INTERNAL AUDIT FUNCTIONS AND PROFITABILITY OF DEPOSIT MONEY BANKS IN BENIN-CITY EDO STATE

Abstract

This research is aimed to examine the effect of internal audit functions on the profitability deposit money banks in Edo State. Specifically, it examined the impact of internal auditors' roles in risk management, compliance with internal controls and asset safeguarding on the profitability of these banks. A survey research design was employed, collecting data from staff members of deposit money banks in Benin City. Responses were obtained from 334 participants, and regression method were used to do the data analysis and ANOVA to test the hypotheses. The findings indicated that the role of internal auditors in risk management had a positive and high impact on the profitability of d banks that accept deposits in Nigeria. Additionally, the enforcement of internal control compliance and the application of auditing standards by internal auditors were found to significantly influence bank profitability in Edo State. From the results result generated, it is recommended that banks should employ internal auditors who report directly to the managing director and effectively carry out their assigned roles. This approach would help mitigate various losses and enhance the banks' profitability