Impact Of External Auditing On Small-Scale Business Organizations (Case Study Of Pine Wood Hotel, Owerri)

ABSTRACT

Small-scale business has been the driving force of the economy of most developed countries of the world as it has contributed to the increase in their ( DP. ,Fvcii developing arc bcing sustained by small-scale business. This buttresses the importance of small scale business to the economy. Despite its importance, many small-scale businesses failed not long after its establishment. The major reason for the failure has been discovered to be the absence of external audit lug in most small-scale business. The reason for this absence was traced to ignorance of the business owner, fear of audit, exorbitant audit fees, and insufficient account records among others. The research stu(ly was focused on the effect of external auditing on small-scale business. Literature relevant IC) the study was revealed to give the study a l)ackgrotlnd. Chi-Square and (lescriptive statistical tools were used to analyze the hypotheses. At the end it was discovered that lack of external auditing has an effect on small-scale business as it will make the account presented by the small-scale business owner to lack trust. The findings of this research will be of great usc to the government, professional accountants and especially small-scale business owners as it will enlighten them on the need for the auditing of their accounts to give credibility.