THE IMPACT OF INTERNAL AUDITING ON THE PERFORMANCE OF THE NIGERIAN BANKING INDUSTRY: CASE STUDY OF FOUR BANKS

¹Adegbola Olubukola Otekunrin, ²Tony Ikechukwu Nwanji, ³Ajayi, Samuel Abiodun & ⁴Eluyela, Damilola Felix, ⁵Awonusi, Frank Dayo

^1,2Department of Accounting & Finance, Landmark University, Omu-Aran, Kwara

^3,4,5Department of Accounting & Finance, Landmark University; Omu-Aran, Kwara

Email: otekunrin.adegbola@lmu.edu.ng, nwanji.tony@lmu.edu.ng, ajayi.abiodun@lmu.edu.ng, eluyela.damilola@lmu.edu.ng, awonusi.frank@lmu.edu.ng

ABSTRACT

The existence of internal audit function is very important to any organization and to a large extent; this study has been able to establish that a relationship exists between internal auditing and bank performance. In Consistency with previous studies, this study provides a widespread of literatures and ideas on the relationship between internal audit and bank performance. This study is concerned with internal auditing and how it affects the performance of banks and it was executed by selecting four banks as case studies, specifically old generation banks and new generation banks. The outcomes of this study creates cognizance as to how internal auditing affects the performance of banks, thereby bridging the gap between internal auditing activities and internal audit performance-driven activities. The method of data collection was carried out through the administration of questionnaires; a total number of seventy-four (74) questionnaires were retrieved and analyzed using tables and simple percentages. The three hypothesis formulated were also tested using the one way T test. The findings show that internal auditing does influence bank performance. As a result of the extensive study carried out, the researcher and correspondents made a series of recommendations of which they pointed out that only qualified auditors should be appointed to carry out any audit activity so it can be done effectively, the banks in return should provide accurate information for the auditors and before any appointment of an auditor, the legitimacy of the internal auditors resume should be properly checked