The Effect of Corporate Governance on Financial Reporting Quality in Financial Institutions: The Role of Internal Audit Quality

Abstract

The issue of corporate governance cannot be neglected in the running of business. The main objective of the study was to investigate effect of corporate governance on financial reporting quality and internal audit quality. The study employed quantitative survey design and data collected from 200 respondents but 140 was good for the analysis. It was found that two constructs of corporate governance (expertise and role performance) of the board had significant positive effect on internal audit quality, whilst internal audit quality also had a significant positive influence on financial reporting quality. Future research were advised to replicate the same study in other countries.