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THE SIGNIFICANT OF AUDITING IN ENHANCEMENT OF ACCOUNTABILITY IN AN ORGANIZATION A CASE STUDY OF SEVEN-UP BOTTLING COMPANY BENIN DEPOT

ABSTRACT

This project work is initiated to evaluate the significant of auditing in enhancement of accountability in an organization. A case study of seven-up bottling company Benin Depot. Its purpose is to determine how auditing enhances accountability in an organization. The study shows possible ways, the auditor have assisted in checking, preventing fraudulent activities in an organization. Hypothesis were presented and were tested also responses from respondents from questionnaires returned were analyzed, and from the analysis, it shows the significant of auditing in enhancement of accountability in an organization

CHAPTER THREE

RESEARCH DESIGN AND METHODOLOGY

3.1 Research Design

For the purpose of the study the cross-section design survey method was adopted. The independent variable were observed at the same time. The reason being that the independent variables are relatively stable overtime. None of the variables controlled or manipulated for data collection purpose, the longitudinal methods prepared because the variable involved in this research do not change much quickly overtime. It also saves time and reduce stress.

More so, pre and past responses structure were adopted. The research design helps in extensive study and testing of the feed backs provided by the respondents.

There are secondary and primary data which were collected for the purpose of the study.

The primary data refers to the statistical materials which we obtained through questionnaires and interview from some respective personnel’s.

The secondary data are those obtained through the government document lest periodic journals, past records etc, they are simply statistical material which are not originated from some one else.

The research design as it saves time, economical, comparative cases information gathering and complete confidentiality of the use of such information.

3.2 Population of the study

The area of the study of this research work is Benin Depot. The area of coverage of survey was divided into four geographical zones. These geographical zones are Benin main town, Ego, Auchi and Okada. These are industrial Estates area in Benin City Edo State. Each has it unique location contiguity. The exact geographical area covered for the purpose of this research work is Benin main town. It is an industrial Estate as well. The study is conducted only on public limited liabilities companies. The population of the study is one hundred and seventeen, it comprises of banks, manufacturing company, insurance companies and merchandise companies. These organization are properly covered to be public limited companies quoted on the Nigeria Stock Exchange.

The table below produces the geographical work and the number of each type of organization find in them. We do not consider all the companies in the country because of the constraints like finance and a completed survey (the access to it was not available).

Zone Geographical Banking industry Insurance Manufacturing Merchandizing Total 1 Benin main town 14 5 6 7 32 2 Ego 12 2 3 4 21 3 Auchi 10 4 6 12 32 4 Okada 13 7 7 5 32 Total 49 18 22 28 117

Benin City Edo State was chosen because of its large concentration of all investors and it popular. Banking industry are found to be the sector with the highest frequency and mostly located in all the geographical units. The insurance companies have the lowest location in the zones, manufacturing with a total of twenty-two and the merchandizing with a total of twenty-eight mostly located in Benin main Town. The extension of this research work to all this sectors were considered to be important because of their large transactions process and operating activities also mostly found in all the economy of any nation.

3.3 Sample Size

The ample selected at random from the population of study is the manufacturing sector location in Benin Main Town, Benin City Edo State. The study area is found to be comprising of thirty two (32) companies and six (6) merchandizers. To select the sample size the random sampling method was used. The geographical unit were first selected at random after which the sector to be chosen was selected at random.

3.4 Sampling Technique

The simple sampling technique was chosen because of its less vigorous steps and its assistance in making the work easier and faster. The advantages that this method serves over other method are;

The selection of sample member is being unbiased

The lest randomness carried out resulting to the selection of the case study of this project.

The general acceptance by the people is fair.

To be the enhancement of accountability in an organization seven-up bottling company Benin Depot.

3.5 Research Instrument

According to Esene R.A (2005), a questionnaire is a document which contains a set of question for eliciting information from respondent on the subject of research investigation. The questionnaire is the research instrument selected for this work.

3.6 Validation of the Instrument

The instrument used for this research work as stated before were the questionnaire and the secondary source (periodicals reports government document etc) to ensure the validity of this instrument the resource and research department of the organization were contacted through the telephone and steps to take were given to ensure that the data needed will be from the authentic source and the right personnel.

To ensure proper validity of instrument the questions were adopted from the objective of auditing provided in the statement of standard international practices of auditing and source from other past research works.

3.7 Reliability of the Instrument

This refers to the consistency of a method od measurement i.e. the repeated measurements under the same condition will give the same result. Reliability is the extent to which a measurement is free of variable error.

This reflected when repeated measures of the same stable characteristics in the same object show variation. The presence of random errors in any measurement can cause the decision.

In this research, T-test method was used in testing the variability of scale. This methods is done by repeating a given test and comparing the correlation before the results of the replicated and original test.

3.8 Method of data Collection

Data for this research work are in two categories, the secondary data are the statistical materials which are not originated by me but obtained from someone else record. These are not always reliable compare to primary data. The instrument for these are the journal, textbooks, report from Nigeria Stock Exchange and news magazines.

The primary data refers to the statistical material which collected first hand in response to specific questions. The instrument used to collect these data is the questionnaire. The questionnaire is often called interviewing by mail because it contains carefully worded questions.

This source is used because it is often very difficult to secure the information through personal interview. Also make it possible to measure what a person knows, like and dislikes (i.e. values and preferences) and what a person feels (i.e. attitudes and beliefs).

3.9 Method of Data Analysis

The research question is tested using the simple percentage tool or percentage analysis and is presented in table with analysis. The simple percentage formula is thus:

Formula;

F X 100

N 1

Where:

F = frequency of response to each question

N = number (No) of respondents

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