THE AUDITOR AS AN INDISPENSABLE PART OF A PROFITABLE BUSINESS ORGANIZATION
ABSTRACT
This appears to the business organization that the auditors are the water dog of the company.  To have a profitable business organization, the shareholder should appoint the auditors to act as check and balances for the purpose of giving them a true and fair view of their company at any given time.  Also the auditors are expected to carry out a valid audit work to have effective in internal control.  To have a profitable business organization, the external auditor who is qualified and appointed by the company to audit the financial statement of the company and state opinion on the true and fair view account.   The auditor’s duties related to the achievement of profitable business organization by reliable account records and such records are considered reliable when they are prepared according to the accounting standard and the necessary details are provided etc.  Without the auditors there will be fraud in the management and this will result to unwarranted loss from the management.  Fraud is the main thing to be concerned with the growth and development of financial situations of a business organization.
TABLE OF CONTENT
CHAPTER ONE
1.0              Introduction
1.1       Background of the study
1.2              Statement of the problem
1.3              Objectives of the study
1.4              Significance of study
1.5              Scope and limitation of the study
1.6              Definition of terms
CHAPTER TWO
2.0              Literature Review
2.1       Definition of Auditing Standard
2.2       How Auditor duties related to the achievements of a profitable business organization
2.3       Relationship between auditing and accounting
2.4       Internal control
2.5       External control
2.6              Auditing procedures
CHAPTER THREE
3.1              Summary of Findings, Conclusion and Recommendation
3.2              Discussion of findings
3.3              Conclusion
3.4              Recommendation
Bibliography
 CHAPTER ONE
 1.0              INTRODUCTION
1.1       BACKGROUND OF THE STUDY
The auditor is regarded as the eyes and ears of the records of the organization in order to ensure that the financial statement are a reflection of the organization as appeared in these records since these records are a summary of the transactions for a specific period.  The auditor also goes behind these records to the source documents in order to confirm the accuracy, completeness and validity of the second transactions.
Summarily, therefore, the auditor, shareholder and director have a tripartite relationship in the company.  The shareholders are the owners of the company, the directors or management are employed by the shareholder to manage the business. In turn the shareholders appoint the auditors to act as check and balances for the purpose of giving them a true and fair view of their company at any given time.
The managers, fulfill their accountability to the shareholders and other interested parties by preparing financial statement. It may be in form of balance sheet, profits and loss account source and application of fund statement (VAS) and historical financial summary.
The duty of preparing the financial statement is placed on the directors while that of reporting is on the auditors who is responsible to the shareholders.  All these are aimed towards achieving profit in the business organization.
1.2              STATEMENT OF THE PROBLEM:
For the purpose of protecting the shareholders interest, investors and to make sure that there is no room for mismanagement and improprieties of funds, the auditors is appointed to act as eye and ear or watch dogs towards these activities.  The auditor is an accounting expert that is independence of the company’s management.
The problem now is, if the auditor is not responsible for not uncovering fraud act, such duties belong to the management and are only a subsidiary duty to him.  How does he give assurance to the various users of final accounts that the financial statement represent a true and fair view of the company.  If the auditor is not relevant in uncovering fraud, he is probably not relevant to the company at all.  Public expectation is that auditor should and must discover fraud.
1.3              OBJECTIVE OF THE STUDY:
The objective of this study is therefore:
(i)                 To examine the statutory principles of audit in relation to fraud.
(ii)               To examine the need for auditors as well as managers to be responsible for detecting and curbing fraud.
(iii)             To evaluate the system of external control as a measure of controlling fraud.
(iv)             To seek the possibility of extending the scope of present day audit in order to make the auditor be of more relevance to business organization.
(v)               Finally, to define clearly the extent of the auditors responsibility.
1.4              SIGNIFICANCE OF THE STUDY:
The primary goal of an audit as required by the company and allied matter degree (CAMD) of 1990 is that the auditor must satisfy himself that:
(a)                The accounts have been prepared in accordance with the decree.
(b)               The accounts are in agreement with records.
(c)                Proper accounting records have been kept.
(d)               The balance sheet shows a true and fair view of the result of the period.
(e)                He has obtained all the information and explanation necessary for the purpose of audit and that adequate returns have been from branches not visited by him.
The secondary goal of an audit according to the CSMD is:
(a)                The prevention and direction of fraud, errors and irregularities.
(b)               The provision of assistance to management by way of drawing management’s attention to weakness in the system discovered in the course of audit exercise.
1.5              DEFINITION OF TERMS:
MATERIALITY:
The auditing practices board defines materiality as follows:
A matter is material if it’s omission or misstatement would reasonable influence the decision of a user of the financial statements.
Staff Collusion:  Collusion is the compensation relaxation of interrelated checks be staff that operate complementary roles for their mutual benefits.