Malete Journal of Accounting and Finance
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INTERNAL AUDIT PRACTICES AND ORGANIZATION EFFECTIVENESS: INSIGHTS FROM SMES IN KWARA STATE
Full text linkThe tenacious cases of anomalies in corporate organizations, producing at higher cost with consequently lower profit margin especially among small and medium-sized enterprises (SMEs) have raised several questions on the presence of internal audit unit. The study hence investigated how internal audit practice affects the effectiveness of SMEs in Kwara State by assessing how much remuneration and information technology expertise of internal auditors’ impact on efficiency. This research uses a survey research methodology. The heads of internal audit units and senior audit staff of the manufacturing companies within SMEs in Kwara State make up the study\u27s target respondents (920). As of 31st January 2022, the Kwara State Internal Revenue Service (KWIRS) had four hundred and fifty (460) registered SMEs in the manufacturing/agro-allied sector. The statistical procedure developed by Yamane (1967) was used to determine the study\u27s sample size of (279) respondents. To analyse the data, partial least square structural equation modeling (PLS-SEM) was used as an estimation approach. The outcome shows that the remuneration for internal auditors has a favourable and significant impact on the organizational effectiveness of SMEs in Kwara State. Internal auditor use of information technology, however, has a negligible and detrimental impact on the organizational performance of SMEs in Kwara State. To support internal auditors, discourage financial and material irregularities, and ultimately increase organizational performance, this research advises management of SMEs to implement both intrinsic and extrinsic forms of compensation to promote organization effectiveness
MICROFINANCE AND INCOME LEVEL IN NIGERIA
Full text linkIn underdeveloped nations, microfinance has drawn a lot of attention as an effective tool for reducing poverty and promoting economic empowerment as potent stimulators of income level. This is achieved through channelization of credit to the poor and unbanked segment of the economy to help them engage in new productive business activities or to sustain or expand existing ones. This paper examines the relationship between microfinance banks activities and income level in Nigeria, using per capita income (PCI) as the dependent variable, and microfinance banks activities such as loan and advances (LADV), deposit mobilization (TDEP) and other non-banking financial activities (NBFIN) as independent variables. The research adopted quantitative design and employed regression analysis in analysing the effect of microfinance bank activities on income level in Nigeria between 1995 to 2022. The findings were that the activities of microfinance banks account for more than 53% of the variation in per capita income. The paper thus concluded that these institutions make financial markets accessible to individuals and households so they can finance investments and boost their per capita income. It recommends that microfinance banks should seek to mobilize deposits from the underserved demography of the economy to help the economically active but underserved segment of Nigerian society raise their standard of living
CUSTOMER RELATIONSHIP MANAGEMENT TOOLS AND ORGANIZATIONAL PERFORMANCE OF COMMERCIAL BANKS IN SOUTHWEST, NIGERIA
Full text linkThe purpose of the study was to examine the extent at which customer relationship managementtools influence the organizational performance of commercial banks in Southwest, Nigeria. Thestudy was carried out using the descriptive research design of the survey type. The population ofthe study was six hundred and twenty-four (624) respondents which comprised all thezonal/branch, operations, human resources manager and customer care giver of five of each ofthe twenty-six (26) commercial banks in Southwest, Nigeria, (CBN, 2024). The sample of the studyconsisted of three hundred and ninety (390) respondents which was achieved through multistagesampling techniques. The study adopted a questionnaire instrument tagged ‘CustomersRelationship Management Tools and the Organizational Performance of Commercial Banks’(CRMPB). The reliability of the instrument was estimated at 0.80 using Chronbach’s Alphareliability method. The data collected for this study was analyzed using both descriptive andinferential statistics. All hypotheses were tested at 0.05 level of significance. This study revealedthat there is significant relationship between the usage of customer relationship management toolsand the organizational performance of commercial banks operating in Southwest, Nigeria; thereis significant relationship between Hub Spot CRM tools and customer retention rate ofcommercial banks operating in Southwest, Nigeria, and there is significant relationship betweenOracle CX Cloud CRM tools and cross-selling and upselling opportunities in commercial banksoperating in Southwest, Nigeria. Based on the findings of the study, it was recommended thatcommercial bank operators should adopt the usage of CRM tools to enhance their organizationalperformance
AUDIT COMMITTEE’S ATTRIBUTES AND QUALITY OF FINANCIAL REPORTING ON LISTED CONSUMER GOODS FIRMS IN NIGERIA
Full text linkConfidence of the community in general and the investment community in particular in theaccuracy of the Nigerian companies\u27 financial reports has decreased due to the repeateddocumentation of accounting manipulations in financial statements. This has led to businesstakeovers and collapse. The prevalence of takeovers and or collapse has caused significantconcern about how well corporate governance procedures guarantee the preparation anddisclosure of more effective accounting records. Therefore, this study examined the effects of auditcommittees’ attributes on the quality of financial reporting of listed consumer goods firms inNigeria. The data for the study was obtained from the annual reports of the sample of sixteenconsumer goods firms listed for the period 2009 to 2022. The data was analyzed using fixed effectregression analysis after conducting the Hausman test and the Breusch-Pagan test. The studyfound that audit committees independence (ACI), audit committees’ size (ACS), and shareholdersinvolvement in the committees (SIAC) have a considerable tendency to enhance the standard ofpublished financial information of Nigerian consumer goods businesses that are listed. The studyconcluded that the audit committee affects the quality of the financial statements of listed consumergoods companies in Nigeria. To maintain an effective oversight function and foster a positiveenvironment for the legally required audit that promotes a reliable and unbiased perspective ofthe financial information, this study proposed that the governing board of executives guaranteethe nomination of appropriate audit committee members who have adequate financial skills,including shareholders
FORENSIC ACCOUNTING AND PUBLIC PROCUREMENT FRAUD PREVENTION: EVIDENCE FROM OSUN STATE, NIGERIA
Full text linkDespite the existing controls and planning mechanisms put in place by the public sector, instancesof fraud and corruption in public procurement remain prevalent. Forensic accounting with itsfocus on detailed analysis of financial records and transaction provide the necessary precautionthat discloses hidden fraud and ensure fraud prevention. This study investigated the effect offorensic accounting in the prevention of procurement fraud within the Osun State public sector.The population of this study included 300 staffs working in the selected Osun State public sector.The sample size encompassed 150 respondents from Osun State ministries, agencies, and publictertiary institutions. The research utilized a survey design, collecting data through questionnaires.Data analysis methods used included correlation, descriptive statistics, and regression analysis.Results from this finding indicated a significant relationship between forensic accounting andpublic procurement fraud prevention evidenced by t-statistics of (23.727 and 0.000) respectively.The study concludes that forensic accounting greatly influences fraud prevention in Osun Statepublic sector. The study recommends the employment of qualified forensic accountants so as toensure the detection and prevention of public procurement fraud in the Osun State public sector.Additionally, it suggests adopting a robust forensic accounting system to uncover vulnerabilitiesin public procurement fraud prevention and detection
INTERNAL CONTROL SYSTEM AND FINANCIAL REPORTING QUALITY OF LISTED OIL AND GAS COMPANIES IN NIGERIA
Full text linkPoor reporting quality is a destructive issue in the business world while the internal control is perceived as a form of assurance technique to the management and stakeholder. In response to series of abysmal financial reporting from Nigeria’s oil and gas sector, this study appraised the effect of internal control system on financial reporting qualities of the listed oil and gas sectors in Nigeria. A survey research design was employed and primary data were obtained through structured questionnaire distributed to 233 management staff, selected randomly from nine oil and gas firms in Nigeria. The data was subjected to multiple regression analysis and the study revealed that control activities, monitoring activities, control environment, and risk assessment have p-value of 0.000 and beta of 0.33; 0.56; 0.359; -0.323 respectively on the comparability of financial reports in Nigeria’s oil and gas sector. The study concludes that efficient internal controls system enhanced improved financial reporting quality. It was recommended that the management should implement efficient risk assessment system in place to ensure preventions from irregularities and compliance to standards and other regulatory requirements. Also, there should be an effective risk assessment to reduce mismanagement of firm’s assets
TAX PLANNING AND THE TIMELINESS OF FINANCIAL REPORTING IN LISTED MANUFACTURING FIRMS IN NIGERIA
Full text linkThe timeliness of financial reports is a critical aspect of management and reporting, and its connection with tax planning in Nigeria\u27s manufacturing sector seems complex and multifaceted. This study investigates the impact of tax avoidance and tax planning strategies on the timeliness of financial reporting using a sample of 28 manufacturing firms in the Nigeria exchange group for the period 2015 to 2022. The result of the binary logistic (logit) regression analysis consisting of 224 firm-year observations revealed that at 5 % significance level, tax avoidance as measured by book tax difference and effective tax rate does not significantly influence the timeliness or otherwise of financial reporting in Nigeria manufacturing firms. Similarly, capital intensity, a measure of tax planning strategy exerts an insignificant negative effect on the timeliness or otherwise of financial reporting in Nigeria manufacturing firms. However, the study observed that leverage, a measure of tax planning strategy, is a significant determinant of the timeliness of financial reporting in Nigeria manufacturing firms. The study concludes that the delay on timely financial reporting orchestrated by tax planning is not significant enough to cause delays outside the statutory 90-day period. The study recommends that Managers take full advantage of tax avoidance and tax planning within the context of relevant tax laws, as they do not dampen firms’ ability to produce timely financial reports
FINANCIAL INCLUSION AS A PARADOX FOR ECONOMIC GROWTH IN NIGERIA
Full text linkAccess to financial services at affordable rate is one of the major concerns of financial inclusion in both advanced and developing nation around the globe since the subject matter is considered as a key driver for economic growth acceleration. This paper sought to empirically examine how financial inclusion variables (financial deepening, access to finance, saving mobilization and liquidity ratio) contribute to economic growth in Nigeria (2008-2022). Data for the study were collected secondarily from Statistical Bulletins of the Central Bank of Nigeria (C.B.N.) and Federal Office of Statistics (F.O.S.). Specifically, data consisting of economy and bank parametric which include GDP, financial deepening represented by (FD1 and FD2), Total loan and advances of the deposit money banks (LA), Total Deposit of the deposit money banks (TD) and Liquidity ratio (LQR) of deposit money banks spanning about twenty five-year period; 2008 to 2022 were extracted. OLS regression analysis was adopted, and the entire outcomes of the regression analysis indicates a positive relationship exist between the financial inclusion and economic growth in Nigeria given cognizance to the reported coefficients on each of the adopted variables. Therefore, it was recommended that financial regulators should request for comprehensive and adequate policy guidance that will encourage financial inter-mediation across board as this will no doubt foster economy growth
IFRS AND AUDIT QUALITY: A DISCRETIONARY MODEL APPROACH
Full text linkThis study examined the relationship between International Financial Reporting Standards (IFRS) and audit quality in Nigeria. With the growing adoption of IFRS, interest has risen about the efficiency of audits regarding accurate financial reporting. To actualize this, we investigated the impact of IFRS adoption on audit quality and identified challenges and opportunities for improvement. This study focused on companies quoted in the financial services sector of the Nigerian Exchange Group market between 2006 and 2022. A sample of twenty (20) financial institutions comprising of ten (10) banks and ten (10) insurance companies were selected, and data from audited annual reports was subjected to a static panel regression technique. Findings from the estimated regression revealed the existence of a positive connection between IFRS adoption and discretionary accruals based on the Modified Jones Model. Conversely, the regression coefficient revealed a significant negative relationship between the variables of this study when the discretionary expenses were considered. Based on the findings, audit quality has not improved after the adoption of IFRS. Equally, the adoption of IFRS has reduced discretionary expenses significantly. This study recommended among others that regulatory authorities should enforce appropriate application of accounting standard in order to reduce discretionary accruals and avoid manipulation of discretionary expense
CORPORATE GOVERNANCE MECHANISMS, INVESTMENT POLICY AND FINANCIAL SUSTAINABILITY OF PENSION FUND ADMINISTRATORS IN NIGERIA
Full text linkThe pension sector plays a crucial role in ensuring the well-being and financial stability of retirees.Simultaneously, the capacity of pension fund administrators to uphold their financial stability hasemerged as a significant global issue. Consequently, this research scrutinized the factors(specifically, corporate governance mechanisms and investment policy) influencing the financialsustainability of Nigerian pension fund administrators. Primary data was gathered through a selfadministeredquestionnaire following a cross-sectional research design. The study encompassed the19 pension fund administrators in Nigeria, with a purposively selected sample size of 228. Dataanalysis was conducted using the PLS-SEM technique. The results revealed that corporategovernance mechanisms (β = 0.187, t = 1.046, p = 0.154) and investment policy (β=0.367; t=2.598;and p=0.240) exhibit negligible impacts on the financial sustainability of pension fund managers inNigeria at 5% level of significance. Consequently, it can be inferred that corporate governancemechanisms and investment policy do not exert a significant influence on the financial sustainabilityof authorized pension fund administrators in Nigeria. The study recommended that pension fundadministrators in Nigeria should regularly assess and update corporate governance procedures toalign with industry best practices, implement robust oversight mechanisms to ensure transparencyand accountability in decision-making processes, and enhance board training and development toimprove the effectiveness of governance structures; and periodically review the investment policy toadapt to changing market conditions and emerging risks, diversify investment portfolios to spreadrisk and enhance potential returns, and utilize advanced risk management tools to identify andmitigate potential investment risks