Abstract
Abstract: This study examined the effects of information technology on internal audit in Southwest Nigeria Universities. Primary data were employed and questionnaires were distributed to the selected Universities. Out of 180 questionnaires, 152 questionnaires were filled and returned by the respondents. The study employed factor analysis and binary logit regression analysis as estimation techniques. The findings from factor analysis showed that Kaiser-Meyer-Olkin and Bartlett’s tests value was 0.786(78.6%) implying that the variables have a 78.6% variation in the data. The value of components variance revealed 62.750 on component 4 indicating that at component 4 there was 62.8% factor variation in the data. Nonetheless, the logit regression equation revealed that fraud discovery of IT (FD) has a positive and insignificant effect on internal audit. Also, IT effectiveness (ITE) revealed that ITE has a negative and significant effect on internal audit. Equally, asset recovery (AR) exhibited a negative and insignificant effect on internal audit. Furthermore, the external audit (EA) has a positive and insignificant effect on internal audit. This study concluded that a significant relationship exists between information technology and internal audit in Southwest Universities. It was recommended that Universities in Southwest should promote and encourage information technology in the internal audit department and also encourage the external users.
Highlights
Information technology has been globally embraced in all sector of the economy where Universities are not left out and its importance cannot be belittled
The study concluded that a significant relationship exists between information technology and internal audit in Southwest Universities
It was further concluded that the fraud discovery of IT has a positive and insignificant effect on internal audit implying that internal audit has not been using IT as a means of fraud discovery in the University
Summary
Information technology has been globally embraced in all sector of the economy where Universities are not left out and its importance cannot be belittled. Solomon and Trotman, (2003) are of the view that the impact of information technology has grown exponentially in recent years and it has changed the audit process which has resulted in opportunities and challenges for auditors. As IT changes occur more quickly, auditors must keep pace with emerging technological changes and their impact on their organisation’s data processing system, as well as their own audit procedures (Rezaee and Reinstein, 1998). The introduction of e-payment and e-transact through information technology in the university has encouraged, internal auditors to be familiar with IT procedures. Internal auditors are saddled with the responsibility to safeguarding and to monitoring all the activities in the university, and most of all the activities are computerized using information technology such as students’ admission letter, course registration, school fees payment, result checking and some other things. The fast changes in the growth of IT require auditors, both internal and external to face a greater challenge in carrying out their duties in the computerized environment
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