Internal audit function attributes and financial reporting quality: the Nigerian case
Financial reporting quality depends on its relevance, faithful representation, comparability, understandability and verifiability that could guide investors make informed decisions. The objective of this study is to examine the effect of internal audit function attributes on financial reporting qual...
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| Format: | Thesis |
| Language: | English English English English |
| Published: |
2020
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| Online Access: | https://etd.uum.edu.my/9209/1/s901928_01.pdf https://etd.uum.edu.my/9209/2/s901928_02.pdf https://etd.uum.edu.my/9209/3/s901928_references.docx https://etd.uum.edu.my/9209/5/depositpermission_s909928-Abdulkadir%20Madawaki.pdf https://etd.uum.edu.my/9209/ |
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| Summary: | Financial reporting quality depends on its relevance, faithful representation, comparability, understandability and verifiability that could guide investors make informed decisions. The objective of this study is to examine the effect of internal audit function attributes on financial reporting quality. The study also examined the moderating effect of audit committee interaction, senior management support, and information technology usage on the relationship between internal audit function attributes and financial reporting quality in Nigerian listed organizations. Using survey
and purposive sampling, 97 usable questionnaires have been obtained from the head of internal audit functions. The data analysis was conducted using PLS-SEM 3.2.6. The findings reveal evidence of the significant relationships between internal audit
work, risk-based audit, internal control activities, coordination between internalexternal auditors and financial reporting quality. This study also discloses that senior management support and information technology usage significantly moderate the
relationships between internal audit function attributes and financial reporting quality. The study contributes to the literature on how the internal audit function attributes impact the financial reporting quality, particularly in the Nigerian context, where there are scant similar studies. From another perspective, this study also contributes to the literature on how to test the complex model with three moderators which is a very uncommon practice in the available literature. The study suggests that the internal
audit development policymakers and board of directors of Nigerian listed organizations can improve the internal audit function practices that will nurture financial reporting quality. Both policymakers and the board of directors should ensure adequate structures that will strengthen the organisational status of the internal auditors to perform towards improving financial reporting quality and minimising opportunistic management actions. |
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