Impact of Audit Trails on the Financial Audit of Nigerian Banking Sector

Abstract

Every human endeavour attracts foot-prints in the sands of time. These foot-prints can be positive or negative, beneficial or detrimental in the nearest future. This is synonymous with the workings of audit trails. This study examines the impact of Audit Trails on the Financial Audit of Banking Sector. A causal research design was adopted with reliance on primary and secondary data obtained from published and unpublished literatures to explain the relationships between the variables. A simple random sampling technique was used in the selection of Audit Firms of twenty (23) Commercial Banks in Nigeria to confirm the veracity of the subject. Data collected were analyzed by descriptive statistics and presented through frequency distributions and percentages using the Likert scale. The chi-square contingency procedure was used to test the hypothesis. The findings revealed that Audit Trails have significant positive impact on the financial audit of the banking sector. It further reveals that Audit Trails of the Financial Audit of Banking Sector has impact on fraud detection; disaster recovery; assist in the recovery of lost transactions and have impact on regulatory compliance. The study affirms that Audit Trails are not only used as tools in determining the validity of an accounting entry, source of funds or trade, but protect businesses from liability during legal battles, help monitor data for security breaches, ensures that proper protocols are followed and demonstrate compliance.