Co esponding au ho : Sanusi Adebisi Ridwan
Copy igh © 2025 Au ho (s) e ain he copy igh o his a icle. This a icle is published unde he e ms o he C ea i e Commons A ibu ion License 4.0.
F aud isk managemen and o ganiza ional esilience: An empi ical analysis
con olling o o ganiza ional cul u e
Sanusi A. R 1, , Sanusi I. 2, Yinusa S.1 and Abugh I. 1
1 Pos g adua e Resea che , Ins i u e o Go e nance and De elopmen S udies, Nasa awa S a e Uni e si y, Ke i, Nasa awa
S a e, Nige ia.
2 Pos g adua e Resea che , Depa men o S a is ics, Uni e si y o Ibadan, Ibadan, Oyo S a e, Nige ia.
Wo ld Jou nal o Ad anced Resea ch and Re iews, 2025, 26(02), 2446-2458
Publica ion his o y: Recei ed on 21 Ma ch 2025; e ised on 09 May 2025; accep ed on 11 May 2025
A icle DOI: h ps://doi.o g/10.30574/wja .2025.26.2.1512
Abs ac
F aud isk managemen emains a c i ical conce n o inancial ins i u ions, as audulen ac i i ies h ea en
o ganiza ional esilience and sus ainabili y. This s udy examines he impac o aud isk managemen echniques— isk
assessmen p ac ices, in e nal con ols and con inuous moni o ing, aud in es iga ion and esponse s a egies, and
egula o y compliance and legal amewo ks—on o ganiza ional esilience inco po a ing o ganiza ional cul u e as
con ol a iable in s eng hening his ela ionship. A quan i a i e esea ch app oach was employed, u ilizing a
s uc u ed ques ionnai e o collec da a om employees in he in e nal audi , compliance, o ensic, and isk
managemen depa men s o San a mic o- inance bank, Nige ia Limi ed. The s udy adop ed Yamane’s o mula o
de e mine he sample size and s a i ied andom sampling o ensu e adequa e ep esen a ion. O dina y Leas Squa es
(OLS) eg ession analysis was conduc ed h ough mul iple linea eg ession o es he hypo heses. The eliabili y and
alidi y o he esea ch ins umen we e con i med h ough C onbach’s alpha and expe e iews. Model diagnos ics,
including collinea i y s a is ics and Du bin-Wa son es s, con i med he eliabili y o he eg ession model. The indings
e eal ha all ou aud isk managemen echniques ha e a signi ican posi i e e ec on o ganiza ional esilience.
Addi ionally, he con ol a iable (o ganiza ional cul u e) also signi ican ly in luences o ganiza ional esilience,
indica ing ha a s ong e hical cul u e enhances aud isk managemen e ec i eness. The model explains a subs an ial
a iance in o ganiza ional esilience, u he con i ming he impo ance o hese a iables. The e o e, he s udy
ecommend ha inancial ins i u ions should enhance hei aud isk managemen s a egies, s eng hen in e nal
con ols, and cul i a e a obus o ganiza ional cul u e ha p omo es e hical beha io . Policymake s should implemen
s ic e egula o y amewo ks o ensu e compliance and accoun abili y.
Keywo ds: Risk Assessmen P ac ices; In e nal Con ols and Con inuous Moni o ing; F aud In es iga ion and
Response S a egies; Regula o y Compliance and Legal F amewo k; O ganiza ional Resilience
1. In oduc ion
F aud poses a signi ican h ea o businesses wo ldwide, unde mining inancial s abili y, o ganiza ional in eg i y, and
s akeholde us . The inc easing complexi y o inancial ansac ions, globaliza ion, and echnological ad ancemen s
has in ensi ied he isk o audulen ac i i ies wi hin o ganiza ions (Duke II & Kankpang, 2013). E ec i e aud isk
managemen (FRM) s a egies a e he e o e essen ial o mi iga ing hese isks and s eng hening o ganiza ional
esilience. O ganiza ional esilience, in his con ex , e e s o he abili y o an en i y o an icipa e, p epa e o , espond
o, and adap o unexpec ed aud- ela ed challenges while main aining ope a ional con inui y (Salawu e al., 2022). In
he Nige ian business en i onmen , he in e play be ween FRM p ac ices and o ganiza ional cul u e is c i ical. A obus
o ganiza ional cul u e, cha ac e ized by sha ed e hical alues, anspa ency, and accoun abili y, signi ican ly in luences
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he implemen a ion and e ec i eness o FRM s a egies. O ganiza ions ha embed s ong e hical no ms wi hin hei
ope a ional amewo ks end o exhibi highe le els o aud p e en ion and de ec ion, ul ima ely enhancing esilience
(Mba ha, 2023)
Risk assessmen p ac ices a e ounda ional o FRM, in ol ing he iden i ica ion and e alua ion o po en ial aud isks
be o e hey escala e. O ganiza ions ha conduc comp ehensi e isk assessmen s a e be e posi ioned o de elop
p oac i e s a egies, he eby enhancing hei esilience (Salawu e al., 2022). Howe e , he e ec i eness o isk
assessmen s is con ingen upon an o ganiza ional cul u e ha p omo es anspa ency and accoun abili y. When
employees and managemen sha e e hical alues, hey a e mo e likely o suppo aud p e en ion e o s,
s eng hening he company's abili y o wi hs and audulen h ea s (Mba ha & Moosa, 2024). In e nal con ols and
con inuous moni o ing a e c i ical componen s o FRM, se ing o de ec i egula i ies ea ly and p e en po en ial
losses. S udies indica e ha o ganiza ions wi h s ong in e nal con ol mechanisms demons a e highe le els o
esilience, as hey can quickly adap o aud- ela ed dis up ions (Duke II & Kankpang, 2013). None heless, he
e ec i eness o in e nal con ols is in luenced by he o ganiza ion’s cul u al no ms, pa icula ly in os e ing a
compliance-d i en en i onmen . Employees in o ganiza ions wi h a weak e hical cul u e may bypass in e nal con ols,
unde mining esilience e o s (Kuma e al., 2018).
F aud in es iga ion and esponse s a egies a e essen ial o enhancing o ganiza ional esilience, ensu ing ha
audulen inciden s a e p omp ly add essed and mi iga ed. A company’s esponse o aud inciden s o en de e mines
i s abili y o eco e and adap . Resea ch has shown ha o ganiza ions wi h s ong in es iga i e amewo ks expe ience
ewe dis up ions and inancial losses compa ed o hose wi hou s uc u ed aud esponse mechanisms (Mba ha,
2023). Howe e , o ganiza ional cul u e plays an impo an ole by in luencing how employees pe cei e and eac o
aud in es iga ions. A cul u e ha encou ages whis leblowing and anspa ency enhances he e ec i eness o aud
esponse s a egies (Kuma e al., 2018). Regula o y compliance and e hical leade ship u he shape FRM and
esilience by ensu ing adhe ence o indus y s anda ds and go e nance s uc u es. O ganiza ions ha in eg a e e hical
leade ship in o hei go e nance amewo ks os e a cul u e o in eg i y, educing he likelihood o aud occu ences.
In con as , companies wi h weak e hical leade ship and poo compliance s uc u es a e mo e suscep ible o aud isks
and s uggle wi h esilience (Salawu e al., 2022). Consequen ly, o ganiza ional cul u e se es as a c ucial media o in
de e mining he success o FRM ini ia i es and hei impac on o ganiza ional esilience (Mba ha & Moosa, 2024).
1.1. S a emen o P oblem
F aud emains a signi ican challenge o businesses in Nige ia, h ea ening inancial s abili y, ope a ional con inui y,
and s akeholde con idence. Despi e he implemen a ion o aud isk managemen (FRM) s a egies—such as isk
assessmen , in e nal con ols, and egula o y compliance—many o ganiza ions con inue o expe ience inancial losses
and epu a ional damage due o audulen ac i i ies (Mba ha & Moosa, 2024). One c i ical ac o in luencing he
e ec i eness o FRM is o ganiza ional cul u e, as companies wi h weak e hical amewo ks o en s uggle o en o ce
an i- aud policies and encou age whis leblowing (Kuma e al., 2018). While s udies ha e explo ed he di ec
ela ionship be ween FRM and o ganiza ional esilience, he ole o o ganiza ional cul u e in his ela ionship emains
unde examined in he Nige ian con ex . Gi en he inc easing complexi y o aud schemes and egula o y en o cemen
challenges, he e is an u gen need o in es iga e how o ganiza ional cul u e shapes aud p e en ion e o s and
enhances esilience in Osan a Mic o- inance bank, Nige ia Limi ed.
1.2. Resea ch Gap
P e ious s udy (such as Duke II & Kankpang, 2013; Salawu e al., 2022) on aud isk managemen (FRM) has p ima ily
ocused on in e nal con ols, isk assessmen s, and egula o y compliance, wi h limi ed emphasis on he ole o
o ganiza ional cul u e in shaping aud p e en ion ou comes. While s udies ha e highligh ed he impo ance o e hical
leade ship and anspa ency, ew ha e explo ed how hese cul u al elemen s di ec ly impac aud esilience,
pa icula ly in he Nige ian business landscape. Fu he mo e, mos exis ing li e a u e is cen e ed on de eloped
economies, lea ing a gap in unde s anding how egula o y amewo ks, en o cemen mechanisms, and o ganiza ional
cul u e in luence FRM in Osan a mic o- inance bank, Nige ia Limi ed. Add essing his gap is essen ial o de eloping
ailo ed aud p e en ion s a egies ha align wi h he unique socio-economic and egula o y dynamics o Nige ian
businesses.
1.3. Scope o he S udy
This s udy examines aud isk managemen (FRM) p ac ices and hei impac on o ganiza ional esilience in Osan a
Mic o- inance Bank, Igboho, Oyo s a e. The esea ch ocuses on Osan a Mic o- inance Bank, Nige ia Limi ed o p o ide
a comp ehensi e analysis o aud p e en ion s a egies. The s udy popula ion consis s o key s akeholde s such as isk
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managemen o ice s, in e nal audi o s, compliance pe sonnel, and o ensic expe who play c ucial oles in aud
de ec ion and mi iga ion.
1.4. Concep ual Re iew
1.4.1. Risk Assessmen and P oac i e F aud P e en ion
Risk assessmen is a co ne s one o e ec i e FRM, in ol ing he iden i ica ion, e alua ion, and p io i iza ion o po en ial
aud isks be o e hey escala e in o inancial losses o epu a ional damage. O ganiza ions ha conduc comp ehensi e
isk assessmen s a e be e posi ioned o de elop p oac i e s a egies, he eby enhancing hei esilience (Salawu e al.,
2022). S udies sugges ha s uc u ed aud isk assessmen s help o ganiza ions an icipa e eme ging aud h ea s,
alloca e esou ces e ec i ely, and es ablish p e en i e mechanisms (Chen e al., 2021).
Howe e , he e ec i eness o isk assessmen is la gely dependen on an o ganiza ional cul u e ha p omo es e hical
decision-making and encou ages employees o pa icipa e in aud de ec ion e o s. Employees who pe cei e hei
o ganiza ion as os e ing an e hical clima e a e mo e likely o epo audulen ac i i ies, he eby ein o cing he
e ec i eness o isk managemen amewo ks (Mba ha & Moosa, 2024). Con e sely, in o ganiza ions whe e e hical
leade ship is weak, employees may hesi a e o epo audulen ac i i ies due o ea o e alia ion o o ganiza ional
indi e ence (Kuma e al., 2018).
1.4.2. In e nal Con ols and Con inuous Moni o ing
In e nal con ols se e as a c i ical componen o FRM, ensu ing ha inancial p ocesses a e sa egua ded agains
audulen manipula ion. These con ols include seg ega ion o du ies, access es ic ions, eal- ime inancial
moni o ing, and au oma ed aud de ec ion sys ems. Acco ding o Duke II & Kankpang (2013), o ganiza ions wi h
obus in e nal con ol sys ems exhibi highe le els o esilience, as hey can de ec anomalies ea ly and espond
e ec i ely o aud h ea s.
Con inuous moni o ing u he enhances aud isk mi iga ion by u ilizing da a analy ics and a i icial in elligence o
iden i y suspicious inancial ansac ions. Recen s udies ha e highligh ed ha o ganiza ions implemen ing AI-d i en
aud de ec ion sys ems expe ience a 40% educ ion in aud- ela ed inancial losses compa ed o hose elying solely
on adi ional in e nal con ols (Todo o ić e al., 2022). Howe e , he success o hese measu es depends on
o ganiza ional cul u e—companies wi h a weak e hical clima e may encoun e employee esis ance o moni o ing
mechanisms, which can unde mine aud p e en ion e o s (Kuma e al., 2018).
1.4.3. F aud In es iga ion and Response Mechanisms
F aud in es iga ion and esponse s a egies a e in eg al o enhancing o ganiza ional esilience, ensu ing ha audulen
inciden s a e p omp ly add essed and mi iga ed. An o ganiza ion’s abili y o in es iga e and espond o aud
de e mines i s long- e m sus ainabili y and inancial heal h (Mba ha, 2023). Resea ch has shown ha companies wi h
s uc u ed aud in es iga ion amewo ks expe ience ewe dis up ions and inancial losses han hose wi h weak
in es iga i e capabili ies (Wells, 2020).
A well-de ined aud esponse mechanism includes he es ablishmen o whis leblowing policies, independen aud
in es iga ion commi ees, and collabo a ion wi h egula o y bodies. Companies ha os e a cul u e o anspa ency
and accoun abili y a e mo e likely o encou age whis leblowe s, he eby s eng hening hei aud de ec ion and
esponse mechanisms (Kuma e al., 2018). Mo eo e , o ganiza ions ha in eg a e o ensic accoun ing echniques in o
hei aud in es iga ions a e be e equipped o ace and eco e misapp op ia ed unds (Owolabi & Oluwada e,
2021).
1.4.4. Regula o y Compliance and E hical Leade ship
Regula o y compliance and e hical leade ship play a c ucial ole in shaping FRM e ec i eness and o ganiza ional
esilience. Compliance wi h egula o y equi emen s ensu es ha o ganiza ions adhe e o indus y s anda ds, educing
exposu e o aud isks (Salawu e al., 2022). E hical leade ship, on he o he hand, os e s a co po a e cul u e ha
p io i izes in eg i y, accoun abili y, and e hical business p ac ices. Leade s who model e hical beha io se a p eceden
o employees, he eby minimizing he likelihood o audulen ac i i ies wi hin he o ganiza ion (Mba ha & Moosa,
2024).
Howe e , weak egula o y en o cemen in Nige ia has been iden i ied as a challenge o e ec i e aud p e en ion.
S udies indica e ha despi e he p esence o egula o y amewo ks such as he Economic and Financial C imes
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Commission (EFCC) Ac , en o cemen gaps ha e allowed audulen ac i i ies o pe sis in ce ain sec o s (Adegbi e,
2020). S eng hening egula o y compliance h ough s ic e en o cemen and co po a e go e nance e o ms is
essen ial o enhancing aud isk managemen and o ganiza ional esilience.
1.5. Theo e ical Unde pinning
1.5.1. F aud T iangle Theo y
The F aud T iangle Theo y (FTT), in oduced by c iminologis Donald C essey in 1953, posi s ha h ee p ima y
ac o s—p essu e, oppo uni y, and a ionaliza ion—con e ge o os e audulen beha io wi hin o ganiza ions.
P essu e e e s o inancial o pe sonal s esses ha compel indi iduals owa d une hical ac ions. Oppo uni y a ises
om weak in e nal con ols o o e sigh , enabling audulen ac s. Ra ionaliza ion in ol es he indi idual's jus i ica ion
o hei une hical beha io as accep able unde he ci cums ances. Owusu e al. (2022) examined s a e-owned
en e p ises in Ghana and ound ha p essu e, oppo uni y, and a ionaliza ion signi ican ly p edic employees'
engagemen in wo kplace aud. Simila ly, Rahman and Jie (2024) analyzed Chinese lis ed companies, e ealing ha
inancial le e age and liquidi y (p essu e), alongside audi size and boa d independence (oppo uni y), a e c i ical
indica o s o accoun ing aud. Addi ionally, Anisyku lillah e al. (2023) in es iga ed Indonesian i ms, highligh ing ha
inancial a ge (p essu e) and he na u e o he indus y (oppo uni y) in luence inancial s a emen aud, wi h
ins i u ional owne ship mode a ing hese e ec s.
1.5.2. Agency Theo y
Agency Theo y, o mula ed by Jensen and Meckling in 1976, explo es he ela ionship be ween p incipals (owne s) and
agen s (manage s), emphasizing con lic s a ising om di e gen in e es s and in o ma ion asymme y. Agen s may
pu sue pe sonal goals ha con lic wi h p incipals' in e es s, leading o ine iciencies and po en ial misconduc . Khan
e al. (2020) examined how manage ial owne ship in luences i m pe o mance, inding ha highe owne ship aligns
manage s' in e es s wi h sha eholde s, educing agency cos s. Simila ly, Li and Wang (2019) in es iga ed execu i e
compensa ion s uc u es, e ealing ha pe o mance-based incen i es mi iga e agency p oblems by aligning
manage ial ac ions wi h sha eholde weal h maximiza ion. Fu he mo e, esea ch by Chen e al. (2021) highligh ed ha
boa d independence se es as a moni o ing mechanism, cu bing manage ial oppo unism and enhancing i m alue.
1.5.3. Ins i u ional Theo y
Ins i u ional Theo y examines how o ganiza ions con o m o es ablished no ms, ules, and cul u al belie s wi hin hei
en i onmen s o gain legi imacy and ensu e su i al. I posi s ha o ganiza ional s uc u es and p ac ices a e
signi ican ly in luenced by ins i u ional p essu es, leading o homogenei y ac oss o ganiza ions wi hin he same ield.
Recen esea ch has expanded on his heo y. Fo ins ance, Ma quis and Tilcsik (2016) explo ed how indus y and
communi y pee s in luence co po a e philan h opy, demons a ing ha i ms adap hei p ac ices o align wi h
ins i u ional expec a ions. Simila ly, Rodne e al. (2020) analyzed he Venezuelan cul u al sec o , illus a ing how
spa ial con ex s a ec ins i u ional wo k and o ganiza ional beha io . Addi ionally, Saqib e al. (2021) in es iga ed
human esou ce managemen p ac ices in Pakis an, highligh ing he impac o ins i u ional p essu es on manage ial
decisions.
1.6. Theo e ical F amewo k
The F aud T iangle Theo y (FTT), Agency Theo y, and Ins i u ional Theo y p o ide a obus amewo k o
unde s anding how aud isk managemen echniques in luence o ganiza ional esilience. FTT is applicable as i
highligh s how inancial p essu es, oppo uni ies a ising om weak in e nal con ols, and a ionaliza ion o une hical
beha io con ibu e o aud isks, necessi a ing s ong isk assessmen p ac ices and in e nal moni o ing. Agency
Theo y is ele an in explaining he con lic s be ween o ganiza ional s akeholde s, pa icula ly how ine ec i e
go e nance and misaligned manage ial incen i es can lead o aud, emphasizing he need o aud in es iga ion and
esponse s a egies. Ins i u ional Theo y unde sco es he ole o egula o y compliance and o ganiza ional cul u e in
shaping aud managemen p ac ices, as o ganiza ions o en align wi h indus y s anda ds o main ain legi imacy.
2. Li e a u e Re iew and Hypo heses De elopmen
Amina , Ezekiel, and Oba emi (2023) conduc ed a s udy o assess he impac o in e nal con ol mechanisms, including
isk assessmen , on aud de ec ion and p e en ion in Nige ian deposi money banks. U ilizing a desc ip i e esea ch
design, p ima y da a we e collec ed om managemen s a o selec ed banks and analyzed using mul iple OLS
es ima ion. The indings e ealed ha isk assessmen exe s a posi i e signi ican ela ionship wi h aud de ec ion
and p e en ion, wi h a coe icien es ima e o 0.4082 (p=0.0199<0.05). The s udy concluded ha egula isk
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assessmen s enhance he banks' abili y o de ec and p e en aud, he eby con ibu ing o o ganiza ional esilience. I
ecommended ha managemen should consis en ly ca y ou isk assessmen s o imp o e in e nal con ols and educe
audulen ac i i ies.
Johnson, Uchegbu, and Okoye (2024) e alua ed he e ec i eness o in e nal con ol sys ems as a means o p e en ing
aud in Nige ian inancial ins i u ions. Employing a desc ip i e esea ch design, da a we e ga he ed h ough
ques ionnai es adminis e ed o 200 esponden s, wi h 160 e ie ed o analysis. The s udy u ilized simple pe cen ages
and Z- es s a is ical ools o da a analysis. The indings indica ed ha a lack o a good in e nal con ol sys em is a majo
cause o aud in inancial ins i u ions. The s udy concluded ha es ablishing a s anda d in e nal con ol sys em is
essen ial o p omo ing ope a ional con inui y and ensu ing he sol ency o banks. I ecommended ha bank
managemen should c ea e and main ain obus in e nal con ol sys ems o p e en aud and enhance o ganiza ional
esilience.
Adebayo, Olagunju, and Bankole (2022) in es iga ed he e ec o aud isk managemen echniques on aud educ ion
in Nige ia's oil and gas sec o . Using s uc u ed ques ionnai es, hey collec ed da a om 100 s a membe s ac oss
accoun ing and isk managemen depa men s. The s udy employed eg ession o da a analysis and ound ha aud
isk managemen echniques, including in e nal con ol, whis leblowing, aud awa eness/ aining, and aud esponse,
had a signi ican posi i e e ec on aud educ ion. The s udy concluded ha implemen ing hese echniques e ec i ely
enhances aud educ ion and ecommended hei widesp ead adop ion in he oil and gas sec o .
Saada & Sopelola (2024) examined he ela ionship be ween o ganiza ional cul u e and isk managemen p ac ices in
Nige ia's banking sec o . U ilizing a desc ip i e c oss-sec ional esea ch app oach, hey collec ed da a h ough digi al
ques ionnai es om 131 esponden s. The analysis, conduc ed using SPSS, indica ed ha cul u al elemen s such as
leade ship, accoun abili y, e ec i e challenge, and compensa ion signi ican ly in luence isk managemen p ac ices. The
s udy concluded ha os e ing a p oac i e isk managemen en i onmen h ough e ec i e leade ship and
accoun abili y is c ucial and ecommended encou aging di e se pe spec i es and main aining ai compensa ion
s uc u es. The Cha e ed Ins i u e o In e nal Audi o s (2024) in oduced a new In e nal Audi Code o P ac ice in he
UK o enhance co po a e go e nance and es o e us a e accoun ing scandals. The code u ges audi o s o explici ly
e iew isks such as a i m's cul u e, clima e change, a i icial in elligence, cybe secu i y, aud, and economic c ime.
Al hough no speci ic o Nige ia, he p inciples ou lined in he code a e applicable globally, including in Nige ia,
emphasizing he impo ance o obus in e nal con ols and con inuous moni o ing in enhancing o ganiza ional
esilience.
Olo inlade (2021) in es iga ed he ole o o ensic audi s in add essing managemen auds in Nige ian deposi money
banks. The s udy u ilized seconda y da a om audi ed inancial s a emen s o lis ed deposi money banks and employed
panel eg ession echniques o analysis. Findings e ealed a posi i e ela ionship be ween o ensic audi s and he
p e en ion o managemen auds, ai h ul ep esen a ion o inancial eco ds, and unde s andabili y o inancial
s a emen s. The s udy concluded ha o ensic audi mechanisms a e e ec i e ools o p e en ing managemen auds
and ecommended aining o s a egic managemen and s a on o ensic accoun ing/audi . The ollowing hypo heses
will be es ed in his s udy:
• H1: Risk assessmen p ac ices ha e a signi ican posi i e impac on o ganiza ional esilience.
• H2: In e nal con ols and con inuous moni o ing ha e a signi ican posi i e impac on o ganiza ional esilience.
• H3: F aud in es iga ion and esponse s a egies ha e a signi ican posi i e in luence on o ganiza ional
esilience.
• H4: Regula o y compliance and legal amewo ks signi ican ly con ibu e o o ganiza ional esilience.
• H5: O ganiza ional cul u e signi ican ly in luences o ganiza ional esilience.
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Figu e 1 Concep ual F amewo k
3. Me hodology
3.1. Resea ch Design
This s udy adop s a quan i a i e esea ch design, u ilizing a su ey me hod o examine he impac o aud isk
managemen echniques on o ganiza ional esilience. The s udy employs a desc ip i e and in e en ial app oach,
allowing o he iden i ica ion o ela ionships be ween a iables while p o iding empi ical e idence on how aud isk
managemen s a egies in luence esilience wi hin o ganiza ions. This app oach ensu es objec i i y, enabling s a is ical
analysis o quan i y he ex en o which aud isk managemen enhances o ganiza ional esilience.
3.2. Popula ion o he S udy
The popula ion comp ises employees om Osan a Mic o- inance Bank, Nige ia Limi ed, a p ominen inancial
ins i u ion headqua e ed a Igboho, Oyo S a e, Nige ia. The s udy a ge s depa men s di ec ly in ol ed in aud isk
managemen , including in e nal audi , compliance, o ensic and isk managemen uni s. The a ge popula ion o his
s udy is 2500 base on s a eco d. This selec ion ensu es ha da a is collec ed om pe sonnel wi h ele an expe ise
and expe ience in implemen ing and o e seeing aud isk managemen s a egies wi hin he o ganiza ion.
3.3. Sampling Technique and Sample Size
This s udy employs a s a i ied andom sampling echnique o ensu e adequa e ep esen a ion o a ious depa men s
in ol ed in aud isk managemen a Osan a Mic o- inance Bank Nige ia Limi ed. S a i ica ion is necessa y o cap u e
he pe spec i es o employees in depa men s such as in e nal audi , compliance, and isk managemen .
To de e mine he sample size, Yamane’s (1967) o mula o sample size de e mina ion is used:
𝑛 = 𝑁
1 + 𝑁(𝑒2)
Whe e:
n = Sample size
N = Popula ion size
e = Ma gin o e o ( ypically 5% o 0.05)
𝑛 = 2500
1 + 2500(0.052)
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𝑛 = 2500
1 + 6.25
𝑛 = 2500
7.25
𝑛 = 345
Thus, he equi ed sample size is app oxima ely 345 esponden s. Hence, he sample dis ibu ion is as ollows:
Table 1 Sample Dis ibu ion o Responden s
Depa men
Male
Female
To al Sample
In e nal Audi
60
20
80
Compliance
50
35
85
Fo ensic
40
25
65
Risk Managemen
73
42
115
To al
223
122
345
Howe e , o he 345 ques ionnai es dis ibu ed, 320 comple ed ques ionnai es we e e ie ed, ep esen ing a esponse
a e o 91%.
3.4. Sou ces o Da a
The s udy elies on p ima y da a collec ed h ough a s uc u ed ques ionnai e adminis e ed o p o essionals wi hin he
sampled o ganiza ion.
3.5. Me hods o Da a Collec ion
A s uc u ed ques ionnai e is he p ima y ins umen o da a collec ion, designed o measu e aud isk managemen
echniques and hei impac on o ganiza ional esilience. The ques ionnai e consis s o close-ended ques ions,
employing a i e-poin Like scale o cap u e esponden s' pe cep ions and expe iences. The su ey is adminis e ed
h ough elec onic and physical dis ibu ion, ensu ing wide pa icipa ion.
3.6. Validi y and Reliabili y
To ensu e alidi y, he ques ionnai e unde goes expe e iew by aud isk managemen p o essionals and academics
o con i m con en ele ance. A pilo s udy is conduc ed wi h 30 esponden s, and eedback is used o e ine he
ins umen . Reliabili y is assessed using C onbach’s Alpha coe icien , ensu ing in e nal consis ency o he su ey i ems.
A eliabili y sco es abo e 0.70 is conside ed accep able. A C onbach Alpha alue o 0.882 indica es s ong in e nal
consis ency o he i ems which sugges s ha he s udy is eliable.
Table 2 Reliabili y Tes
No o I ems
C onbach Alpha
23
0.882
3.7. Technique o Da a Analysis
The collec ed da a is analyzed using desc ip i e and in e en ial s a is ics. Desc ip i e s a is ics (mean and s anda d
de ia ion) summa ize he da a, while in e en ial analysis (mul iple eg ession analysis) examines he ela ionships
be ween aud isk managemen echniques and o ganiza ional esilience. The S a is ical Package o Social Sciences
(SPSS) e sion 27 is used o da a p ocessing and hypo hesis es ing. Resul s a e in e p e ed a a 95% con idence le el
o de e mine he signi icance o indings.
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3.8. Va iable Measu emen
3.8.1. Dependen Va iable
• O ganiza ional Resilience – The abili y o companies o wi hs and, adap o, and eco e om aud- ela ed
challenges.
3.8.2. Independen Va iables (F aud Risk Managemen Techniques)
• Risk Assessmen P ac ices – Iden i ying and e alua ing po en ial aud isks.
• In e nal Con ols & Moni o ing – Policies, checks, and con inuous moni o ing o de ec and p e en aud.
• F aud In es iga ion & Response S a egies – Mechanisms o add essing aud inciden s.
• Regula o y Compliance & Legal F amewo ks – Adhe ence o indus y s anda ds and go e nmen
egula ions.
3.8.3. Con ol Va iable
• O ganiza ional Cul u e – The sha ed alues, belie s, and no ms ha in luence how aud isk managemen
s a egies a e implemen ed and hei impac on esilience.
3.9. Model Speci ica ion
The s udy employs a mul iple eg ession model o examine he impac o F aud Risk Managemen Techniques on
O ganiza ional Resilience, wi h O ganiza ional Cul u e as he con ol a iable. The model is speci ied as ollows:
Func ional Fo m
𝑂𝑅 = 𝑓(𝑅𝐴, 𝐼𝐶𝑀, 𝐹𝐼𝑅𝑆, 𝑅𝐶𝐿, 𝑂𝐶)
S uc u al Model:
𝑂𝑅 = 𝛼0+ 𝛼1(𝑅𝐴)+ 𝛼2(𝐼𝐶𝑀)+ 𝛼3(𝐹𝐼𝑅𝑆)+ 𝛼4(𝑅𝐶𝐿)+ 𝛼5(𝑂𝐶)+ 𝜀
3.9.1. We e
• OR = O ganiza ional Resilience (Dependen Va iable)
• RA = Risk Assessmen P ac ices
• ICM = In e nal Con ols & Moni o ing
• FIRS = F aud In es iga ion & Response S a egies
• RCL = Regula o y Compliance & Legal F amewo ks
• OC = O ganiza ional Cul u e (Con ol Va iable)
𝛼0 is he in e cep
𝛼1, … , 𝛼5 a e he coe icien s o he independen a iables.
𝜀 is he e o e m
3.9.2. Model Diagnos ic
• Diagnos ic es s we e conduc ed o check o any iola ions o hese assump ions, including:
• Mul icollinea i y: The Va iance In la ion Fac o (VIF) was pe o med o iden i y s ong co ela ions among
independen a iables.
• Au oco ela ion: The Du bin-Wa son es was employed o assess au oco ela ion in he esiduals.
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4. Resul
4.1. Desc ip i e S a is ics
Table 3 Summa y S a is ics
Va iables
Mean
S d. De ia ion
RA
3.470
0.882
ICM
3.503
0.883
FIRS
3.506
0.883
RCL
3.513
0.877
OC
3.495
0.863
OR
4.482
0.464
The desc ip i e s a is ics p esen ed in Table 3 p o ide an o e iew o he cen al endency and dispe sion o he key
a iables in he s udy. O ganiza ional Resilience (OR) eco ded he highes mean alue o 4.482 wi h a ela i ely low
s anda d de ia ion o 0.464, sugges ing ha esponden s gene ally pe cei ed hei o ganiza ions as esilien , wi h
minimal a iabili y in hei esponses. Among he F aud Risk Managemen Techniques (FRMT) componen s, Regula o y
Compliance & Legal F amewo ks (RCL) exhibi ed he highes mean o 3.513 and a s anda d de ia ion o 0.877,
indica ing a s ong emphasis on compliance wi hin he o ganiza ions su eyed. F aud In es iga ion & Response
S a egies (FIRS) and In e nal Con ols & Moni o ing (ICM) showed simila mean alues o 3.506 and 3.503,
espec i ely, bo h wi h a s anda d de ia ion o 0.883, e lec ing a consis en pe cep ion o aud con ol measu es ac oss
esponden s. Risk Assessmen (RA) had a mean o 3.470 and a s anda d de ia ion o 0.882, signi ying a sligh ly lowe
bu s ill mode a e emphasis on isk e alua ion p ocesses. O ganiza ional Cul u e (OC), which se es as a con ol
a iable, had a mean o 3.495 and a s anda d de ia ion o 0.863, indica ing ha cul u al ac o s in luencing aud isk
managemen and esilience we e mode a ely p esen bu a ied among o ganiza ions.
4.2. OLS Reg ession
Table 4 Model Summa y
R
R Squa e
Adjus ed R Squa e
S d. E o
Du bin-Wa son
0.679
0.46
0.455
0.343
2.13
The model summa y p esen ed in Table 4 shows he s eng h and explana o y powe o he eg ession model. The R-
alue o 0.679 indica es a s ong posi i e co ela ion be ween he independen a iables and o ganiza ional esilience.
The R-Squa e alue o 0.46 implies ha app oxima ely 46% o he a ia ion in o ganiza ional esilience can be explained
by he p edic o a iables included in he model, while he Adjus ed R-Squa e o 0.455 accoun s o he deg ees o
eedom, con i ming a sligh adjus men o he numbe o p edic o s. The s anda d e o o 0.343 sugges s ha he
a iabili y o he esiduals is ela i ely low, indica ing ha he model p o ides a easonable i o he da a. Addi ionally,
he Du bin-Wa son s a is ic o 2.13 alls wi hin he accep able ange (close o 2), sugges ing ha he e is no signi ican
issue o au oco ela ion in he esiduals, ein o cing he eliabili y o he model.
Table 5 ANOVA
Sou ce o a ia ion
Sum o Squa es
d
Mean Squa e
F
P- alue
Reg ession
38.562
4
9.64
82.124
0.000
Residual
45.195
385
0.117
To al
83.756
389
