CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
The
term audit is derived from the Latin verb “audire†which means to hew. The
origin of an audit can be trace to the ancient times in Britain when Landowners
allowed tenant farmers to farm on their
land. The landowners did not involve themselves in the cultivation of the land
or in the supervision of these tenant farmers. Cultivation of the land was done
by these tenant famers while the supervision of the tenant farmers was done by
overseers appointed by the landowner’s. The overseers “listened†to the
accounts of the tenant farmers and the final account were made by these
overseers to the landowners. Nowadays, various social clubs, students union
bodies, charitable organization etc do provide in their constitutions, the
election of union officials who collect and disburse the organization money
such constitutions also invariable make provision for audit of the accounts of
the organization.
An
audit is an independent examination by a statutory appointed person called the
auditor to investigate an organization, its record and the financial statements
prepared from them and thus farm an opinion on the accuracy and correctness of
the financial statement. The primary aim of an audit is to enable the auditor
to say “these account show a true and fair view or of course. (Eze: 2003).
Get the Complete Project Material Now!!!
