That misrepresentation detection/prevention of information in the financial statement is the sole responsibility of the auditors. Therefore, all the appointment employees and staff of the bank should help and contribute in order to reduce the act of misrepresentation. From the result of the findings, it was established and discovered that both the internal control system of the bank (maintenance of financial statement, preparation of cash balance with the book of accounts and auditors relationship have some efficiency/efficiencies. It was also established that the presentation of true information in the financial statement helps to enhance effective management control systems in the organization.
Angelica Cairns –