Why do we audit

An appointed auditor defines Auditing as an independent examination and expression of opinion on the financial information of an enterprise in pursuance of that appointment and in compliance with any relevant statutory obligation and ethical requirement.

 An auditor is not an officer of the organization. He is an independent person who is appointed by owners of the Company to examine the account and determine whether the account is true and fair(The Financial activities is free of fraud, error, irregularities that can distort the view of stakeholders)

 Auditing is conducted in Nigeria only by qualified chartered accountants who must be members of the Institute of Chartered Accountants of Nigeria (ICAN).

It is statutorily(A must) required that all public companies'(Companies quoted on the Nigeria stock exchange) financial statements are audited at the end of the company's accounting year.

Auditing is borne out of the fact that incorporated limited liability companies are managed by persons separated and different from the owners.

The managers are expected to render their account of stewardship to the owners. An account of how the owner's money was utilized is usually prepared annually and rendered in the performance of the business enterprise to the owners.

The account called financial statement prepared by managers may be deliberately or inadvertently misleading or it may contain errors or fail to disclose fraud or it may fail to disclose relevant information.

Therefore to lend credence to the account, owners appoint an independent person to look through and consider the account technical so as to determine how true and fair they are in relation to the underlying transaction, books and records.