AUDITING AND INVESTIGATION IN SMALL SCALE BUSINESS ORGANIZATIONS, A STUDY OF SELECTED BUSINESS IN DELTA STATE, AGBOR AND ASABA

This study examines the critical role of auditing and investigation in enhancing the financial accountability, transparency, and sustainability of small-scale businesses in Delta State, Nigeria. Small-scale enterprises are vital contributors to economic growth, employment, and poverty alleviation. However, they often face challenges such as poor record-keeping, weak internal controls, limited access to financial expertise, and vulnerability to fraud. The research investigates how auditing and investigative practices influence the financial performance, fraud detection, and decision-making processes in these businesses. Employing a survey research design, data were collected from 105 staff across selected commercial banks First Bank, Access Bank, and Zenith Bank located in Agbor and Asaba. The study utilized both primary and secondary sources, with data analyzed through frequency distribution, percentage analysis, and chi-square tests. Findings revealed that while many small-scale businesses engage in basic auditing and investigative practices, their implementation is inconsistent and often hindered by cost, lack of awareness, and limited technical expertise. Auditing was shown to significantly improve financial performance, identify areas of wastage, and promote informed decision-making. Investigative practices were found effective in detecting fraudulent activities, reducing financial mismanagement, and fostering accountability. Despite these benefits, major barriers such as weak internal control systems, insufficient training, and resistance to external oversight persist. The study concludes that effective auditing and investigation are essential for the growth and longevity of small-scale businesses. It recommends the adoption of the principle of least privilege, enhanced financial monitoring, regular staff training, and government-supported audit access initiatives for SMEs. These measures can collectively strengthen financial governance and ensure the long-term sustainability of small enterprises in Delta State.