AUDIT AS A TOOL FOR PREVENTION CRIMINAL CONTROL OF FRAUD 

( A CASE STUDY OF SAPIEM L.T.D YENEGUA BAYELSA STATE)

TABLE OF CONTENT

Title page …………………………………………………i

Certification ………………………………………………ii

Dedication…………………………………………………iii

Acknowledgement ………………………………………..iv

Abstract…………………………………………………….v

Table of content …………………………………………..iv

Chapter one

• Introduction…………………………………………………1

1.1 Background of the study……………………………..1

1.2 Statement of problem…………………………………3

• Objective of the study……………………………….3
• Research question…………………………………..4
• Research hypothesis………………………………..5
• Significance of the study……………………………5
• Scope of the study……………………………………6
• Limitation of the study……………………………….6
• Definition of terms……………………………………7

Chapter two

• Literature review…………………………………………….8
  • Introduction …………………………………………..8
  • The organs of auditing ……………………………..9
  • Definition of Auditing ………………………………10
  • The need for an audit ……………………………..12
  • Objective of auditing ……………………………….13

Chapter three

• Introduction …………………………………………………14
  • Research design…………………………………….14
  • Population of study …………………………………15
  • Sampling techniques………………………………..15
  • Data collection procedure …………………………15
  • Data analysis techniques……………………………16

Chapter four

• The research instrument ………………………………..17
  • Data presentation ……………………………………17
  • Analysis of data………………………………………18
  • Discussion of finding ………………………………..32

Chapter five

• Summary ,Conclusion ,Recommendation,…………
  • Summary ……………………………………………33
  • Recommendation …………………………………34
  • Conclusion ………………………………………….36

Bibliography………………………………………..38

Appendix i…………………………………………..40

Appendix ii………………………………………….41

CHAPTERONE

1.0                                             INTORDUCTION

1.1 BACKGROUND OF THE STUDY

The substance of every economic entity depends on its ability to achieve its goal and objectives management for the achievement of corporate goals. Wither or not management will achievement this goal depends on how strong and reliable the growth of any corporate body largely depends on the effectiveness and efficient of the internal criminal control system.

Therefore management has a duty of or ensuring that a strong and reliable criminal control system exists within the organization for accountability and country.

For accountability within the organization the conduct at audit is mentionable. This is because account prepared by management may not disclose fraud deliberately misleading or failed to confirm to regulations. Therefore the necessary of auditing to cooperative organization cannot be overemphasized as thus will help the safeguard of the assets of the organization by detection and prevention of all kind of misappropriation and fraud within the organization. Over the years business and corporate organizations run into problems of liquidation. Bankruptcy and insolvency as a result of not only economic fact in the business environment but as a result of management in adequate and inefficient to mange. The internal activities of the organization therefore creating room for financial malpractice within the organization. Thus many corporate bodies run into liquidation as a result of fraud and misappropriation of funds (working capital) within the organization. These are funds that are supposed to be used for expansion of business activities.

Thus, auditing as a professional activity is to birch the gaps and lapses of management activities and to repent to the owner of business on the financial position of the business.

According to the American Accounting Association (AAA) committee on basic Auditing concept (1971), auditing and evaluating process of objectively obtaining and evaluating evidence regarding assertions about economic actions and events o ascertain the degree of corresponding between those assertion and establishment to interested users. The Nigeria auditing guidance sees auditing as an independent tax the appointed and or in pursuance of his appointment and in compliance within any relevant statutory obligations.

From the above, it is clear that despite need of auditing by management within the organization, government also requires the account are audit annually before they publisher. However there are two objective of auditing in any corporate entity, the primary and secondary objects, the projective of auditing require the auditor to give report on this opinion on account investigated.

1.2 STATEMENT OF THE PROBLEM

In our present business environment the news of insolvency, bankruptcy and liquidation have become frequency news handling in magazines. Several factors are responsible for those ugly issues. The issue of liquidation is not only attributed to the business environment bur internal management problems. Therefore the following problems are identified

• The issue of forgery of public fund for personal interest.
• Lack of sense of responsibility and other forms of social values.
• Low level of official awareness.
• Weakness of internal criminal control system to monitor the activities of management.

1.3 PURPOSE/OBJECTIVE OF THE STUDY

At the end of this study. The following objectives are expected to be achieved.

• To identify the causes of fraud in public parastatals
• To examine how audit could help in the prevention and criminal control of fraud.

AUDIT AS A TOOL FOR PREVENTION CRIMINAL CONTROL OF FRAUD ( A CASE STUDY OF SAPIEM L.T.D YENEGUA BAYELSA STATE)