IIARD International Institute of Academic Research and Development

Journal of Accounting and Financial Management (JAFM )

E-ISSN 2504-8856
P-ISSN 2695-2211
VOL. 8 NO. 2 2022
DOI: https://doi.org/10.56201/jafm.v8.no5.2022.pg67.86

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Internal Audit Practices and Financial Performance of Quoted Manufacturing Firms in Nigeria

Beekue, Pius Jude, Ph.D, Ledibabari Paago Ph.D

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Abstract

This study examined the relationship between internal audit practices and financial performance of quoted manufacturing firms in Nigeria. The specific objectives are to; determine the extent of relationship between personnel audit and profitability in quoted manufacturing firms in Nigeria, to examine the extent of relationship between personnel audit and return on investment in quoted manufacturing firms in Nigeria. The sample size for the study consisted of eighty (80) staff of the selected quoted manufacturing firms in Nigeria. Primary data on internal audit practices and financial performance were collected from respondents using personal interview and questionnaire instruments which were tested and it was found to be reliable with Cronbach Alpha coefficient of reliability of 0.70. Data were analyzed using descriptive and Pearson correlation coefficient statistical tools with the aid of statistical package for social sciences (SPSS). Our findings at 0.05 level of significance reveals that personnel audit has a positive and strong relationship with profitability (r = 0.647**) and strong relationship with return on investment (r = 0.653**) in the surveyed quoted manufacturing firms in Nigeria and also compliance audit were found to have strong relationship with profitability (r = 0.769**) and moderate relationship with return on investment (r = 0.596**) in the surveyed quoted manufacturing firms in Nigeria. The results also showed that firm age moderate the relationship between internal audit practices and financial performance. Based on the findings, it was concluded with a model which shows that internal audit practices significantly impact on financial performance in the selected quoted manufacturing firms in Nigeria. Therefore, the study recommends were made in the study.

keywords:

Internal Audit Practices, Financial Performance, Manufacturing Firms

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