Enhancing Operational Efficiency and Financial Performance Through Internal Audit: A Case Study of BLESSING Finance
Journal Title: Journal of Accounting, Finance and Auditing Studies - Year 2024, Vol 10, Issue 3
Abstract
Internal audits serve as critical assurance services that support the enhancement of operational efficiency and financial performance within organizations. This study examines the role of internal auditing in improving these aspects in privatised financial institutions, specifically focusing on BLESSING Finance. Given the profit-driven orientation of management in such institutions, there is a pressing need to identify strategies that maximize profitability. Enhancing operational efficiency is pivotal, as it reduces operational costs while increasing productivity. Internal auditing contributes significantly by identifying deficiencies within internal controls and providing audit opinions that inform management in drafting appropriate policies and procedures. This research utilized a mixed-methods approach, combining qualitative data from interviews and quantitative data from questionnaires, to assess the impact of internal auditing on operational efficiency and financial performance. The findings demonstrate that internal audits have a positive and significant effect on both operational efficiency and financial performance, highlighting the value of internal audits as a strategic tool for financial institutions. It is recommended that BLESSING Finance’s management prioritize the recruitment of qualified auditors with the necessary skills and expertise to perform audits effectively and efficiently, thereby further enhancing the institution’s operational efficiency and financial outcomes. The study underscores the importance of robust internal audit functions as a key driver of strategic and financial success in financial institutions.
Authors and Affiliations
Newman Wadesango, Gildard Muwishi
Keywords
Related Articles
- EP ID EP752393
- DOI https://doi.org/10.56578/jafas100304
- Views 25
- Downloads 0
Industry and Regional Spillover Effects of Penalties for Disclosure Noncompliance among Public Firms
This study investigates the industry-wide and regional spillover effects of penalties for noncompliance with information disclosure regulations, focusing on publicly listed firms in China. The analysis is based on panel...
Impact of Corporate Governance and Financial Leverage on the Valuation of Vietnamese Listed Companies
This study investigates the effects of corporate governance (CG) and financial leverage (FL) on the valuation of firms listed in Vietnam. An analysis was conducted on a sample set containing 325 companies from the Ha Noi...
Enhancing Board Effectiveness in Maltese Public Sector Entities: An Analytical Study
This study critically evaluates Board Effectiveness (BE) within Maltese Public Sector Entities (MPSEs), with a focus on five key aspects: board selection and appointment, board role, board composition, board remuneration...
The Influence of Current Ratio and Net Profit Margin on Profit Growth in the Automotive Industry: An Empirical Study from 2018 to 2022
To maintain competitiveness and ensure long-term sustainability in the automotive sector, understanding the determinants of profit growth is crucial. This study empirically examines the impact of the Current Ratio (CR) a...
Enhancing Operational Efficiency and Financial Performance Through Internal Audit: A Case Study of BLESSING Finance
Internal audits serve as critical assurance services that support the enhancement of operational efficiency and financial performance within organizations. This study examines the role of internal auditing in improving t...