BACKGROUND TO THE STUDY

An organization is a system of interconnected activities, however in order to reach certain goals or objectives, the organization must follow the same plan and procedures, which must have a positive impact on its efficacy and efficiency.The complexity of business today, both in terms of organization and growth, renders personal ownership monitoring inefficient; as a result, management is given control of the company and is required to submit reports to the corporation’s owner or financiers.The need for an independent examination of the accounts and reports produced by the management of the business, reports of which shall be presented to the capital providers in order to disclose to the capital providers the true financial position, is created by the objectives growth in size and complexity of business organization and the need to protect the interest of the capital providers who, on their own, want to be assured that the business is run effectively and efficiently. This impartial review of management’s books and documents establishes the veracity and accuracy of the financial information kept by the company. As a result, auditing can be said to have developed within the organization. It then stands to reason that if checks and balances are not in place, things will alter and the outcome will be unfavorable.In the current state of commerce, some established private or public organizations will have an internal audit department whose purpose is to examine the books and records of the organization. However, this department’s operations are restricted by management controls, making it necessary for the establishment to hire outside consultants or experts who are not affiliated with the organization’s management.Therefore, the businesses decree mandates the appointment of an independent auditor to inspect and study the financial records and to offer a judgment as to the truth and fairness of the book of accounts in order to protect the interests of investors.This type of audit must be performed in terms of statutory audit by CAMA 1990, as required by law or regulation.In order to demonstrate how it can readily help the achievement of their pre-determined aims or objectives, a thorough analysis of the value and relevance of statutory audit in government establishments of any kind is conducted in this research work.

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