ABSTRACT
The belief that whenever an auditor is engaged with any business
organization, the objective(s) of such organization are likely to be achieved,
seems not to stand the test of time, considering the rate of business failures
and the inherent loss of economic resources resulting from such failures by the
stakeholders.
Financial statement is one of the tools which companies employ to
present and ex-ray their performance or position over a period of time. It is the
duty of Auditors to examine these financial statements and ensure that what
companies claim to have, really exists. Stakeholders place their reliance upon
these audited statements for their economic decisions. Surprisingly, some of
these financial statements that have been reported to have shown a true and
fair view and complied with relevant statutes by an auditor, turns out to be a
reverse.
It is on the premise of the above, that this research project was set out to
actually position. Those factors, which are responsible for the unreliable
reports that subsequently lead to business failures, have been unraveled. The
researcher also went ahead to portray the impact of these unreliable company
financial statements in economy and the possible panacea.
