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THE IMPORTANCE AUDIT REPORT AND ITS IMPACT ON BUSINESS FIRMS

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Description

ABSTRACT This research is prompted by one main problem, which is often alleged that audit reports are frequently paramount and this is because firms hoping to be in business needs audit reports and this has impact on the activities of business firm. The objective and concept that guide the present day audit were almost unknown in the early days of the 20th century because the accounting profession responds to the descent of the new business environment. The objective of independent auditing became during the industrial revolution as business concern grew in size, their owners began to use the services of hired managers with the separation on the ownership and management groups the absentee owner turned increasingly to auditors to protect themselves against the danger of fraud by both managers and employees. Financial accounts of a business was done over a period of time and this is revealed through financial statement based on the records maintained by the employees of the business. Due to the situation above, the company act 1968 deemed it necessary for shareholders to appoint independent professional accountant to examined these financial statement and testify to its fairness and truthfulness. Audit reports which is the end product of an external auditors independent examination on the financial records of a business firm is the subject matter of this study.

TABLE OF CONTENT

Title page

Approval page

Dedication

Acknowledgement

Abstract

Table of content

CHAPTER ONE

Introduction

Background of the study

Statement of the problem

Objectives of the study

Research questions

Significance of the study

Scope and limitations of the study

Definition of the terms

CHAPTER TWO

Literature review

Definition of audit or nature of auditing

Types of auditing

Independence of auditors

Basic content of audit report

scope opinion paragraph

Opinion paragraph

Unqualified opinion

Departure from accounting principle

Emphasis of matters

Qualified opinions

Except for opinions

Subject to opinion

Limitations on scope of examination

Major uncertainty affecting clients business.

Qualification as to accounting procedure and disclosure.

Adverse opinions

Disclaimer opinions

Restrictions imposed by clients.

CHAPTER three

Research methodology

Research design

Sources of data

Population and sample size

Method of investigation

Questionaire method

3.6 Method of statistical Analysis

3.7 Statistical Technique Top Hypothesis

 

 

 

 

CHAPTER FOUR

Presentation, analysis and interpretation of data

Analysis of data

Analysis of responses from questionnaire.

CHAPTER FIVE

Summary of findings, recommendations and conclusion

Summary of findings

Conclusion

Recommendations

Bibliography

Appendix

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