International Journal of Business and Finance Management Research
ISSN: 2053-1842
Vol. 3(9), pp. 98-110, November 2015
doi.org/10.33500/ijbfmr.2015.03.011



Role of internal audit in corporate governance architecture: A survey of Nigerian managers

Idowu Eferakeya* and Tennyson Oghoghomeh

1Department of Accounting, Banking and Finance, Delta State University, Asaba Campus, Asaba (P.M.B 95074), Nigeria.

*To whom correspondence should be addressed. E-mail: goodluck_real2000@yahoo.com.

Received 01 June, 2015; Received in revised form 14 September, 2015; Accepted 18 September, 2015.

Abstract


Keywords:
Internal audit, Corporate governance, Management support, Audit committee.


The paper critically examined internal audit effectiveness in the corporate governance framework in Nigeria. It adopted the survey design method and elicited data from respondents using the questionnaire instrument constructed based on five-scale likert measurements that gauged the rank ordering of the respondents with respect to the specific questions posed. The data were described using descriptive percentage statistics while the analyses in line with the hypotheses stated were done using the multiple regression tools. The study found out that there was significant positive relationship between internal audit effectiveness and the variables of corporate governance rules, management support, internal audit independence, audit committee cooperation and value driver for firm performance: While there was a significant negative relationship between internal audit effectiveness and corporate risk management. The paper recommends amongst others that corporate governance rules set by Securities and Exchange Commission (SEC) should continue to strengthen internal audit as a first line of defense. Continuous management support in all ramifications is solicited while unfettered interference with internal audit function is required to enhance its independence and guarantee its effectiveness.

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