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1.1     Background of the Study

Government organizations have played a greater part in the economic growth of any economy, especially in the Nigerian economy. The contributions they have made so far cannot be overemphasized because their utmost aims of establishment is to provide some vital or essential services to improve the social and economic well being of the people.

These government organizations are mainly being funded either by the federal or state government through their budgetary allocations made to them yearly and they can also obtain loans or overdraft from commercial bank as well as subvention from government. These funds are expected to be utilized effectively and efficiently. But in most practices they are being misappropriated or embezzled by some government officials.

As a result of this mis-appropriation which has characterized most of the government organizations. Honestly and prudently managed. The audit is expect to

show whether proper principles of accounts and audit ethics have been adhered to and that financial statements prepared give a true and fair view.

1.2     Statement of the Problem

In any business Organization in which allocation and application of funds serves as a backbone for financial activities to be carried out the following are problems in which are bund to be encountered.

1.          Embezzlement of fund by some government Officials

2.          Failure to exercise due professional care and the appropriate level of professional skepticism.

3.          Overreliance on inquiry as a form of audit evidence

4.          Deficiency in confirming accounts receivable

5.          Failure to recognize related party transactions and

assuming internal control exist when they may not. These and other factors contribute to problems of auditing in government organization.

1.3     Purpose of the Study

The purpose of studying this topic is to examine the importance, problems and prospects of auditing in government institution.

§   To ascertain the problems encountered while auditing in government establishment.

§   To know if auditors exhibit enough professional competence in conduct of their work.

§   To know how effective auditing is in government establishment

1.4     Research Questions

This research work seeks to ask the following questions among others, deduced from the purpose of the study.

§   Are auditors being threatened or intimidated during their audit work.

§   Are auditors being faced with some problems during their audit work.

§   Are vital documents needed for the audit of the organization being held from the auditors

1.5     Research Hypothesis

Based on the purpose, and research questions the following hypothesis are put forward.

Ho   Financial reports submitted are not in consonance with

the   transactions   carried   out   by   the      government


HI         Financial report submitted are in consonance with the

transactions        carried         out         by         the          government


Ho   Treats  and  intimidation  do  not  positively  affect  the

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