Internal audit functions, financial reporting quality and moderating effect of senior management support
Autor: | Abdulkadir Madawaki, Aidi Ahmi, Halimah @ Nasibah Ahmad |
---|---|
Rok vydání: | 2021 |
Předmět: |
Finance
business.industry media_common.quotation_subject 05 social sciences Control (management) Principal–agent problem Accounting 050201 accounting Moderation External auditor Internal audit Stock exchange 0502 economics and business Quality (business) business Senior management 050203 business & management media_common |
Zdroj: | Meditari Accountancy Research. 30:342-372 |
ISSN: | 2049-372X |
DOI: | 10.1108/medar-04-2020-0852 |
Popis: | Purpose The purpose of this paper is to demonstrate the relationship between internal audit functions (IAF) and financial reporting quality (FRQ) and whether such a relationship is moderated by senior management support (SMS) in listed companies in Nigerian Stock Exchange (NSE). Design/methodology/approach This research is a cross-sectional study, using primary data in the form of a survey sent to 175 listed companies in NSE. A total of 149 questionnaires have been collected and analysed out of which 97 were found to be useful and used in the final analysis. Findings The findings indicate a positive and significant relationship between internal audit qualities of work performed, internal control activities, coordination between internal and external auditors and FRQ and this finding was also supported by SMS as a moderator. However, the results show a negative and insignificant relationship between internal audit competency, organisational status and FRQ. Research limitations/implications The findings support the assumption with regard to agency theory. The board should support the IAF to serve as an effective monitoring mechanism in minimising opportunistic management actions. Regulators should also ensure adequate structures that will strengthen the organisational status of the internal auditors to perform towards improving FRQ. Originality/value The study contributes to the existing literature by assessing the effect of IAF on FRQ as moderated by SMS. |
Databáze: | OpenAIRE |
Externí odkaz: |
načítá se...