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Internal Control Systems and Quality of Financial Reporting in Insurance Industry in Nigeria
Journal of Finance and Accounting
Volume 8, Issue 5, September 2020, Pages: 218-226
Received: Jul. 19, 2020; Accepted: Aug. 17, 2020; Published: Sep. 17, 2020
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Authors
Owolabi Sunday Ajao, Department of Accounting, Babcock University, Ilisan-Remo, Nigeria
Amosun Olayemi Oluwadamilola, Department of Accounting and Finance, Chrisland University, Abeokuta, Nigeria
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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.
Keywords
Internal Control System, Quality of Financial Reporting, Insurance Industry
To cite this article
Owolabi Sunday Ajao, Amosun Olayemi Oluwadamilola, Internal Control Systems and Quality of Financial Reporting in Insurance Industry in Nigeria, Journal of Finance and Accounting. Vol. 8, No. 5, 2020, pp. 218-226. doi: 10.11648/j.jfa.20200805.12
Copyright
Copyright © 2020 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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