CONTRIBUTION OF ENTERPRISE RISK MANAGEMENT AND INTERNAL AUDIT FUNCTION TOWARDS QUALITY OF FINANCIAL REPORTING IN UNIVERSITIES IN A DEVELOPING COUNTRY

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Newman Wadesango, Charity Mhaka, Ongayi Vongayi Wadesango ORCID logo

https://doi.org/10.22495/rgcv7i2c1p5

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Abstract

Quality of financial reporting is limited to issues of compliance to statutory provisions under which state enterprises in Zimbabwe operate, usefulness of the reports produced and their impact on the national fiscus. It is thus measured by way of compliance to these expectations and is indicated by way of a disclosure index signifying the presence of each of the expected aspects. This study therefore sought to establish the contribution of enterprise risk management and internal audit function towards the quality of financial reporting in universities in Zimbabwe. The study adopted a desktop analysis where relevant literature was reviewed. Quality of internal audit function was found to influence quality of financial reporting in that the strength, or quality, of the IAF will contribute to a distinctly different control environment depending on the strength of the good corporate governance in the university. Findings of this desktop research have undoubtedly revealed the gaps in the governance processes in state universities and it is envisaged that a careful analysis of these lacunas will provide a guide in the development of strategies and policy that strengthen state enterprise governance processes. It is hoped that this will help the parent ministry in charge of state enterprises, and, the relevant management of specific state enterprises to determine the magnitude of resources and efforts for implementation of efficient and effective enterprise risk management, internal audit function and corporate governance systems.

Keywords: Corporate Governance, Internal Audit, Enterprise Risk Management, Financial Management

Received: 21.09.2016
Accepted: 23.03.2017

How to cite this paper: Wadesango, N., Mhaka, C., & Wadesango, V. O.
(2017). Contribution of enterprise risk management and internal audit function towards quality of financial reporting in universities in a developing country. Risk governance & control: financial markets & institutions, 7(2-1), 170-176. https://doi.org/10.22495/rgcv7i2c1p5