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THE AUDIT DEPARTMENT AND ACCOUNTABILITIES IN THE MINISTRY OF FINANCES

Format: MS WORD  |  Chapter: 1-5  |  Pages: 60  |  616 Users found this project useful  |  Price NGN5,000

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CHAPTER ONE

INTRODUCTION

1.1       Background to the Study

The Nigerian society is filled with stories of wrong practices such as stories of ghost workers on the pay roll of Ministries, Extra-ministerial Departments and parastatals, frauds, embezzlements and setting ablaze of offices housing sensitive documents and corruption are found everywhere in the country (Okwoli; 2004). According to Bello (2001), huge amount of Naira is lost through one financial malpractice or the other in Nigeria, which to say the least, drains the nation’s merger resources through fraudulent means with far-reaching and attendant consequences on the development or even socio-economic or political programmes of the nation. Billions of Naira is lost in the public sector every year through fraudulent means. This represents only the amount that is ferreted out and made public. Indeed much more substancial or huge sums are lost in undetected frauds or those that are for one reason or the hushed up. Appah and Appiah (2010) argues that cases of fraud is prevalent in the Nigerian public service, could seem to be inviled in one way or the other in some of these nasty acts.  

In the same vein, accounting is viewed as the most critical system for maximizing efficiency and minimising costs of public services (Andrews, 2002; Bruno, 2014; Jones & Browrey, 2013: Owolabi et al., 2013). Consequently, the existence and use of a good financial reporting system was regarded as key to achieving the objective of maximizing efficiency in the public sector.

The imperativeness of good governance demands quick reporting of the activities operations of government for the attainment of accountability and transparency. Audit reports keep the citizenry informed of the financial activities of the government.

The auditor assesses the financial activities of the Government. The role of auditor in an economy is assurance of transparency and accountability (Adegoroye, 2008).

An audit ensures proper and effective use of public funds and the development of sound financial management. Effective operations of the functions of the Auditor –General provide the proper execution of administrative activities.  Moreover, it is in promoting accountability, sound financial management and the encouragement of sound internal control mechanism (Akenbor, C. & Oghoghomeh, 2011).

Effectiveness of the auditing has a dissuasive effect on those who might otherwise engage in fraud and other financial malpractices. Audit, Accountability and Transparency are the tripod for sustainable financial and economic development in the comity of nations.

However, there is absolutely a dismal state of accountability for public funds in Nigeria. There is a lot of gross negligence and ineffectiveness on the part of 

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