ABSTRACT

This study critically analyzes the role of external auditors in selected quoted company in Nigeria. Firstly I covered the roles, objectives, duties, and functions of an auditor as well as those standards and lay down principles that needed to be carried out by such external auditors in an organization. Secondly it covers the auditors mismanagement and misappropriation of fund and inability to detect fraudulent dealings in the internal control system as well as the financial statement and records thereby rendering such company financially bankrupt and unstable. Lastly it covers the various method that the auditor need to adapt thereby promoting a high level of integrity and prestige in its various professional assignment and principle which enable the auditor to carry out its auditor work effectively and efficiently. The analysis was drawn from the Cadbury Nigeria Plc which has its head office situated at lateef Jakande road Agidingbi Ikeja Lagos. The concept of this work centers majorly on the auditors lack of trust, incredibility and unwillingness in detecting fraudulent actions and behaviors quickly, in an organization as well as the financial statement and record of the company which to company to huge amount of debt in which prospective investors, prominent shareholders are badly affected. Questionnaire was the main instrument used: chi -square method of statistical analysis was used in determining the relationship between the variables. The findings revealed some salient points which contributed greatly to fraudulent dealings among auditor, accountants and staff s in such organization which include the external auditor actualizing the essence of corporate governance, the adherence of internal control system can both checkmate intended management fraud and fraudulent detection is primary responsibility of management and not of external auditor. That the existence of principle of corporate governance in an organization can enhance the efficiency of performance of the organization profit ability.