AUDIT FUNCTION AND ORGANISATIONAL PERFORMANCE IN NIGERIA

ABSTRACT This study examined the audit Function and organizational performance in Nigeria, using two commercial banks and two supermarkets in Owerri, Imo State, Nigeria, as case studies. The objectives were to assess the effect of internal control on business profitability, evaluate the impact of internal control on decision-making, determine the influence of compliance with policies and procedures on profitability, and examine the effect of compliance on decision-making. The research adopted a descriptive survey design, with data collected from 150 respondents through structured questionnaires. Data were analyzed using descriptive statistics (frequencies, means, and standard deviations) and Analysis of Variance (ANOVA) to test the hypotheses at a 5% significance level. The results revealed that internal control significantly influences business profitability (p = 0.006), quality internal control significantly impacts decision-making (p = 0.010), compliance with policies and procedures significantly affects profitability (p = 0.027), and compliance also significantly influences decision-making (p = 0.003). The study concludes that auditing is not merely a compliance exercise but a critical management tool that enhances profitability, decision- making, operational efficiency, and stakeholder trust. It recommends strengthening internal control systems, ensuring auditor independence, embedding a compliance culture, leveraging audit reports for strategic decisions, and extending rigorous auditing practices to all sectors, including retail. The study contributes to the literature by providing sector-diverse evidence on the role of auditing in organizational performance within the Nigerian context.