Full Project-THE INFLUENCE OF STATUTORY AUDIT ON SMES GROWTH AND SURVIVAL IN NIGERIA

Click here to Get this Complete Project Chapter 1-5

THE INFLUENCE OF STATUTORY AUDIT ON SMES GROWTH AND SURVIVAL IN NIGERIA

Abstract

This research work examines the influence of statutory audit on SMEs growth and survival in Nigeria. Audit plays a significant role in growth and survival of small scale business. The research deals with the problems auditors encountered during the audit of small scale business to enable them ascertain that their statement of affairs shows a true and fair view. Questionnaires, personal and oral interview were used to collect data. The data collected through the research tools were analyzed using percentage and chi-square (X2) were used to test the hypotheses. The result reveals that some small scale business do not keep good accounting or records of transaction. The study concludes that small scale business can do well if their accounting system is streamlined to meet the standard accounting system procedures and practice. Based on the findings, the study recommends amongst others that the government should encourage these small scale businesses by giving them reasonable amount of years when they will not be required to pay tax.

CHAPTER ONE

INTRODUCTION

1.1   Background to the Study

Auditing, as it exist today was established as a result of the separation of ownership from the control of business. The owners entrusted their business to managers and the owners are then presented with a stewardship accounting. This stewardship
accounting is usually done by means of financial statement. The financial statement is in form of profit and loss account and the balance sheet of the business.

In these circumstances, the need arise for some means by which the accounts presented to them by their managers can be relied upon of error in advertently made.

It was for this reason therefore that the practiced is to verify on behalf of the owners. Obviously it is impracticable and impossible for the owner of business to examine the books and records of the business. The owner appoint auditor to act for them. Auditing is an examination by an independent expert i.e. the auditor to act for them. Auditing is an examination by an independent expert i.e. the auditor of a set of financial statements and of the underlying books and records which result in the auditors providing an opinion on the financial statement.

Auditors concerned themselves primarily with the proof of accuracy of Client’s records, utilizing evidence available within the confines of the business. The subsequent growth of the demand for reliable financial information by third parties supplying credit or capital to expand enterprises, auditors turned to the examination of financial statement. Here the external evidence to corroborate company figure increased in importance is still important auditors recognize that the accounting system that produces the financial and operating information to be reported is a key factor in the accuracy andreliability of the results.

This research work examines the auditing of small scale business, problems and prospects with. This became relevant because small scale industry is a catalyst towards economic growth in developing countries such as Nigeria.

1.2   Statement of Problem

It was noted that the operating transaction used by small scale business often differ significantly from those of large companies.

Some small-scale business do not keep good accounting system or records of transaction, they did it out of ignorance. Many proprietors do not know the amount of pro lit he is making and whether he could do better and by how much the problem is attributed to the qualification and exposure of the proprietors.

The research has shown that only few of proprietors contribute to the fund of initial capital. Most entrepreneur of small scale business is aversive to audit their accounts because of the cost and other sees it as a way of probing into their privacy.

Most of these small scale business lack controls over the running activities of their business organization. Their activities are run haphazardly. Since most of’ mall scale business do not audit their accounts they don’t pay tax to the government, even few that pay tax, pay it out their direction and not their profit. Personal interview with auditors from two accounting firms visited revealed that accounts business could be adopted, the small scale business inclusive irrespective of the non-maintenance of proper accounting records.

1.3   Research Questions

The purpose of this study is to provide solution to the following problems faced in auditing small scale business.

i.      Are proper books of accounts been kept?

ii.     To what extend has the accounts of SMEs prepared in accordance to standard and CAMA 1990?

iii.    Is the internal control system of the entities effective for the auditor to make an opinion?

1.4   Objective of the Study

The following are the objectives of the study;

i.      To know if there is proper books of account been kept.

ii.     To determine the extent at which the accounts of SMEs are prepared in accordance to standards and CAMA 1990.

iii.    To find out if the internal control system of the entities effective and can be relied upon by the auditor.

iv.    To examine their educational qualification of the person in charge of preparing the SMEs account.

1.5   Statement of Hypotheses

For the purpose of this study, the researcher has developed the hypotheses which will be tested in the subsequent chapter; the hypotheses are as follows;

Hypothesis One               

HO:   SMEs do not maintain proper books of account.

HI:    SMEs maintain proper books of account.

Hypothesis Two

HO:   The account prepared in SMEs are not in accordance with standard and CAMA 1990.

HI:    The account prepared in SMEs are in accordance with accounting standard and CAMA 1990.

Hypothesis Three

HO:   There is no significant relationship between internal control system in place in SMEs and audit.

HI:    There is significant relationship between internal control system in place in SMEs and audit.

Hypothesis Four

HO:   The person in charge of preparing the SMEs account does not have the educational qualification.

HI:    The person in charge of preparing the SMEs account has the educational qualification.

1.6   Significance of the Study

In regard to the relevance of this topic, the influence of statutory audit on SMEs growth and survival, the study covers areas which are useful.

1.     It will expose users of this research work on the problems of auditing small scale business.

2.     The contribution of the small-scale industry to the industrialization of the economy.

3.     It may also disclose avenue that will necessitate further research.

1.7   Scope of the Study

This study is restricted to the influence of statutory audit onSMEs growth and survival in Nigeria. The investigate cover between 2010 and 2013 (4 years financial year’s of the case study). Nosakhare
Bakery is used as the case study of the project and the study covers Nosakhare Bakery in Edo State.

1.8   Limitations of the Study

The researcher in the course of this study encountered a lot ofproblems, which are discussed below:

a.     Attitude of Respondents: It was difficult for the researcher of the constant information as a result of the constant inability of stall and management to give us adequate attention due to much responsibility and work load at the time we needed their assistance.

b.     Financial Constraint: A lot of money was Spent in looking for materials for this research aid this further compounded the researcher’s financial problems.

1.9   Definition of Terms

Auditing: This is the independent examination of the expression ofopinion on the financial statement of an enterprise by an appointed auditor in pursuance of that appointment in compliance with any relevant statutory obligation (UK Audit Practice Committee).

Internal Control: This is as the whole of controls, financial or otherwise, established by the management in other wise, established by the management in order to carry out the business of the enterprise in an orderly and efficient manners, ensure adherence to
managements, policies safeguard other assets and secure as far as possible the completeness and accuracy of records (APC Guidelines).

Auditor: An auditor is a competent accountant, who examines accounting hooks and record with a view to expressing in opinion there in.

Errors: They are unintentional mistakes in the financial statement. Frauds: They are intentional misstatement in or omissions of amount in the accounting records or financial statements.

Financial Statement: Are the profit orloss account and the balance sheet of the business.

Working Papers: These are documents the auditor used to record his work during the process of auditing the client’s accounting records.

Get the Complete Project

This is a premium project material and the complete research project plus questionnaires and references can be gotten at an affordable rate of N3,000 for Nigerian clients and $8 for International clients.

Click here to Get this Complete Project Chapter 1-5

You can also check other Research Project here:

1, Accounting Research Project

2. Adult Education
3. Agricultural Science
4. Banking & Finance
5. Biblical Theology & CRS
6. Biblical Theology and CRS
7. Biology Education
8. Business Administration
9. Computer Engineering Project
10. Computer Science 2
11. Criminology Research Project
12. Early Childhood Education
13. Economic Education
14. Education Research Project
15. Educational Administration and Planning Research Project
16. English
17. English Education
18. Entrepreneurship
19. Environmental Sciences Research Project
20. Guidance and Counselling Research Project
21. History Education
22. Human Kinetics and Health Education
23. Management
24. Maritime and Transportation
25. Marketing
26. Marketing Research Project 2
27. Mass Communication
28. Mathematics Education
29. Medical Biochemistry Project
30. Organizational Behaviour
31. Other Projects
32. Political Science
33. Psychology
34. Public Administration
35. Public Health Research Project
36. More Research Project
37. Transportation Management
38. Nursing

Need a Project Writer for a Different Topic

• MSC PROJECT WRITING SERVICES
• MBA RESEARCH PROJECT WRITING SERVICES
• Research Project Writing Services in Lagos Nigeria (Professional Writers) -Law, MSc, MBA,PhD, Dissertations, Thesis, Assignment, Speech
• Masters Research Project Writer in Lagos Nigeria
• MBA Research Project Writer in Lagos Nigeria
• LOOKING FOR A WRITING SERVICES FOR AN URGENT ASSIGNMENTS OR PROJECT WORK
• PROFESSIONAL WRITING SERVICES IN LAGOS NIGERIA (TERM PAPER, SPEECH WRITING, ASSIGNMENT, THESES, DISSERTATIONS, RESEARCH PROPOSAL, PROJECT WRITING SERVICES etc)
• BUSINESS ADMINISTRATION RESEARCH PROJECT WRITER IN LAGOS NIGERIA
• CONSULT A RESEARCH PROJECT WRITER IN LAGOS NIGERIA (PH.D, MBA, MSC, M.ED, BSC)
• MANAGEMENT RESEARCH PROJECT WRITER IN LAGOS NIGERIA
• Education Research Project Writer in Lagos Nigeria
• Environmental Sciences Research Project Writer in Lagos Nigeria
• Guidance and Counselling Research Project Writer in Lagos Nigeria
• Human Kinetics and Health Education Project Writer in Lagos Nigeria
• Early Childhood Education Research Project Writer in Lagos Nigeria
• Christian Religious Studies(CRS) Research Project Writer in Lagos Nigeria
• Educational Administration and Planning Research Project Writer in Lagos Nigeria
• Political Science Research Project Writer in Lagos Nigeria
• Accounting Research Project Writer in Lagos Nigeria
• Economics Research Project Writer in Lagos Nigeria
• Management Research Project Writer in Lagos Nigeria
• Marketing Research Project Writer in Lagos Nigeria
• Public Administration Research Project Writer in Lagos Nigeria
• MBA Research Project Analysts
• In Need of MBA Research Project Writer in Nigeria
• MBA Dissertation Research Project Writer
• MBA Project writer
• EDUCATION DEPARTMENT PROJECT WRITING SERVICES
• BACHELOR OF SCIENCE (BSC) DEGREE PROJECT WRITING SERVICES(B.ED,B.A,B.SC)
• MASTER OF BUSINESS ADMINISTRATION (MBA) RESEARCH PROJECT WRITING SERVICES
• MASTER OF SCIENCE (MSC) RESEARCH PROJECT WRITING SERVICES
• POST GRADUATE RESEARCH PROJECT WRITER
• POST GRADUATE DIPLOMA (PGD) RESEARCH PROJECT WRITER
• MASTER RESEARCH PROJECT WRITER
• MASTER DEGREE RESEARCH PROJECT WRITING SERVICES
• POSTGRADUATE RESEARCH PROJECT WRITING SERVICES
• MASTERS RESEARCH PROJECT WRITING SERVICES
• RESEARCH PROJECT WRITER
• EXPERT IN RESEARCH PROJECT/THESIS/DISSERTATION WRITING SERVICES IN LAGOS NIGERIA
• HIRE A PROFESSIONAL BSC/HND RESEARCH PROJECT WRITER
• HIRE A PROFESSIONAL MBA/MSC RESEARCH PROJECT WRITER
• HIRE A PROFESSIONAL THESIS WRITER IN LAGOS NIGERIA
• SC/M.SC/MBA/PGD RESEARCH PROJECT WRITER IN LAGOS NIGERIA
• Master Degree Research Project Specialist/Writer in Lagos, Nigeria
• Hire A Research Project Writer in Lagos Nigeria
• Research Project Specialist in Lagos, Nigeria

• Education