Impact of internal control on firmWPS Office.pptx

Impact of internal control factors on firm performance

1. Impact of internal control o n firm p e rformance

2. Background of the Study Internal control, as described by Ndungu (2020) , is a management-implemented system of financial and non-financial safeguards designed to ensure the uninterrupted and effective running of an organization. Protecting the company's assets and keeping track of transactions honestly and accurately are two of internal control's top priorities. Th is element must be present and functioning properly in an internal control system for it to be effective in helping an organization achieve its objectives ( Churchill and Iacobucci, 2018). T his research will narrow in on the control environment, the internal audit, and the control activities that make up internal control systems and the impact they have on the quality of financial reports in the Federal inland Revenue Service, Nigeria and how Liquidity, accountability, and reporting are the primary lenses through which financial performance will be analyzed. The Federal inland Revenue Service (FIRS) is incha rge of tax registration for companies, collation of taxes, revenues and keeping accurate records. The reliability of financial reporting is essential to the efficacy of internal control because it ensures that all transactions and accounting activities are carried out in a proper and lawfully authorized, valid, documented, exhaustive, and timely fashion. In addition, as underlined by D'Aquila, (2018) , it is crucial for businesses to have accurate, condensed accounting information and data disclosure. The qu ality of reporting, however, is typically said to be affected by the internal control procedure.

3. 1.3 Research Question: What impact does internal control procedures have on the quality of financial reports in the Federal Inland Revenue Service of Nigeria ? 1.4 Aim and Objectives of the Research The aim of this study is to analyze the impact of internal control systems on the quality of FIRS's financial reports. The specific objectives of this research are: 1. To assess the impact of control environment on the quality of financial reports at the Federal Inland Revenue Service of Nigeria. 2. To assess the impact of risk assessment on the Federal Inland Revenue Service's standard of financial reporting. 3. To assess the impact of control activities in boosting th e standard of financial reports in Nigeria's Federal Inland Revenue Service. 4. To assess the impacts of good information and communication systems in facilitating financial reporting quality in Federal Inland Revenue Service, Nigeria. 5. To assess the imp act of control monitoring in maintaining the accuracy of financial reporting in FIRS.

4. 1.5 Research Hypothesis The following Hypothesis statements will be researched in this study: Hypothesis 1: The control environment has a significant impact on the f inancial reporting quality at FIRS. Hypothesis 2: Effective risk assessment has a significant impact on the Financial reporting quality at FIRS. Hypothesis 3: Control activities has a significant impact in aiding the enhancement of the quality of financia l reporting in FIRS. Hypothesis 4: Information and communication systems have a significant impact in boosting the quality of Financial Reporting in FIRS. Hypothesis 5: Control monitoring has a significant impact in maintaining the accuracy of financial reporting in FIRS.

5. 1.6 Significance of the Research The results of this research will highlight the impacts of efficiency or loopholes in internal control system and give a pointer to auditors on how to improve the execution of their professional obligations despite the challenges they may experience when carrying out basic auditing procedures. Public agencies in Nigeria charged with monitoring government or public sector activities may utilize the results of this research to guide their own policy making efforts. However, pressure groups, and particularly government employees at the Federal Inland Revenue Service (FIRS), may benefit from a more thorough knowledge of the statutory obligations of different kinds of auditors. Authors whose works may be improved and academics who may be interested in performing similar research in the future stand to greatly benefit from the results of this proposed study.

6. 1.7 Structure of the Dissertation There are five chapters in this project. The Introduction, des cription of the topic, purpose of the research, goals of the study, research questions, significance, and study structure are all included in the first chapter. The reviewed literatures are analyzed theoretically, empirically, and assessed; research gaps a re identified; and a conceptual framework is developed in Chapter 2. Research design, population of interest, sampling strategy, and rationale for sample selection were all laid out in detail in chapter three of the study, which focused on the methods used . The study instrument's validity and reliability were also examined, as were the data collection tools. The chapter also discussed the methods of data analysis that were used and the ethical considerations that were made over the course of the research. T he study findings, presentation, and debate are summarized in Chapter 4. In contrast, the results are summarized, and the study's conclusion and suggestions are presented in Chapter 5.