THE ROLE OF AUDITORS IN BANKS FINANCIAL STATEMENT

Abstract

The banking sector in Nigeria and elsewhere in recent times have become so diversified, challenging, highly competitive and have been characterized by persistent frauds, errors and misappropriation of funds in the past, the impact of which has undoubtedly shaken the whole economy of the nation. This study was carried out using primary and secondary methods in the collection of data, where in primary data, the researcher designed and advanced questionnaires. The data collected from the questionnaire was analyzed in tables with simple percentage and interpreted for the understanding of the study.  The analysis tool that was used in testing the hypothesis was the chi-square (X²). After the presentation and analysis carried out, it was found out there is an effect of external auditors on the examination of financial statements and that there are problems associated with financial statements. The study, recommendations was that external auditors with qualities based on training and experience should be engaged in those firms that do not have auditors because the absence of external auditors and the roles they play in so many firms are very important and that management should establish internal audit department to reduce fraud in banks.