FINANCIAL AUDIT AND ORGANISATIONAL EFFECTIVENESS

ABSTRACT

The study evaluated the influence of financial audit on organizational effectiveness of firms in Edo State. Five (5) research questions were raised for the study and all were formulated into hypotheses and tested. Consequently, related literature on the conceptual review, theoretical framework and empirical review of financial audit (financial audit, audit firm size, audit work frequency, audit findings implementations and audit firm experience) and organizational effectiveness was also discussed adequately in chapter two. The survey research design was used for the study. The purposive sampling technique was adopted to select 300 Accounting students in Edo state as at 2023 for the study. The instrument used for the collection of data was a structured questionnaire. The data collected for the research questions were analyzed using descriptive statistical tools such as frequency, percentage and mean while the hypotheses were analyzed using Multiple Regressions and was tested at 0.05 level of significance. Based on the foregoing evidence, it can be concluded that only financial audit and audit firm experience had positive effect on organizational effectiveness in Edo State. Also, a poor relationship was evident between audit firm size, frequency of the audit work and audit findings implementation and organizational effectiveness in Edo State. The stakeholders and experts in auditing can take this advantage of this work to come up with innovative mechanisms and policies or measures to minimize the gaps/weaknesses in financial auditing in order to achieve a much desired organizational effectiveness. Financial audit should be essential for every organisation‘s growth & development and in the attainment of goals and objectives since it can ensure organizational effectiveness not just because it is required by law. It can also help to review the weakness of the organisation.