Effect of Internal Control Systems on Financial Reporting of Corporate Organizations in Nigeria

Abstract

The purpose of this study is to establish the relationship that exists between internal control activities and the financial reporting of corporate organizations in Nigeria. The literature review is based on agency theory and stakeholder theory. An exploratory research design was carried out. The study used the secondary method of data collection basically sourced from journals, the internet, and other relevant publication. The study had the following research questions: is there any relationship between internal control and quality report? does board size have any significant impact on financial reporting, and if there is a significant difference between internal control and financial reporting? The study shows that there is a significant relationship between internal control and quality financial reporting. The study recommends that more studies of internal control be undertaken as this will have an impact on financial reporting. The investigation recommends proper checks and balances in all financial transactions. There should be an effective and efficient security network to reduce frequent theft, a threat to life and property. The study also recommends that the management of every corporate organization should organize regular training for staff on the control mechanism.