Journal VOL. 2 NO. 2, September. 2021, ISSN: 2811 - 2628
Internal Auditing and Performance of Insurance Companies in Nigeria
Olasogba Irebami Jesudunsin, Aransiola Solomon
ABSTRACT
Internal auditing is crucial in improving performance and attaining goals of an organisation. However, it seems some insurance companies fail to recognise and implement proper internal audit system, thereby translating into reporting of poor performance in the insurance sub-sector. This study examined the influence of internal auditing on the performance of an insurance organisation in Lagos State. The study employed both descriptive and inferential statistics to determine if internal audit reporting and independence influence performance in Insurance organisations. A quasi-experimental research design was adopted using case-study setting to generate diverse opinions, responses and reactions of 63 respondents on the nature of the correlation between internal audit and performance. A descriptive and inferential statistical tool of mean, standard deviation and regression analysis were used in the analysis of data gathered in the study. The result showed R2= 0.18 (P<0.05) indicating that internal audit reporting (IAR) has about 18% influence on the performance. The study concluded that internal auditing has a significant influence on the performance on that insurance company. Based on the findings from this study, the study recommended that the internal audit department and internal auditor should be given free hands, to allow them carry out their duties properly and independently in order to produce audit reports that will improve performance in the company.
Keywords: Performance, Internal-audit, Reporting, independence, Insurance
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