Today in the public sectors, staffs have decided in involving themselves in fraud, misappropriation of fund mismanagement of assets entrusted on them, and abuse of their profiles for their different personal interests. But, auditing has become a tool for ensuring good accountability. Through auditing, the account of individuals, partnership, co-operative and public sectors can at any time be examined by an auditor which enables him to express his opinion of true and fair view, by the use of auditing standards. However, it is through this auditing, that those errors, frauds and other accounting mal-practices or irregularities can be easily traced out and be corrected. Through this auditing, spin off effect can easily be provided. Though all the secondary objective of auditing. In conclusion, auditing has become an indispensable instrument through which the funds and assets entrusted in the hands of directors in public sector could be examined and make sure that those whom properties are entrusted were tested and reliable staff. Moreover, this work is arranged in such a way that one chapter flows and naturally leads to next. It organized in three chapters

Chapter one: includes, introduction, objective of the study, significance of the study, scope of the study, auditing standard, destinations between auditing and accounting function and definition of terms.

Chapter two: what is auditing, who is our auditor types and objectives of auditing qualities of an auditor fraud in the public sector, internal control and internal check.

Chapter three: findings, conclusion, Recommendation Suggestion for further studies, bibliography.

Cover page I

Title Page II

Dedication III

Acknowledgement IV

Approval page V

Abstract VII

Table of content IX

1.1 Introductions 1

1.2 Objective of the study 8

1.3 Significance of the study 9

1.4 Scope of the study 10

1.5 Auditing standards 11

1.6 Distinction between Auditing and Accounting Job 11

1.7 Definition of terms 12

2.1 What is auditing? 15

2.2 Who is our Auditor? 17

2.3 Types and objectives of Auditing 18

2.4 Qualities of an auditor 20

2.5 Fraud in the public sector 22

2.6 Internal control, internal check and internal audit 24

2.7 Classes of audit 26

3.1 Findings 28

3.2 Conclusion 30

3.3 Recommendation 31

3.4 Suggestion for Further studies 33