EFFECT OF AUDITING AND PREVENTION OF FRAUD IN AN ORGANIZATION (A CASE STUDY OF COCA-COLA BOTTLING COMPANY, ILORIN)

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EFFECT OF AUDITING AND PREVENTION OF FRAUD IN AN ORGANIZATION (A CASE STUDY OF COCA-COLA BOTTLING COMPANY, ILORIN)

TABLE OF CONTENT

Title page

Certification

Dedication

Acknowledgement

Table of content

CHAPTER ONE

Introduction

General background of the study

Statement of the problem

Important of the study

Statement of hypothesis

Scope of the study

Significant of the study

Organization and plan of the study

Definition of terms

CHAPTER TWO

Literature review

Concept of auditing

Meaning and classification of fraud

Nature and classification of auditing

Auditing in an organization

2.5 Qualification and Qualities of an auditor

2.6 Auditor independence and certain degree of

credibility

2.7 Efficiency of the auditor

CHAPTER THREE

Research methodology

Historical background of Nigeria Bottling company (NBC) Ilorin.

Research design

Population and sampling size

The sampling techniques

3.5 Method of data collection

3.6 Nature and administration of the Questionnaire 42-43

3.7 Method of data analysis

3.8 Profile of the case study

CHAPTER FOUR

Data presentation and analysis

Combined analysis

Relationship between internal auditor and external auditor

CHAPTER FIVE

Summary conclusion and recommendations

Summary

Conclusions

Recommendations

Bibliography

CHAPTER ONE

INTRODUCTION

Background of the study the word auditing comes from a Latin Word ‘’AUDIRE’’ ‘’TO HEAR’’, This is so because in those days the account of nobleman was checked by being read out to him by his steward. The steward has the responsibility of looking after the affairs at the estate during the absence of the noblemen.

However, today auditing involves the checking at the account of an enterprise by a suitably qualified auditor in order to enables the auditor to form an opinion in the truth and fairness.

Fraud it is an act of criminal deception formed by many people in an establishment or within two people. These examples range from the public office holders who wish to embezzle public fund, a passenger who board a bus and refuses to pay and a contractor who criminally inflate the cost of executing the contract work.

It is also the international misrepresentations of financial information by one or more individuals among management, employees, or third parties. It involved the use of criminal deception to obtain an unjust or illegal financial advantage. The impact of fraud can be quote subsentire on a company’s operation. Therefore internal controls must be excellent.

The origin of an audit dates from ancient times when the land owners allowed tenant farmers to work on their land while the landowners themselves did not become involved in the business of farming. The land owners relied upon on overseer who listened to the account of the stewardship given by the tenants.

In those days, the receipt and payment of an establishment were read to the hearing of an individual termed as the AUDITOR. The word ‘’Auditor’’ was derived from the Latin verb ‘’AUDIRE’’ which means ‘’to hear’’ therefore, the individual to whom the receipts and payment of an organization were read to was called the auditor. In the early days of auditing, the prime qualification for the position of auditor was reputation. A man known for his integrity and independence of mind would be sought for his honored position, the matter of technical ability being entirely secondary, and consequently, his function, in those days, was never confused with that of accountant.

However, as accounting gradually becomes more complex and concerned with technicalities, auditors found themselves out of their depth and in turn, become increasingly dependent upon the expertise prouded by the accountant until eventually , the Audit function itself become totally dominated by the accountancy professional. It is for this reason that the description auditing profession and accountancy profession are today used synonymously until the advent of limited liabilities companies where ownership is deferent from the management.

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