IMPACT OF AUDIT CONFLICT ON AUDITORS’ ABILITY TO WITHSTAND MANAGEMENT PRESSURE
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IMPACT OF AUDIT CONFLICT ON AUDITORS’ ABILITY TO WITHSTAND MANAGEMENT PRESSURE
ABSTRACT
The project is concerned with audit conflict and how it affects auditors’ ability to withstand management pressure. This study investigates the impact of ethical reasoning and formal consequence on the behaviour of auditors with beneficial characteristics.
The researcher collected data from two sources: primary and secondary data. In order to obtain information for the research, the researcher used a variety of research equipment. The questionnaire, oral interview, and direct observation of workers to determine their performance are some of the methods and instruments used for data gathering.
First, we discover a statistically significant positive relationship between Machiavellianism and unethical auditor behaviour. Furthermore, we discover that stronger ethical reasoning ability and the fear of fines greatly diminish auditors’ unethical activity.
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The impact of auditing in any organisation is so critical that its growth or stagnation is dependent on it. According to Nwabueze (200:2), an audit is an impartial examination and expression of opinion on an enterprise’s financial statements by an appointed auditor in accordance with the appointments and any relevant legislation and regulation.
An audit is an independent examination by an auditor of the evidence used to prepare an enterprise’s final revenue account and balance sheet in order to ensure that they present a true and fair view of the summarised transactions of the period under review and the financial state of the organisation at the end of the year,
allowing the auditor to report thereon. It is an investigation into books of accounts and the documents and vouchers from which the books have been written up,
with the goal of allowing the auditor to report to the person or persons to whom he has been appointed to report on the balance sheet or other statement prepared from books.
According to Nwabueze (200:3), an audit is an impartial study of an organization’s financial records at a certain time in order to determine the genuine position of the institution’s or organization’s final accounts. It is critical to note that auditing is never associated with hunting, as some businesses do.
This study focuses on audit conflicts and their impact on auditors’ ability to withstand management pressure. The Lugli point on this study will be to guard a long-term management conflict in an enterprise, organisation,
or institution as a result of unbalanced accounting records and other types of management issues boarding on the firm, such as unretired payments, incomplete records, overpricing of products, use of organisation property without proper or adequate permission, overvouching, and deliberate fraud or embezzlement of funds.
Such conflicts are mitigated, if not eliminated, in an environment where auditing is suitable and timely. The importance of auditing in maintaining momentum on a daily basis cannot be overstated.
Any firm, organisation, or agency that has to grow should allow for periodic audits of its final records. Such a regular practise will improve efficiency, dependability, and dependent records with a solid financial foundation.
According to Onovo (2001), a financial statement must be prepared within the framework of reorganised accounting principles if the auditor is to fulfil the fundamental aim of an audit of a financial statement, which is to provide an opinion on such financial statement.
The preceding refers to the primary goal of auditing, which is efficiency. Execution of audit responsibilities on time, cost effectiveness, risk reduction and elimination According to Nwabueze (2000:14),
the primary objective of an audit is the critical examination and verification of the accuracy and truth of a statement, usually a financial one, by a skilled and impartial observer (the auditor.)
As a result, the primary goal of auditing will be defeated if it is not carried out in a timely and efficient manner in connection to the above (Millichapamp (1990:24).
Similarly, an inspection or audit of an organization’s records will comprise the following: an evaluation of the bookkeeping, accounting, and internal control systems to determine whether they are appropriate for their purpose and are properly applied. Other auditing functions include confirming the existence of assets and the amount of liabilities shown on the balance sheet (Aguolo 19983).
1.2 STATEMENT OF THE PROBLEM
In truth, the researcher is well prepared to carry out the project titled “audit conflict: impact on auditor’s ability to resist management pressure,” but is confronted with a slew of management issues.
Those banks were unable to give their records for inspection to third parties for project objectives. Again, the bank’s management sees the events projects as exposing their records, especially now that the EFCC (economic and financial crimes agency) is investigating them.
Most bank employees who were willing to collaborate were terrified of losing their jobs as a result of the assistance they were to provide.
Meanwhile, the research is critical in the sense that audit disputes and their effects on management are significant tools to be addressed in the efficacy and efficiency of day-to-day operations of an organisation, such as the selected banks.
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