WHAT IS ACCOUNTING?

Every entrepreneur needs to embrace cooperate governance in Nigeria at least this is what specialists propose and consider, this will be a major step in the business word and it will discern entrepreneurs to the next and it will show business that do well and which do not. This corporate governance is about improving stakeholder value. There is need to institute well developed international standards on best practices in the management of businesses for benefits of stakeholders. The actuality of international standards would definitely give comfort to investors, creditors and regulatory agencies.

You may ask why audit should be done and also go to the length of wanting to know how the internal audit report format is supposed to be done. Today in Nigeria, audit involves the scrutiny of the account of an enterprise in sufficient details to ensure that the auditors can form an opinion based on truth and fairness and come up with a conclusive audit report or audit reports, since the opinion of the auditor is always expressed in a written audit report addressed either to those who have commissioned the audit or to those to whom the auditors may have a statutory responsibility.

As we know annual audit reports and small business accounts are produced for the attention of members of company, i.e. the shareholders. However, a much wider range of people are now interested in this annual audit reports and accounts and they include; lenders or debenture holders, employees, customers, suppliers, stockbrokers etc. in Nigeria there are certain auditing regularities like a person cannot qualify for an appointments as an auditor of a company except if he is a member of a body of accountants.

The Nigerian standards on Auditing (NSA), planning an audit of financial statements, is the local standards that governs audit planning, also on the internal audit report format and creating audit reports in general. The purpose of Nigerian standards on Auditing (NSA) is to establish standards provide a guide on the considerations and activities applicable o planning an audit and producing audit reports on financial statements. This Nigerian standards on Auditing (NSA) is framed in the context of recurring audits and the requirements o this this standard comply substantially with the ISA that is, “Panning and Audit of Financial Statements.” Planning an audit and making audit reports or making a service audit report involves the establishment of the overall audit strategy for the engagement and development of an audit plan in order to reduce audit risk to an acceptable low level.

The professional standards of the auditors in regards to how they create and produce those audit reports. They should have a code of ethics in auditing. These ethics are essential in bringing up the auditors standards and professionalism creating a relationship of chartered accountants with their clients, employers, employees, fellow members of the group and the public in general. In Nigeria the maintenance of ethical standards is the collective concern in the ICAN and members of the accounting profession.

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