IIARD International Institute of Academic Research and Development

IIARD International Journal of Economics and Business Management (IJEBM )

E-ISSN 2489-0065
P-ISSN 2695-186X
VOL. 10 NO. 8 2024
DOI: 10.56201/ijebm.v10.no8Sept.2024.pg179.191

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Impact of Internal Audit System on the Quality of Bank’s Accounting Reports in Nigeria

AKPOYIBO Godspower, OTUYA Sunday & EGINIWIN Joseph

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Abstract

Internal audit is seen as a powerful internal control mechanism that must be well established by an organization for effective control and enhanced checks and balances. However, extant literature has produced a multiplicity of findings on the effect of internal audit functions on financial reporting quality especially in the context of banks in Nigeria. To this end, this study was conducted to examine the effect of internal audit functions on the quality of bank’s accounting reports. The specific objectives of the study were to investigate the impact of internal auditors’ technical proficiency, internal audit procedures, and internal audit independence on financial reporting quality of Deposit Money Banks in Nigeria. The study anchored on the theory of inspired confidence, adopted the survey research design. A self-designed questionnaire was used as a tool for data collection for the study. Findings of the study indicate a significant positive effect of internal audit technical proficiency, internal audit procedures, and internal audit independence on the quality of accounting reports. The study concludes that internal audit functions influences the level of financial reporting quality of DMBs in Nigeria, and recommends amongst others that Banks should engage the services of qualified and competent internal auditors so as to enhance internal control system and promote better financial reporting quality.

keywords:

Internal audit; Accounting Reports; Technical Proficiency; Auditor’s Independence.

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