Compliance Audit and Corporate Financial Performance: Banks in Rivers State

Abstract

The paper examined compliance auditing and corporate financial performance. The quasi-experimental research design is adopted for this paper. The respondents were managers drawn from banks operating in Rivers State. The research hypotheses developed in this study were analyzed and tested by the use of the spearman’s rank order correlation. Results indicated that there is a strong and significant relationship between auditing procedures and return on investment; there is a positive and significant relationship between auditing procedures and profitability; there is a strong and positive relationship between auditing rules and return on investment; and there is a significant and positive relationship between auditing rules and profitability. It was concluded that conclude that compliance auditing is a process of conducting audit in line with all the applicable known rules and procedures that gives an audit a high regard in the settlement of corporate governance issues and the enhancement of corporate financial performance of organizations. It was recommended that banks should plan their audit processes in line will all relevant standards and regulations guiding audit processes in order assess their performances; and banks should adopt the use of compliance audit process in order to achieve a comprehensive review of their organization’s adherence to regulatory rules and guidelines for the provision of valid and reliable audit reports for all stakeholders.

Keywords: Compliance Audit, Corporate Financial Performance, Auditing Procedure, Auditing Rules, Return on Investment, Profitability.