TABLE OF CONTENTS

CHAPTER ONE

INTRODUCTION

1.1       BACKGROUND OF THE STUDY

1.2       STATEMENT OF PROBLEM

1.3       OBJECTIVES OF STUDY

1.4       SCOPE OF STUDY

1.5       LIMITATIONS OF STUDY

1.6       DEFINITION OF TERM

CHAPTER TWO

2.0       LITERATURE REVIEW

2.1       REVIEW OF RELATED LITERATURE

2.2       MEANING OF PUBLIC SECTOR AND SERVICE

2.3       AUDITING PROCEDURES

2.4       MEANING OF INTERNAL CONTROL

2.5       THE ROLE OF INTERNAL CONTROL DEPARTMENT

2.6       OBJECTIVES OF AUDITING

CHAPTER THREE

3.0       SUMMARY

3.1       FINDINGS

3.2       RECOMMENDATION

            REFERENCES

CHAPTER ONE

1.0              INTRODUCTION

Company performance is very important if such a company

want to achieve its purpose of starting its business without positive impact of any organization, it means that the way of achieving the objectives when the business has commenced will be a difficult situation for that organization.  It is obvious that the performances of companies sis not unto expectation.  That is why the researcher wants to know the impact auditing create in improving companies performances.

            Since companies have been encountering some problems like fraud, misappropriation of funds and properties, lack of effective management and others that made people to be asking whether auditing plays any significant role towards ensuring efficiency and judicious use of funds set aside for various purposes.

Some activities and programmes organized by people as re- assumed to be done on behalf of the people.  They are deserved to be assured that eh resources which they put at the disposal of these programmes are effectively, efficiently and economically managed since it is known that not all are judicious in public affairs entrusted to them.

            Therefore, for proper and efficient accountability, it is obvious that auditors will manifest their principles to be able to arrive at what is expected of them in order to be convinced that the financial position of the organization as presented show a clear and fair view of the organization.

            Consequently, because of biased nature of the organization as a result of poor investigation of the organization position, past rulers have pledged to introduce a more responsible system of government with accountability but their subsequent conduct has shown that they have little or no understanding definition and application of efficiency in the improvement of companies performances.

            Auditing which is regarded as one of the recently established professions turn out of the complexity of modern business world.  It becomes relevant so as to discourage people from erring and to expose those that gave wrong account of how they managed the funds and properties under their custody.  The account or report is usually done by means of financial statement.  In order to verify the true and fair view of this report an independent person is needed to audit the account.

            The question that is normally asked is in spite of all those provisions and safeguards why is it that one still experience the alarming rate of fraud and misappropriation of public funds and properties by those they are entrusted to safeguard.  That is why a great emphasis has to be laid on proper auditing to improve companies performances in public sectors.

1.2              BACKGROUND OF THE STUDY

The practice of auditing commenced on the day that an

individual assumed stewardship over another one’s property.  Stewardship is a name given to the practice by which productive resources owned by one person or group are managed by another person or group of persons.  In reporting on his stewardship, accuracy, efficiency and reliability of that information would have been subjected to some sort of critical review.  Evidence has shown that many years ago, Egyptians, Greeks, Romans and others utilized their opportunities of using check and counter check on the accounting of public funds in order to maintain efficient and effective accounting of public funds committed to them.

            Historically, the Auditor had the accounts read to him since the word audit originated from the Latin ‘audire’ meaning the hear.

The original skill required by the Auditor is that which would enable him to carry out an exhaustive examination of the documents and the books which is from the financial transactions of the business especially with the intention of ensuring that all are in order and that no fraud was committed by the employees.

            The main objective is to ensure that he account reveal a true ad fair view of the business and its transactions so that all the activities in the organization will be moving smoothly without any obstacle.

            Therefore, since the above mentioned countries were successful on the method they used, this economy has to borrow a leaf from them or even find a better way of accounting for public funds since this is the only way the performance of the organizations will enhance.

in this section, the researcher wants to know how auditing

efficiency helps to improve the performances of the companies.  The effectiveness of an independent is not however limited to statement of credibility derived directly from audit itself.  There is a side effect of  the prospective audit on employees who might be tempted to defraud their employers and also on the side of management that might find it expedient to endeavour to deceive third party by preparing a misleading financial statement.

            The problem is that the funds and properties of the organizations are entrusted to certain individuals in the organization and in most cases., those individuals are not brought under thorough surveillance.  The result is that much funds and properties are diverted to personal.

            Another problems is that there is still increase in fraud, mismanagement and lack of trust despite the fact that the financial statements of these organization are suited.

This means that if adequate care is not taking, the rate will continue to be increasing until the organizations fold up.

            Also on the side of Auditor, some of the difficulties he encounter during his work will make him not to carry his work as and when due.  Sometimes, it may be lack of knowledge, time and other constraints that Linder him form effective and efficient exercising of his duty.

            Managers also contributes to the problems of organization since their problem is for their own welfare and not for the business.

1.3       OBJECTIVES OF THE STUDY

            The objectives that made the researcher to go into this topic includes:

i.                    To find out the role of auditing in improving company performances

ii.                  To find out problems facing auditors which hamper their performances in their public sector.

iii.                To find out the auditors roles towards protection of funds and properties in the organization

iv.                To find out whether the standard of auditing has fallen in recent years

v.                  To find out the effectiveness of audit reports and implementations

It is believed that he information collected form this study will

highlight the benefits of auditing towards ensuring proper performance and accountability in any organization and also serve as a foundation for carrying out regular audit work.

Also through this study, auditors will know that they  play

significant role towards performance of any organization.

1.3              SCOPE OF STUDY

The scope of this study “Auditing efficiency for improving

companies performances” is the public sectors in Enugu State.

1.4              DEFINITION OF TERMS

Auditing:  This is an act of investigation by an auditor into the evidence from which the final revenue accounts and balance sheet or other statements of an organization have been prepared in order to ascertain that they present true and a fair view of the affairs and operation of the organization during a period under review.

Efficiency:  According to Oxford Advanced Learner’s Dictionary.  This is the act of being able to work well without wasting time or resources. OR a way of achieving much things with less resources.

Improving:  This is the ability to make something or someone to improve or become better. OR the act of enhancing the situation of something.

Company:  This is a place where production takes place OR a place or building where raw materials are converted into finished products.