Get the complete project »
- The Complete Research Material is averagely 52 pages long and it is in Ms Word Format, it has 1-5 Chapters.
- Major Attributes are Abstract, All Chapters, Figures, Appendix, References.
- Study Level: BTech, BSc, BEng, BA, HND, ND or NCE.
- Full Access Fee: ₦4,000
In this research work on the role of auditors in mitigating fraud and corruption in Nigeria with particular reference to Nigerian Breweries Plc 9th mile corner Enugu. The researcher examined the importance of auditors in controlling fraud and corruption in Nigerian breweries plc. Evaluated the effect of fraud and corruption on the profitability of a corporate firm. Ascertained the extent at relationship between the duty of the auditor and the prevention of fraud in a corporate organization. The researcher also identified the challenges faced by the auditor in preventing fraud and corruption in Nigerian breweries plc. The researcher sourced the data through Primary and Secondary sources of data Collection. Primary data: questionnaires and oral interviews were used to collect information from the respondents. Secondary data: journals, and other relevant materials relating to the area of my investigation will be review. Extensive literature review was carried out on the direct literature and indirect literature on books, journals and past works. The research instrument used in this study includes oral interview and questionnaire. The questionnaire is structural as to contain both close and open ended question. Simple tables and percentages were used in treatment of data. Chi-square was used in testing the hypotheses. At the end the researcher observed that Auditors are very important in controlling fraud and corruption in Nigerian breweries plc. It was also discovered that fraud and corruption has significant effect on the profitability of a corporate firm. The study equally revealed that there is significant relationship between the duty of the auditor and the prevention of fraud in a corporate organization. The study shows that there are so many challenges faced by the auditor in preventing fraud and corruption in Nigerian breweries plc. Based on the findings the study recommends that companies are to increase their requirements pertaining to qualifications and draw up more efficient screening techniques. They are to ensure that there is segregation of duties, efficient internal controls, jobs satisfactions and job enrichment. Awareness should also be created so as to ‘nip’ the situation in the ‘bud’ before anything serious occurs. This requires more than just sound judgment and dynamic action; it calls for commitment that can only be gained if the management has ensured that all the motivational incentives have been put in place. A total alertness that takes nothing for granted and awareness that trust could be misplaced, this being a diligent and painstaking approach.
1.1Background of the study
That an auditor has the responsibility for the prevention, detection and reporting of fraud, other illegal acts and errors is one of the most controversial issues in auditing, and has been one of the most frequently debated areas amongst auditors, politicians, media, regulators and the public Gay (1997). This debate has been especially highlighted by the collapse of both small and big corporations across the globe. The auditing profession in Nigeria has caught the media’s attention following financial scandals in some of the Nigerian banks such as Intercontinental Bank, Oceanic Bank, Afribank, and Bank PHB among others. There seems presently to be a misconception that auditors’ duties are largely the preventing, detecting and reporting of fraud, for example, Idris (2009).
Fraud, according to Adeniji (2004:354) and ICAN (2006:206), is an intentional act by one or more individuals among management, employees or third parties, which results in a misrepresentation of financial statements. Fraud can also be seen as the intentional misrepresentation, concealment, or omission of the truth for the purpose of deception/manipulation to the financial detriment of an individual or an organization which also includes embezzlement, theft or any attempt to steal or unlawfully obtain, misuse or harm the asset of the organization, (Adeduro, 1998 and, Bostley and Drover 1972). Fraud has increased considerably over the recent years and professionals believe this trend is likely to continue. According to Brink and Witt (1982), fraud is an ever present threat to the effective utilization of resources and it will always be an important concern of management. ISA 240 ‘The Auditor’s Responsibilities to Consider Fraud in an Audit of Financial Statement (Revised)’ refers to fraud as “an intentional act by one or more individuals among management, those charged with governance, employees or third parties, involving the use of deception to obtain an unjust or illegal advantage”.
Aderibigbe and Dada (2007) define fraud as a deliberate deceit planned and executed with the intent to deprive another person of his property or rights directly or indirectly, regardless of whether the perpetrator benefits from his/her actions.
Weirich and Reinstein (2000 cited in Allyne & Howard 2005), define fraud as “intentional deception, cheating and stealing”. Some common types of fraud include creating fictitious creditors, “ghosts” on the payroll, falsifying cash sales, undeclared stock, making unauthorized “write-offs”, and claiming excessive or never-incurred expenses. Pollick (2006) regards fraud as a “deliberate misrepresentation, which causes one to suffer damages, usually monetary losses”.
According to Pollick, (2006) Corruption is a form of dishonest or unethical conduct by a person entrusted with a position of authority, often to acquire personal benefit. Corruption may include many activities including bribery andembezzlement, though it may also involve practices that are legal in many countries.Government, or 'political', corruption occurs when an office-holder or other governmental employee acts in an official capacity for personal gain.
The word corrupt when used as an adjective literally means "utterly broken". The word was first used by Aristotle and later by Cicero who added the terms bribe and abandonment of good habits. Stephen D. Morris, a professor of politics, writes that [political] corruption is the illegitimate use of public power to benefit a private interest.
Economist Ian Senior defines corruption as an action to (a) secretly provide (b) a good or a service to a third party (c) so that he or she can influence certain actions which (d) benefit the corrupt, a third party, or both (e) in which the corrupt agent has authority. Daniel Kaufmann, from the World Bank extends the concept to include 'legal corruption' in which power is abused within the confines of the law—as those with power often have the ability to make laws for their protection.
Albrecht et al (1995 cited in Allyne & Howard, 2005:287) classified fraud into employee embezzlement, management fraud, investment scams, vendor fraud, customer fraud, and miscellaneous fraud.
Fraud also involves complicated financial transactions conducted by white collar criminals, business professionals with specialized knowledge and criminal intent (Pollick 2006).
1.2Statement of problem
The director of companies are empowered to appoint, reappoint, and remove their external auditors and they are also to fix the external auditor‘s fees using the guidelines of the Auditor-General as an aid. The problem so created is that the directors are officers of the organization, who also have the responsibility of managing the funds, budgeting, spending including awarding of contracts and the preparation of financial statements. The same people who are therefore placed in a position to render stewardship accounts are now given the power to hire and fire‘ external auditors who would audit the accounts of their own activities. This runs counter to the ideal principles of public accountability.
Auditors in Nigeria are saddled with the responsibility of examining the financial statements of organizations for the purpose of ascertaining their truth and fairness. The auditing profession in Nigeria is regulated by a combination of three regulatory documents. The Companies and Allied Matters Act (CAMA), No. 1 of 1990 serves as the supreme regulator; while the Nigerian Standards on Auditing (NSAs) and Rules of Professional Conduct released by ICAN and ANAN for the members in practice. The main objective of these regulatory documents is to provide guidelines for the practice of auditing in Nigeria.
Although CAMA provides extensive provisions on the practice of auditing in Nigeria, it fails to specifically address the issue of auditor’s independence. However, it contains only guidelines as to the manner at which the auditors should be appointed, how they should function and to whom they should report to. The other two regulatory documents also do not capture explicitly what auditor’s independence means but rather require auditors to be independent and be seen acting as such. However, they provide detailed list of issues that surrounds the auditor’s independence.
The main thrust of ethical standards in auditing is to ensure and uphold the auditor’s independence (Jackling et al, 2007; Dearman and Beard, 2005). Independence has become an emotive word, a banner standing for freedom, integrity and all that is good. According to Aderibigbe (2005), the word independence has two distinct meanings. Firstly, it falls within a family of words implying an absence of relationship like unrelated, disconnected, isolated, remote and insular. Perhaps this is the reason why, in the olden days, auditors were often required to hold shares in their client companies so as not to be too independent. Secondly, independence falls within a family of words implying freedom from the exercise of powers; for example, free, unhindered, emancipated and free from dominance or influence, the independence of auditors in Nigeria has been frequently cautioned. The way at which Nigerian auditors secure their audit assignments and the rate at which they lobby for auditing job put their independence in jeopardy. Even though recognized professional accounting bodies in Nigeria, like ICAN and ANAN, are trying very hard to ensure best practice in the auditing profession via the enforcement of professional code of conduct for their members, the strict observance of such codes is still questionable.
The development therefore appears to put the auditor‘s investigative and reporting independence in jeopardy and this may defeat the purpose of public audit and erode the independence and hence, the objectivity of report of the auditors.
1.3Objective of the study
The aim of this research work is to examine the role of auditors in mitigating fraud and corruption in Nigeria with particular reference to Nigerian Breweries Plc 9thmile corner Enugu. The specific objectives of this research work includes the following;
1. To examine the importance of auditors in controlling fraud and corruption in Nigerian breweries plc.
2. To evaluate the effect of fraud and corruption on the profitability of a corporate firm.
3. To ascertain the extent at relationship between the duty of the auditor and the prevention of fraud in a corporate organization.
4. To identify the challenges faced by the auditor in preventing fraud and corruption in Nigerian breweries plc. And also proffer possible solutions to the problems identified.
1.4 Research questions
Based on the objectives above the researcher developed the following questions;
1. What are the importance of auditors in controlling fraud and corruption in Nigerian breweries plc?
2. To what extent does fraud and corruption affect the profitability of a corporate firm?
3. What are relationship between the duty of the auditor and the prevention of fraud in a corporate organization?
4. What are the challenges faced by the auditor in preventing fraud and corruption in Nigerian breweries plc. And also proffer possible solutions to the problems identified?
You either get what you want or your money back. T&C Apply
You can find more project topics easily, just search
SIMILAR ACCOUNTING FINAL YEAR PROJECT RESEARCH TOPICS
» ABSTRACT This research examines Financial Management and Survival of Cooperative Societies in Nigeria with special reference to Yaba College of Techno...Continue Reading »
» CHAPTER ONE 1.0 INTRODUCTION Inventory in the form of raw materials, work in progress and finished goods constitutes significant proportion of assets ...Continue Reading »
» CHAPTER ONE 1.1 BACKGROUND OF THE STUDY There have been significant progresses in the past years but more intensely during the last years aimed at the...Continue Reading »
4. ASSESSMENT OF MICROFINANCE BANK ON POVERTY ALLEVIATION IN NIGERIA (CASE STUDY OF SEEDVEST MICROFINANCE BANK LIMITED IN RIVERS STATE)» ABSTRACT This study was intended to assess the microfinance on poverty alleviation in Nigeria. This study was guided by the following objectives; to d...Continue Reading »
5. WORKING CAPITAL MANAGEMENT AS A TOOL FOR COST MINIMIZATION AND PROFIT MAXIMIZATION (A CASE STUDY OF ANAMBRA MOTOR MANUFACTURING COMPANY ENUGU).» ABSTRACT The objective of this research work contains working capital management as a tool for minimization and profit maximization with particular re...Continue Reading »
6. INTERNATIONAL PUBLIC SECTOR ACCOUNTING STANDARDS (IPSAS) AND ITS IMPLEMENTATION IN MINISTRIES, DEPARTMENTS AND AGENCIES (MDAs). A STUDY OF MINISTRY OF...» 1.1 Background to the Study The International Federation of Accountants (IFAC) has made it a precondition and directive that the public sector of any ...Continue Reading »
» CHAPTER ONE INTRODUCTION 1.1 Background to the Study Energy is an integral component of any socio economic development and a central factor for elimin...Continue Reading »
8. THE APPLICATION OF COST ACCOUNTING TO MANAGEMENT PLANNING, CONTROL AND DECISION MAKING (A CASE STUDY OF COCA COLA BOTTLING COMPANY)» CHAPTER ONE INTRODUCTION 1.1 Background of the study Conflict is an inescapable phenomenon of human life both at the interpersonal or international le...Continue Reading »
9. EFFECTIVE BUDGETARY IMPLEMENTATION AS A TOOL FOR SOCIO-ECONOMIC DEVELOPMENT: A CASE STUDY OF AKWA IBOM STATE» SECTION ONE 1.1 Introduction It is often said that Nigeria produces the best annual budget in the whole of Sub Saharan African. This assertion cannot ...Continue Reading »
» CHAPTER ONE INTRODUCTION 1.1 Back Ground of the Study In recent years, the independence of an auditor has come under criticism. This is because the es...Continue Reading »