The topic of this research is problems and
prospects of auditing in government organization, the population of the
study was 82 while the research used yaro Yamani formula in the
determination of the sample size which was 68.The researcher used both
the primary and the secondary sources in obtaining the relevant data
used in the course of the study. The primary data was collected using
the questionnaire while that of the secondary data was obtained using
written textbooks, journals, magazines, newspapers, and the use of
library. The researcher used chi-square in the testing of the hypothesis
formulated while simple percentages were used in analyzing the research
questions. Some of the problems bound to be encountered when auditing
government establishments are embezzlement of funds by some government
officials, deficiency in confirming accounts receivable and failure to
exercise due professional care. Some findings were made of which one out
of them is that financial reports submitted are not in consonance with
the transactions carried out by the government establishment.
Recommendations were also made of which one out of them is that the
auditor should maintain his position of independence as much as
Dept. of Accountancy,
Faculty of Management Sci.
I Udeogu Esther Ijeoma, a final year student of the above University, am carrying out a research on the “problems and prospects of auditing in government organization
(A case study of Federal mortgage bank) In Partial Fulfillment of the
Requirement for the Award of Bachelor of Science Degree in Accountancy.
Your bank has been particularly chosen because of the experience it has acquired since its years of operation in this field.
respond to each of these items by ticking on the appropriate box
provided and giving your own opinion where necessary. I assure you that
all the information given shall be used only for this project and shall
be treated with utmost confidentiality.
Thanks for your co-operation.
Udeogu .E. IjeomaPROBLEMS AND PROSPECTS OF AUDITING IN GOVERNMENT ORGANIZATION
(A CASE STUDY OF FEDERAL MORTGAGE BANK ENUGU STATE)
UDEOGU ESTHER IJEOMA
DEPARTMENT OF ACCOUNTANCY
FACULTY OF MANAGEMENT AND SOCIAL SCIENCES
CARITAS UNIVERSITY AMORJI-NIKE,ENUGU
1.1 Background of the Study
organization have played a greater part in the economic growth of any
economy, especially in the Nigerian economy. The contributions they have
made so far cannot be overemphasized because their utmost aims of
establishment is to provide some vital or essential services to improve
the social and economic well being of the people.
organizations are mainly being funded either by the federal or state
government through their budgetary allocations made to them yearly and
they can also obtain loans or overdraft from commercial bank as well as
subvention from government. These funds are expected to be utilized
effectively and efficiently. But in most practices they are being
misappropriated or embezzled by some government officials.
result of this mis-appropriation which has characterized most of the
government organizations. Honestly and prudently managed. The audit is
show whether proper principles of accounts and audit ethics
have been adhered to and that financial statements prepared give a true
and fair view.
1.2 Statement of the Problem
In any business
Organization in which allocation and application of funds serves as a
backbone for financial activities to be carried out the following are
problems in which are bund to be encountered.
1. Embezzlement of fund by some government Officials
2. Failure to exercise due professional care and the appropriate level of professional skepticism.
3. Overreliance on inquiry as a form of audit evidence
4. Deficiency in confirming accounts receivable
5. Failure to recognize related party transactions and assuming internal control exist when they may not.
These and other factors contribute to problems of auditing in government organization.
1.3 Purpose of the Study
The purpose of studying this topic is to examine the importance, problems and prospects of auditing in government institution.
? To ascertain the problems encountered while auditing in government establishment.
? To know if auditors exhibit enough professional competence in conduct of their work.
? To know how effective auditing is in government establishment
1.4 Research Questions
This research work seeks to ask the following questions among others, deduced from the purpose of the study.
? Are auditors being threatened or intimidated during their audit work.
? Are auditors being faced with some problems during their audit work.
? Are vital documents needed for the audit of the organization being held from the auditors
1.5 Research Hypothesis
Based on the purpose, and research questions the following hypothesis are put forward.
Ho Financial reports submitted are not in consonance with the transactions carried out by the government establishment
HI Financial report submitted are in consonance with the transactions carried out by the government establishment.
Ho Treats and intimidation do not positively affect the quality of auditors work in government establishment.
HI Treat and intimidation positively affect the quality of auditors work in government establishment.
Ho Poor professional conducts by auditors do not affect the quality of work done by auditor in government establishment.
HI Poor Professional conduct by auditors affects the quality of work done by auditors in government establishments.
1.6 Significance of the study
audit principles and procedures are carried out in government
organizations the following benefits are derived of which these work
will be beneficial to the following people and establishments:
? Government good audit work will prevent, expose fraud, errors and irregularities in government establishment.
? Auditors: will benefit by knowing the challenges facing them in their audit work and thereafter the prospects.
? Banks; will also benefit because it will give them insight on how to handle audit work successfully.
? Students and researchers will benefit by gaining knowledge on the audit challenges to banks and the prospects.
1.7 Scope and limitation of the study
project would cover arrears such as audit principle(s) and procedures
giving as in depth analysis on how audit work is carried out in
Attempts have been made by the researcher
to discuss in depth the various short comings behind this operational
framework of auditing in government organization and also self
investigation carried out.
Part of the constraint encountered by the researcher and limitations are as follows.
? Cost of carrying out the research
? Short duration of time limit dedicated on the project
? Distance and financial constraint.
? Restriction placed upon by some organization to have access to some vital documents.
Secrecy maintained by some government officials by not revealing
certain information which they term as “Keep government secrets secret”.
1.8 Definition of terms
Is a mis-presentation of data with the intention to theft which is
dishonest act involving the theft of assets and the falsification of
accounting records and financial statements (Akpankpan, 2000.126)
Embezzlement: The fraudulent appropriation of property lawfully in one?s custody, (Kohther, 1970:173)
or Audit: Is concerned with an independent examination of financial
statements and accounting records by an independent certified or
chartered accountant and expression of an opinion by the public
accountant on the financial statements of an organization stating
whether the finance; al statements present fairly by the financial
position of the firm concerning the period covered by the financial
Auditor: An auditor is the qualified accountant who is
professionally licensed to audit or examin financial sttments or report
of business or non-business organizations.
Adeniji, A.A .(2004). Auditing and Investigation 3rd Edition. Lagos. Eltoda venture limited.
Leslie r. Howard.(1981). Principles of Auditing: Twentieth Edition. Estover plymouth mac jonal and Evans Ltd
J.C. Eze. (2003). Principles and Techniques of Auditing, Revised Edition JTC publishers.