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The Role Of Auditors With Their Clients And Third Parties

Download complete project materials  on The Role Of Auditors With Their Clients And Third Parties from chapter one to chapter five with references

A series of companies acts and decree commencing in 1844 due to the full amount of debt of the companies so that they will meet the needs and the account should subject to examination by independent people who claim to be expert, i.e. auditors, who report the result of their findings to the shareholders and consequently to their parties.

Table of Contents

Title Page






1.0      introduction

1.1   Background of the Study

1.2   Aims and Objectives of the Study

1.3   Significance of the Study

1.4   Limitation of the Study

1.5   Definitions of Terms

1.6   Organization and Plan of the Study

1.7   Statement of Research Hypothesis


2.0   Introduction

2.1   Concept of Auditing and its Independence

2.2   Audit Committee as an aid to Independence

2.3   Audit Practice in the Firm and Scope of Operation

2.4   Right, Duties and Remuneration of Auditor

2.5   Concept of Fraud and Error


3.0   Introduction

3.1   Method of Data Collection

3.2   Method of Data Analysis

3.3   Historical Background of Adebayo Bankola & Co.


4.0   Introduction

4.1   Presentation and of Data Analysis


Summary, Conclusion and Recommendations

5.0   Summary

5.1   Conclusion

5.2   Recommendation

5.3   Suggestions





A series of companies acts and decree commencing in 1844 due to the full amount of debt of the companies so that they will meet the needs and the account should subject to examination by independent people who claim to be expert, i.e. auditors, who report the result of their findings to the shareholders and consequently to their parties.

The auditor should have a recognize qualification as a mark of competence. Before (1948) act, auditors even public companies required no external professional qualifications.

The companies Decree of 1967, 1968 and companies and allied matters decree CAMD of 1990, in Nigeria have however moved steadily towards a stipulated that auditors of all limited companies should be professionally qualified.

This is done through a professional in Nigeria called institute of chartered accountants of Nigeria (ICAN). Progress in auditing has been measured by the institute during the past away decades in terms of development. This is quite natural and should continue since such abilities are needed in Nigeria business but this form of progress should no longer more initiative skills a lack of which has become alarming evident of late and such skills can only flourish in a situation of late of time independence.

In the country, in the early days of auditing the prime qualification for the position of auditors was reputation. A man of integrity and independence of mind would be sought for this honoured position, the matters of the technical ability being entirely secondary and consequently his function in those days was never confused with that of an accountant.

However, as accountancy in the country gradually become more complex and concerned with technically become increasingly dependent upon the expertise provide by the accountants until eventually the audit function itself become totally dominated by the accounting profession.


The ICAN in 1961 issued its first statement on auditing which is referred to as UI. General principle of auditing. These statements tend to outline what is considered as an applicable general principle to be followed in the conduct of auditing. This have been subsequently withdraw may be for the reasons of inadequacy some of the relevant ones currently in uses are:

  1. V7 – Verification of debtors balance confirmation by direct communication.
  2. V9 – Attendance of stock taking
  3. V11 – Stock in trade and working progress
  4. V14 – Internal control is a computer based accounting system
  5. V15 – The auditor computer based accounting system auditing standard and guideline publication starts in 1980 by the auditing practice committee. It consist of the following : –
  6. As explanatory forward: this describes the basic principle and practices which members are expected to follow in the conduct of an audit.
  7. Auditing failure: auditing failures by members to observe this standard may result an enquiry by appropriate committee of the institute and which may lead to disciplinary action against an erring member.


The main objectives of this research work are to look into the roles of auditors with their clients and third party. This project is design to enlighten the public that the work done by the qualified verification of financial statement. Auditors need to exercise duty of care to the client and third parties. Also, the independence of an auditor is also important is this issue and this shows that work of professional auditor can not be over emphasis in every sector.

In such situations, auditors, their clients and third party generally seek ways to resolve their disagreements.


The study would increase the stock of professional auditors in terms of know ledge and professional skills on how to relate and operate with their clients and third party. The study would also serve as a useful reference material to students of accountancy and future research would find this work valuable.


The research of this nature involved spending on stationary, transportation and many others. There is a problem of insufficient capital in term of money, materials and time. Despite this constraint, enough will be put into the write up to justify the time and resources that would be spent.


Independence: this means the possession of integrity, ability to be self reliant and honest, freedom from bias and avoidance of the relationship which to a research observer would suggest a conflict of interest on the part of the auditor.

Confidentiality: this means information acquired in the course of professional work should not be disclosed except where consent has been obtained from the client, employer or other proper to discharge or public duty to disclose.

Responsibility: an auditor is not responsible for preparing accounts. He does not guaranteeing their accuracy. An auditor does not maintain and control the business. He does not assess the efficiency of business operations.

Error: errors are generally agreed in auditing as unintentionally mistakes. It makes clients account unreliable and if very predominate in occurrence and value can impact or affect the truth and fairness of the accounts.

Irregularities: every intentional distribution of financial statement for whatever purpose, which includes misappropriation of assets, whether or not accompanied by distortion of financial statements (such as missing vouchers, payment disputes, imbalance figure) undoubtedly constitute irregularities.

Fraud: fraud is used only to refer to irregularities involving the use of criminal deception to obtain an unjust or illegal advantage such as stating stock value higher than obtainable, in a deceptive manner to be able to declare profit (when loss is actually sustained) and go ahead to declare dividend wrongly. In order words “Fraud” refers to intentional misrepresentations of financial information by one or more individuals among management, employees, or third parties.

  • 1.  Manipulation, falsification or alteration of records or documents
  • 2.  Misappropriation of assets
  • 3.  Suppression or omission of the effects of transaction from records or documents
  • 4.  Recording of transaction without substance
  • 5.  Misapplication of accounting policies


It spells out the number of chapters into which the researcher wants to divide the work.

It is going to be a four or five chapter work. It has to stated here. This will guide the investigator    concern the organization and plan of his written up.

It is usually written such that the topic to be written under each chapter will need to be stated.

Chapter 1; Introduction Rend other sub, heading in

Chapter 2; Literature Review Break Down into sub-head into Reflect the topic in Question

Chapter 3; Research Methodology

Chapter 4; Data Presentation, Analysis and Interpretation

Chapter 5; Finding, Summary, Conclusion and Recommendation.


This research statement is mainly focuses on the effect of management information system on company operation in the organization in which is stipulate on the growth, stability and profitability of the organization. The statement of hypothesis for research work is as follow: –

1  Hi – management information system has improved the company service by reducing the delay and stree of customers.

Ho – management information system has not improved the company service by reducing the delay and the stree of customers.

2  Hi – management system has increased the confidence of customer in company and there by enhanced good company habit of the customers.

Ho – management information system has not increased the confidence of customers in company and there by discouraged good company habit of the customers.

3      Hi – management information system has significantly assists in detecting and reducing fraudulent activities in company’s

Ho – management information has not significantly assists in detecting and reducing fraudulent in company’s


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