An Assessment Of Audit Practice In Business Organisation In Nigeria (A Case Study Of Okin Biscuit Nig. Plc, Ijagbo, Offa)

Project and Seminar Material for Accountancy / Accounting

An Assessment Of Audit Practice In Business Organisation In Nigeria (A Case Study Of Okin Biscuit Nig. Plc, Ijagbo, Offa)

Chapter One


1.1 Background to the Study

In Nigeria, the company allied matter degree statutorily established basic frame which the auditor prevails. The degree made it obligation for every company incorporated in respect of;

  1. All fee received and expenditure by the companies and the matter in respect of which the receipt and expenditure takes place
  2. All sales and purchases of the goods of the company
  3. All asset and liabilities of the company (section 140)
  4. The degree future provides that proper books of account shall not be deemed to be kept if there are no such books as are necessary to give a true and fair view of the state of the company affairs and to explain its transaction.

Pertinently, in reference to the above statutory established by the company allied matter degree (CAMD) auditing could be traced from ancient times when the land owners allowed tenant farmers to work on their land. While land owners themselves did not become involved in the business of farming. The land owners relied upon the business of farming. The land owners relied upon the stewed who listed to the account provided by tenants. This is further explained that the productive resources owned by one person or group of person are managed by another or group of person.

Apart from the public own central government or person appointed by government.

These are owners of properties who appoint another person to take care of their properties. He will want to know, how effectively the stewards managed the property when the owners of the property inquire from the stewards, how effective will be give the account.

This is known as ‘stewardship’ in the case of limited liability company reporting to the shareholder it is done through the use of the final account it often vary in problems the exists when the manager or stewards reports to owners, the owners may not belief the report, the attempt to solve this problem of creditability gave rise to ‘auditing’ This means that another person other than the person who prepared true account will have to assess the account whether or not the account is correct.

According to the Audit Practice Committee (APC) which defines auditing as ‘the independent examination of an expression of opinion on the financial statement of an enterprise by an appointed auditor in pursuance of what appointment and compliance with any statutory obligation.

As pertaining to the auditing standard, ‘the independent examination and investigation of the evidence from which the financial statement has been prepared with a view to enabling the independent to examination report whether in his opinion an accounting is to the best of the information and explanation obtained by him. The balance sheet is properly drawn up so as to give a true and fair view of the state of affair of the business and that the profit and loss account gives a true and fair of the profit and loss for the financial period, according to the best of the information and explanations given him, and as shown by the books, and if not report in what respects he is not satisfied’.

The Company and Allied Matter Decree Act 1990 in schedule “9” laid down the following matters which expressly state the following matters in their reports:

  1. Whether they have obtained all the information and explanations which to the best of their knowledge and belief were necessary for the purpose of their audit.
  2. Whether in their opinion proper books of account have been kept by the company as far as appears from their examination of those books.
  3. Whether proper returns adequate for the purpose of their audit have been received from branches not visited by them.
  4. Whether the company’s balance sheet and unless it is framed as a consolidated profit and loss account; profit and loss account dealt with by the report are in agreement with the books of account and returns.
  5. Whether in their opinion and to the best of their information and according to the explanations given them the said statements give the information requires by the Decree in the manner so required are given a true fair view of affairs and profit or loss of the company and its subsidiaries and associate.
    • In the case of the balance sheet of the company affairs as at the year end of its financial year.
    • In the case of profit and loss account of the profit or loss for it true and fair view is made subject to the no disclosure of any matter (to be indicated in the report) in the case of companies which are granted exception by law.

Finally, for any auditing practice to be succeeded in any organization the auditor must be free on his own, that he is independent and objective. Also, the auditor should exercise his name to be associated with a financial/statement that is misleading.

1.2 Statement of the Problem

All organization irrespective of size structure and function has sets of goals. In addition to the set goals, proper utilization of the shareholders fund are needed to be considered. The pertinent question that after comes to mind is “how will low funds could be utilized and how will the report provided by the director could be accepted without doubt on it”.

In this study we will looking at the stages of auditing and step taken by the auditor to determine any forms of fraud in any management of any organization of a company that is effective and efficient in the utilization of a company fund.

The problems that have been identified with director or management reports in the private sector include:

  1. Lack of protection of interest of non-active shareholder.
  2. Improper use of non-active shareholders fund by the director.
  3. In correspondent of an organization state of account with the statutory requirement by the Accounting Standard

Practice (ASP) This study and also aforementioned problem from the bedrock of this project it shall conduct prefer problem from solution so as to achieve a good conduct of audit in any organization.

1.3 Objective of the Study

Research could be define as a diligent and systematic attempt at finding answer to question through certain logical designed process or step this study is therefore making an attempt of non-active shareholder.

  1. To justify the proper use of the non active shareholder and emphasized the importance of the audit practice of various business organization.
  2. To enable the different organization to comply with the statutory requirement of the Accounting Standard Practice (ASP)
  3. The protection of the interest of non active shareholders.
  4. To suggest the best accounting system to be used for the internal control system in business organization.

1.4 Research Hypothesis

The following hypothesis were formulated to guide the researcher in finding answers to the research questions

  1. H0: There is a negative relationship between board size and corporate financial performance
    H1: There is positive relationship between proportion of outside directors sitting on the board and corporate financial performance.
  2. H0: There is a negative association between director’s stock holding and corporate financial performance
    H1: There is a negative relationship between CEO duality and corporate performance.

The remainder of this paper is organized as follows: Section II discusses there relevant literature on board composition, size, ownership, CEO duality. The methodology adopted is discussed in Section III while Section IV captures empirical results and discussion.

1.5 Research Methodology

This study uses a survey research design. Since this study is on board structure of quoted companies in Nigeria population of the study is made up of companies listed on the floor of the Nigerian Stock Exchange (NSE).
However, firms belonging to the financial services industry and regulated utility companies are excluded from the population. This is due to the special regulatory environment in which they operate. This follows from the argument that regulation masks the efficiency differences across firms, potentially rendering governance mechanisms less important (Cafeas and Thearodu, 1988, Singh and Davidson, 2003) A sample consisting of companies list on the NSE was considered a good representation of quoted companies in Nigeria since the ultimate test of a sample design is how well it represents the characteristics of the population it purports to represent (Emory and Cooper, 2003) A sample of thirty (30) quoted companies for the period 2007 year end was used. Therefore, respondents cut across public limited companies that were listed on the floor of the NSE.

Information relating to firm performance (ROE and ROCE) and board characteristics (board size, board composition, Board ownership and CEO duality) was collected from the sampled company’s annual reports.

Dependent and Independent Variables

Dependent Variables of the study is corporate financial performance which is represented by ROE (measured as the proportion of profit after tax to issued share capital) and ROCE (measured as the proportion of profit after tax to issued share capital plus reserves).

The independent variables are board size, board composition, board ownership and CEO duality.

Statistical Analyses

For the purpose of empirical analysis, this study uses descriptive statistics, Pearson Correlation analysis and linear multiple regression as the underlying statistical tests. The regression analysis is performed on the dependent variable, CORPERF, to test the relationship between the independent variables (board structure characteristics).
The regression model utilized to test the relationship between the board characteristics and corporate performance is as follows:

CORPERF = β0 + β.IBSIZE + β2BCOMP+ β3BOSHIP + β4CEO + e
β 0 = Intercept coefficient
β1= Intercept coefficient
BSIZE = number of directors on the board
BCOMP = Proportion of outside directors sitting on the board
BOSHIP = Proportion of total equity owned by executive and non-executive directors respectively
CEO = Value Zero (0) if the same person occupies the position of the chairman and the chief executive and one (1) for otherwise.

1.6 Scopes and Limitations

This essay will only cover DUNLOP Nigeria Plc OBA AKRAN Ikeja which represents one of the greatest public companies in Nigeria. This study is limited to DUNLOP Nigeria Plc. Because of the statutory impose on the company to audit its account every audit year and require that director to forward its statement of affairs of the company annual general meeting (AGM) which is done once in a year.

1.7 Definitions of Terms

It is necessary to define certain words used in this hypothesis in order to minimize ambiguity.


According to the Auditing Practicing Committee (APC) an audit is define as the independent examination and expression of opinion on the financial statement of an enterprises by an appointed auditor in pursuance with any relevance statutory law and regulation.


Auditor is classified into two; they are internal auditor and external auditor. Internal Auditor is an employee by the firm that carryout accounting audit of his firm while External Auditor are auditor employed externally to give a check and balance to the account prepared by the Internal Auditors.

Independent (Examination):

Free from the centre or influence of management. This is central to the definition of audit.

Financial Statement:

This refers to profit and loss balance sheet, value added, statement or policies of operation, trading account, the totality of these make financial statement.

Auditing Practicing Committee (APC):

This is an institute that sees to the uniformity of accounting principle in Nigeria.


These are group of people that bring funds together to run a business in order to have profits. Active shareholders are shareholders that participate in the business running; they hold post in the management while non-active shareholders do participate in formation of business and provision of fund without active part.
Profit aspect of an organization that is it shows excess income over expenditure.

Balance Sheet:

This is a book that shows the financial standard in an organization.

1.8 Plan of the Study

This research work is organized into five (5) chapters

  • Chapter one covers the background to the study which includes, introduction, objective of the study, statement of the problem, research hypothesis, research methodology, scope and limitations of research, definition of terms, plan of the study, research questions.
  • Chapter two covers the definition of auditing, objective of auditing, audit fundamental, types of auditing, accounting and auditing compared, auditor’s responsibilities, audit plan, audit working papers and audit report.
  • Chapter three covers research designs, research method, research population, samples and sampling techniques, sources of data, research instrument and method of investigation.
  • Chapter four covers data analysis and presentation of results, descriptive statistics, results of correlations, return on correlation – return on capital employed as a financial performance measure, model summary – ANOVA model and coefficient estimates.
  • Chapter five covers summary conclusion and recommendation and also references to the findings of the study.

1.9 Research Question

For the purpose of this study, the following are research questions and interest:

  1. How effective is the internal central system of any business organization?
  2. Are the fund of any business organization properly used?
  3. Could a fraud be detected?
  4. What are the steps to be taken to eliminate fraudulent act?

Chapter Five

Summary Conclusion and Recommendation

5.1 Summary

The main aim and objective of this research use to determine the important of audit practices on business organization. This is with specific reference to Dunlop Nigeria plc ikeja from the different reviewing by this study and analyzed by the project easily point out that audit is necessary in business organization and the importance of audit to any organization.

It was also found out that audit practice on organization brings a general check upon both the director and accountants of business internal control system to business organization.

The finding also make know the general importance of audit planning, audit programmer and allow the shareholders to know how their fund is been use and to know the step prepared by the company’s director and so also to determine the truthfulness on their stewardship.

Directly related to this is the fact that auditors take some step to detect fraudulent which will enable the shareholders to know in the statement laid before them at the general meeting of the company if the statement protracts a true and fair of the balance sheet profit and loss account or in the case holding company the group account prepared by the accountant of the company.

5.2 Conclusions

The need for an audit in a business organization cannot be underestimated. The consistent fall in company liquidation own it origin party to poor utilization of fund by director in the organization.

Auditing is therefore refers to as an expected check on upon the director and redness of sea tie the management account. it helps to sound programmed, therefore, it will be difficult for the audit group to have a network audit.

On the whole the issue of a good audit and employment of external audit and employment of external auditor should not be seen from a single S.A Adekunle for any audit work to par trait a true and fair view the auditor must abide to the statutory provision of the company and allied matter degree 1990 act.

5.3 Recommendations

From the major findings of this research work the following measure are suggested that could help in achieving a good auditing business organization.

First of all the internal auditor should make sure that to his best of knowledge and at least comply to the accounting principal and conversion the in order to prepare satisfied accounting records.

Secondly, the employment of an external auditor (s) should be made by the member of the group of the annual general meeting (AGM) and shareholder of a company and that the external auditor should be allow to perform his duties without been control by the management of the company or by the member of the shareholders.

Thirdly, a conceptual relationship should be promoted between the national auditor and the external by given relevant information needed by the external examiner. This will allow the internal auditor and will be benefit to the external auditor for his auditory.

Fourthly, better performance is expected of an external auditor not to committee, in self in to any other business that will stain his name and his auditing group by processing in any other compensation act different to his duty.

Finally, the auditor should be allowed to neared at the annual general meeting (AGM) of the company and his opinion should be given or know to the member of the group.

An Assessment Of Audit Practice In Business Organisation In Nigeria (A Case Study Of Okin Biscuit Nig. Plc, Ijagbo, Offa)

Project Material Download

3,000 Naira

The complete material will be sent to you in just 2 steps.

Quick & Simple…

Step One Purchase

Make payment of ₦3,000: through USSD Transfer, Bank Mobile App, ATM Transfer, or POS Transfer to:

Access Bank PlcAccount No.: 0811003731
Name: Samphina Academy
Account Type: Current

Or Click Here to pay with Debit Card

Click Here to pay with Debit Card ($15)
GHANA – Make Payment of 60 GHS to MTN MoMo, 0553978005, Douglas Osabutey 


Step Two Purchase

Send the following details through Text Message or WhatsApp Messenger | +234-8143831497

  • Payment Details 
  • Email Address 
  • An Assessment Of Audit Practice In Business Organisation In Nigeria (A Case Study Of Okin Biscuit Nig. Plc, Ijagbo, Offa)

The complete material will be sent to your email address after receiving your payment information | T & C Apply

  Contact Our Help Desk

You may also like:

⚠️ Need a different topic? Perform a quick search

Get A Complete Business Plan For Any Business In Nigeria

Business Plan for Businesses in Nigeria

  Business Plans in Nigeria

An Assessment Of Audit Practice In Business Organisation In Nigeria (A Case Study Of Okin Biscuit Nig. Plc, Ijagbo, Offa)


This research material “An Assessment Of Audit Practice In Business Organisation In Nigeria (A Case Study Of Okin Biscuit Nig. Plc, Ijagbo, Offa)” is for research purposes and should be used as a guide in developing your research project / seminar work. For no reason should you copy word for word (verbatim) as will not be liable for any who copied the material.

The aim of providing this material is to reduce the stress of moving from one school library to another all in the name of searching for research materials. This service is legal because, all institutions permit their students to read previous projects, books, articles or papers while developing their own works. According to Austin Kleon “All creative work builds on what came before”. is only providing this material “An Assessment Of Audit Practice In Business Organisation In Nigeria (A Case Study Of Okin Biscuit Nig. Plc, Ijagbo, Offa)” as a reference for your research. The paper should be used as a guide or framework for your own paper. The contents of this paper should be able to help you in generating new ideas and thoughts for your own research. Use it as a guidance purpose only.

How to defend your research work

This is a general guide on how to defend your research work:

1. Prepare For Questions:

If you are preparing for questions that may be asked during your defense, then your answers will flow smoothly and effectively. This will prove your knowledge on the subject e.g “An Assessment Of Audit Practice In Business Organisation In Nigeria (A Case Study Of Okin Biscuit Nig. Plc, Ijagbo, Offa)“, and strengthening your argument. Ask friends and family, read your work for them to listen to your presentation, and write down questions. You may be lucky the panel will ask you those you have already prepared on.

2. Strong Summary:

Summarizing your chapters will help keep your audience focused because it is easy for a mind to drift, so providing summaries will ensure your panel will follow along, even if they lose focus for a brief moment. Visual aides, such as graphs and power-point presentations can be very helpful. If you are going to use these, make sure you will practice your presentation with them.

3. Be Confident in Your Research Work:

Not knowing your topic “An Assessment Of Audit Practice In Business Organisation In Nigeria (A Case Study Of Okin Biscuit Nig. Plc, Ijagbo, Offa)” inside out will cause you to struggle and ultimately fail with your defense. You need to know the subject from every angle to ensure you are fully prepared for any question that may come your way.

4. Conclusion:

Reinforce your findings to conclude your defense. The finale of your presentation should focus on proving the work that has been done. You may need to recap on what has changed and remained unchanged, if is necessary.

5 . Listen:

Before you get defensive or recite a particular answer, make sure you truly understand the question being asked. Being a good listener is an important quality, because providing an inaccurate or off-topic answer will also weaken the validity of your paper.

Samphina Academy

Samphina Academy is an Online Educational Resource Center that is aimed at providing students with quality information and materials to aid them in succeeding in their academic pursuit.