Auditor’s Legal Responsibility and its Effect on Accounting Profession

Description

– Auditor’s Legal Responsibility and its Effect on Accounting Profession –

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Abstract

The study investigate auditor’s legal responsibility and its effect on accounting profession. A survey research design was adopted in the course of the study. The study used a sample size of 49. The total population from which the samples size was derived are the population who of legally registered  and practicing accounting firm.

Questionnaire was the main data collection instrument used for the collection of field data from the respondents. Field data were collected from respondent in three different states (Anambra state, Enugu and Akwaibom state)   all in south east and south south Geo-political zones of Nigeira.

The field data collected from the respondent were all presented in tables and analysed using mean, standard deviation and analysis of variance(ANOVA).

The finding shows that auditor’s legal responsibilities such as detection of fraud, prevention of  fraud and error etc have  positive effect on accounting profession.

Introduction

Auditing is a systematic examination of books, accounts, documents and vouchers of an organization to ascertain how far the financial statements present a true and fair view of the concern. It also ensures that the books of accounts are properly maintained by the concern as required by law.

Auditing is defined as a systematic and independent examination of data, statements, records, operations and performances (financial or otherwise) of an enterprise for a stated purpose.

In any auditing the auditor perceives and recognizes the propositions before him/her for examination, collects evidence, evaluates the same and on this basis formulates his/her judgment which is communicated through his/her audit report

Auditors’ auditing of a financial record provides third party assurance to various stakeholders that the subject matter is free from material misstatement.

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