The Relevance of Auditing and Assurance Service to Corporate Reporting in Nigeria
CHAPTER ONE
Objectives of the study
The main objective of this study is to examine the effect of auditing and assurance services on corporate reporting in Nigeria. The specific objectives are to:
i). Determine the extent to which auditors are fulfilling their statutory responsibility.
ii). Determine the extent to which auditors are independent in the execution of their statutory responsibility.
CHAPTER TWO
REVIEW OF RELATED LITERATURE
Introduction
Accounting standards are statements issued by an established body, which prescribes the basic principles and practices which accounting practitioners are expected to follow in financial reporting. Collin, York and Joliffe (2001: 5) define it as “rules of accounting practice recommended by Accounting Standards Board”. Prescription of basic principles and practices arose because there are varieties of alternative accounting methods, which companies may adopt in preparation of financial statements. Adoption of alternative accounting methods gives different financial results thereby making comparison of financial statements of companies difficult. To streamline these differences in accounting methods, there is need for accounting standards. As Glautier and Underdown (1982:64) stated, “the need for the imposition of standards on accounting practice has arisen, because of the lack of uniformity existing as regards the manner in which periodic income could be measured and the financial position of the enterprise could be presented”. This statement demonstrates that accounting practice should be guided by standards so that the true financial position of the entity could be reported. Financial Statements are expected generally to provide information to enable present and prospective investors, creditors and other users to assess the profitability, liquidity, financial flexibility and risk of an enterprise and then be in a better position to take investment decisions.
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION
In this chapter, we described the research procedure for this study. A research methodology is a research process adopted or employed to systematically and scientifically present the results of a study to the research audience viz. a vis, the study beneficiaries.
RESEARCH DESIGN
Research designs are perceived to be an overall strategy adopted by the researcher whereby different components of the study are integrated in a logical manner to effectively address a research problem. In this study, the researcher employed the survey research design. This is due to the nature of the study whereby the opinion and views of people are sampled. According to Singleton & Straits, (2009), Survey research can use quantitative research strategies (e.g., using questionnaires with numerically rated items), qualitative research strategies (e.g., using open-ended questions), or both strategies (i.e., mixed methods). As it is often used to describe and explore human behaviour, surveys are therefore frequently used in social and psychological research.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
INTRODUCTION
This chapter presents the analysis of data derived through the questionnaire and key informant interview administered on the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as interpretation of the information gathered. A total of eighty (80) questionnaires were administered to respondents of which only seventy-seven (77) were returned and validated. This was due to irregular, incomplete and inappropriate responses to some questionnaire. For this study a total of 77 was validated for the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain the Relevance of Auditing and Assurance Service to Corporate Reporting in Nigeria. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of the Relevance of Auditing and Assurance Service to Corporate Reporting in Nigeria
Summary
This study was on the Relevance of Auditing and Assurance Service to Corporate Reporting in Nigeria. Three objectives were raised which included; Determine the extent to which auditors are fulfilling their statutory responsibility and determine the extent to which auditors are independent in the execution of their statutory responsibility. A total of 77 responses were received and validated from the enrolled participants where all respondents were drawn from First bank plc. Anyigba. Hypothesis was tested using Chi-Square statistical tool (SPSS).
Conclusion
The globalization of economic activity has made it more imperative for a high quality, internationally comparable financial information to be demanded by participants in the international capital market. Critics of Accounting profession allege that inadequate financial information, lack of transparency, inappropriate accounting standards and inconsistency in application of these standards are factors contributing to the financial crises being experienced by some key industries in the US. There is a call from the International Forum on Accountancy Development (IFAD) for improved financial reporting accountability and transparency worldwide
Recommendation
The Institute of Chartered Accountants of Nigeria should also be challenged by this global call to issue from time to time high quality auditing standards and guidelines as well as ensuring that they are complied with.
The capital and financial market regulators such as SEC should ensure that accounting standards are accurately and consistency applied in the securities market they regulate. CBN should ensure that compliance to accounting standards are monitored in the banking sector.
There should be regulatory supervision to ensure that good standard of compliance is achieved. Companies should comply strictly to the set standards. Those who prepared financial statements, which do not comply with the applicable standards, should be required to restate them
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