Role Of Auditing On Financial Performance Of Corporations In Western Region. A Case Study Of Kisoro Town Council In Kisoro District

TABLE OF CONTENTS

I>ECLA~TION .......................................................................................... i

AJ>J>~O,AL ............................................................................................... ii

I>EI>ICATION .......................................................................................... iii

ACKNOWLEI>GEMENTS ............................................................................ iv

CIIAI'TE~ ONE .......................................................................................... 1

IN1r~OI>1JCTION ........................................................................................ 1

1.0 Introduction ........................................................................................... 1

1.1Background of the study .......................................................................... 1

1.2 Statement of the problem ........................................................................ 5

1. 3 Purpose of the Study .............................................................................. 5

1.4 Objectives of the study ............................................................................ 5

1.5 Research Questions ................................................................................ 6

1.6 Scope of the study .................................................................................. 6

1.6.1 Subject scope ...................................................................................... 6

1.6.1 Geographical scope .............................................................................. 6

1. 7 Significance of the study ......................................................................... 6

1.8 Conceptual framework ............................................................................ 7

CIIAI'TE~ TWO ......................................................................................... 9

I,I1rE~TlJ~ ~~Elll .............................................................................. 9

2.0 Introduction ........................................................................................... 9

2.1Related review ......................................................................................... 9

2. 2 Conceptual reviews ............................................................................... 1 0

2.3 Theoretical review ................................................................................... 9

2.4The role of value for money on financial performance of corporations ..... 12

2.5 The role of transparency of books of accounts on detection of fraud ...... 14

2.6 Compliance to the accounting convections on corporate profitability ..... 18

CIIAI'TE~ TII~E ................................................................................... ~3

METFIOI>OLOG1r ..................................................................................... ~

3.0 Introduction ......................................................................................... 23

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3.1 Research Design ................................................................................... 23

3.2 Research Population .................................................................. : .......... 23

3.3.1 Sample Size ....................................................................................... 23

3.3.2 Sampling techniques and Procedure .................................................. 25

3.4 Sources ofdata ..................................................................................... 25

3.5 Data collection Methods ....................................................................... 26

3.6 Validity and reliability of research instrument.. ..................................... 26

3.7 Data processing, Analysis and presentation .......................................... 27

3.8 Limitations of the study ........................................................................ 27

3.9 Ethical Considerations .......................................................................... 28

CHAPTER FOUR ...................................................................................... 29

PRESENTATION, INTERPRETATION AND ANALYSIS OF FINDINGS ........... 29

4.0 Introduction ......................................................................................... 29

4.1 Demographic Characteristics ............................................................... 29

4.2. The role of value for money on financial performance of corporations ... 34

4.3 Impact of transparency of books of accounts on detection of fraud ........ 37

4.4 Compliance to the accounting convections on corporate profitability ..... 40

CHAPTER FIVE ....................................................................................... 43

5.0 Introduction ......................................................................................... 43

5.1 Summary of the findings ....................................................................... 43

5.2 Conclusion ........................................................................................... 45

5.3 Recommendations ............................................................................... 46

5.4 Areas for further research ..................................................................... 48

REFERENCES ••••...............••••..•..•.•..•............••.•••.•................................... 4!3

APPENDIX I: RESEARCH QUESTIONNAIRE ..•.......•.............•.................... 53

APPENDIX II: ESTIMATED TIME FRAME .....•....................•.......... ,, ......... 57

APPENDIX III: ESTIMATED RESEARCH BUDGET ..................................... 58

Vl

CHAPTER ONE

INTRODUCTION

1.0 Introduction.

This chapter looked at the background of the study, statement of the problem,

purpose of the study, specific objectives, research questions, scope of the study

and the significance of the study.

1.1 Background of the study

Historical perspective

For most of its history auditing has served as a simple administrative

procedure comprised mainly of checking documents, counting assets, and

reporting to Board of Directors, Management, internal or external Auditors.

During the last few years governments and professional bodies have tried in

vain to put a stop to a lengthening series of audit failures. Their effort has

included increased legislation and governance. However, audit failures have

continued in spite of these efforts. These audit failures have been linked to

reduced audit quality behavior (RAQB) of auditors involved in the audits.

Survey based research has shown that reduced audit quality acts are wide

spread in the United States of America Malaysia (Paino, Ismail, artd Smith,

2010). However, there is hardly any research on the existence auditing and

performance of financial corporations Riven barks (2008).