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ABSTRACT

This Study focused on an analysis of the role of auditors in fraud detection: a survey of selected firms in Nigeria. The data collection technique used for this study is questionnaire and oral interview was also supportive. The data was analyzed through the use of chi-square, this findings of this work are that the firm’s produced and published financial statement as well as engaging the services of auditors and that detection of fraud and errors is inevitable. And also, the case of fraud in these organizations is due to poor management, lack of internal auditors, poor internal control system and corruption. Based on these findings, it is recommended that selected firms should ensure continuous policies and strategies aimed at effective and efficient management. That management should continually engage the services of qualified and experienced external auditors which will not only put in place an effective internal control system but which will equally enhance it. Finally, education, proper enlightenment and above all self discipline is recommended to step down the level of corruption not only in selected firms but also in Nigeria as a whole.

CHAPTER ONE

INTRODUCTION

In our society where the business culture has been overridden in recent times with fraudulent practices penetrated by management and employees, the lack of clear understanding of the duties of an auditor in relation to fraud detection has often led to unjustifiable criticisms of his role. Auditors are known to be competent, honest and independent professionals who express unbiased opinion on the truth and fairness of the financial statement as presented by management to members of the company. The accounting profession has over the years built a reputation, which encourages others to rely upon the opinions auditors express. If these opinions are unclear or even unreliable, serious consequences may and indeed have resulted.

OBJECTIVES OF THE STUDY

The objectives of the study includes:

i.          To determine the role of the auditors in Fraud Detection.

ii.         To address the erroneous belief that the auditor’s role is to detect fraud instead of the audit of the financial statements.

iii.        To add to the existing knowledge in the subject matter.

RESEARCH HYPOTHESES

The following hypotheses seek to answer the research questions:

‘. Ho: There is no significant relationship between the role of the auditor and fraud detection in selected firms in Nigeria

2.        Ho: There is no significant relationship between fraud detection and   audit of the financial statement in selected firms in Nigeria.

3.        Ho: There is no relationship between the qualification and experience of the auditors and fraud diction in selected firms in Nigeria

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