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Internal Control Systems and Quality of Financial Reporting in Insurance Industry in Nigeria

Received: 19 July 2020     Accepted: 17 August 2020     Published: 17 September 2020
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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.

Published in Journal of Finance and Accounting (Volume 8, Issue 5)
DOI 10.11648/j.jfa.20200805.12
Page(s) 212-220
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2020. Published by Science Publishing Group

Keywords

Internal Control System, Quality of Financial Reporting, Insurance Industry

References
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Cite This Article
  • APA Style

    Owolabi Sunday Ajao, Amosun Olayemi Oluwadamilola. (2020). Internal Control Systems and Quality of Financial Reporting in Insurance Industry in Nigeria. Journal of Finance and Accounting, 8(5), 212-220. https://doi.org/10.11648/j.jfa.20200805.12

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    ACS Style

    Owolabi Sunday Ajao; Amosun Olayemi Oluwadamilola. Internal Control Systems and Quality of Financial Reporting in Insurance Industry in Nigeria. J. Finance Account. 2020, 8(5), 212-220. doi: 10.11648/j.jfa.20200805.12

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    AMA Style

    Owolabi Sunday Ajao, Amosun Olayemi Oluwadamilola. Internal Control Systems and Quality of Financial Reporting in Insurance Industry in Nigeria. J Finance Account. 2020;8(5):212-220. doi: 10.11648/j.jfa.20200805.12

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  • @article{10.11648/j.jfa.20200805.12,
      author = {Owolabi Sunday Ajao and Amosun Olayemi Oluwadamilola},
      title = {Internal Control Systems and Quality of Financial Reporting in Insurance Industry in Nigeria},
      journal = {Journal of Finance and Accounting},
      volume = {8},
      number = {5},
      pages = {212-220},
      doi = {10.11648/j.jfa.20200805.12},
      url = {https://doi.org/10.11648/j.jfa.20200805.12},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jfa.20200805.12},
      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.},
     year = {2020}
    }
    

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  • TY  - JOUR
    T1  - Internal Control Systems and Quality of Financial Reporting in Insurance Industry in Nigeria
    AU  - Owolabi Sunday Ajao
    AU  - Amosun Olayemi Oluwadamilola
    Y1  - 2020/09/17
    PY  - 2020
    N1  - https://doi.org/10.11648/j.jfa.20200805.12
    DO  - 10.11648/j.jfa.20200805.12
    T2  - Journal of Finance and Accounting
    JF  - Journal of Finance and Accounting
    JO  - Journal of Finance and Accounting
    SP  - 212
    EP  - 220
    PB  - Science Publishing Group
    SN  - 2330-7323
    UR  - https://doi.org/10.11648/j.jfa.20200805.12
    AB  - 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.
    VL  - 8
    IS  - 5
    ER  - 

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Author Information
  • Department of Accounting, Babcock University, Ilisan-Remo, Nigeria

  • Department of Accounting and Finance, Chrisland University, Abeokuta, Nigeria

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