Problems and prospects of auditing in government organization (a case study of federal mortgage bank enugu state)

Thesis Overview

<p> INTRODUCTION<br>1.1 Background of the Study<br>Government organization have played a greater part in<br>the economic growth of any economy, especially in the<br>Nigerian economy. The contributions they have made so far<br>cannot be overemphasized because their utmost aims of<br>establishment is to provide some vital or essential services<br>to improve the social and economic well being of the people.<br>These government organizations are mainly being<br>funded either by the federal or state government through<br>their budgetary allocations made to them yearly and they<br>can also obtain loans or overdraft from commercial bank as<br>well as subvention from government. These funds are<br>expected to be utilized effectively and efficiently. But in<br>most practices they are being misappropriated or embezzled<br>by some government officials.<br>As a result of this mis-appropriation which has<br>characterized most of the government organizations.<br>Honestly and prudently managed. The audit is expect to<br>show whether proper principles of accounts and audit ethics<br>have been adhered to and that financial statements<br>prepared give a true and fair view.<br>1.2 Statement of the Problem<br>In any business Organization in which allocation and<br>application of funds serves as a backbone for financial<br>activities to be carried out the following are problems in<br>which are bund to be encountered.<br>1. Embezzlement of fund by some government Officials<br>2. Failure to exercise due professional care and the<br>appropriate level of professional skepticism.<br>3. Overreliance on inquiry as a form of audit evidence<br>4. Deficiency in confirming accounts receivable<br>5. Failure to recognize related party transactions and<br>assuming internal control exist when they may not.<br>These and other factors contribute to problems of auditing<br>in government organization.<br>1.3 Purpose of the Study<br>The purpose of studying this topic is to examine the<br>importance, problems and prospects of auditing in<br>government institution.<br> To ascertain the problems encountered while auditing<br>in government establishment.<br> To know if auditors exhibit enough professional<br>competence in conduct of their work.<br> To know how effective auditing is in government<br>establishment<br>1.4 Research Questions<br>This research work seeks to ask the following questions<br>among others, deduced from the purpose of the study.<br> Are auditors being threatened or intimidated during<br>their audit work.<br> Are auditors being faced with some problems during<br>their audit work.<br> Are vital documents needed for the audit of the<br>organization being held from the auditors<br>1.5 Research Hypothesis<br>Based on the purpose, and research questions the following<br>hypothesis are put forward.<br>Ho Financial reports submitted are not in consonance with<br>the transactions carried out by the government<br>establishment<br>HI Financial report submitted are in consonance with the<br>transactions carried out by the government<br>establishment.<br>Ho Treats and intimidation do not positively affect the<br>quality of auditors work in government establishment.<br>HI Treat and intimidation positively affect the quality of<br>auditors work in government establishment.<br>Ho Poor professional conducts by auditors do not affect<br>the quality of work done by auditor in government<br>establishment.<br>HI Poor Professional conduct by auditors affects the<br>quality of work done by auditors in government<br>establishments. <br></p>