THE ROLE OF STATUTORY AUDITOR IN CONTROLLING FRAUD IN GOVERNMENT OWNED ESTABLISHMENT (A CASE STUDY OF UNIVERSITY OF NIGERIA TEACHING HOSPITAL UNTH, ENUGU)

ABSTRACT

This research work is view of the role of a statutory Auditor with intention of determining how it helps in cubing frauds in government owned establishment.Though it is aimed at the role of a statuary auditor in controlling fraud generally, in view of the vastness of the topic a particular government owned firm (establishment) was selected as a case study with the belief that such institution is a fair representation of government establishment generally. This research work is dedicated into five chapters or parts. Chapter one deals with in introduction to the research. These include background of the study, statement of the problems, objective of the study, significant of the study, research question, scope of the study, research terms used in course of the study. The second chapter deals with literature review. This summaries what other writers and experts have been saying about the topic of the project based on the writings available to the researcher in view of the fact that no writings on the main topic of the research involves the practical aspect of the statutory auditor’s role and how it aids in controlling frauds generally. Chapter three is concerned with the method adopted in the research which involves the use of simple percentage in treating the data collected form the management and staff of university of Nigeria Teaching Hospital Enugu, which was used as a case study. Chapter four deals with the presentation and analysis of data collected, summary of the results and findings. Chapter five deals with discussion of the findings, implication of result and recommendations by the researcher.

CHAPTER ONE

INTRODUCTION

This chapter is concerned with the introduction of the research work. It deals with the background of the study, statement of problems, purpose of the study scope of the study research questions significance of the study and definition of terms.

1.1     BACKGROUND OF THE STUDY

It has been said that the traditional role of financial accounting is to give account of stewardship to the owners of the business who was divorced from the management of the business. There is a need for accountability of money spent by various government statutory corporations, commissions, agencies, authorizations and al person entrusted in position of trust. The need for management and staffs of any government owned establishment to pilot the affairs of the organization effectively and efficiently when it comes to financial matters calls for appointment of a statutory auditor as stipulated by section 149 and 154 of companies act of 1968 and chartered accountant act of Nigeria of 1965 respectively.
Section 85(4) of the Federal Republic of Nigeria constitution 1999 also provides that corporations, commissions, authorities, agencies including all persons and bodies established by an act National assembly which the University of Nigeria Teaching Hospital, Enugu is among shall be checked, examined and auditor by the Federal Auditor- general periodically, section 125 (4) provides same for the state. The statutory auditor performs independent examination of an organization, its records and financial statement as been prepared by the management and this form an independent opinion on the accuracy and correctness of the competent and honest, so if their opinion a financial statement of an organization show a true and fair view of its state of affairs for the period under review, the users of such account ought to have faith in them.
The statutory auditor is primarily concerned with the responsibility of examining the financial statement and report whether in their opinion, the financial statement.Have been properly prepared in accordance with the requirements; give a true and fair view; proper accounting records have been kept; proper returns adequate for their audit have been received from branches not visited; they obtain all the necessary information’s and explanations required for the purpose of the study (auditor);The information given in the director’s report is in constituencies with the annual account.
However, the responsibilities of the auditor with regards to deletion/controlling of fraud, errors and other irregularities cannot be overemphasized.