The study tries to examine the impact of regular audit to the viability and organizational effectiveness of commercial banks in Nigeria, a study of selected banks. In this study however, we carried out (worth with the housing banks).

Union Bank of Nigeria plc.First Bank of Nigeria plc.United Bank for Africa (UBA). However, the work went in depth to evaluate the benefits when accrue to those commercial bank as a result of good audit and internal control system. In order to arrive at a conclusion on the study I carried out an empirical survey and library research, questionnaires were administered which so out of 100 were returned.

The information collected was tabulate using percentage system for relevant facts of the study; it was divided into five chapters. To facilitate the work, three hypothesis were tested using the chi-scale are method( x2) and the following findings and or results were obtained.

1. The regular auditing of the accounts of commercial banks contributes to its viability and organization.

2. Regular auditing ensures that proper internal control is maintained in banks for efficient management or resources.

3. Auditing maintains probity and accountability among the management and staff of accountability among the management and staff of business enterprises, which is necessary for business growth. From the study, we were able to make some of the following recommendations.

The director of banks are to take reasonable steps to safeguard the assets of the bank, to prevent and direct fraud and other irregularities.

That contemporary internal auditing should provide a constructive source to all branches of management that auditing should report to members (shareholders) if the matter contained in the directors’ report is inconsistent with the financial statement.




High performing organization brings Joy to its shareholders stakeholders and directors. Falling organization brings heartache, hypertension and death to all those associated with it.

In any case there should be deaths and survivors in an endeavor be it a game, business or war.

Osuagwu et al(1995) have aptly noted that the desire of man will always remain to win, to perform and be praised be among survivors and rejoice with the living The world is full of intrigues, political activity, competition, and stress and turbulent. The business community is not an exception that art of testing and checking of an organization accounting and financial records to see whether otherwise known as “Auditing is a corn age from a Latin word Audire” which means to hear.

It is an offshoot accounting, which was believed to have originated in the Italian cities far back in the 13th and 14th centuries credit for earlier words is not complete without mentioning such notable person as Luca Pacioli a Franciscan mathematician Auditing from its beginning had an undertone of internal control Woolf(1982) defined internal control system as the whole system of controls financial and wise established by a management in orderly to carry on the business of the enterprise in an orderly and efficient manner ensure adherence to management policies, safeguard assets and secure as far as possible completeness and accuracy of the record.

According to Davidson etal(1986:61) the goals of any firm are the targets or end result towards which the energies of the firm are the means for achieving those goals. The details in which goals and strategies are stated vary among firms some firms prefer to state goals and strategies in general term only for instance a firm might express its goals as be more profitable than our competitions. Its strategy might be to mechanize produce as a cost lower than its competitors.

Therefore, all levels of management requires information on which to base it decision to organize, to plan and to control while timing is important other factor such as competence accuracy and relevance are equally important in assessing the value of information to the organization.

Johnson(1957) has stated clearly that the quality of management information is directly related to its timing, but this is linked to the particular situation give rise to the need for such information.


Auditors role in both the private and public emphasized the main duty of an auditor is to report to the members or shareholder on the accounts examined by him and on every balance sheet and every profit and loss account and all group account laid before the company in a general meeting during his tensure of office the auditors must report positively that is in his opinion.

The accounts give true and fair view of the company’s account and of its profit and loss accounts.

Complying with requirements of the company’sAllied matters Decree, 1990.If the auditor is not satisfied on the above points. It is the duty to qualify his reports.

Most directors found quit of fraud embezzlement and misappropriation of funds, despite the fact that the audit reports vividly have shown that the accounting records have been fairly kept and therefore display a true and fair view if the operations for the period under review. The most sticking problem now become how can an investor assured himself that his investment well even yield positive results in the face of this malady and the profit figures that have magnetized him to the business are not fabricated or falsified and misleading.

On the other hand, all auditors involve risk, auditors therefore means the chance of damage to auditors or their firms as a result of giving audit opinion that are wrong. Damage may be in form of monetary damage paid to client or third parties as compensation for loss caused by the conduct (for instance negligence) of auditors or simply loss of reputation with clients or the business community.


An audit is a process (carried out by suitable qualified auditors) where by the accounts of business entities including charitable organization, trust and professional firm are subjected to scrutiny in such a detail as will enable the auditors to form an opinion as to their accuracy truth and fairness. The object of medium audit has it ultimate aim of verification of the financial positions disclosed by the balance sheet, and profit or loss of the business. Based on the above the objectives of the study are:

To ascertain the necessity for business entities to hold, periodic appraisals in the form of audits and the effect of such periodic appraised on the organization effectiveness.

To identify the qualities and roles of independent auditors in business process.

To make recommendation based on the findings of the study as to the inevitability or regular auditing of financial statement of organizations.

To verify whether such audits are the credibility for the company.


The following research questions may be postulated. Is a proper accounting record ideal for effective management of the banking sector?

How independent are the opinions of the auditor based on their audit of the financial statement of the organization? Does the financial statement give the true and fair view of the banks activities over the given period?


Based on the research question, statement of the problem and the objectives of this study, this research will test and validate the hypothesis that

HO: Regular auditing of accounts of commercial banks does not contribute to the banks validity and organizational effectiveness.

HI: Regulate auditing of account of commercial banks contribute to the banks viability and organizational effectiveness.

HO: Regular auditing does not ensure that proper internal control is maintained in business organization for efficient management of their resources.

HO: Auditing does not maintain probity and accountability among the management and staff organization for business growth.

HI: Auditing maintain probity and accountability among the management and staff organization for business growth.

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