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The Role of Internal Audit and Control on Organizational Objective Achievement

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  • Olukayode Ezekiel Ibironke

    (Department of Accounting, Lagos State University, Ojo, Lagos State, Nigeria)

  • Ndubuisi Ikechi Elewor

    (Department of Accounting, Lagos State University, Ojo, Lagos State, Nigeria)

Abstract

Internal audit and control are geared towards safeguarding the resources of the organization and achieving the organizational objective. The study investigates the role of internal audit and control on organizational objective achievement of selected deposit money banks in Ojo and Amuwo Odofin, Lagos. Organizational objective was measured by revenue and profitability and shareholders’ value. A survey design; primary source of data was used through administration of questionnaires. The study used a sample size of one hundred and sixty (160) staff members in ten (10) banks. The data collected through the distribution of questionnaires was analyzed using the simple regression analysis with the aid of statistical package for social sciences (SPSS). It was discovered that the combined role of internal audit and control has a significant positive influence on revenue and profit generation of the banks. Also, internal audit and control has a positive effect on shareholders’ value of the banks. Conclusively, internal audit and control has a positive effect on organizational objective. The study recommends that banks that seek to achieve it organizational objective with respect to revenue enhancement and profitability should improve in their internal audit functions and control system.

Suggested Citation

  • Olukayode Ezekiel Ibironke & Ndubuisi Ikechi Elewor, 2020. "The Role of Internal Audit and Control on Organizational Objective Achievement," International Journal of Research and Scientific Innovation, International Journal of Research and Scientific Innovation (IJRSI), vol. 7(5), pages 257-264, May.
    • Handle: RePEc:bjc:journl:v:7:y:2020:i:5:p:257-264
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    References listed on IDEAS

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    1. Hasnah Haron & Dato' Daing Nasir Ibrahim & K. Jeyaraman & Ong Hock Chye, 2010. "Determinants of internal control characteristics influencing voluntary and mandatory disclosures," Managerial Auditing Journal, Emerald Group Publishing Limited, vol. 25(2), pages 140-159, January.
    2. Jin, Justin Yiqiang & Kanagaretnam, Kiridaran & Lobo, Gerald J. & Mathieu, Robert, 2013. "Impact of FDICIA internal controls on bank risk taking," Journal of Banking & Finance, Elsevier, vol. 37(2), pages 614-624.
    3. Faudziah Hanim Fadzil & Hasnah Haron & Muhamad Jantan, 2005. "Internal auditing practices and internal control system," Managerial Auditing Journal, Emerald Group Publishing Limited, vol. 20(8), pages 844-866, October.
    4. Paula Terinte & Mihaela Onofrei & Bogdan Firtescu, 2016. "Internal Audit Implications On Bank Profitability. The Romanian Case," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 790-799, July.
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