One gospel that’s being vigorously preached within the company world right this moment is the necessity to embrace company governance. Company governance is all about bettering stakeholder worth. There may be must institute well-developed worldwide requirements on greatest 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 companies, and many others., the world over. One concern that may be very vital 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 scholar coaching and development since 1984, has various expertise in accounting observe in the private and non-private sectors of the Nigerian economic system. He has additionally been a lecturer with the Nigerian Military College of Finance and Administration (NASFA), Apapa, Lagos, Nigeria for about 20 years.
Olagbaiye says the resolve to supply enduring options to the difficulties skilled by college students of tertiary establishments generally and people making ready for the skilled examinations of the Institute of Chartered Accountants of Nigeria, particularly has motivated him to put in writing this e-book. He assures that the e-book will probably be a really helpful information to each lecturers and practitioners, particularly that particular consideration has been paid to developments which have considerably affected the auditors’ work, together with current 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 right this moment entails the scrutiny of the account of an enterprise in enough particulars to make sure that the auditors can type an opinion based mostly on reality and equity. He stresses that auditors’ opinion will probably 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 creator additionally discusses the idea of stewardship. He explains that stewardship is the title given to the observe by which the productive assets owned by one individual or group are managed by one other individual or group of individuals. Olagbaiye discloses that right this moment, most companies are operated by restricted legal responsibility corporations 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 reviews and accounts are produced for the eye of members of a company, i.e. the shareholders. Nonetheless, a a lot wider vary of individuals are actually excited about these annual reviews & accounts and these are: house owners or shareholders; lenders or debenture holders; workers; prospects; suppliers; stockbrokers….”
Chapter two is predicated on the subject material of Auditing and the Company Act. On this chapter, the creator X-rays completely different provisions of related statutes regulating auditing observe in Nigeria. He explains that an individual is not going to 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 ascertain 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 entails institution of the general audit technique for the engagement and development of an audit plan as a way to cut back audit threat to an appropriate low degree audit.
In chapters 4 to 10, Olagbaiye beams his mental searchlight on ideas resembling audit proof; audit timing; the trendy audit levels; verification of belongings and liabilities; audit working papers; audit report; and accounting requirements.
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 purchasers, employers, workers, fellow members of the group and the general public generally. In accordance with him, in Nigeria, upkeep of moral requirements is the collective concern of the ICAN and members of the accounting occupation.
In chapters 12 to 18, he analytically X-rays ideas of inner management system; inner 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 belongings might be real or monetary. Bodily belongings, in response to him, are referred to as “real belongings”, whereas securities resembling shares and bonds are known as “monetary belongings”. He says a well-informed, correctly functioning capital market known as 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 occupation.
If there may be one factor that stylistically underscores the power of this e-book, it’s the didactic mode of presentation of the highly-sequential ideas which can be products of in-depth analysis. The mode can also 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 structure of the textual content is okay. Briefly, 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.
Nonetheless, some minor errors are discovered within the textual content, which have to be corrected within the subsequent version. One is “Acknowledgement” (page viii) as a substitute of “Acknowledgements”. One other is “…to allow the auditors type” (page 1), as a substitute of “…to allow the auditors to type”. Using the preposition “To”, with the verb “Allow” within the previous and succeeding methods (double) is obligatory. Nonetheless, the second “To” is nearly all the time omitted in Nigerian English, in all probability as a result of it’s “thought” to be redundant. Using the second “To” is a sort of correlative like “Both or” and is an compulsory transformation in syntax. One other error is “Third partie’s” (page xi) as a substitute of “Third events”.
Usually, this textual content is a treasury of auditing information; a radiation of excessive degree of mental acumen. It’s due to this fact really helpful to college students, lecturers, auditors in addition to operators and regulators in the private and non-private sectors.