3D Building Design Tool

CHAPTER ONE INTRODUCTION 1.1 Background to the Study Changes in the economic environment and growth of corporate structure have brought about the need to separate business ownership from management. In the past, the nature and size of businesses made it possible for owners to manage their firms hence self-accountability was prominent. Separation of owners (principals) from managers (agents) has necessitated owners and managers rapport such that managers have the responsibility of handling the business activities of the firm on behalf of their principals. This in turn brought the need for owners of business organizations to search for an intermediary whose responsibility was to check the stewardship of managers of the firm and assure the owners of fair performance. This intermediary role is what auditing plays so as to be able to establish whether managers' report truly reflect correct and complete position of transactions as presented (DeAngelo, 1981).