CHAPTER ONE
1.0 INTRODUCTION
The purpose of this is to look at the need to maintain high standard of audit work. The purchasing may be held liable for negligence because the law requires one purchasing to care, diligence and skill as is reasonably necessary in a particular circumstances, where an organization of person suffers loss or damage as a result of the failure of an purchasing to discharge the fiduciary duty imposed on him by law they may be liable for negligence and an action for negligence may be instituted against him in court of law. To ensure that quality of audit work is still high, he should then establish a means at maintaining the jobs on his behalf. In this case of purchasing and stock-taking practitioners, these are faced with many pressures form clients to maintain their fee levels or even reduce them. This may not be unconnected with the present economic condition in the country, which is hard on almost all business organization, in most companies; unlike the case study of this project “on organization” the stock-taking firms are made to perform both the purchasing and stock-taking functions for the same fee”
In this study, we will discuss the meaning of audit management reason for audit management, its objectives and stage such as planning of audit, recording and control. The purchasing operational standard states that, the purchasing should satisfy him as to the quality of work established adequate control procedures. The control procedure will include proper allocation of staff of appropriate ability, proper briefing of staff and review of the work done by others.
There are also improvement in areas like decision making regarding the assets and ensuring the completeness and accuracy of the organization’s books. Even though it is not the duty of the purchasing to take check, he should satisfy himself as to the validity of the amount attributed to the assets in the accounts which are the subject of the audit in determine the nature and extent of the audits steps necessary for its purposes, it was found that the purchasing examined the system of organization control in order to access its effectiveness relative to the ascertainment and evaluation of stock.
1.1 BACKGROUND OF THIS STUDY
Stock taking has been traced to the Ancient Egyptian Civilization as demonstrated in their Ancient wall paintings. The utilities of the early purchasing were also recovered in the writing of ancient Roman Empire.
Stock taking came in to existence since men bargain to enter into contractual relationship with one another. This is because there was always the desire to establish the accuracy and reliability if the records and results of such relationships to the satisfaction of all the parties to a contracted relationship would engage a neutral person to check the records of their transaction and real his findings to their learning. This methods is associated social club etc, various effort have these effort were too simple thereby excluding some essential information while others ended up being confusing.
1.2 STATEMENT OF PROBLEMS
Another problem encountered in this central on the absence of the organization purchasing. Purchasing in the office due to some circumstances that led outside office due numerous tours their expectation are lectures, cut off. The extensively with issues relating to the history and nature of stock taking, lectures two will discuss mater relating his expected roles in an enterprise where he act as an purchasing. Since our major concern in these lectures is the statutory purchasing matters relating to him are adequately covered by the companies and Allied matters Decree (CAMA) in 1990 is as follows:
First appointment the first director of a New organization can make the first appointment before the first Annual General Meeting (AGM) of the organization where the first Directors made the appointment, the shareholder are at liberty to either ratify the appointment or reject it as the power to appoint the purchasing to resides with the shareholders. But where the shareholder intends to reject a purchasing appointed by the directors, they must given fourteen days noticed to the directors.
Subsequent appointment by this, the purchasing of any organization are appointed are the Annual General Meeting (AGM) to hold offices from the conclusion of the next meeting of the organization.
A retiring purchasing shall be re-appointed to continue in officer without passing any resolution except:
He is disqualified from re-appointment of the Annual General Meeting (AGM)
A resolution appointing another purchasing or dropping the retiring purchasing has been properly passed. The organization has received notice of his unwillingness to continue in office.