- Background of the Study
Audit means written reports about the reliability and accuracy of an account by a qualified person known as an auditor. In Nigeria, the companies and allied matters degree of 1990, section 331 made it compulsory for all corporate bodies to have their accounts audited by professional auditors. The directors or management of organization produce a report called the financial statement while the auditor expresses his opinion on whether such financial position shows a true and fair state during the year under review.
The report prepared by management on which the auditor expresses his opinion is very vital since used by other interest parties (internal and external). Internal users are potential investors, financial analysis etc. hence, the law has recognized that the report be scrutinized by an independent person known as an Auditor. Also, the auditor’s opinion that has been embodied in written form is called Auditor report, which is addressed to those the auditor is responsible from the foregoing, it is realized that audit is very important in the organization operation (particularly with reference to the Power Holding Company OF Nigeria Ughelli). Hence, audit report is very essential in all planning and operation of the organization.
However, its importance cannot be underestimated since the audit may be held liable to a very great extent for what he stated or does not state as his opinion and the responsibility may extend not only to his immediate client, but also to the limited party.
- Statement of the Study
The major problem of this study is centered on the Audit report of P.H.C.N., Ughelli.
- The need to test accuracy of the financial statement prepared from the accounting record of the organization.
- That state of affair of the financial position of the organization. That is whether the financial position shows a true and fair view of the organizational operation according to the best information and explanation given to him and as shown by the books if not in what respect, it is false or incorrect.
- Proper utilization of funds by management of the organization
- The implementation of the recommendation made by audit report for the purpose of the organization growth (particularly the P.H.C.N ughelli).
- The need to check and examine the entries in the book of account.
- Objectives of the Study
The objectives of this research on the audit report of the organization particularly P.H.C.N ughelli are as follow:
- To know the true and fair of the financial position of the organization operation.
- To know the accuracy of the financial statement of the organization (P.H.C.N)
- To know the degree of efficiency and economic operation of the organization.
- To know if actually the recommendation made by the auditor report are implemented in order to ascertain the extent of the organizational growth achieved in the organization (P.H.C.N ughelli)
- Research Questions
The following research questions will be answered in the course of this work
- How does audit report create an impact in the power holding company of Nigeria ughelli?
- Who is responsible for the preparation of an audit report?
- What are the significant relationship between an audit and its impact in the power holding company of Nigeria ughelli.
- What are the importance of an audit report in the power holding company of Nigeria, ughelli?
- Significant of the Study
The importance of this research on the audit report of the power holding company of Nigeria ughelli is stated below:
- It helps to know the effective operation of the organization (P.H.C.N)
- It help to test the organization posting of account if they are posted correctly
- It help to know the organization state of financial position (P.H.C.N)
- It help to determine if the auditor recommendation increase the growth and development of the organization.
- Scope of the Study
The study is restricted to the public sector organization with particular reference to the Power Holding Company of Ughelli, Warri. It may include the audit report and some importance aspect of the audit (general standard and standard of examination and evaluation as regards