Auditors Report And Its Impact On Business Organization (A Case Study Of First Bank Nig, Plc)

DOWNLOAD THE COMPLETE PROJECT»

Auditors Report And Its Impact On Business Organization (A Case Study Of First Bank Nig, Plc)

Download This Complete Project Topic And Material (Chapter 1-5 With References and Questionnaire) Titled Auditors Report And Its Impact On Business Organization (A Case Study Of First Bank Nig, Plc). Here On ProjectGate. See Below For The Abstract, Table Of Contents, List Of Figures, List Of Tables, List Of Appendices, List Of Abbreviations, And Chapter One. Click The Download Now Button Below To Get The Complete Project Work Instantly.

PROJECT TOPIC AND MATERIAL ON AUDITORS REPORT AND ITS IMPACT ON BUSINESS ORGANIZATION (A CASE STUDY OF FIRST BANK NIG, PLC)

The Project File Details

  • Name: Auditors Report And Its Impact On Business Organization (A Case Study Of First Bank Nig, Plc)
  • Type: PDF and MS Word (DOC)
  • Size: [70 KB]
  • Length: [56] Pages

 

 

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

In the early civilization, the method of recording accounts were so crude and the numbers of transaction to be recorded were small and as such every individual was able to put down all his transaction. As man became more civilized, system of checks were applied to their public account thus increasing the need for some system of checks upon persons, whose business was to record the receipt of disbursement of money on behalf of others.

The ancient records of auditing are continued principally to public account; there is clear indication that from an early date, it was customary for an audit of the account of minors and estimates to be performed. The person whose duty it was to make such as examination of accounts became known as on auditor, the word derived from the Latin words “AUDIRE” which means to “HEAR”.

The auditor’s report is the primary means by which the auditor communicates with investors and other financial statement user’s information regarding his or her audit of the financial statements. As it exists today, the auditor’s report identifies the financial statements that were audited, describes the nature of an audit, and presents the auditor’s opinion as to whether the financial statements present fairly, in all material respects, the financial position, results of operations, and cash flows of the company in conformity with the applicable financial reporting framework. This type of auditor’s report has been commonly described as a pass/fail model because the auditor opines on whether the financial statements are fairly presented (pass) or not (fail). Theodore J. Mock, Jean Bedard, Paul J. Coram, Shawn M. Davis, Reza Espahbodi, and Rick C. Warne,(2013).

However, while the existing auditor’s report provides important information about an audit in general, it does not provide information that is specific to a particular audit.

Academic research suggests that investors and other financial statement users refer to the existing auditor’s report only to determine whether the opinion is unqualified because it does not provide any other informational value about the particular audit. Glen et. al, (2011).

During the Board’s outreach activities over the last three years; many investors have expressed dissatisfaction that the content of the existing auditor’s report provides little, if any, information specific to the audit of the company’s financial statements to investors or other financial statement users. During a financial statement audit, auditors obtain and evaluate important information concerning the company, the company’s environment, and the preparation of the company’s financial statements. Many investors have indicated that they would benefit from additional auditor reporting because they do not have access to, or may not be aware of, much of this information. Additionally, many investors indicated that auditors have unique and relevant insight based on their audits and that auditors should provide information about their insights in the auditor’s report to make the reports more relevant and useful.

Additionally, the auditor’s report is undergoing change globally. Several international standard setters and regulators, such as the International Auditing and Assurance Standards Board (“IAASB”), the United Kingdom’s Financial Reporting Council (“FRC”), and the European Commission (“EC”) have been working on similar projects to change the auditor’s report. Bryan et. al (2008).

After extensive outreach conducted over the last three years, the Board is proposing two standards under it s statutory mandate to “protect the interests of investors and further the public interest in the preparation of informative, accurate and independent audit reports”.

The proposed standards are intended to increase the informational value of the auditor’s report to promote the usefulness and relevance of the audit and the related auditor’s report. At the same time, the Board sought a balanced approach that would not unduly burden the financial reporting process.

The two proposed standards are:

The Auditor’s Report on an Audit of Financial Statements When the Auditor Expresses an Unqualified Opinion (the “proposed auditor reporting standard”) and The Auditor’s Responsibilities Regarding Other Information in Certain Documents Containing Audited Financial Statements and the Related Auditor’s Report (the “proposed other information standard”). The Board also is proposing related amendments to other PCAOB auditing standards (the “proposed amendments”). This release collectively refers to the proposed auditor reporting standard, proposed other information standard, and proposed amendments as “the proposed standards and amendments.”

Wolf, (2001), discus audit as in modern sense to refer to a process whereby the account of business entities is subjected to scrutiny. In such a way it enables the auditor (independent person) to express an opinion as to the truth and fairness using expert’s opinion approach.

1.2 A BRIEF HISTORY OF FIRST BANK NIGERIA PLC

First Bank of Nigeria, sometimes referred to as FirstBank, is a Nigerian bank and financial services company. It is the country’s largest bank by assets.

As of June 2013, the bank had assets totaling approximately US$21.3 billion (NGN:3.336 trillion). The bank’s profit before tax, for the twelve months ending 31 December 2012 was approximately US$542.5 million (NGN:86.2 billion). At that time, the bank maintained a customer base in excess of 8.5 million individuals and businesses. First Bank of Nigeria has solid short and long term ratings from Fitch, the Global Credit Rating Company, partly due to its low exposure to non-performing loans. The bank has strong compliance with financial laws and maintains a strong rating from the Economic and Financial Crimes Commission of Nigeria.

GET THE COMPLETE PROJECT»

HIRE A WRITER IF YOU CAN NOT FIND YOUR TOPIC»

Be the first to comment

Leave a Reply

Your email address will not be published.


*