THE ROLE AND IMPORTANCE OF AUDITING IN A CONSTRUCTION COMPANY A CASE STUDY OF SETRACO CONSTRUCTION COMPANY BOMADI
ABSTRACT
    This study was aimed primarily at highlighting the techniques, policies and concept of auditing as they relate to growth of Business Corporation. The principal focus was on the private sector which more than any other sector uses their financial reports. And a research surely was conducted in Setraco construction Company, Bomadi, Delta State. This study also focuses on the nature and purpose of independent auditing and its relevance to the economic growth of business organization. The objective of the study was to appraise the impact ofauditing in Setraco Construction Company Bomadi to examine why auditing is needed in the organization and the role it plays, its importance and problems and the prospect of auditing in Nigeria. Modern changes in the traditional role of auditing and its method of implementation were valuated. For the purpose of this study, questionnaires were administered in Setraco Construction Company, Bomadi and primary data were generated from I and secondary data were obtained from articles, newspaper, business reports, textbooks and publish reports and analysis of data involves applying simple percentage of data collected and test of hypothesis was done to produce a more refined result, from which conclusion was drawn. This study was concluded with recommendation based on the result of analysis in the field.
TABLE OF CONTENTS
CHAPTER ONE – Introduction                
Background to the Study                        
Objective of the Study                        
Statement of the Problem                        
Scope of the Study                            
Significance of the Study                    
Limitation of the Study                    
Definition of Terms                
CHAPTER TWO - Literature Review
Introduction                            
Objectives of Auditing                    
The Need for Auditing                    
The Role of Auditing                    
Importance of Auditing                        
Problems of Auditing                    
Prospect of Auditing in Nigeria                
Summary                            
Empirical Study                    
CHAPTER THREE - Research Methodology
Introduction                        
Research Design                
Population of the study            
Sample Size                            
Sampling Technique/Procedure                    
Research instrument                        
Validation of Instrument                        
Reliability of  Instrument             
Method of Data Collection                
Method of Data Analysis                        
CHAPTER FOUR - Presentation and Analysis Data
4.1.    Introduction                            
4.2    Data Presentation                        
4.3    Discussion of Findings                    
CHAPTER FIVE - Summary, Conclusion and Recommendation
Summary of Findings                        
Conclusion                             
Recommendations                            
Suggestions for Further Study                
Reference                                
Appendix I                                 
Appendix II                            
CHAPTER ONE
INTRODUCTION
Background of the Study
In any enterprises, decision are made about how to maximize the resources the resources include raw materials, finance, and time, which are limited in supply. These economic resources are taken into consideration through the publication financial statements.
Generally the financial statement is prepared statements internally to show the result of operation to the enterprises during a given accounting period.
The question that arises, how will the financial statement prepared by management be acceptable to the owner of the business, to creditors, government and other who may need to rely on them.
The fact is that arises is, how will the financial statement are not certified as correct by an independent competent professional, who as no interest in the business enterprises, the financial statement may be viewed with doubt and this may be hinder the success and the growth of the business because investors and interested parties may not be encouraged to interest their money in such enterprises. As a result of this an independent auditors who must be competent and objectives in the examination of the financial statements comes into play.
According to Saba and Nwalado (2006.21) an auditors should exercise his profession with independent and objectivity. He must be in a position to give and honest an analyzed opinion on the true position to the enterprises, which the investors rely on their, investment proposal. In the light of this, auditing bridge the credibility gap in validating the euthenics of the financial statement.
According to Adams (2006 : 20) opened that auditing  is a process carried out by suitable qualified auditors during which the accounting records and financial statement of an enterprises are subjected to examination by independent auditors with the main purpose of expressing an opinion in accordance with his terms of appointment. According to the operating procedures of Nigeria guidelines (1993) auditing 18 a 14 dependent examination and expression of an auditing in pursuance of the objectives of auditing.
The research is therefore, aimed at highlighting the general background and concept of auditing. Attention will be focused in the terms and techniques used in auditing profession.
This good accounting and financial reporting aid society in allocating its resources in the most efficient manner and contributes immensely to the success and growth of business while inadequate accounting and inaccurate reporting conceals wastes and inefficiency.
Statement of the Problem
In this research study, the researcher will reflect on these problems attracting the role of auditing in the Nigeria economy.
The role of auditing in business enterprise has been subjected to various degree of value judgment by various people who may have found themselves at one time or the other initial in audit work without the relevant background knowledge of auditing. As a result of this, the researcher intends to discuss certain audit related problems, such as
How auditing lead to the growth of business enterprise?
What value does audit add to the growth of business enterprises?
Why it is necessary to have audit department business enterprises?
Objectives of the Study
The ultimate purpose of this study is to understand the role and importance of auditing and to make useful recommendation where necessary towards the improvement of its policies. This study is also aimed at lighting and appraising the general public on the rules and importance of auditing.
To evaluate how auditing lead to the growth of business enterprises.
To evaluate why the audit department is necessary in business enterprise.
To analyze the value auditing add to the growth of business enterprise.
Research Question
The researcher intends to also the following questions from the respondents in the accounting store and audit department in stance construction company, Bomadi;
Does auditing leads to the growth of the business?
Is the audit department necessary for effective management?
Area variance investigated when discovered?
Does auditor provide quality services to client?
Is it necessary for every business to have an auditor?
Significance of Study
Is it pertinent that any study should have significance to make use of the study? The benefactors of this are auditors of other construction companies. In this research the significance, Bomadi where the study was focused on is follows.
Auditor; this study will help the auditor
To find out the problem encountered by auditors which affect their performance and discover the effectiveness of audit reports and its implementation inadequately protecting the constructing fund and properties?
To bring back to full flame the dwindling image of the noble profession (Auditing) profession.
To restore peoples confidence and influence on auditor report.
To emphasize on the need for your management compliance on auditors reports.
To find out the roles played by auditing in a bid to protect the constructing fund and property.
Student of auditing; this study will help the student of auditing to see the problem that duties and then prepare will in advance too over come those problems as when due.
Construction companies; this will also help constructing companies income and expenses and effective management through audited financial statement.
Investors; this study will also help investors to known when to invest will rely on the audited financial statement of company.
Scope of the Study
Although auditing is found in almost all manufacturing companies as it leads to the growth of the business after the scope of research can be discussed in terms of
The issues covered
Subject studied such as people
Period covered
Geographical area covered.
This research focuses on the role and importance of auditing to business growth with emphasis on internal and external auditing in satiric construction company, Bomadi Delta State. The subject studied was the staff of Setraco Construction Company, Bomadi from the period 2007 to 2019. The scope was limited to only area because of the limited time and transaction costs associated with trying to sample the view of other constructing companies.
Limitation of the Study
In the course of conducting this investigation the researcher encountered multiplies obstacles which among these are;
Finance; this is a common foe of student for a student who could not lay hands on reasonable sum of money to use in carrying out the project (typing and cyclostyling distributing and collecting of questionnaire), the storage of fund become an obvious implements.
Time frame; a researcher of this nature which is expected to produce far reaching result would certainly have required more time to have an in depth investigation possible. But since the study has to be submitted within a specific time, the researcher to utilize the much time available to him.
Poor responses; the researcher also observed that the study was hampered by poor responses from respondents who usually have an erroneous impress of people who conduct research.
This is due to respondent nonchalant attitude to give information which the regarded as classified.
These inevitable poor responses from respondents were put into serious consideration in carrying out the    research work.
Definition of Terms
Auditors; some who has through knowledge of accounting and by virtue of his professional attainment has authority to examine the account of an economic entity.
Objective; not depending on or influenced by personal opinion or prejudice. Having existence outside the mind based on fact or reality.
Authority; this is the power or right to control or judge others.
Attestation; this is the primary function of independent public accountant to attest to financial statement and to bear witness as to their fairness and reliability.
Fraud; more representation by a person of material fact known by that person to be untrue or made with reckless indifference as to whether the fact is time.
Independence; a most important auditing standard that prohibit an auditor from expressing an opinion on financial statement it his independence is impaired by some interest in the enterprise.
Auditing-in depth; a procedure by which the auditor traces a particular transaction from the beginning through the accounting system to the end.
Continues audit; an audit that involves detected examination of accounting records at regular internal.