Assessing the Significance of Auditing Small Businesses and Organisations; a Case Study of Selected Organisations in Ghana

Dickson Akoto

doi:doi:10.11648/j.ijafrm.20210602.12

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Assessing the Significance of Auditing Small Businesses and Organisations; a Case Study of Selected Organisations in Ghana

Dickson Akoto

Published in International Journal of Accounting, Finance and Risk Management (Volume 6, Issue 2)

Received: 27 January 2021 Accepted: 26 March 2021 Published: 20 April 2021

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Abstract

Auditing is a necessary tool for business management; however, many small businesses and organisations ignore it. The lack of audits has caused the collapse of many of these businesses since probity and accountability are essential for the growth of businesses. The researcher, observes that small businesses lack the capacity to employ auditors, citing cost of audit fees as the reason. This invariably makes them more prone to fraud hence the collapse of their businesses. He therefore, resolved to analyse the effect that auditing small business have had on some organisations that he had personally audited over the years and make relevant recommendations to businesses. The research shows that small business are even more vulnerable because of lack of qualified accounting personnel in managing their books of accounts hence the need to employ auditors to evaluate the organisations activities. The research also shows that the presence of an auditor alone is a moral deterrent to fraudsters. The researcher recommends that small businesses should be educated on the importance of audits by stakeholders including finance professionals. Auditors should consider charging small businesses reasonably low audit fees to encourage them have their accounts audited. As observed in the case study, when the small businesses are audited they will begin to operate efficiently and the auditor will be able to charge economical fees as the businesses grow.

Published in	International Journal of Accounting, Finance and Risk Management (Volume 6, Issue 2)
DOI	10.11648/j.ijafrm.20210602.12
Page(s)	46-52
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Auditing, International Financial Reporting Standards, Auditing Standards

References

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[2]	Glover, S. M, Prawitt D. F (2008) Auditing and Assurance Services, a systematic approach, fifth edition, Mcgraw-Hill, Irwin.
[3]	Siddiqui F (2017). The importance of audits.
[4]	Millichamp, A. H (2002), Auditing, book power, London.
[5]	Hohler A. (2005) Control and Commend: Real Finance Journal, November pp43-49.
[6]	Recchiuti W (2001), Control Activities-Deloitte.
[7]	Lamoye (2005); internal control and cost; NF Perspective Journal pg 4.
[8]	Obazee, H (2009) The corporate governance mosaic and financial reporting quality, Journal of Accounting Literature, vol. 23, pp 87-152.
[9]	Cohen, A., and Sayag, G.(2010). The effectiveness of internal auditing: an empirical examination of its determinants in Israeli organisations. Australian Accounting review, 2093 0, 296-307.
[10]	Ljubisavljevic, S and Jovanovi, D (2011). Empirical research on the internal audit position of companies in Serbia. Economic Annals, LVI (191), 123-141.
[11]	Lander G. P (2004). What is Sarbanes Oxley, MC Grew –Hill, New York Messier.
[12]	Hayes, R Walage, P., Gortemaker, H (2014). Principles of auditing, an introduction to international standards on auditing. Pearson Higher Ed.
[13]	Sarens, G and De Beelde I (2006). The relationship between Internal Audit and Senior Management: A qualitative analysis of expectations and perceptions. International Journal of Auditing 10 (3); 219-241.
[14]	Khan, K. (2006), How governance is changing, vol. 17, No 5, p. 21.
[15]	ACCA, Audit and Assurance (2018), Kaplan Publishing, UK.
[16]	Millichamp, A. H (2000) Auditing, 7^th edition Continuum
[17]	Van peursem K. A (2005), managerial auditing journal vol 20 issue 5 pp 489-512.
[18]	Bansal G (2017), Importance of Audit in an Organisation.
[19]	Howes C (2017) 6 Reasons why you should Audit your Financial statements, 6/2/2017.
[20]	Millichamp. A and Taylor, J (2008), Auditing pat Bond, London.

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Dickson Akoto. (2021). Assessing the Significance of Auditing Small Businesses and Organisations; a Case Study of Selected Organisations in Ghana. International Journal of Accounting, Finance and Risk Management, 6(2), 46-52. https://doi.org/10.11648/j.ijafrm.20210602.12

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ACS Style

Dickson Akoto. Assessing the Significance of Auditing Small Businesses and Organisations; a Case Study of Selected Organisations in Ghana. Int. J. Account. Finance Risk Manag. 2021, 6(2), 46-52. doi: 10.11648/j.ijafrm.20210602.12

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AMA Style

Dickson Akoto. Assessing the Significance of Auditing Small Businesses and Organisations; a Case Study of Selected Organisations in Ghana. Int J Account Finance Risk Manag. 2021;6(2):46-52. doi: 10.11648/j.ijafrm.20210602.12

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@article{10.11648/j.ijafrm.20210602.12,
  author = {Dickson Akoto},
  title = {Assessing the Significance of Auditing Small Businesses and Organisations; a Case Study of Selected Organisations in Ghana},
  journal = {International Journal of Accounting, Finance and Risk Management},
  volume = {6},
  number = {2},
  pages = {46-52},
  doi = {10.11648/j.ijafrm.20210602.12},
  url = {https://doi.org/10.11648/j.ijafrm.20210602.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijafrm.20210602.12},
  abstract = {Auditing is a necessary tool for business management; however, many small businesses and organisations ignore it. The lack of audits has caused the collapse of many of these businesses since probity and accountability are essential for the growth of businesses. The researcher, observes that small businesses lack the capacity to employ auditors, citing cost of audit fees as the reason. This invariably makes them more prone to fraud hence the collapse of their businesses. He therefore, resolved to analyse the effect that auditing small business have had on some organisations that he had personally audited over the years and make relevant recommendations to businesses. The research shows that small business are even more vulnerable because of lack of qualified accounting personnel in managing their books of accounts hence the need to employ auditors to evaluate the organisations activities. The research also shows that the presence of an auditor alone is a moral deterrent to fraudsters. The researcher recommends that small businesses should be educated on the importance of audits by stakeholders including finance professionals. Auditors should consider charging small businesses reasonably low audit fees to encourage them have their accounts audited. As observed in the case study, when the small businesses are audited they will begin to operate efficiently and the auditor will be able to charge economical fees as the businesses grow.},
 year = {2021}
}

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TY  - JOUR
T1  - Assessing the Significance of Auditing Small Businesses and Organisations; a Case Study of Selected Organisations in Ghana
AU  - Dickson Akoto
Y1  - 2021/04/20
PY  - 2021
N1  - https://doi.org/10.11648/j.ijafrm.20210602.12
DO  - 10.11648/j.ijafrm.20210602.12
T2  - International Journal of Accounting, Finance and Risk Management
JF  - International Journal of Accounting, Finance and Risk Management
JO  - International Journal of Accounting, Finance and Risk Management
SP  - 46
EP  - 52
PB  - Science Publishing Group
SN  - 2578-9376
UR  - https://doi.org/10.11648/j.ijafrm.20210602.12
AB  - Auditing is a necessary tool for business management; however, many small businesses and organisations ignore it. The lack of audits has caused the collapse of many of these businesses since probity and accountability are essential for the growth of businesses. The researcher, observes that small businesses lack the capacity to employ auditors, citing cost of audit fees as the reason. This invariably makes them more prone to fraud hence the collapse of their businesses. He therefore, resolved to analyse the effect that auditing small business have had on some organisations that he had personally audited over the years and make relevant recommendations to businesses. The research shows that small business are even more vulnerable because of lack of qualified accounting personnel in managing their books of accounts hence the need to employ auditors to evaluate the organisations activities. The research also shows that the presence of an auditor alone is a moral deterrent to fraudsters. The researcher recommends that small businesses should be educated on the importance of audits by stakeholders including finance professionals. Auditors should consider charging small businesses reasonably low audit fees to encourage them have their accounts audited. As observed in the case study, when the small businesses are audited they will begin to operate efficiently and the auditor will be able to charge economical fees as the businesses grow.
VL  - 6
IS  - 2
ER  -

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Author Information

Dickson Akoto

Radford Business School, Radford University College, Accra, Ghana

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Plain Text BibTeX RIS

APA Style

Dickson Akoto. (2021). Assessing the Significance of Auditing Small Businesses and Organisations; a Case Study of Selected Organisations in Ghana. International Journal of Accounting, Finance and Risk Management, 6(2), 46-52. https://doi.org/10.11648/j.ijafrm.20210602.12

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ACS Style

Dickson Akoto. Assessing the Significance of Auditing Small Businesses and Organisations; a Case Study of Selected Organisations in Ghana. Int. J. Account. Finance Risk Manag. 2021, 6(2), 46-52. doi: 10.11648/j.ijafrm.20210602.12

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AMA Style

Dickson Akoto. Assessing the Significance of Auditing Small Businesses and Organisations; a Case Study of Selected Organisations in Ghana. Int J Account Finance Risk Manag. 2021;6(2):46-52. doi: 10.11648/j.ijafrm.20210602.12

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@article{10.11648/j.ijafrm.20210602.12,
  author = {Dickson Akoto},
  title = {Assessing the Significance of Auditing Small Businesses and Organisations; a Case Study of Selected Organisations in Ghana},
  journal = {International Journal of Accounting, Finance and Risk Management},
  volume = {6},
  number = {2},
  pages = {46-52},
  doi = {10.11648/j.ijafrm.20210602.12},
  url = {https://doi.org/10.11648/j.ijafrm.20210602.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijafrm.20210602.12},
  abstract = {Auditing is a necessary tool for business management; however, many small businesses and organisations ignore it. The lack of audits has caused the collapse of many of these businesses since probity and accountability are essential for the growth of businesses. The researcher, observes that small businesses lack the capacity to employ auditors, citing cost of audit fees as the reason. This invariably makes them more prone to fraud hence the collapse of their businesses. He therefore, resolved to analyse the effect that auditing small business have had on some organisations that he had personally audited over the years and make relevant recommendations to businesses. The research shows that small business are even more vulnerable because of lack of qualified accounting personnel in managing their books of accounts hence the need to employ auditors to evaluate the organisations activities. The research also shows that the presence of an auditor alone is a moral deterrent to fraudsters. The researcher recommends that small businesses should be educated on the importance of audits by stakeholders including finance professionals. Auditors should consider charging small businesses reasonably low audit fees to encourage them have their accounts audited. As observed in the case study, when the small businesses are audited they will begin to operate efficiently and the auditor will be able to charge economical fees as the businesses grow.},
 year = {2021}
}

Copy | Download

TY  - JOUR
T1  - Assessing the Significance of Auditing Small Businesses and Organisations; a Case Study of Selected Organisations in Ghana
AU  - Dickson Akoto
Y1  - 2021/04/20
PY  - 2021
N1  - https://doi.org/10.11648/j.ijafrm.20210602.12
DO  - 10.11648/j.ijafrm.20210602.12
T2  - International Journal of Accounting, Finance and Risk Management
JF  - International Journal of Accounting, Finance and Risk Management
JO  - International Journal of Accounting, Finance and Risk Management
SP  - 46
EP  - 52
PB  - Science Publishing Group
SN  - 2578-9376
UR  - https://doi.org/10.11648/j.ijafrm.20210602.12
AB  - Auditing is a necessary tool for business management; however, many small businesses and organisations ignore it. The lack of audits has caused the collapse of many of these businesses since probity and accountability are essential for the growth of businesses. The researcher, observes that small businesses lack the capacity to employ auditors, citing cost of audit fees as the reason. This invariably makes them more prone to fraud hence the collapse of their businesses. He therefore, resolved to analyse the effect that auditing small business have had on some organisations that he had personally audited over the years and make relevant recommendations to businesses. The research shows that small business are even more vulnerable because of lack of qualified accounting personnel in managing their books of accounts hence the need to employ auditors to evaluate the organisations activities. The research also shows that the presence of an auditor alone is a moral deterrent to fraudsters. The researcher recommends that small businesses should be educated on the importance of audits by stakeholders including finance professionals. Auditors should consider charging small businesses reasonably low audit fees to encourage them have their accounts audited. As observed in the case study, when the small businesses are audited they will begin to operate efficiently and the auditor will be able to charge economical fees as the businesses grow.
VL  - 6
IS  - 2
ER  -

Copy | Download