The Role of Internal Audit in Enhancing Corporate Governance Practices in the Nigerian Manufacturing Sector

Abstract

Corporate governance is a crucial aspect of any organization, especially in the Nigerian manufacturing sector. Effective corporate governance practices are essential for promoting transparency, accountability, and sustainable business growth. Internal audit plays a significant role in ensuring that these practices are adhered to and maintained. This conceptual paper aims to explore the role of internal audit in enhancing corporate governance practices in the Nigerian manufacturing sector through review of scholarly literature. The article revealed that internal audit plays a vital role in enhancing corporate governance practices in the Nigerian manufacturing sector. The internal audit function provides independent and objective assurance to the board and management that the organization's systems and processes are operating effectively, efficiently, and ethically. The paper also highlighted the challenges faced by internal auditors in Nigeria, including inadequate resources, lack of awareness about the internal audit function, and the perception that internal audit is only focused on financial reporting. The study recommends that the internal audit function should be adequately resourced, and internal auditors should receive continuous professional development training to keep up with emerging trends and best practices in corporate governance. Overall, this study provides valuable insights into the crucial role of internal audit in enhancing corporate governance practices in the Nigerian manufacturing sector. The study's findings can guide organizations in improving their corporate governance practices by leveraging the internal audit function's strengths to enhance transparency, accountability, and sustainable business growth.

Keywords: internal audit, corporate governance, Nigerian manufacturing sector, sustainable business growth

DOI: 10.7176/RJFA/14-10-04

Publication date:May 31^st 2023