Abstract
In recent years many organizations have realized the importance of the role of directors, audit committee, internal auditors and external auditors in preparing and presenting quality financial reports to all stakeholders. In Nigeria, the performance and the quality of financial reports of companies in the insurance industry is dependent on the efficiency and effectiveness of the internal control system. This paper studied the impact of internal control systems and the quality of financial reporting in insurance industry in Nigeria. The research employed a survey research design. The study administered 100 questionnaires randomly to respondents, 98 questionnaires were returned and analysed. The data collected were analysed using descriptive and inferential statistics. The research hypothesis were analysed using regression analysis using Statistical Product and Service Solutions (SPSS 26). The results of the findings revealed that control environment, risk assessment, control activities, information and communication and monitoring has a statistical significant positive effect on quality of financial reporting of insurance industry in Nigeria. The study concluded that effective and efficient internal control system can affect the quality of financial reports of insurance industry in Nigeria.
Highlights
The role of the board of directors, audit committees, management and internal and external auditors in financial reporting cannot be over emphasized
The study measured the effect of control environment, risk assessment, control activities, information and communication and monitoring on the quality of financial reports of insurance industry in Nigeria
The results of the findings show that control environment, risk assessment, control activities, information and communication and monitoring have statistical significant impact on the quality of financial reporting of insurance industry in Nigeria
Summary
The role of the board of directors, audit committees, management and internal and external auditors in financial reporting cannot be over emphasized. In order to achieve these goals, supervision plays an important role in very organization Scandals such as the Waste Management 1998, Enron 2001, WorldCom 2002, AIG 2005, Cadbury Nigeria 2006 and BHS 2016 to mention a few have revealed situations where companies are engaging in unethical practices by omitting vital information or doctoring the financial information to cover up fraudulent activities that have occurred. These scandals have damaged investors’ confidence on capital market. These scandals have triggered tighter regulations and enhanced standards for accounting, auditing and corporate governance globally
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