ABSTRACT

This work examines the roles auditors play in public and prelate companies WALCON Nig Ltd is benign used as a case study because it happens to be a company with an audit department and also ahs grid reliance on the work of both the internal and external auditors. The sample for this work includes some library materials and also source data were collected through responses to the questionnaires distributed to staff of the company.
The findings show that auditors have made a very good impact in most companies and there is no don’t that moral companies will recommend the performance of the auditors. The finding also show that in future more companies will require the services of auditor and third parties liabilities on auditors will be few.
This work also points out the hindrance which the auditors encounter in their bid to carry out the duties and responsibilities given to than by the act and also made some recommendation on some measures to be taken to solve the problems.

CHAPTER ONE

INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The origin of auditing had its roots in the necessity for the institution of some system check upon persons whose business it was to record the receipt and payment of money on behalf of other. In any stages of civilization the method of account were crude and transactions small individuals were able to check their transactions. But as soon as ancient states and emprise acquired coherent organization records were found of system of checks being applied to public accounts. 
The ancient Egyptians the geeks and the roans utilized system of checks and counter checks as between various financial officials. The ancient record of auditing were confined primarily to public account. But there are indication that it was customarily for the audit of accounts of memories and estates to be performed. The person whose duty it was to make such examinations of the accounts became known as the auditor 
With industrial revolution their was increase in business truncations and there emerge partnership and joint stock companies. The evolution of mechanized industries involved the provision of finance for in excess of what it used to be. Business became more complex and required more formal and improved accountability.
Under the company of organization the shareholder as a body delegated the management of the undertaking to a board of directors and periodically the board submitted to the shareholder the accounts of the company in order that the member might be enabled to see a true and fair view of the financial position and the profit and loss of the undertaking in which they were interested.
In these circumstances the need arose for some means by which the shareholder as a body might be satisfied that the accounts presented to them by their board of directors did in fact show a true and fair view of the financial position and earning of the company. It was for this reason therefore that the practice developed of appointing auditors whose duty it was to verify on behalf of the shareholder the account of the directors and to report thereon to the shareholders.
It was the British company act 1906 which first made it legally compulsory for every company to appoint independent auditors as we now know them and provided for their remuneration. In Nigeria 

1.2 STATEMENT OF PROBLEM 
Auditing has been a very important factors in the life orgnaization but the major problems facing most companies is that most of these auditors seems to deviate from their rights and duties. As a professional body with professional ethics greater efficiency and accountability is required form them.
Again the auditing problem can be traced down to the accountants shareholders and directors of the company. The auditors is meant to go through the work of the accountant to find out if there is anything questionable if there is he may decide to protect the interest of the accountant thereby deviating from his roles. The auditors is not answerable to the directing loans from the company or its directors can make him to abide to their auditors.
Finally another problem that cannot be overbooked is the auditor’s concerning the financial statement of the company. This may be altered in the sense that he would not give the true nature of the report. This increase the auditor liability when persons who depended on the report of the auditors suffers a financial loss.

1.3 PURPOSE OF THE STUDY
The objective of this study is as follows:
1. To find out the relative importance of each of the roles of the auditor
2. To determine how improper management can affect the roles of auditors 
3. To ascertain the extent at which the company’s objective has been achieved as it relates to audit.
4. To find out situation and circumstances where the roles of auditors is mostly applied.

1.4 SCOPE OR DELIMITATION OF THE STUDY 
The study is limited based on the fact that there is no time to go round to some of these private and public companies. The study is also limited to Enugu metropolis and findings may not actual reflect to situation in other parts of the country but to a greater extent will show it’s relevance on the public and private companies in Nigeria.

1.5 RESEARCH QUESTIONS 
The resaerch question to the study is as follows;
1. Is auditing districts from accounting?
2. Is auditing of any advantage to public and private companies.
3. Are there rights duties and responsibilities expected from auditors
4. Can be company auditors be dismissed 
5. Are there codes of professional ethics expected from auditors 
6. Is the concept of true and fair view improatnt in auditors report
7. Can auditors opinion be a base for decision making
8. To what extent can an auditors detect fraud in companies.

1.6 SIGNIFICANCE OF THE STUDY
This study which examines the role of auditors in public and private companies will help in accessing correctly the participation of the audit department of NALCON NIG Ltd Enugu in improving the company’s image by it’s effect on the management of the company. It will also help in finding out the most effective mode of transacting with the creditors through the accountability of the accountant.
Another benefit to be derived from this study is that it will help to find out how errors in financial statement’s came to being. Generally it will help other companies that does not have the existence of audit department to create one as this study will show them it’s importance to every company that is incorporated.

1.7 DEFINITION OF TERMS 
1. Auditor: This is an accountant who has undergone a recognized professional carouse and is a member of one of the recognized accoutnign bodies resident in Nigeria and who is carrying out a professional accountancy practice.
2. Ethics: These are general rules or proper standards of professional conducts which are expected from members of a profession
3. Auditor’s Report: This is the end result of the audit exercise whereby the auditors states whether the fiancnail statement show a true and fair view of the profitability and state of affairs of company.
4. Auditor’s Opinion: The auditors opinion is the auditors judgment resulting from his investigation of the accoutnign records returns from branches the balance sheet and profit and loss account.
5. Auditor’s Liability: This is a situation whereby the auditor is held liable for professional misconduct under either statue or common law.
6. Incorporated Company: This is a company registered under the law by the corporate affairs commission (CAC) making it to be distinct form the owners.