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As we have been witnessing in recent times, there has been drastic change in customer’s trends in Nigerian. Some of the reasons for these abnormalities in business trends which resulted in the general economic downturns, ranged from inflation, mismanagement of foreign exchange reserves, high prices of essential commodities, lack of raw materials for use in industries, misappropriation of excessive expenditure in compatible with real budgets, lack of accountability, rapidly escalating debts, corruption, craze for imported goods and general economic crisis on a global basis.
Investigations however, have suggested that probably the role of auditing has not been well appreciated in the management structure in Nigeria economy. In view of this fact, an attempt will be made to highlight, the technique and auditing principles and their application the general economic behaviour system, in relation to the Nigeria experience.
1.1 STATEMENT OF PROBLEMS:
Professional firms whether small, medium or large in a developing economy like Nigeria face special problems of ensuring profitable operation, practice development and maintain professional standards.
In a country where spurious organization spring up now and gain to challenge properly constituted professional organization purely on non-professional, non-academic basis but primarily on ill-motivated necessary grounds. Professional bodies and practitioners naturally face special problems of compliance with laid down standard and ensuring profitable practice.
Auditing roles in Nigeria have been characterized by some problems of incomplete recording of accounts and the problem of compliance or strict adherence to the accounting standards and auditing guidelines complied with the incessant waves of corporate crime undermine the role of auditing in Nigeria.
1.2 THE OBJECTIVE OF THE STUDY:
The purpose of this research is to understand the roles of auditing in a developing economy considering the Nigerian experience and to make useful recommendations where necessary towards the improvement of these roles as it affects private and statutory and Nigeria.
The objective of this research is therefore listed under the following headings:
1. Appraising the auditing roles in Nigeria
2. Analyze the impact of auditing in Nigeria as a developing nation.
3. Critically examine the impact of auditing roles and identify the reasons for any problem.
4. Comment on the researcher’s findings on such issues as (a) the indispensable roles of auditing in Nigeria (b) the various constraints, problems, floors and prospects of auditing in Nigeria.
5. Generally, the researcher aims at arousing interests on the issues of auditing roles will be welcomed by the time his term paper is put to its find conclusion
1.3 THE IMPORTANCE OF THE STUDY:
This research work is intended to have varying level of significance to various categories of its readers such as the researcher, the reader and those who may wish to make from time to time references there to and on the topic of study itself.
Pone of the significance of this research is that it forms a major part of the final examination of the project writer himself and therefore, intended to be one of the major prerequisites for eventual completion of his courses of study.
Besides, the fact of being a major determinant for the award of his Ordinary National Diploma (OND) in Accountancy, it is however significant to undertake such study because it intends to give the researcher a thorough and fuller understanding of the subject matter which is titled “the role of auditing in a developing economy Nigeria Experience”.
Therefore, emphasis is made to carefully study and detailed research work conducted such that would leave no one in doubt as to whether justice has been done to the topic or not.
1.4 SCOPE AND LIMITATION:
For the purpose of this research, the writer focused more attention on auditing roles as it affects Nigeria as a developing country. The concentration Nigeria Experience alone is as a result of the fact that the writer envisaged a possible danger that the effectiveness of carrying out this study on a longer scope to embrace all the developing countries will be seriously hampered by the following inevitable factors.
Since the research was carried out on a student’s level, one major limitation of this study therefore boiled down to the limitation in the allocated time within which project had to be conducted, complied, completed and submitted for assessment irrespective of the fact that other academic engagements share in the little time available.
The writer having considered the financial involvements and prospects before him and the obvious fact that the work was single handed by sponsored, completed with the need to meet up with the standard set for putting the work to its exhaustive conclusion, entertained the fear of his inability to meet up with all the demand financially bearing in mind that his only source of income is his pocket money which serves for feeding and other things. Therefore, these write up had to apportion that little money thereby outing down his feeding and sacrificing many other things in order to get this work to a conclusive end.
1.5 DEFINITION OF TERMS:
Means those who have through long experience and study have wider understanding of the course.
Means accomplishment of a desired objective, goal or action.
It denotes that management of funds is not completely and exhaustively in the hands of owners, but is entrusted by owners to somebody else.
The portion of coverage in the professional area of study.
Freedom from external influence, control and support in conducting the audit work at each of its stage.
It means the best, long run purpose to be attained by the auditor.
This means one is in no way involved in either recording transaction or in preparing the financial statement and either is he/she under control nor influence of those who are responsible for such work.
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