The Impact Of Risk Based Internal Audit On The Quality Of Financial Report In Deposit Money Banks In Nigeria (Case Study Of Ten Banks For Ten Years)

DOWNLOAD THE COMPLETE PROJECT»

The Impact Of Risk Based Internal Audit On The Quality Of Financial Report In Deposit Money Banks In Nigeria (Case Study Of Ten Banks For Ten Years)

Download This Complete Project Topic And Material (Chapter 1-5 With References and Questionnaire) Titled The Impact Of Risk Based Internal Audit On The Quality Of Financial Report In Deposit Money Banks In Nigeria (Case Study Of Ten Banks For Ten Years). Here On ProjectGate. See Below For The Abstract, Table Of Contents, List Of Figures, List Of Tables, List Of Appendices, List Of Abbreviations, And Chapter One. Click The Download Now Button Below To Get The Complete Project Work Instantly.

PROJECT TOPIC AND MATERIAL ON THE IMPACT OF RISK BASED INTERNAL AUDIT ON THE QUALITY OF FINANCIAL REPORT IN DEPOSIT MONEY BANKS IN NIGERIA (CASE STUDY OF TEN BANKS FOR TEN YEARS)

The Project File Details

  • Name: The Impact Of Risk Based Internal Audit On The Quality Of Financial Report In Deposit Money Banks In Nigeria (Case Study Of Ten Banks For Ten Years)
  • Type: PDF and MS Word (DOC)
  • Size: [70 KB]
  • Length: [56] Pages

 

 

 

CHAPTER ONE

INTRODUCTION

1.1       BACKGROUND TO THE STUDY

In recent times, the business organization faces many financial scandals and crises. All this scandals focuses in the role played by risk based internal audit to protect investor and fulfill their goals. Many laws and rules were established. One of the mechanisms that keeps the interest of many authors is risk based internal audit and more specifically the quality of financial reports in business organizations.Recent studies have examined the impact of internal audit on the transparency and quality of financial reporting. However, few studies have investigated the relationship between risk based internal audit and financial reporting quality (Al-Shetwi et al, 2011).

Abdel-Khalik et al. (1983) found in their study that the risk based internal audit function supports the financial statement audit performed by external audit. This implies improving audit quality and therefore the quality of financial reporting. Schneider and Wilner (1990) estimate that the risk based internal audit functions detect irregularities. Thus, the study of Gordon and Smith (1992) concluded that the risk based internal audit function plays a key role in improving the control environment. It avoids irregularities in the financial statements, which involves improving the quality of financial reporting.

Moreover, increased concerns regarding corporate accountability in various organizations have been associated with the need for appropriate Risk Based Internal Audit which involves risk management and internal control systems (Beekes and Brown, 2006). This has been reflected through recent voluntary corporate governance guidelines. The subjectivity of this area has given rise to different levels of emphasis on risk management and internal control and is, correspondingly, reflected in the governance guidelines of business organization (Basel Committee on Banking Supervision, 2006). While these voluntary guidelines that have originated in each organization may provide different levels of focus on Risk based Internal Audit and governance, it is uncertain as to what extent these different levels of focus exert an influence, either direct or indirect, on an organization’s risk management and internal control practices (Sarens and De Beelde, 2006).

Risk-based internal auditing is a new approach to the practice whose aim is to improve the quality andeffectiveness of audits, since determining the appropriate nature, timing, and extent of substantive testing allowsfor higher quality audits at shorter time. Substantive testing is limited where there is internal control reliance andextensive where there is no internal control reliance (Forsati, 2002).Risk-based internal auditing is the process of identifying and reporting the risk of significant distortions in financialstatements. This approach not only increases the value of the product (financial statements), but also makesauditing more profitable. In other words, risk-based internal auditing satisfies both the managers and the auditors (Smith,2006; Harrington, 2004). In this approach, the auditor first examines the accounting and internal control systems(through written narratives, questionnaires, and flowcharts, and by performing a walk-through test), and thenestimates inherent and control risks. Initial estimates of inherent and control risks help the auditor in determiningthe reliability of the internal control system. If the internal control system is effective, the auditor performs the testsof control. The results can adjust and finalize the initial estimates of inherent and control risks(Moradi&Pourhosseini, 2009).

Risk based internal audit allows auditors to control risk at an acceptable level, thus achieving a high level ofreliability while reducing time and cost of auditing.

For organizations to gain competitive advantage firms in developing countries like Nigeria require to improve risk based internal audit to promote governance and accountability for the purposes of attracting capital gain, sustainability and curb vice such as corruption. Arisk based internal audit function could be viewed as a “first line defense” against inadequate corporate governance and financial reporting.

With respect to deposit money banks, the quality of financial reporting is to promote transparency anddeliver high quality annual report through comprehensive disclosure (Hassan, 2013). Financialinformation influences investors’ behaviour with respect to portfolio selection which in turnaffects security prices, and therefore, the terms on which a firm obtains additional financing.

GET THE COMPLETE PROJECT»

HIRE A WRITER IF YOU CAN NOT FIND YOUR TOPIC»

Be the first to comment

Leave a Reply

Your email address will not be published.


*