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This study focuses on the effect of Auditing Guideline in the measurement of manufacturing Company’s profit. It x-rays the prospect of calculating Company’s financial statement with the aid of auditing guidelines. Data were collected for the study using questionnaire. The opinions of practitioners were also sought through personal interview. The population, N  21 was Nigeria Breweries PLC Enugu Auditing and management staff, the sample size, n  20 was determined by systematic random sample. The data collected were analysed, tabulated and presented, using  average and simple percentages and conclusion were drew with the aid of statistical sampling of the responses. It was found that there were many loopholes in the computation and analysing of company financial statement. It is recommended that the Auditors should follow strictly the Auditing guideline in analysing company’s financial statement. Also the auditor should make sure that all record is properly checked and be sure it is free from errors before given any judgement. Key words: Auditing, Auditor, company profits, financial statement, Auditing procedures, measurement. Etc. .




An audit is the independent examination of financial statement or related financial information of an entity whether profit or non-profit oriented and irrespective of size or legal form, when such examination is conducted with a view to expressing opinion therein. Auditing is the study of how to systematically, examine, investigate, review and consider financial statement, financial data, and books of accent, records and situations so as to generate enough, relevant and reliable evidence to express opinion on the financial statement or situation.

Audit procedures responsive to risk of materials misstatement at the auditor in designing and performing further audit procedure, including test of the operating effectiveness of control, where relevant or necessary and substantive procedure who nature, timing and extend are responsive to the assessed risk of material misstatement at the relevant assertion level. In addition, this section includes matters the auditor should consider in determine the nature, timing and extent of such further audit procedures.

The Auditors assessment of the identified risk at the relevant assertion level provides a basis for considering the appropriate audit approach for designing and performing further audit procedures. In some cases, the auditor may determine that performing only substantive procedures is appropriate for specific relevant assertions and risk. In those circumstances, the auditor may exclude the effect of control from the relevant. Risk assessment. This may be because the auditor risk assessment procedures have not identified any effective central relevant to the assertion or because testing the operating effectiveness of control would be inefficient. However, the auditor needs to be satisfied that performing substantive procedures of the relevant assertion would be effective in reducing detection risk to an acceptable low level.

In order to verify the adequacy of the financial statement and the company’s internal control, one performs a series of audit procedures. According to Begntonot at audit procedures are methods or techniques the auditor uses to assess and collect material, sufficient and competent. The application of these procedures resuits in obtaining the necessary evidence to support the work of the auditor. Auditing is concerned with the verification of accounting standard. It means looking for sufficient evidence to satisfy oneself as auditor that the accounts show a true and fair view. Analytical and substantive test are part of these procedures.

`           Audit procedures are performed in order to test financial statement assertion. Therefore the first step in explaining an audit procedure is to identify the assertion that need to be tested. Auditing Guidelines are these guidelines which have been approved for issue by the cancel of ICAN. Auditing guidelines are intended to give guidelines on:

(a) Procedures by which the auditing standards may be applied.

(b) The application of auditing standards to specific items appearing in the financial statement of enterprise

(c) The application of auditing standard to particular section industries or service organizations

(d) Other matter relating to the proper performance of audit work

(Preface to auditing standards and guidelines ICAN199)


NigerialBrewwery PLC is Located at Amaekanigwo ne 9th mile corner in Enugu State. It is the sixth branch of Nigeria and it was commission ed in the year 2003

The site cover total are of approximately 100 hectares. Amaeke Brewery is designed with the best cutting edge technology and world-class standard processes. The company has production capacity of 3 million hectoriters per annum. Nigeria Brewries plc and Heineken international jointly are the company is a beverage company designed for the production of three brands of beer lager namely ; star, Guilder and Heineken, and two brand of soft drinks namely; Amstel and maltina which are successful in production.

The company is made up of several departments (HOD) who in turn are summarily headed by breweries manager. He oversees the general activities of the company.



The Different Departments and their functions.

(a)       Finance department: this department is headed by the regional finace manager and takes care of the company’s finance which the fundamental tool for problem-solving

(b)       Support and development: this department is generally responsible for the welfare and communication in the brewery.

(c)       Logistics department: this department is responsible for the stook taking and distribution of products to the public.

(d)      Quality assurance unit: this department is in charge of maintaining the standard quality of the inputs (raw materials) and output (products) of the company.

(e)       Production department? Brew House: this department is the largest department and it involved in the actual beverage making process.

(F)       Packaging and Engineering Department: this is the second largest department as incorporates all packaging engineering, waste disposal; maintenance and mechanical processes in the breweries.

Nigeria Breweries PLC is the pioneer and largest market and expert to other part of West Africa. Incorporated in 1946, it’s lager brewery in June 1949 ether breweries were subsequently commissioned by the company, including Aba brewery in 1957. Nigeria Brewery PLC (NB) recorded an improved performance in Q1 march, 2016 despite the challenging operating environment. The company’s performance was driven by its strong route-to-market, increased sales during the ester period. The gain frame its consolidation of consolidated Breweries has also improved its performance.


Substantive testing within an audit environment is typically time Consuming. Consumes man-hours and audit resources that could prejudice efficiency of an audit work. Therefore, as the task could encounter an audit engagement so a better mix of substantive test to assist in saving hours that usually pleases customer would be an added value. This in turn results in a more efficient audit.

The combinations of downward pressure on audit fees and demands that auditors take client financial information has led auditors to seek audit guidelines that are both efficient and effective.

Allied to the line of thought is a common worry of junior auditors on what causes the audit engagement team to choose a particular substantive test in the expense of the other.

Given the reality, the question that governs the development of this study is as follows:

What are characteristics of analytical review procedure that guide auditors’ judgement while choosing among a mix of procedures to meet the requirement of the substantive test.


The objectives of the study are as follows:

  1. To examine the completeness that all transactions and asset, liability and equity account have been recorded.
  2. To identify claim that the company holds the assets and owes the liabilities on the balance sheet.
  3. To evaluate those assets, liabilities and equity are held in the financial statement at the correct amount

(4)       To find out that the transactions that resulted in the figures on the income statement actually took place.


(10)     Challenges suffocating the realization of accurate financial statement.

(2)       How relevant is the completeness of record to financial statement to Auditing

(3)       What are the procedures to ensure that the correct amount of asset, Liabilities and equity are recorded?


The scope and objectives for every audit are determined through discussion with departments management and a department specific risk assessment while each audit is unique there are some general or common objectives applied to most audits some of them are as follows.

*          Review activity for the most recent twelve month period.

*          Review discretionary, self-supporting, restricted and agency account expenditures and determine if they are valid reasonable and in compliance with university policies and done restriction.

*          Determine if revenue is reasonable and are properly controlled and appropriately recorded

Access the adequacy and effectives of internal control over progress processing.

*          Review conflict of interest procedures to ensure effective control that properly monitors any disclosed outside interests.


Going concern is a fundamental assumptions that generally underling the preparation of the financial statements of a company. As already mentioned, under such assumption an entity is viewed as continuing in business for its assets and liabilities the basis that it will be able to realize and discharge them in the normal course of business rather that in a winding up.

If a company is not a going concern, it means the company has gone bankrupt going concern is a business that is operating and making a profile.


Auditing is the means of evaluating the effectiveness of company’s internal control. Maintaining an effective system of internal control is vital for achieving a company’s business objectives, obtaining reliable financial reporting on its operation, preventing fraud and misappropriation of its assets and minimizing its cost of capital both internal and independent but important ways. Having an effective Audit system is important for a company because it enable it to purpose and attain serious operate objectives

Auditors assess the risk of material misstatement in a company’s financial report. Without a system of internal control or an audit system a company would not be able to create reliable financial reports for internal or external purpose according, an audit system is crucial in preventing debilitating misstatement in a company’s records and reports.

Internal audit services an important rate for companies’ fraud prevention, recording analysis of a company’s operations and maintaining rigorous system of internal control can prevent and detect various forms of fraud and other accounting irregularities.

The cost of capital is important for every company, regardless of its size: cost of capital is largely comprised of the risk associated with an investment, and if an investment has more risk, an investor will require a higher rile of return to invest.


AUDIT: An audit is a asstematice and independent examination of books, account, statutory records documents and vouchers of an organization to ascertain how for the financial statement as well as non-financial disclosure present a true and fair view of the concern.

AUDITING PROCEDURE: Any tactic used by an auditor to identify inefficiencies reduce cost and ether-wise achieve organizational objective. (farlex financial Dictionary 2012 farlex, inc.)

SUBSTANTIVE test: A procedure used during accounting audits to check for errors in balance sheet and other financial documentation. (www.businessdictionary.com/definion)

AUDITING: internal and external audits are a way for organizations to ensure compliance to a function, process, or production step (Wikipedia.org/wiki/Auditor)

AUDITOR: An Auditor is someone who is responsible for evaluating the validity and reliability of a company or organization’s financial statements. (www.e.eonomice.com/…/auditor)

FINANCIAL statement: Records that outline the financial activities of a business, an individual or any other entity (www.investopedia.com/terms/f/finanacial)

ASSET: An asset is an economic resource. Anything tangible or intangible that is held by a company to produce positive economic value. (en.wikipedia.org/wiki/Asset)

AUDITING standard: are set of standards against which the quality of audits are performed and may be lodged (en.wikipedia.org/wiki/Generally. Accounting)

MEASUREMENT: is the assignment of a number to a characteristic of an object or event which can be compared with other objects or event.

PROFIT: is a financial benefit that is realized when the amount of revenue gained from a business activist exceeds the expenses, costs and taxes need to sustain the activity. (2017, investepedia, LLC.)




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