An assessment of corporate governance on financial accounting practices a case study of the nestle Ghana company limited

Abstract

This research tried undertake an assessment of corporate governance and financial accounting practices. The study dealt with the contributions of internal control to financial accounting practices, the effects of audit committee on financial accounting practices, and lastly the influence of internal auditors on financial accounting practices. Primary data was used during this research. Primary data was collected by administering questionnaire to Nestle Ghana limited. Respondents were selected based on their understanding and role in corporate governance and financial accounting practices. The Statistical Package for Social Science was employed for the data analysis. The study revealed that effective internal control systems are needed to ensure the safeguard of assets, valuation and authorizing of transactions, ensuring effective recording of routine transactions among others as identified from the survey conducted. It was also noted that effective internal controls does not guarantee errorless accounting practices and also does not necessarily ensure the prevention and detection of fraud, waste, embezzlement and also does not necessarily ensure the accuracy and completeness of accounting data recorded in the case study. It was also noted that effective audit committee had positive effects on financial accounting practices. Lastly, the study pointed out that, there is a strong positive influence of internal auditors on financial accounting practices. This implies that when the internal auditor is not effective in discharging the duties, financial accounting practice will not be effective and this goes for the vice-versa. This affirms that internal auditors play a vital role in ensuring effective financial accounting practices.