Today in the public sectors, staff have decided in involving themselves in fraud, misappropriation of fund mismanagement of assets entrusted on them, and abuse of their profiles for their different personal interests. But, auditing has became a tool for ensuring good accountability. Through auditing, the account of individuals, partnership, co-operative and public sectors can at any time be examined by an auditor which enables him to express his opinion of true and fair view, by the use of auditing standards.However, it is through this auditing, that those errors, frauds and other accounting malpractices or irregularities can be easily traced out and be corrected. Through this auditing, spin off effect can easily be provided. Though all the secondary objective of auditing.
In conclusion, auditing has become an indispensable instrument through which the funds and assets entrusted in the hands of directors in public sector could be examined and make sure that those whom properties are entrusted were tested and reliable staff.Moreover, this work is arranged in such a way that one chapter flows and naturally leads to next. It organized in three chapters Chapter one: includes, introduction, objective of the study, significance of the study, scope of the study, auditing standard, destinations between auditing and accounting function and definition of terms.
Chapter two: what is auditing, who is our auditor types and objectives of auditing qualities of an auditor fraud in the public sector, internal control and internal check.Chapter three: findings, conclusion, Recommendation Suggestion for further studies, bibliography.
1.1       introduction
1.2       Objective of the study
1.3       Significance of the study
1.4       Scope of the study
1.5       Auditing standards
1.6       Distinction between Auditing and Accounting Job
1.7       Definition of terms
2.1       What is Auditing?
2.2       Who is our Auditor?
2.3       Types and objectives of Auditing
2.4       Qualities of an auditor
2.5       Fraud in the public sector
2.6       Internal control, internal check and internal audit
2.7       Classes of audit
3.1              Findings
3.2              Conclusion
3.3              Recommendation
3.4              Suggestion for Further studies
3.5              biliography
Currently, taking a glance look into our public sector establishments, one can easily notice that all their activities revolved round the pivot of the auditing principles. Just as the auditors carry out their work on the state of affairs of the financial statement in order to enable him express his opinion of true and fair view of the accounts they purports to represent. Most of public sector establishment are engaging in audit work internally without knowing. Take for instance where the work of one personnel is being complemented by another personnel inured to ensure effective check for prevention of misappropriation and other irregularities on the assets entrusted on them, which refers as internal check on audit terminology.
            In a nutshell, auditing can be seen as a through investigation and examination of an opinion on financial statement that hand prepared by an accountant thus, auditing work starts where accounting work stopped. In the view of audit operational standard audit is defined as the independent examination of financial statement and expression of opinion on the financial statement and expression of opinion on the financial statement of any enterprise in assurance of that appointment are in compliance with any relevant statutory. From the above definition, it can be seen that auditor has to deal with pure independent. This term of impendent of an auditor, enables him to carry out his audit work without any conflict of interest, fear and favors or any interference by the management.
            At this juncture, it is necessary to know that auditing work has to be done by an auditor, who is a qualified accentuates having sat and passed the professional examination which is only the bring of institute of chartered accountant that is empowered by (CAMA) Company Allied Matters act to conduct such exams. In addition, such person must be of good character, conduct and must have a verse knowledge which helps him in easily understanding the practical business and be in position for easily ascertainment of the suitable procedure and methods of any concern he undertakes to audit.
            Before the commencement of an audit work the dent must state the nature of the audit work. Precisely, the auditor on his side will write an engagement letter thereafter to the management to define the work which the management expects him to do. On no account should and auditor go beyond or allow to go beyond the scope specifically stated in the letter of engagement.
            On appointment of an auditor, the remuneration will be fixed and it includes all the cost of materials and any wages. Ethical law and company allied matters act of 1990 (CAMA) states it specifically that auditors should not received gift inform of lairs, allowance grants from client immediately remuneration in fixed.
            In the similar view auditor does not expect to have any personal relationship with his dients. In other wise where the auditor has a relationship with his dient, the auditor should cease to carryout the audit work of the dient company.
            However, an auditors owes his clients the following understated duties . with reference to section 360 of the company allied matters Act 1990, it provide the followings as auditors duties.
(1)               It shall be the duty of auditor in preparing their report to carry out such   investigations as may enables them to form an opinion to the following matters wheather:
i   proper accounting record have been kept by the company and proper     returns toquate for their audit have been received from branches they do not visited
ii.                  the companys balance sheet and its profit and loss account are in accordance with the accounting records and returns
(2)               If they are of their opinion, that the proper accounting records have not been kept and proper adquote returns from branches they do not visited have not been received, they have to state if in their report.
(3)               They have the right to access at all times the books and records  of accounts and vouchers and received any information they see valid during their audit work from company officers
(4)               It is his duty to consider, whether information given in the directors for the year which the account is prepared is consistent with those account, where if is not they have to state it in the opinion.
(5)               Auditors have the duty of given certain information about directors if the information is not given in the accounts. Auditing can be categorized into two: the private and the public auditing. The private auditing is the auditing work trade, partnership, private limited company etc. it also has a statutory requirement. The auditor only seeks to the instruction in the letter of engagement. While on the other hand, public auditing is a statutory audit. Statutory in the sense that the audit must have to perform on annual basis and have to be followed with legal approved guidelines.
Finally, the significance of auditing in the public sector simply means the
 need of importance of auditing in the public sector simply means the need or importance of auditing in the public sector. The question now is then what is public sector?
When we talk of public sector, we then refer to government. In other wise, public sector is that type of enterprise that is established, owned and being operated by the government or its agencies, distinguishable form private sector purpose of establishment is to the whole citizen. Public sector purpose of establishment is to fulfill her social responsibilities to the masses. Profits are needed from the public sector not only for their self selfish personal interests but also for the establishment of new enterprises. In most cases government run there enterprises at a loss just for the fact that it is an obligation to be carried out in order to better for the general and social welfare of the masses.
            The primary concern her is the ability of public sector in Nigeria to, at least break even in comparison of their private counterparts that make adequate profits. No wonder the government stance on public enterprises termed “privatization” is gaining ground.
            In powalisation, apart from increasing efficiency, will also provide the government with fund to engage in other priority activities.
             Also the accounting of public sector when they are socialism, is aimed to show the correctness, accountability minimizing of misappropriation, fraud, irregularities and reasonableness of transaction and their agreement withy established rules and  to give sound and evidence accountability to the stewardship of government resources.
            Therefore auditing becomes a very indispensable tools through which the efficiency and effective appropriate management of assists entrusted in the hand of officers in public sectors can be enhance. Also this auditing has become an instrument for effective detection and correction of fraud, misappropriation of fund and other irregularities and mismanagement of assets which could be seen among the public officers who sees public property which entrusted on them as an effective opportunity for enriching their families and other relations.
The purpose of this study is to recommend a system of checking and evaluating the performance of public sector and prefer corrective measures to ensure sound profit reporting, rational allocation, procurement, utilization disbursement and control of public sector resources. Another purpose is also to detect losses caused to the public sectors by the revenue officers as a result of inability to keep a sound and complete financial record. It helps also to detect the financial looses caused by the unsatisfied public officers to the public sector and to know the extent which the infrastructure operation of the public sector has be generally provided as masses expects. And to notify the internal auditor on their duly as a watchdog to the public sector assets.
Considering the loge amount of fund invested in public sector and the annual grants and subventions. It is necessary to verify the reason for the inability of public sector to make adequate profits mismanagement, frequent dilapidations and liquidations in certain of their establishments.
            The reason for widespread of financial dishonesty and corruption in practically all levels of personnel in most of these organization are to be analyzed to know the causes of such financial dishonesty and corruption and to proffer some recommendations. It then calls the need for proper accounting records and system and the efficiency of the system need to be analyzed. Also there becomes an important for study of the significance of auditing in public sector. It will also provide guide to student as a fertile ground to grapes certain data collection for those who have to embark on this synonymous of research work. It also provide a suitable environment for the public sector to correct all the lapse with in their management.
The project will further enrich the liberty for reference purpose.
However, it is noted that both private and public sectors will marry this project and make it their great companion for their effective and efficient management. Churches and other charitable organization, clubs and other well established ventures would find this work useful in the various operations make it their  
1.4              AUDITING STANDARDS
Auditing standards are those principles and essential procedures which the auditors are expected to comply. Example auditors should ensure that engagement letter documents are confirms their acceptance of the appointment and include the summary of the directors and auditors responsibilities.
Auditing is entirely different from accounting in the sense that accounting is the preparation of financial statement of a certain transaction whereas auditing on the other hand is the examination and investigation of true and fair view on a financial statement already prepared by an accountant. When the profit and loss account and balance sheet is being prepared form record kept by the organization, such a person is engaged in accounting work. It is to say that auditing job starts where accounting job ended. Though auditor is professional accountant who has undergone many accountant professions and have many accountant experiences.
Though for further details of differences see the cases of APFEL Vs Annan Dexter and Co (1926)
1.6              DEFINITION  OF TERMS
(i)                 Auditing:  Auditing practices Board (APB) defines auditing as an exercise whose objective is to enable auditor express an opinion wheather the financial statement give a true and fair view of the entity’s affair at the period through which the account is being prepared and profit and loss for the same period have been in accordance with the applicable reporting frame work.
(ii)               Auditor:  is a person who performs the work of auditing in any enterprise.
(iii)             Accountant: An accountant is a professional person trained to keep records of transaction in an establishments.
(iv)             Fraud: This is an intentional concealment of a material fact.
(v)               Permanent file: It contains all the documents which containing to be important during audit works.
(vi)             Working Paper: contains all  the information that seems to chiefly importance in supporting auditors report.
(vii)           Errors: It is uninterrtional misstatement or omission of amount in financial statement.
(viii)         Pivot: It is a central point through which other things turns.
(ix)             Engagement Letter: It is the letter which offers acceptance by an auditor and slows the extent of auditor’s responsibilities.
(x)               Investigation: It is an ability to find out hidden agenda
(xi)             Financial: It is anything concerning finance that can be Quantifiable especially money.
(xii)           Remuneration: Is an entitlement which the auditor receives in terms of


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