CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND
OF THE STUDY
Auditing
has existed as long as man has been required to account for their transactions.
A famous example is in St. Mathew’s Gospel (Chapter 25) when the rich man went
on a journey and delivered his goods to a servant to look after them while he
was away. On his return, he asked each of these servants to account for the
goods with which he had been entrusted.
In
the ancient ages, great land owners would not manage their own land, but would
appoint stewards to manage their own land for them. The account of these land
owners were checked by having them called out by those who gave them to those
in authority (land owners) for hearing otherwise called stewardship accounting.
Auditing
can be defined as the process of an independent examination of vouchers,
internal control system and financial statements of an organization by a person
or a group of persons called auditors so that the auditors can form and express
opinion whether the vouchers, internal control system and financial statement,
give a true and fair view of the organization.
Auditing
is carried in both the public and private sectors. In the case of public
sector, there are two foremost types of audit that are carried out namely:
Regulatory audit and financial audit and the third type is value for money
(VFM) audit which is yet to be fully integrated in most part of the world.
According
to Bechberger (2007), it is observed in the past decades that in order to fight
global corruption and strengthening transparency and accountability in public
sector organization across the world, public sector organizations are now under
pressure from the public to integrate value for money principles in their
management practices.
Value
for money according to National Audit Office (2007) means providing a service
or a product in a way which is economical efficient and effective. Value for
money audit is therefore, the type of audit that is used to asses the value for
money system in any organization. It is an independent examination of the
criteria (economy, efficiency and effectiveness) for the value for money to
confirm that the organizations available resources are used wholly,
necessarily, reasonably and exclusively so as to maximize progress towards the
chosen objective.
For
Complete Material
Contact
Us at:
Call
or Whatsapp
+2347034746560
E-mail:
Visit
our Official Websites and Blogs for more services:
Click
the Image to Download Complete Project
No comments:
Post a Comment