ATTENTION:
BEFORE YOU READ THE CHAPTER ONE OF THE PROJECT TOPIC BELOW,
PLEASE READ THE INFORMATION BELOW.THANK YOU!
INFORMATION:
YOU CAN GET THE COMPLETE PROJECT OF THE TOPIC BELOW. THE FULL
PROJECT COSTS N5,000 ONLY. THE FULL INFORMATION ON HOW TO PAY AND GET THE COMPLETE
PROJECT IS AT THE BOTTOM OF THIS PAGE. OR YOU CAN CALL: 08068231953,
08168759420
EFFECT
OF MISREPRESENTATION OF INFORMATION IN A FINANCIAL STATEMENT
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE
STUDY
The concept of
misrepresentation of information in the financial statement tends to examine
those items that can alter the financial affairs of on the financial concern
(or an entity), audited by an auditor based on the financial statement
presented by the manager on the basis of true and fair view. The establishment
or introduction of the joint stock company increased the supply of capital for
commerce and industry. It was therefore, necessary for the owners of the
company obviously known as shareholders to delegate some of their numbers to
act as Board of Directors (BOD) to take care of daily activities of the
business concern.
The joint stock
company act of 1844 in Britain was the first legislation, which requires that
all incorporated companies or business should have the result of their daily
activities known as the financial statement to be examined by an auditor. Later
developments required that the auditor must be independent of his client, and
be professionally qualified to enable him (the auditor) express a qualified
opinion on the financial statement without bias.
Auditing was meant to
serve for many purposes. So, there should not be any form of fraud, error, or
misrepresentation in audited accounts in order not to create conflict between
the interest groups. The critical examinations of its effects are the basis for
this works. The auditor over the years played the role of instilling confidence
in the public at large by revealing facts about companies, which would
otherwise be hidden to avoid misrepresentation and false information. England
in 1900 made it legally compulsory for every company or any organization to
appoint an auditor through acts of parliament.
Nigeria as a matter
of fact, having accessed the effects of misrepresentation of accounts gave
recognition to auditing through the companies and Allied matters acts 1990 and
other earlier promulgations.
1.2 STATEMENT OF THE
PROBLEM
Misrepresentation of
information in a financial statement is a situation where an external auditor
who is appointed under S. 357 of Company and Allied Matters Act (CAMA), 1990
renders a false or unqualified opinion about the statement of affairs of a firm
or business entity. This felony is a very big problem with adverse effect on
the well-being of an organization; this is because it gives incorrect picture
or image of the financial status of the organization thereby misleading the
owners’ (Shareholders) interest in the business concern, the creditors,
financial institution and the government. In accordance with;
INDEPENDENCE AND
OBJECTIVITY:
which is one of the professional ethics of
accountants (auditors) it states that an auditor must at all time perform his
work objectively and impartial free or no partially from influence by any
consideration which might appear to be in conflict with this requirement. The
essence of this theory is to ensure honestly and unbiased opinion by an auditor
in other to run away from adverse effect of incompetent in financial report.
Government imposes
relevant taxes on companies or business concerns based on their audited
financial statement. Also the decision on lending habits by financial
institutions is based on financial statement which means that false information
will mislead both the government and the financial institution. On the other
hand, the owners of the business are also being misled. Apart from financial
statement, any false information either in academics, social and cultural life
usually misled.
The effects of
misrepresentation among others is that it can being an enterprise into
liquidation, the interest parties in the financial report such as government,
shareholders, creditors, investors, workers, other groups and statutory bodies
are mislead and thereby creating confusion among them causes inefficiency in
the managerial operation of an account is not encouraging because it works against
management information and organization efficiency.
According to Sound
Advice Tax Resources 102-1-knowing misrepresentations in the preparation of
financial statements or records:
A member should be
considered to have knowingly misrepresentation facts in violation of rule 102
when he or she knowingly-
a) Makes Or permits
or directs another to make, materially false and misleading entries in an
entity’s financial statement or records or,
b) Fails to correct
an entity’s financial statements or records that are materially false and
misleading when he or she has the authority to record an entry or
c) Signs or permits
or directs another to sign a document containing materially false and
misleading information.
STATEMENT OF THE
OBJECTIVE
The aim of the study
is to examine the conditions in order to find the effects of misrepresentation
of information in the financial statement of business entity. In other words,
it is to know how accounts misrepresentation affects the smooth mining of a
business concern (entity) and other interested parties in the financial
statement. As a result of that the principle aims are;
(i)
To determine the means through which
the financial statement of an entity is altered or misrepresented.
HOW TO GET THE FULL PROJECT WORK
PLEASE, print the following instructions and information if you
will like to order/buy our complete written material(s).
HOW TO RECEIVE PROJECT MATERIAL(S)
After paying the appropriate amount (#5,000) into our bank Account
below, send the following information to
08068231953 or 08168759420
(1) Your project topics
(2) Email Address
(3) Payment Name
(4) Teller Number
We will send your material(s) after we receive bank alert
BANK ACCOUNTS
Account Name: AMUTAH DANIEL CHUKWUDI
Account Number: 0046579864
Bank: GTBank.
OR
Account Name: AMUTAH DANIEL CHUKWUDI
Account Number: 2023350498
Bank: UBA.
FOR MORE INFORMATION, CALL:
08068231953 or 08168759420
AFFILIATE LINKS:
myeasyproject.com.ng
easyprojectmaterials.com
easyprojectmaterials.net.ng
easyprojectsmaterials.net.ng
easyprojectsmaterial.net.ng
easyprojectmaterial.net.ng
projectmaterials.com.ng
googleprojectsng.blogspot.com
myprojectsng.blogspot.com.ng
https://projectmaterialsng.blogspot.com.ng/
Comments
Post a Comment