Accounting And Audit Procedure In The Government Parastatals (A Case Study Of University Of Ilorin Teaching Hospital).

Project and Seminar Material for Accountancy / Accounting

Chapter One

Introduction

1.1 Background of the Study

Auditing may be defined as a systematic examination testing and confirmation of accounting record and routines to verify their accuracy and compliance with established concept, principle standard and legal requirement.

However, the Macdonald and Howard LR principle of auditing as a careful examination of the books of account and vouchers of a business, a will enable the auditor to satisfy himself that the balance sheet is property drawn up. So as to give a true and fair view of the state of affairs of the business and whether the profit and loss for the financial period according to the best of his information and explanation given to him and shown by the books of account and if not in what respect he is not satisfied.

1.2 Objective of the Study

The objective of the study of auditing procedure in government parastatals are as follows.

To get adequate and relevant information about the financial aspect of government parastatals.
To build new knowledge gained into these research for future use into operation of government parastatals.
To find out the extent to which those who elected to oversee the affairs of government parastatals in the teaching Hospital are able to account for their stewardship.
To make suggestion and recommendation as to new finding relevant to develop of most of hospital in Nigeria
To be able to detect likely error and irregularity and able to make necessary correction as not to affect the government set up.

1.3 Significance of the Study

The significant of the study could be a sort of eradicating the persistent increase in the misappropriation of fund in an organization. It could also provide job opportunity for graduates seeking employment. Because the system would entails employing a qualified and competent staff to handle the auditing exercise. Because in any organization set up, no matter how large or small it should exposed it self to verification of its various books of account so as not to give rooms to misappropriation by workers.

1.4 Scope of the Study

The study is to avail a layman the opportunity to have a knowledge of how financial accounting and auditing interacts, check and balance each other.

The scope of the study is the financial department of university of Ilorin Teaching Hospital.

1.5 Limitation of the Study

The major limitation of the study are time constraints, financial constraints and difficulty in obtaining adequate and up-to date information necessary for the research work.

The limitations mentioned above taken into consideration, the research work on accounting and audit procedure in the government parastatals on the university of ilorin teaching hospitals. But reference can be made from the findings if this research to other health institutions that fall within the public health sector particularly the other teaching hospital in the country.

1.6 Research Methodology

For the purpose of adequacy of data needed for this project, the researcher used interviews schedule, questionnaire method and observation method.

1.7 Plan of the Study

The study is made up of five chapters.

Chapter one deals with general background of the study, this involve the introduction, objectives of the study, significance of the study, scope of the study, limitation of the study, research methodology, the limitation of terms and plan of the study.

Second chapter deals with meaning of parastatals, establishments of university and their teaching hospitals,. Auditing in relation to accounts, annual stock taking and appraisal of the performance of the returns, users of audit information i.e internal and external user.

The third chapter deals with interview, questionnaire and observation.

The fourth chapter deals with findings his includes historical background of university of ilorin teaching hospital, organizational structure, account payables, sources of fund i.e. capital structure, auditing procedure at university of Ilorin teaching hospital, audit query, internal control and procedure

Lastly chapter five contains the problems, summary,

Chapter Five

5.0 Problems, Summary, Conclusion and Recommendation

5.1 Problems

Problems are barriers or an obstacle, which could hinder an organization from attaining it’s stated goals and objective during the course of the research work, the researcher noticed the problem of inadequacy staff and which is affecting the organization considerably. For instance, in a situation where there are only two clerks preparing staff salaries of more than 2500 workers within two weeks, this is rather too cumbersome on the clerks, not only will the work become unpleasant to the worker but it will bring about low productivity, and this would hinder the organization from attaining its goals.

The same problem persist in other units of the audit in which most of recurring job is done mainly by the available number of staff the researcher how come to realize that some of the week now takes three weeks plus to be completed. The recording of the supporting documents prepared by the cashier and posting of cash book all by the same individual presupposes that its duty are not separated. And thus one could infer that the internal control system is extremely weak.

5.2 Summary

Based on the procedure and methods of audit practice it would be observed that the personnel involved in the preparation of the statement and records treatments are grouped into various sections with superior or sectional head who in turn is responsible to the chief accountants.

This practice pre-supposes that there exists some checks and balances in their activities which could give no room to any mishandling or misappropriation of organizational funds. The system of separation of power and duties by the management brings about efficient and effective results to the organization.

5.3 Conclusion

The research work affords layman an insight into the financial operation in a government department or parastatals. That is, it shows how this financial operation relates with various sections within the audit, it also serves as a watch dog in the accomplishment of various recurring duties.

More so, their system of check and balances is also very essential and is a set related procedure that together provides an integrated structure for carrying out a basic objective of the organization.

5.4 Recommendation

To forest and manipulation of figures, fraud and error by the cahier, the management should employed more competent staff so as be able to separate cashier duties, and ensure that the recording of cash book and some other vital work is done entirely by a different unit.

The organizational should also employ more qualified accounting officer to prepared the final account so as to be able to detect early error and fraud which are likely to hinder the organization, and also to reduce the audit fees been charged by the auditor.

It is also essential to enable the young fresher accounting graduate the job opportunities.

It is a paramount duty on the part of the management to employ qualified staff to fill the various agencies in the unit lacking enough staff so as to increase the service rendered to the patients, because if the patient are not been attended to at the right time by the competent and qualified staff, the customer could shift to other places and thus the number of their patient will reduce drastically, and incidentally the revenue would be affected one way or the other.

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