Contextual Factors’ Moderating Effect on Internal Audit Function and Business Performance Relationship in Quoted Manufacturing Companies in Nigeria (Published)
The paper focused on the moderating effect of corporate culture, size and technology on the relationship between Internal Audit function and Business Performance. Thirty-two (32) quoted manufacturing companies constituted the study sample. Data collection was done by means of questionnaire. Pearson’s partial correlations, aided by the statistical package for social sciences was adopted for the analysis of data. It was found that corporate culture and organizational technology positively moderates the influence of internal audit function on business performance whereas, regarding organizational size it was found that it does not influence the relationship between internal audit function and business performance. In conclusion, the more manufacturing firms’ culture place increasing value on accountability, the more their internal audit function positively influence business performance. Also, the more sophisticated and audit oriented the manufacturing firms’ technology tends to be the more internal audit function tends to positively impact on business performance. It was recommended that firms should encourage corporate values to guide employee behaviour on issues of accountability and transparency and manufacturing companies should procure modern technological infrastructure that enhances audit function and tracking of intended and unintended derivations’ and wrong usage and misrepresentations in business operations.
Keywords: Business Performance, Corporate culture, Technology, internal audit function, organizational size