RELEVANCE AND CREDIBILITY OF AUDIT REPORT IN PUBLIC SECTOR ORGANIZATIONS IN NIGERIA

ABSTRACT

Audit report is indeed very relevant to public sector organizations. As such, its credibility is highly needed. When an audit report losses these two qualities; relevance and credibility, it looses its worth and can no longer be relied upon.

The study is oriented towards identifying set objectives for audit report and the implementation of the objective directed towards the growth and operational efficiency of the organization. Audit report should be designed to comply with the statutory requirements of audit and of the organization concerned.

Both primary and secondary data were collected from the University of Nigeria Teaching Hospital Ituku/ozalla, National Orthopaedic Hospital and the Power Holding Company of Nigeria Plc Enugu Zonal Office. Tables and percentages were used to analyze and interpret the collected data. However, findings from hypothesis testing show that the relevance and credibility of audit report is never in doubt and that audit report when relevant and credible, helps in checking fraud and other irregularities in the organization. However, there exist some lapses on the part of the management which the researcher has made some recommendations for improvement. Other measures that can aid credibility to an audit report were also recommended.

In summary, the researcher do not claim to have carried out an exhaustive study on the subject matter, hence, she has put up some suggestions for further study.

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Improved accountability is an important aim for all public bodies. As accountable units to management within the public sector, all public bodies are required to demonstrate that they are conducting their operations as economically, efficiently and effectively as possible. Annual reports and accounts are the main vehicles for discharging this “stewardship” function and enabling parliament, the tax payer and customers to judge whether the body is securing value – for – money in its operations.

Public sector “audit expectations gap” arises due to a lack of technical competencies, the timeliness and relevance of auditor communication, lack of assurance – provider (auditor) independence and a lack of commitment to the public interest.

It is therefore expedient to mention that audit report should be relevant and credible. This means that audit report should posses the qualities that will make it reliable, trusted and accepted, especially by the users. Furthermore, independence lies at the core of the credibility of an evaluation. According to the Development Assistance Committee (DAC),an evaluation is deemed to be independent when carried out by entities and persons free of control of those responsible for the design and implementation. The Development Assistance Committee also suggests that the independence of an evaluation is characterized by evaluators being able to carry out their task:

-    without political influence or pressure from within the organization.

-          that evaluators are given full access to all relevant information required for the evaluation.

-          and that they have full autonomy in conducting and reporting their findings.

On the contrast, most auditors are not given access to all relevant information. While some public bodies give part of.....

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Item Type: Project Material  |  Size: 116 pages  |  Chapters: 1-5

Format: MS Word  |  Delivery: Within 30Mins.

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