... Dixon, Woodhead, Frank, Lowe, and Smith, have continued to investigate the existence of the expectation gap and its complications. The audit expectation gap exists when the public user and auditors have different beliefs about what an auditor’s responsibility should be. In the past few years, auditors have been unwillingly placed in the spotlight. The expectation gap has affected and deteriorated accountants’ credibility. The reason to this is that public users have expectations from auditors, for example, Salehi says, “the primary responsibility of an auditor is to verify whether the financial statements exhibit a true and fair view of state of affair of the business and their secondary responsibility is the prevention and detection of errors and frauds” (Salehi 2008, p. 65). These expectations by the public users increase the legal liability and credibility facing the audit profession (Ojo, 2006), and lastly, it lowers their earning potrantion and reputation associated with the work of auditors (Lee, Ali & Kandasamy 2008). Yet, the profession have been trying to decrease the disparity (Epstein and Geiger 1994). However, the expectation gap is not something that can be placed on the profession’s shoulders alone (Pierce and Kilcommins 1996), since the nature and roles of the auditors are differently perceived by users. It is obvious that previous research that have been done on the expectations problem is significant. It is not surprising that it has become significant...
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...Introduction 6 b. The Need for an Audit 7 c. Risk of fraud 8 d. The Auditor-Investor ''Expectation Gap'' 9 e. Auditing Profession and Challenges 9 f. Public opinion 10 g. Family or Personal Relationship 10 h. Integrity 11 i. Inherent limitations of an audit. 11 j. Responsibility of Auditors to Third Parties – Case Law 12 k. International, Assurance Auditing, Standards Board (IAASB) 14 CORPORATE FRAUD CASES 16 CASE STUDY: 21 CONCLUSIONS………………………………………………………………………………24 REFERENCES……………………………………………………………………………..….25 SUMMARY OF TERMS ISA: International standards of Audit KPC: Kenya Pipeline Company IAASB: International Assurance Audit Board IFAC: International Federation of Accounting USD: United States Dollar KCB: Kenya Commercial Bank BCCI: Bank of Credit International SEC: Securities and Exchange Commission ABSTRACT The way in which auditors perform their duties and the auditing profession in general raises questions and puts the auditors on the spotlight from clients who rely on their reports. Questions on whether the public trust the way auditors perform their secondary duty of detecting errors and frauds, the reliability, completeness and accuracy of their auditing reports have been raised. The research focuses on; Management and auditors’ responsibility for its prevention and detection of fraud, the auditor’s responsibility for reporting fraud to management. The primary responsibility for prevention and detection of errors and irregularities rests with management...
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...There are numerous threats to auditor independence. Derived from Porter, Et Al (2014) - Firstly, Self-interest threat which are dangers that emerge from auditors acting to their own interest. Auditors may support, intentionally or intuitively, those self-intrigues over their enthusiasm for performing a quality review. The auditors’ relationship with bluebird limited creates a financial self-interest because they pay the auditors’ fees. Auditors also have a financial self-interest if they own stock in an auditee; as I have just inherited a 3% shareholding in bluebird, the quality of the audit may be lacking as a financial self interest may be obtained by me, for example excluding some pieces of vital information from the audit to serve my own financial interests. Another kind of threat, known as Self-review may be brought about. These are threats that emerge from inspectors inspecting their own particular work or the work done by others in their firm. It might be harder to assess without predisposition one's own particular work, or that of one's firm, than the work of another person or of some other firm. As the auditor has a 3% shareholding in bluebird, a self-review threat may arise if I was to review judgements and decisions I, or others within the firm, have made. Familiarity (or trust) threats are threats that emerge from auditors being impacted by a close association with an auditee. Such a risk is available when auditors are not adequately suspicious of an auditee's...
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...organizations, especially banks, cannot be undermined, due to the fact that the banking sector, which has a crucial role to play in the economic development of a nation is now being characterized by macro economic instability, slow growth in real economic activities, corruption and the risk of fraud. Fraud, which is the major reason for setting up on internal control system, has become a great pain in the neck of many Nigerian bank managers. It has also become an unfortunate staple in Nigeria’s international reputation. Fraud is really eating deep into the Nigerian banking system and that any bank with a weak internal control system, is dangerously exposed to bank fraud. The CBN reported that cases of attempted fraud and forgery in banks, as at half-year 2007 have surpassed what was recorded for the whole year 2006. The CBN half-year report for 2007, revealed a total of 741 cases of attempted fraud and forgery, involving 5.4 billion, $35,406.1, 150 Euros were reported as at June, 2007. In 2006, 1,193 cases were reported involving 4.6 billion, $1.8 million and 14,389.7 pound sterling. The CBN also reported that the backward development was attributable to weaknesses in the internal control systems of the banks. This has clearly pointed the picture of how fraud has penetrated in the financial strength of Nigerian Banks. In a nut-shell, the damage which this menace, called fraud has done to the banks is innumerable and needs urgent attention. Therefore, the attempt to put an end to...
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...Control System in Banking Sector in Nigeria | | Olaoye Clement Olatunji | | Abstract: The Central Bank of Nigeria reported that the backward development in Nigeria was attributable to weaknesses in the internal control systems of the banks. This has clearly pointed out the picture of how fraud has been penetrated in the financial strength of Nigerian Banks. In a nut-shell, the damage which this menace, called fraud has done to the banks is innumerable and needs urgent attention. Therefore, the attempt to put an end to this economic degradation, gave rise to the topic of this research study the impact of internal control in the banking sector in Nigeria with Wema Bank of Nigeria PLC as a case study. However, this study is aimed at verifying the conception that an effective and efficient internal control system is the best control measure for preventing and detecting fraud, especially in the banking sector. Data captured for this study, were analyzed through descriptive and inferential statistical methods. The descriptive analysis involves the use of percentages, tabulation and graphical presentation. While the inferential statistical method involved the use of the chi-square. The functions of fraud prevention, detection and control are interwoven, as the three works together to eliminate fraud and fraudulent tendencies. Therefore, internal control is highly significant in fraud detection and preventions in banking sector in Nigeria. | | | INTRODUCTIONInternal...
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...THE EFFECT OF INTERNAL CONTROL ON ORGANIZATIONAL PERFORMANCE (A CASE STUDY OF ECOBANK NIGERIA PLC) BY AMOO TEMITOPE GRACE ACT/2009/0036 ADEYIGA ADEBAYO ECN/2009/0005 BEING A RESEARCH PROJECT CARRIED OUT AND SUBMITTED TO THE DEPARTMENT OF ACCOUNTING, FACULTY OF MANAGEMENT SCIENCES OSUN STATE UNIVERSITY, OSOGBO NIGERIA IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF BACHELOR OF SCIENCES (B.Sc) DEGREE IN ACCOUNTING JULY 2013 1 CERTIFICATION It is certified that this research project, written by Amoo Temitope Grace with matriculation number ACT/2009/0036 was supervised by me and submitted to the Department of Accounting, Faculty of management sciences. Osun State University Osogbo, Okuku Campus. Mr J.O Oyewole Project supervisor Date PROF. Temi Ologunorisa Head of Department Date 2 DEDICATION This research work is specially dedicated to Almighty God in Heaven, the one who loves me dearly, unconditionally and eternally, the source and the strength with which I have been able to pull through the challenges that came with this work, for his protection and guidance over my life right from the inception and towards successful completion of this academic programme. Also, to my beloved parents; Mr and Mrs AMOO for their supports both financially and morally to accomplish the great task of passing through this practical project. My prayer to you is that you will eat the fruits of your labor in Jesus name (Amen). 3 ACKNOWLEDGEMENT Nothing...
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...governance and all security arrangements among others are integral part of the system of control. Even a recent development in accountancy profession called ‘forensic accounting’ could be traced to have emanated from the system of internal control in an effort to produce accounting information “suitable for use in a court of law”. Invariably, forensic accounting is increasingly playing more pro-active risk reduction roles by designing and performing extended procedures as part of audit, control measures and fraud deterrence. Therefore, internal control system is concerned with the controls operating in every area of an establishment as well as with the way in which Individual control interact. Internal controls extend to the physical security of the properties of the organization. It should be noted that internal check and Internal audit are both important aspect of internal control system. Internal check is concerned with those detailed administrative aspects of an organization, which are designed purely for the purposes of prevention or early detention of errors or fraud....
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...STUDY The advancement of technology and its effects on information systems in organizations have been of major concern to the industrialists, investors and the general public in the recent times. Electronic technology has replaced the traditional methods of keeping records. The financial institutions (including banks) in most part of the world now embrace electronic technology through the use of Electronic Funds Transfer facilities (EFT), Automated Teller Machine (ATM) and Magnetic Ink Character Recognition (MICR). Automated equipment is now used to process billions of cheques in a short time. Telex Machines are used to ‘wire’ money in commercial transactions from banks in one country to another. The advancement has led to all banks in Nigeria being made IT compliance statutorily. In fact, CBN requires all banks to comply with the use of the new Electronic Financial Analysis and Surveillance System (EFASS) to submit their monthly returns. Infrastructural technology devices have therefore become significant determinant of how well basic functions are performed, as technology has prompted changes in organizational design that affect the quality and timeliness of intelligence and decision making, and the organizational goals as a whole. With quality of information, good decisions will be made and this will enhance the successful attainment of organizational goals and objectives. Information system has become a very powerful agent of change and it is transforming the way businesses...
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...EFFECTIVENESS OF INTERNAL CONTROLS IN THE FORESTRY COMMISSION OF GHANA A CASE STUDY ATEBUBU FOREST DISTRICT. A THESIS SUBMITTED TO THE DEPARTMENT OF ACCOUNTING AND FINANCE, IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARDS OF MASTERS IN BUSINESS ADMINISTRATION. (FINANCE OPTION) KWAME NKRUMAH UNIVERSITY OF SCIENCE AND TECHNOLOGY, KUMASI GHANA SCHOOL OF BUSINESS COLLEGE OF ART AND SOCIAL SCIENCE BY PRINCE KWAKU ASARE PG8365312 JULY, 2014 DECLARATION I hereby declare that this submission is my own work towards the award of Masters in Business Administration Accounting option and no part of it has been presented for another degree in this university or elsewhere expect where due acknowledgement has been made in the test. PRINCE KWAKU ASARE ………………….…… ………………….. (CANDIDATE PG 8365312) SIGNATURE DATE Certified by: MR MICHAEL ADUSEI …………………… …………………… (SUPERVISOR) SIGNATURE DATE Certified by: ………………………..…. ……………………… …………………….. HEAD OF DEPARTMENT SIGNATURE DATE DEDICATION This work is dedicated to the almighty God for his guidance and protection throughout the undertaken of this thesis. I also dedicated this work to my late Dad Emmanuel Gyimah,my late Mum Comfort Adwoa Frimah, my late Uncle Kofi Anane and my bossom friend Joseph...
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...WOMEN DEVELOPMENT AND NATIONAL POLICY ON WOMEN IN NIGERIA Olubunmi Aderemi Sokefun Abstract This paper discusses the document on women in Nigeria (National Policy on Women). Several past administrations in this country have treated women issues and affairs with calculated levity: Carefully side - tracking or blatantly refusing to accord it the necessary attention. It is now a thing to gladden the hearts of all women of Nigeria that, "after four attempts by four former heads of Nigeria's Government," Chief Obasanjo's administration finally granted government recognition to women's issues in this country. The official document .on Human Rights' issues as it relates to Nigerian women; this document is known as the NATIONAL POLICY ON WOMEN. This paper therefore focuses on the document which promises to bring delight to the heart of every woman in this country. Introduction When late Mrs. Olufunmilayo Ransome Kuti joined the vanguard team as the only nationalist and activist during the early struggle for Nigerian independence, hardly did .anybody realize then that she had a dream, a clear vision of a future Nigerian woman, that vision was crystal clear in her heart, and like a pivot, it stood firmly on three stand posts-known today as women's rights, women emancipation and women empowerment.. . Mrs. Olufunmilayo Ransome-Kuti later joined by some educated women of like minds, fought daringly and relentlessly for these three .pivotal goals of women emergency and relevance in the socio-political...
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...CORE CONCEPTS OF Accounting Information Systems Twelfth Edition Mark G. Simkin, Ph.D. Professor Department of Accounting and Information Systems University of Nevada Jacob M. Rose, Ph.D. Professor Department of Accounting and Finance University of New Hampshire Carolyn Strand Norman, Ph.D., CPA Professor Department of Accounting Virginia Commonwealth University JOHN WILEY & SONS, INC. VICE PRESIDENT & PUBLISHER SENIOR ACQUISITIONS EDITOR PROJECT EDITOR ASSOCIATE EDITOR SENIOR EDITORIAL ASSISTANT PRODUCTION MANAGER PRODUCTION EDITOR MARKETING MANAGER CREATIVE DIRECTOR SENIOR DESIGNER PRODUCTION MANAGEMENT SERVICES SENIOR ILLUSTRATION EDITOR PHOTO EDITOR MEDIA EDITOR COVER PHOTO George Hoffman Michael McDonald Brian Kamins Sarah Vernon Jacqueline Kepping Dorothy Sinclair Erin Bascom Karolina Zarychta Harry Nolan Wendy Lai Laserwords Maine Anna Melhorn Elle Wagner Greg Chaput Maciej Frolow/Brand X/Getty Images, Inc. This book was set in 10/12pt Garamond by Laserwords Private Limited, and printed and bound by RR Donnelley/Jefferson City. The cover was printed by RR Donnelley/Jefferson City. This book is printed on acid free paper. Founded in 1807, John Wiley & Sons, Inc. has been a valued source of knowledge and understanding for more than 200 years, helping people around the world meet their needs and fulfill their aspirations. Our company is built on a foundation of principles that include responsibility to the...
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...Study Guide for the Certification Examination Fifth Edition ACAMS.org ACAMS.org/español ACAMSToday.org MoneyLaundering.com Study Guide for the Certification Examination Fifth Edition a publication of the association of certified anti-money laundering specialists Study Guide for the Certification Examination Fifth Edition Executive Vice President John J. Byrne, CAMS Editor Robert S. Pasley, CAMS Co-Editor Kevin M. Anderson, CAMS Contributors Joyce Broome, CAMS Heather Brown, CAMS Aub Chapman, CAMS Vasilios Chrisos, CAMS David Clark, CAMS Jurgen Egberink, CAMS Michael D. Kelsey, CAMS Saskia Rietbroek, CAMS Nancy J. Saur, CAMS Mansoor Siddiqi, CAMS Daniel Soto, CAMS Timothy White CAMS Production Assistant Catalina Martinez We would like acknowledge the following individuals for their contributions to the CAMS Exam, and the Online and Live Preparation Seminars: Kevin M. Anderson, CAMS Joyce Broome, CAMS Aub Chapman, CAMS David Clark, CAMS Josue Garcia, CAMS Hoi Luk, CAMS Ira Morales Mickunas, CAMS Robert S. Pasley, CAMS Karim Rajwani, CAMS Mansoor Siddiqi, CAMS Saskia Rietbroek, CAMS Ed Rodriguez, CAMS Nancy J. Saur, CAMS Wendy Steichen, CAMS Brian J. Stoeckert, CAMS Charles Taylor, CAMS Will Voorhees, CAMS Natalie Ware, CAMS Peter Warrack, CAMS Amy Wotapka, CAMS Crispin Yuen, CAMS Copyright © 2012 by the Association of Certified Anti-Money Laundering Specialists (ACAMS). Miami, USA. All rights...
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...Delivery and growth Royal Dutch Shell plc Annual Report and Form 20-F for the year ended December 31, 2007 Royal Dutch Shell Our Business With 104,000 employees in more than 110 countries and territories, Shell plays a key role in helping to meet the world’s growing demand for energy in economically, environmentally and socially responsible ways. Our Exploration & Production business searches for and recovers oil and natural gas around the world. Many of these activities are carried out as joint venture partnerships, often with national oil companies. Our Gas & Power business liquefies natural gas and transports it to customers across the world. Its gas to liquids (GTL) process turns natural gas into cleaner-burning synthetic fuel and other products. It develops wind power to generate electricity and invests in solar power technology. It also licenses our coal gasification technology, a cleaner way of turning coal into chemical feedstocks and energy. Our Oil Sands business, the Athabasca Oil Sands Project, extracts bitumen from oil sands in Alberta, western Canada and converts it to synthetic crude oils. Our Oil Products business makes, moves and sells a range of petroleum-based products around the world for domestic, industrial and transport use. Its Future Fuels and CO2 business unit develops fuels such as biofuels and hydrogen and synthetic fuels made from natural gas (GTL Fuel) and potentially from biomass; and leads company-wide activities on CO2 management. With...
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...after the increase in concern about the ecological imbalances and the impact of business on the environment, this above view is however changing and more and more entities are taking corporate social responsibility activities and few of them are also able to align their business goals in order to generate profits. The modern business also debates over the business responsibility towards the Shareholder’s and owners versus Stakeholders (employees, consumers, suppliers and shareholders) in the present day scenario. After taking the consideration of responsibility towards stakeholders, businesses are coming closer to the society and are altering the function of business organizations taking into considerations the business’ wider role. The wider role define above is coming into many areas such as for the social order and environment, beyond financial performance, and alignment of business responsibility in a moral and socially accountable way. Corporate social responsibility is the term coined for the performance of business organizations in which they align their activities in such a way so as to achieve the shift from complete monetary to...
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...economic, social and environmental performance Evolution of the main indicators 2011 Turnover (in millions of euros) Sales 2010 13,793 12,527 Results and cash flow (in millions of euros) Operating profit (EBITDA) Operating profit (EBIT) Net income Net income attributable to the parent company Cash flow 3,258 2,522 1,946 1,932 2,613 2,966 2,290 1,741 1,732 2,540 Financial and management ratios ROE ROCE 28% 37% 30% 39% Other relevant information Number of stores Net openings Number of markets with commercial presence Number of employees % men/women Overall energy consumtion (Tj) Number of suppliers Social investment (in millions of euros) 5,527 483 82 109,512 20.5/79.5% 3,381 1,398 14 5,044 437 77 100,138 19.5/80.5% 3,230 1,337 11 Highlights Sales 13,793 12,527 9,435 10,407 11,048 10,000 7,500 15,000 12,500 5,000 2,500 0 2007 2008 2009 2010 2011 Sales by geographical Rest of Europe 45% Spain 25% America Asia and the rest of the 12% world 18% Net profit 2,500 1,946 1,741 1,258 1,262 1,322 2,000 1,500 1,000 500 0 2007 2008 2009 2010 2011 Number of employees 0 20,000 40,000 60,000 80,000 100,000 120,000 2011 2010 2009 2008 2007 79,517 109,512 100,138 92,301 89,112 Inditex´s Annual Report addresses its economic, social and environmental performance for the purposes of achieving the maximum transparency in its relationship with all...
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