BACKGROUND OF THE STUDY
In various public company, the statutory requirement for the management is to present to the owners and other interested parties (creditors, tax authorities, potential investors etc.) a financial statement showing the way and manner in which the resources of the company at the managers disposal has been utilized or managed. This serves as the stewardship function of the management. However, before this financial statement can be accepted and is published. It must have been certify by an auditor to be the true statement of the affairs of the business. Hence auditing is an independent examination of the financial statement of an organization with a view to expressing an opinion as to whether this statement give a true or false view and comply with the relevant status. This primary objective of the audit is drive form section 360 of companies and allied matters decree (CAMD) 90 is to find out; Whether the financial statements shown are true and fair view and comply with the relevant status Whether the financial statement are in agreement with the records Whether proper records are being kept under secondary or subsiding object of an audit, which are; Detection of errors fraud and irregularities Prevention of fraud and other financial irregularities This two are also the objective of conducting an audit as it is however the responsibility of the management to control and detect fraud and other irregularities conferred on them by the section 331 of the (CAMD) 90. Irrespective of the above fact, the editor in the course of auditing is expected to approach this professional opinion with truth and fairness of the financial position as shown by the balance sheet and of the profit or lose as shown by the profit and lose account and any other information required by the law to be disclosed in the financial statement. In cause of carrying out this above mention duty, the auditor should regencies the responsibility of material misstatement, financial irregularities or fraud which unless adequately disclose distort the result of the state of the affairs shown by the financial statements.
OBJECTIVE OF THE STUDY
1. As earlier stated earlier, the aim of the auditing is to detect fraud and irregularities but also to examine the financial statement presented by the management in order o give an opinion on whether or not the account show a true and fair view of the statement affairs of the business
2. This research is to analyze the extent to which auditing in the course of the above examination can be applied to control fraud or irregularities.
3. It is to examine how report are presented to the management and owners of the business at the end of the audit work bearing in mind the possibility of fraud and irregularity which unless if adequately disclose distort the result or state of affairs as shown by the financial statement.
4. The research work is also directed towards showing the important of audit as regarding fraud and financial irregularities in the organization, (Nigeria coal cooperation Enugu).
5. It is to make indept investigation and recommendation based on the finding to enlighten people on the impact of auditing in the controlling of fraud and financial irregularities.
SIGNIFICANCE OF THE STUDY
This study is significance in the following areas;
a. The academic,
b. The editor
c. The society in general
To the academic societies, this study will enable them to take the course serious and o broaden their knowledge on the extent to which the impact of auditing can be felt as regards controlling of fraud and irregularities. It also helps them to understand the versatility of auditing as a course. To the auditors, it will enable them to know the extent of their study bearing in mind the probability of all those fraud and irregularities that can distort the state of affairs of the financial statement. To the society in general, its important is that they will appreciate auditing as a control measure on fraud and irregularities and not a measure at detecting fraud.
SCOPE OF THE STUDY
This study is design to point out critically the impact of auditing has in he control of fraud and irregularities in the selected business organization like the Nigeria Coal Corporation Enugu as our focuses. This study also recognize the possibility of fraud and irregularities which unless if disclosed and thus become a check on fraud and financial irregularities. The researcher has chosen the cola cooperation Enugu as a case of study with hope that it will represent parastatals and other public service organization
LIMITATION OF THE STUDY
Considering the economic condition in our country today, it was not easy for the researcher to carry on with the cost of transportation and other financial involvement, secondary due to the organizational bureaucracy and imperative attitudes of the respondent, information were delayed and this mad the respondent run out of time.
DEFINITION OF TERMS
Balance sheet: this is a statement that shows all the asset and liability of a business at a particular date and time
Distortion: this is the act of pulling or twisting something out of original shape. Making something look or sound strange or unnatural
Financial irregularity: this is the intentional distortion of the financial statement for whether purpose of misappropriation of fund
Financial statement: these consist of profit and lose account and the balance sheet of the business. Though this, the profit he lose account and the financial position of the business can be determine.
Impact: this is a strong imprison or effect on something
Shareholders: He who owns a share in a business company
Semi – Qua – Non: an essential condition, something absolutely necessary
Status: law passed by an official ruling body and written down formally. Any of the rules of an organization or institution
Substantive test: this are those steps which the auditor take to obtain direct evidence which will substantiate the validity if the balance appearing in the balance sheet and the transaction reflected in the accounting records.