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PROJECT TOPIC: The Impact of Audited Financial Statements on an Organizational Performance

The Impact of Audited Financial Statements on an Organizational Performance 



The project examines the impact of audited financial statements on an organizational performance using Nigeria bottling company as a case study. The main objective of this study is to examine whether the implementation of financial statement has helped in the growth and development of the organization. The primary source of data collection was used in gathering data from respondents. A structure questionnaire was designed by the researcher and validity by two experts from the statistics department was used to obtain data Chi-Square (X2) was used to test hypotheses formulated. It was discovered that audit report is very important to the organization, especially Nigeria bottling company plc, which was the areas of the main focus, it enhance the growth of the organization and has indeed brought in positive impact. It was concluded that it is the primary duty or responsibility of management and the board of directors of the company to prepare the financial statement and it is the duty of the auditor to examine the financial statement prepared by the management. It was recommended among others that audited financial statement should be prepared in a manner that will show the responsibilities of both the auditor and management




Background to the Study

The demand for auditing arises from the potential conflict of interest that exists between owners (stakeholders) and managers. The contractual arrangement between those parties normally requires that management issues a set of financial statements that purports to show the financial position and results of operation of the entity. In order to properly evaluate the financial statements, the parties to the contract must agree on a benchmark or criterion to measure performance without an agreed-upon criterion, it is impossible to measure the fair presentation of the financial statements.

Generally Accepted Accounting Principles (GAAP) have, over times become the primary criteria used to prepare financial statements. As the term implies, these principles are generally accepted by the diverse users of financial statements.

Nigeria took a step to redefine the scope and maintenance of state enterprise in 1953 as a result of the controversy surrounding public sector ownership and the virtues of private cooperation in Nigeria.
Nigeria bottling company limited is one of the few multinational organizations that had it’s beginning in Nigeria from a small family owned operations at inception.

The Nigeria bottling company limited (NBC) was in cooperated in November 1951 as a subsidiary of the A.G levities group with the franchise to bottle and sell coca-cola product in Nigeria. Production began in 1953 at bottling facilities in Ebuta-Melta, Lagos.

The role played by audit in an organization performance in developing countries is progressively becoming important as it gives room know what is owned and what is spend in the discharge of duty by the NBC. It is important for the private sector organization in the country to appoint an independent auditor for who will present a report stating whether the financial statement and the book of account shows a true an fair view off the financial position of the organization.

The Impact of Audited Financial Statements on an Organizational Performance 


Statement of Problem

Over the years there has been a controversy over the impact which audited financial statement has on organization performance. In view of this, the research wishes to investigate wheat impact audited financial statement actually have in an organization performance.

As a result of this uncertainty of the auditing financial statement has also been under-rate. The study is also set out to remove the uncertainty and make clear the important of auditing financial statement in an organization performance.

The Impact of Audited Financial Statements on an Organizational Performance 


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