EXTENT OF IMPLEMENTATION OF AUDITING GUIDELINES FOR ASSETS IN FINANCIAL REPORTING IN TERTIARY EDUCATIONAL INSTITUTIONS IN SOUTH EAST, NIGERIA
DOI:
https://doi.org/10.46827/ejes.v0i0.2769Keywords:
auditing, auditing guidelines, fixed asset, disposal of fixed asset and financial reportingAbstract
This study determined the extent of implementation of auditing guidelines for assets in financial reporting in tertiary educational institutions in South-East, Nigeria. Two research questions guided the study and four null hypotheses were tested at 0.05 level of significance. Related literature pertinent to the study were reviewed which exposed the need for the study. Descriptive survey research design was adopted, using a population of 1,405 accounting officers. Taro Yamane formula was utilized to select a sample size of 311. A structured questionnaire developed by the researchers was used for data collection. Cronbach Alpha was used to establish the reliability of the instrument. The reliability index obtained was r = 0.81 and 0.80. Data collected were analyzed using mean, standard deviation, t-test and ANOVA. Mean was used to answer the research questions and standard deviation was used to explain how the responses of the respondents varied. ANOVA and t-test were used to test the hypotheses. The results showed that audit guidelines for fixed assets and disposal of fixed assets were moderately implemented by account officers in financial reporting in tertiary educational institutions. The results also showed that there was no significant difference in the mean ratings of account officers based on type and ownership of institutions. Based on the findings, the researchers recommended among others, that the management of tertiary educational institutions should, as a matter of urgency emboss the institutions’ names on all assets and update fixed asset registers thereon to safeguard all assets against pilfering and other unauthorized uses.
Article visualizations:
References
Adagye, D. I. (2015). Effectiveness of audit committee practices and the value of listed deposit money banks in Nigeria. European Journal of Accounting Auditing and Finance Research, 3(6), 80-90.
Addisalem, A. L., & Bawe, T. W. (2014). An assessment of fixed asset management in the case of Addis Ababa University, 6 Kilo Campus.
Adetoso, J. A., Oladejo, K. S., & Akesinro, A. S. (2013). The effectiveness of internal auditors in controlling fraud and financial irregularities in private universities in South-West, Nigeria. Research Journal of Finance and Accounting, 4(13), 57-65.
Anichebe, A. S. (2010). Auditing and investigation. Onitsha: Ade Graphics & Publishers 275p.
Azuka, E. B. (2011). Fraud and fraud prevention in Nigeria educational system: Implication for national development. Asaba Journal of Business and Vocational Education (AJBVE), 1(1), 1-5.
Bragg, S. M. (2017). Fixed asset accounting 4th edition. United States: Accounting Tools, Inc.
Drogalas, G., Alampourtsidis, S. & Koutoupis, A. (2014). Value-added approach of internal audit in the Hellenic police. Corporate ownership and control, 11(4-7), 692-698. https://doi.org/10.22495/cocv11i4c7p11
EduPristine (2018). Financial reporting. Chartered Financial Analysts Institute. https://www.edupristine.com/blog/financial-reporting
Federal Republic of Nigeria (FRN, 2014). National policy on education. Lagos: NERDC press.
Gehya, E. F., & Ibitomi, O. (2016). The role of internal audit in enhancing accountability in tertiary institutions in Kogi State, Nigeria. Journal of Financial and Accounting, 7(14), 1-8.
Hornby, A. S. (2015). The Oxford advanced learner’s dictionary of current English 8th edition, London: Oxford University Press.
IASB (2010). The conceptual framework for financial reporting. http://eifrs.iasb.org/eifrs/bnstandards/en/framework.pdf.]
Ibrahim, J., Adeyemi, A. O., & Ayeni, A. P. (2016). Critical evaluation of accounting system in tertiary institutions in Osun State, Nigeria. Journal of Economics and Sustainable Development, 7(3), 63-76.
Federal Ministry of Finance (2011). Internal audit guidelines. Abuja: Audit Monitoring Department.
Jay, S. (2018). Audit procedures for fixed assets. http://www.systemid.com/learn/improve-business-fixed-asset/
Kendra, J. (2017). Audit procedures for fixed assets. Qualified Advice and Audit Partners.
Modibbo, S. A. (2015). Impact of internal audit unit on the effectiveness of internal control system of tertiary educational institutions in Adamawa State Nigeria. International Journal of Humanities Social Sciences and Education, 2(5), 140-156.
NCCE (2006). Internal audit manual for Federal Colleges of Education. Abuja: NCCE.
Nwaigburu, K. O., & Mark, B. U. (2014). The use of accounting information in decision making for sustainable development in Nigeria: A study of selected tertiary institutions in Imo State. International Journal of Scientific Research in Education, 7(2), 167-175.
Nworgu, B. G. (2015). Educational research: Basic issues and methodology (3rd edition). Enugu: University Trust Publishers.
Papapostolou, M. (2011). The impact of the revaluation of tangible fixed assets at fair value on borrowing ability, on exports and on financial position evidence from the Greek SMEs in textile industry.
Satyanarayana, I., Sidhu, N. B. C. & Naresh, A. (2015). Evaluation of fixed assets management. International Journal of Scientific Research and Management (IJSRM), 3(3), 2500-2504.
Spring (2017). Fixed asset controls and reporting: Who's paying attention to your largest assets? Duff & Phelps, LLC.
Sunildutt, K. (2013). An investigation into the accounting treatment of property, plant and equipment at public higher education institutions in South Africa. Master’s Thesis submitted to the Department of Cost and Management Accounting in the Faculty of Accounting and Informatics at the Durban University of Technology.
Susan, A. M., & Namusonge, G. S. (2014). Factors affecting the rate of disposal of assets in public sector organizations: A case study of Yatta Sub-County-Kenya. International Journal of Academic Research in Business and Social Sciences, 4(5).
Tanui, P. J. (2016). Asset management practices as a boon for a successful business a case of Kenya’s businesses. European Journal of Accounting, Auditing and Finance Research, 4(6), 81-95.
The Chartered Accountant (2011). Guidance note on audit of property, plant and equipment, 138-144.
Tracet, C. (2016). Fixed assets auditing in educational institutions. Enterprise Grade Fixed Asset Management Software. http://tracet.in/blogposts/fixed-asset-auditing-in-educational-institutions/
University of Ibadan (2014). Audit manual. Ibadan: The Internal Audit Department, University of Ibadan.
VanBaren, J. (2017). Audit procedures to ensure the existence of assets. ACCA Global Designing Audit Procedures.
Whawo, D. D. (2015). A search for a solution to corruption in Tertiary Institutions in the Delta State of Nigeria. IOSR Journal of Humanities and Social Science, 20(3):05-10.
Downloads
Published
Issue
Section
License
Authors who publish with this journal agree to the following terms:
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
