One gospel that’s being vigorously preached within the company world at present is the necessity to embrace company governance. Company governance is all about bettering stakeholder worth. There’s must institute well-developed worldwide requirements on finest practices within the management of companies for the advantages of all stakeholders. The existence of worldwide requirements would positively give consolation to buyers, collectors and regulatory agencies, and so on., the world over. One situation that could be very essential in company governance is the monitoring of compliance with worldwide monetary requirements, which is the priority of auditing and investigation. It’s on account of this that we’re X-raying this textual content entitled “Auditing and Investigation” this week.
It’s written by Olugbemiga Olagbaiye, a 1978 graduate of Pharmacology from the College of Ibadan, Oyo State, Nigeria and Fellow of each the Institute of Chartered Accountants of Nigeria (ICAN) and Chartered Institute of Taxation of Nigeria (CITN). Olagbaiye, who has been concerned in pupil coaching and development since 1984, has assorted expertise in accounting apply in the private and non-private sectors of the Nigerian financial system. He has additionally been a lecturer with the Nigerian Military College of Finance and Administration (NASFA), Apapa, Lagos, Nigeria for about twenty years.
Olagbaiye says the resolve to supply enduring options to the difficulties skilled by college students of tertiary establishments on the whole and people getting ready for the skilled examinations of the Institute of Chartered Accountants of Nigeria, specifically has motivated him to jot down this ebook. He assures that the ebook shall be a really helpful information to each teachers and practitioners, particularly that particular consideration has been paid to developments which have considerably affected the auditors’ work, together with latest Accounting and Auditing Requirements and Tips.
The textual content is segmented into 22 chapters. Chapter one is interrogatively christened “Why audit?” Right here, Olagbaiye educates that audit at present includes the scrutiny of the account of an enterprise in adequate particulars to make sure that the auditors can type an opinion primarily based on fact and equity. He stresses that auditors’ opinion shall be expressed in a written report addressed both to those that have commissioned the audit or to these to whom the auditors might have a statutory duty.
This writer additionally discusses the idea of stewardship. He explains that stewardship is the name given to the apply by which the productive assets owned by one individual or group are managed by one other individual or group of individuals. Olagbaiye discloses that at present, most companies are operated by restricted legal responsibility firms which can be owned by shareholders and managed by administrators appointed by them.
He additionally sheds light on monetary statements and events concerned. In his phrases, “Ordinarily annual studies and accounts are produced for the eye of members of a company, i.e. the shareholders. Nevertheless, a a lot wider vary of individuals at the moment are all for these annual studies & accounts and these are: homeowners or shareholders; lenders or debenture holders; workers; prospects; suppliers; stockbrokers….”
Chapter two relies on the subject material of Auditing and the Company Act. On this chapter, the writer X-rays completely different provisions of related statutes regulating auditing apply in Nigeria. He explains that an individual won’t be certified for appointments as an auditor of a company besides he’s a member of a body of accountants in Nigeria established by an Act or Decree.
Chapter three focuses on audit planning. Olagbaiye says the Nigerian Requirements on Auditing (NSA) eight, that’s, “Planning an Audit of Monetary Statements”, is the native normal that governs audit planning. He expatiates that the aim of NSA is to determine requirements and supply a information on the concerns and actions relevant to planning an audit of monetary statements. This NSA is framed within the context of recurring audits and the necessities of this normal comply considerably with ISA 300, that’s, “Planning and Audit of Monetary Statements”, Olagbaiye educates. He provides that planning an audit includes institution of the general audit technique for the engagement and development of an audit plan so as to cut back audit threat to an appropriate low degree.
In chapters 4 to 10, Olagbaiye beams his mental searchlight on ideas similar to audit proof; audit timing; the trendy audit phases; verification of property and liabilities; audit working papers; audit report; and accounting requirements 審計 服務.
Chapter 11 examines code of ethics in auditing. This skilled accountant says code of ethics is basically a set moral requirements regulating the connection of chartered accountants with their shoppers, employers, workers, fellow members of the group and the general public on the whole. In keeping with him, in Nigeria, upkeep of moral requirements is the collective concern of the ICAN and members of the accounting career.
In chapters 12 to 18, he analytically X-rays ideas of inside management system; inside audit; auditors’ legal responsibility; investigation; fraud and error; particular audits; and share switch audit.
Chapter 19 has thematic focus of valuation of shares. Olagbaiye educates that property could be real or monetary. Bodily property, in accordance with him, are referred to as “real property”, whereas securities similar to shares and bonds are known as “monetary property”. He says a well-informed, correctly functioning capital market is named an “environment friendly capital market”.
In chapters 20 to 22, Olagbaiye examines the ideas of computer-based accounting system; public sector audit; and accountancy as an indispensable career.
If there may be one factor that stylistically underscores the energy of this ebook, it’s the didactic mode of presentation of the highly-sequential ideas which can be products of in-depth analysis. The mode can be complemented by the proficiency and ease of the language. The outer entrance cowl design embedded with bodily symbols of auditing and investigation is visually suggestive of the general material of the textual content.
The format of the textual content is okay. In brief, the packaging of this textual content displays an ideal mix of Olagbaiye’s expertise within the academia, in addition to in the private and non-private sectors as he cohesively radiates the three skilled backgrounds.
Nevertheless, some minor errors are discovered within the textual content, which should be corrected within the subsequent version. One is “Acknowledgement” (page viii) as an alternative of “Acknowledgements”. One other is “…to allow the auditors type” (page 1), as an alternative of “…to allow the auditors to type”. The usage of the preposition “To”, with the verb “Allow” within the previous and succeeding methods (double) is obligatory. Nevertheless, the second “To” is sort of all the time omitted in Nigerian English, most likely as a result of it’s “thought” to be redundant. The usage of the second “To” is a type of correlative like “Both or” and is an compulsory transformation in syntax. One other error is “Third partie’s” (page xi) as an alternative of “Third events”.
Typically, this textual content is a treasury of auditing data; a radiation of excessive degree of mental acumen. It’s subsequently beneficial to college students, lecturers, auditors in addition to operators and regulators in the private and non-private sectors.