CHAPTER ONE

INTRODUCTION

1.1     BACKGROUND OF THE STUDY

The impact of auditing in any organization is of vital importance that their growth and retardation depend on it. According to Nwabueze (200:2) an audit is an independent examination of and expression of opinion of the financial statement of an enterprise by an appointed auditor in pursuance of the appointments and in compliance with any relevant law and regulation. An audit is an independent examination by an auditor of the evidence from which the final revenue account and balance sheet of an enterprise have been prepared in order to ascertain that they present a true and fair view of the summarized transaction of the period under reviewed and the financial state of the organization at the year and this enabling the auditor to report thereon. It is an investigation into books of accounts and the documents and vouchers from which the books have been written up with the object of enabling the auditor to make a report on the balance sheet or other statement prepared from books, to the person or persons to whom he has been appointed to report.

Nwabueze (200:3) further stated that an audit is an independent examination, of an organizations financial records at a given time in order to ascertain the true position of the final accounts of the institution or organization. It is imperative to state that auditing is never with hunting as some establishments tend to book at it.

This study tends to look into audit conflicts its impact on auditors ability to resist management pressure. Lugli point on this study will be guard a long time management conflict in an enterprise, organization and institution as a result of unbalanced accounting records and other form of management issues boarding on the firm for example, unretired payments, incomplete records, over pricing of products usage of organizations property without proper or adequate permission, over vouching and deliberate fraud or embezzlement of funds.

At a place where auditing is appropriate and timely, such conflicts are reduced if not nipped out the bud. The relevance of auditing as it is daily guarding momentum is over emphasized. Any company organization or agency that requires growth result as a matter of fact allow periodic auditing into its final records. Such periodic exercise will enhance efficiency reliability and dependent records with a strong financial base.

According to Onovo (2001) if the auditor is to fulfill primary objective of an audit of a financial statement which is to express on opinion on such financial statement a financial statement must be prepared within a frame of a reorganized accounting principles.

The above is referring about primary objective of auditing that boarders on efficiency timely execution of audit responsibility cost effectiveness and risk reduction and elimination timely execution of audit is very necessary in any audit inspection and equerry according to Nwabueze (2000:14) the primary objective of an audit is the critical examination of and verification of the accuracy and the truth of a statement usually a financial one by a skilled and impartial observe (the auditor.)

From the going therefore the priory objective of auditing will be defeated  if timely execution and efficiency of it conducts in relation with the above (Millichapamp (1990:24).

In the same vein the inspection or auditing of an organization records will include the following, an examination, of the book keeping accounting and internal control system with a view to ascertain whether they are appropriate for their purpose and whether they are effectively applied some other auditing functions include verification of ownership existence and valued of assets and the amount of liabilities show in the balance sheet (Aguolo 19983)

1.2     STATEMENT OF THE PROBLEM

The researcher as a matter of fact is fully prepared to carry out the project titled “audit conflict: impact on auditor’s ability to resist management pressure” but in faced with a Myriad of management problems. It was not possible for those banks to release their record for inspection to external persons for project purposes. Again the management of the bank see the incidents projects as exposing their records more especially now that the EFCC (economic financial crimes commission) are after them.

       Most of the staff of the bank that are prepared to cooperate were afraid of either loosing their jobs on account of the assistance they are to give. Meanwhile the study is vital in the sense that audit conflicts as its impacts on management is an important tool to be resolved in the effectiveness on efficiency of day to day operations of an organization, eg the selected banks in particular.

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