Relationship between Internal Audit and Organization’s Performance: Evidence From Money Deposit Banks in Nigeria

Lawal Babatunde Akeem, Lawal Busayo Olawumi, Ayooluwa Olotu Ajayi-Owoeye

Abstract


Businesses exist because of the need of investors and entrepreneurs, employees and suppliers of an organization to enable or make their money work for them. This paper examined the relationship between internal audit and sustainable performance in Money Deposit Banks in Nigeria. The objectives of the study are to examine the relationship between internal audit functions and organization performance and to determine the relationship between internal audit procedures and organization performance in money deposit banks in Nigeria. The study employed descriptive research design. The population of the study comprised of all the money deposit banks in Nigeria. The target population of the study was guaranty trust bank located in the south western part of Nigeria specifically in Ogun state. The sampling technique adopted for this study was the purposive sampling. The sampling frame was forty personnel consisting of fifteen audit personnel, twenty accounting officers and five audit trainees within Guaranty Trust Bank Sango Ogun State. Data were collected using primary data through the administering of questionnaire to the respondents. Multiple regression was used in the study to test the relationship between the independent variables and dependent variable. The result from the findings showed that there exist a positive relationship between the independent variables and the dependent variable. The study therefore recommended that organizations should adopt the internal audit functions and comply with the internal audit procedures in order to improve the performance. 


Keywords


Internal auditing functions; Internal auditing practices; Sustainable performance; Employees; Investors; Organization

Full Text:

PDF

References


Alkhasa, A., B., A. (2013). The contribution of the internal audit function in the financial and administrative performance in local government bodies adjust to the Gaza strip: An empirical study analytical. Unpublished master thesis. The Islamic University, Gaza, Palestine.

Al-Matari, E., M., Al-Swidi, A., K., & Fadzil, F., H. (2014). The effect of internal audit and firm performance: A proposed research framework. International Review of Management and Marketing, 4(1), 34-41.

Badara, M. S. and Saidin, S. Z. (2012). Impact of the effective internal control system on the internal audit effectiveness at local government level. Journal of Social and Development Sciences, 4(1), 16-23.

Barlow, P., Helberg, S., Large, N., & Le Roux (1995). The business approach to internal auditing. Capetown. JUTA.

Bertalanffy, L. (1968). General systems theory. New York: Braziller.

Chambers, A., & Rand, G. (1997). The operational auditing handbook: Auditing business process. Chichester: WILEY.

Hutchinson, M., R., & Zain, M., M. (2009). Internal audit quality, audit committee independence, growth opportunities and firm performance. Corporate Ownership and Control, 7(2), 50-63.

Jensen, M.C. & Meckling, W.H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3, 305-360.

Ljubisavljevic, S., & Jovanovi, D. (2011). Empirical research on the internal audit position of companies in serbia. Economic Annals, LVI(191), 123-141.

Locke, E., A., & Latham, G., P. (2002). Building a practically useful theory of goal setting and task motivation: A 35-year odyssey. American Psychologist, 57, 705–717.

Mathooko, J. (2011). Academic proposal writing. (2nd ed). Nairobi: Global Research Akademik and Mentoring Services.

Prawitt, D., Smith, J., & Wood, D. (2009). Internal audit quality and earnings management. The Accounting Review, 84(4), 1255-1280.

Public Oversight Board (1990). Strengthening the professionalism of the independent auditor. Stamford, CT: POB.

Schneider, A., (2010). Assessment of internal auditing by audit committees. Academy of Accounting and Financial Studies Journal, 14(2), 19-26.

Patton, M., & McMahon. (2006). Systems theory framework of career development and counseling: Connecting theory and practice. International Journal for the Advancement of Counseling, 28(2), 153-154.

Whittington, O., R., & Panny, K. (2001). Principles of auditing and other assurance services. Irwin/McGraw – Hill, New York.

Zain, M., M., Subramaniam, N., & Stewart, J. (2006). Internal auditors’ assessment of their contribution to financial statement audits: The Relation with Audit Committee and Internal Audit Function Characteristics. International Journal of Auditing, 10(1), 1-18.




DOI: http://dx.doi.org/10.3968/11348

Refbacks

  • There are currently no refbacks.


Copyright (c) 2020 Management Science and Engineering

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.


Share us to:   


Reminder

  • How to do online submission to another Journal?
  • If you have already registered in Journal A, then how can you submit another article to Journal B? It takes two steps to make it happen:

1. Register yourself in Journal B as an Author

  • Find the journal you want to submit to in CATEGORIES, click on “VIEW JOURNAL”, “Online Submissions”, “GO TO LOGIN” and “Edit My Profile”. Check “Author” on the “Edit Profile” page, then “Save”.

2. Submission

  • Go to “User Home”, and click on “Author” under the name of Journal B. You may start a New Submission by clicking on “CLICK HERE”.


We only use three mailboxes as follows to deal with issues about paper acceptance, payment and submission of electronic versions of our journals to databases:
caooc@hotmail.com; mse@cscanada.net; mse@cscanada.org

 Articles published in Management Science and Engineering are licensed under Creative Commons Attribution 4.0 (CC-BY).

 MANAGEMENT SCIENCE AND ENGINEERING Editorial Office

Address:1020 Bouvier Street, Suite 400, Quebec City, Quebec, G2K 0K9, Canada.

Telephone: 1-514-558 6138
Http://www.cscanada.net Http://www.cscanada.org

Copyright © 2010 Canadian Research & Development Centre of Sciences and Cultures