Home » Project Material » Problem And Prospect Of Auditing In Government Organizations

Problem And Prospect Of Auditing In Government Organizations

5 Chapters
|
59 Pages
|
9,870 Words

Auditing in government organizations presents a complex landscape characterized by challenges and opportunities. The problem of auditing in these entities often stems from issues such as resource constraints, bureaucratic red tape, and political interference, which can hinder the effectiveness of audit processes and compromise transparency and accountability. Moreover, the sheer scale and scope of government operations amplify the difficulty of conducting thorough audits. Despite these challenges, there are prospects for improvement. Enhanced technological integration and automation can streamline audit procedures, reducing time and resource requirements. Additionally, strengthening legislative frameworks to insulate auditors from political influence and fostering a culture of compliance and integrity within government entities can bolster the efficacy of auditing. Furthermore, investing in professional development and training for auditors to keep pace with evolving regulatory requirements and emerging risks is essential. Embracing these opportunities can fortify auditing practices in government organizations, ensuring fiscal responsibility and promoting public trust in the management of public resources.

TABLE OF CONTENT

Title Page
Acknowledgement Sample
Dedication Sample
Table Of Content

CHAPTER ONE
1.0 INTRODUCTION
1.1 Background of the Study
1.2 Statement of the Problem
1.3 Purpose of the Study
1.4 Research Questions
1.5 Research Hypothesis
1.6 Significance of the study
1.7 Scope and limitation of the study
1.8 Definition of terms
Reference

CHAPTER TWO
2.0 REVIEW OF RELATED LITERATURE
2.1 Nature of Auditing
2.2 Features of Auditing
2.4 Types of audit
2.5 Duties of auditors
2.6 Objective of Auditing
2.7 Appointment of Auditing
2.8 Rights of an auditor
2.9 Classification Of The Study
2.12 Audit Objectives with respect to government organization
2.13 Prospects of Auditing in government organization
2.14 Historical development of federal mortgage bank
Reference

CHAPTER THREE
3.0 RESEARCH METHODOLOGY
3.1 Introduction
3.2 Research Design
3.3 Area of study
3.4 Population of the study
3.5 Sample and sampling technique
3.6 Questionnaire design and distribution
3.7 Source of data
3.8 Instruments for data collection
3.9 Method of data analysis
3.10 Validity/reliability of Instrument

CHAPTER FOUR
4.0 DATA ANALYSIS
4.1 Presentations and Analysis of Data
4.2 Testing of Hypothesis

CHAPTER FIVE
5.0 SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION
5.2 Conclusion:
5.3 Recommendation
Bibliography
Questionnaire

CHAPTER ONE

INTRODUCTION
1.1 Background of the Study
Government organizations 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.
These government 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.
As a result of this mis-appropriation which has characterized most of the government organizations. Honestly and prudently managed. The audit is expect to 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
Where 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
This project would cover arrears such as audit principle(s) and procedures giving as in depth analysis on how audit work is carried out in government organizations.
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
Fraud: 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)
Auditing 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 statement.
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.

SIMILAR PROJECT TOPICS:
Save/Share This On Social Media:
MORE DESCRIPTION:

Problem And Prospect Of Auditing In Government Organizations:

Auditing in government organizations presents a unique set of challenges and opportunities, and it is essential to understand both the problems and prospects associated with this crucial function.

Problems of Auditing in Government Organizations:

Complexity and Size: Government organizations are often massive and complex, making it challenging to conduct comprehensive audits. The sheer size and diversity of government programs, agencies, and departments can overwhelm auditors.

Lack of Accountability: Government entities may lack a clear chain of accountability, making it difficult to trace responsibility for financial mismanagement or irregularities. Bureaucratic structures can create confusion about who is ultimately responsible for financial decisions.

Political Interference: Auditors in government organizations may face political pressure or interference, especially when audit findings could have political implications. This can compromise the independence and objectivity of the auditing process.

Resource Constraints: Government auditors may be limited by budget constraints, staffing shortages, and outdated technology, which can hinder their ability to conduct thorough and timely audits.

Compliance Challenges: Governments must adhere to numerous laws, regulations, and compliance standards. Ensuring that all government operations comply with these rules can be a daunting task for auditors.

Data Integrity and Transparency: Maintaining accurate and transparent financial records can be a challenge in government organizations, where legacy systems and paper-based processes may still be in use.

Prospects of Auditing in Government Organizations:

Transparency and Accountability: Auditing plays a critical role in promoting transparency and accountability in government. Public trust in government can be strengthened when citizens see that taxpayer funds are used efficiently and effectively.

Efficiency Improvements: Audit findings can identify areas where government organizations can become more efficient and cost-effective. By implementing recommendations from audits, governments can save money and provide better services.

Risk Mitigation: Auditors can help government organizations identify and mitigate financial, operational, and compliance risks. This proactive approach can prevent costly mistakes and legal issues.

Data Analytics: Advances in technology have made it easier for auditors to analyze large datasets. This can help auditors detect fraud, waste, and abuse more effectively.

Professional Development: Governments can invest in the professional development of their auditors, ensuring that they have the necessary skills and knowledge to perform their roles effectively.

Legislative Support: Governments can pass legislation to protect the independence and integrity of auditing in the public sector. Strong legal frameworks can help shield auditors from political interference.

Public Awareness: Public awareness of the importance of auditing in government organizations can lead to increased demand for accountability and better audit practices.

In conclusion, auditing in government organizations faces significant challenges, but it also offers the prospect of improving transparency, accountability, and efficiency in the public sector. Addressing the problems while capitalizing on the prospects can lead to more effective and responsible government operations.