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Sustainability Assurance in the Banking Sub- Sector. Perspectives from the Internal Audit Function

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  • Dr. Joshua O. Ohioma

    (Chief Audit Executive, Development Bank of Nigeria PLC)

Abstract

Internal assurance of sustainability is desirable as a complement to external assurances by third party providers. Internal Audit Function (IAF) mostly perform this function in line with their independent assurance services to the Board and Management. Though evidence of IAF’s growing involvement in sustainability exists, there is limited comprehension about the variables influencing this involvement. This study investigates these variables from the perspectives of Chief Audit Executives of banks in Nigeria, using a combination of parametric and non-parametric methods to explore and quantify the relationship between the variables of interest. Data was collected through Likert-Scale survey questionnaires and analysis of the survey responses which were mainly quantitative data and firm characteristics of the banks was performed using Statistical Package for the Social Sciences (SPSS 25.0) and tested using the Linear Regression model and Spearman Correlation tests. The study found that board and management commitment to sustainability and requisite technical skills amongst others significantly influences internal sustainability assurance. In terms of firm characteristics of the banks, the study did not find substantial evidence of significant positive relationship between the age of a bank and sustainability practices & assurance, while the study did not find any evidence that the size of a bank influences its sustainability practices & assurance. The study further note that the IAF have a high perception of the credibility and business significance of sustainability practices and reporting while also advocating various internal and external initiatives inclusive of issuance of mandatory guidelines on sustainability practices, reporting and assurance amongst others by the financial regulators to ensure and enhance performance of this function by the IAF.

Suggested Citation

  • Dr. Joshua O. Ohioma, 2024. "Sustainability Assurance in the Banking Sub- Sector. Perspectives from the Internal Audit Function," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(11), pages 2151-2174, November.
    • Handle: RePEc:bcp:journl:v:8:y:2024:i:11:p:2151-2174
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    References listed on IDEAS

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