Corporate governance, internal audit quality and financial reporting quality of financial institutions: a case of tamale metropolis

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Date
2023
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KNUST
Abstract
Governance of a company may serve as a mechanism for safeguarding the financial interests of shareholders, fostering an atmosphere of predictability, and making a positive contribution to the expansion of an entity. In addition, the planning and execution of an adequate structure within corporate governance bring a reduction in the cost of agency, which is the direct outcome of the agent-principal dilemma. It is against this background that the current study fixated its main objective on how corporate governance mechanisms and internal auditing quality influence financial reporting quality among financial institutions in the Tamale Metropolis. Using financial institutions (credit unions, microfinance institutions, and rural banks) in the Tamale Metropolis, the study found that board role performance, board expertise, and internal auditing quality have a significant positive effect on financial reporting quality. However, the study discovered that board independence has no relationship with financial reporting quality. Based on the findings, the study recommended that special attention have to be paid to the corporate governance processes such as board role performance and expertise. This may be accomplished if the organisation hires people who have experience analysing financial accounts and are already in charge of board committees at other companies. Moreover, the internal auditing team found at all financial institutions ought to have previous experience working in an accounting firm, possess a professional certificate in accounting, and participate in training programmes.
Description
A thesis submitted to the department of accounting and finance, kwame nkrumah university of science and technology, in partial fulfilment of the requirements for the award of master of science (accounting & finance)
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