INTERNAL CONTROL SYSTEMS AND FINANCIAL REPORTING QUALITY OF NIGERIAN DEPOSIT MONEY BANKS (DMBs)

Öz

The increasing complications of banking businesses and the growing prevalence of fraudulent activities have heightened concerns regarding the quality and reliability of financial reporting within Nigerian Deposit Money Banks (DMBs). In light of these concerns, this study investigated the influence of Internal Control Systems (ICSs) on the Financial Reporting Quality (FRQ) of DMBs. The survey research design and purposive sampling technique were employed. The study population comprised internal auditors, risk managers, compliance officers, accounting officers, and accountants from DMBs in the Ogun East senatorial district. One hundred and twenty-eight (128) valid responses were used for the analysis via SPSS at a 5 percent significance level. The result revealed that control environment (β = 0.583; t = 8.058); risk assessment (β = 0.636; t = 9.241); control activities (β = 0.590; t = 8.208); monitoring (β = 0.579; t = 7.978); and information and communication (β = 0.617; t = 8.802) have significant positive effects on the FRQ of Nigerian DMBs. The study concluded that ICSs are good practices for improving the FRQ of Nigerian DMBs. Effective ICSs are therefore recommended for Nigerian DMBs.

Anahtar Kelimeler

• Internal control systems
• financial reporting quality
• Nigerian DMBs

Kaynakça

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