INTERNAL AUDIT PRACTICES AND FINANCIAL REPORTING QUALITY OF LISTED CONSUMER GOODS MANUFACTURING FIRMS IN NIGERIA

Abstract

This study investigated the relationship the relationship between internal audit practices and financial reporting quality of listed consumer goods manufacturing firms in Nigeria. The research design used in this study was descriptive survey. The targeted population of this study consists of all the twenty-one (21) listed consumer goods manufacturing firms in the Nigerian Exchange Group (NGX) with a respondent total of two hundred and ninety (290). The sample size of the study consists of ten (10) listed consumer goods manufacturing firms that have branches that are located in Rivers State on the basis of purposive sampling technique adoption. The study employed primary data source of questionnaires which was administer to the respondents and two hundred and thirty-one (251) representing a response rate of 86.6% was used as new respondents sample size for the study. The study used content validity and the instrument was given to my supervisor and two other accounting lecturers in the department, they read through and made necessary corrections. The Cronbach alpha reliability test was used to determine the statistical reliability of the instrument. The researcher employed descriptive statistics (frequencies, percentages, means, and standard deviations) and spearman rank correlation order in data analysis. Findings indicated that there is a significant relationship between internal controls and timeliness and there is a significant relationship between audit risk management and relevance of listed consumer goods manufacturing firms in Nigeria. Based on the summary of findings, this study generally concluded that, internal audit practices positive and significant relationship with financial reporting quality of listed consumer goods manufacturing firms in Nigeria. The study recommended amongst others that consumer goods manufacturing firms in Nigeria should adopt the effective use of internal control since it has positive influence toward increase in financial reporting quality.