Data Accuracy in Automated Financial Accounting Systems and Audit Risk Assessment of Selected Nigerian Firms

This research investigates the effect of Automated Financial Accounting Systems (AFAS) on audit quality, focusing specifically on the role of data accuracy and reliability in audit risk assessment among selected Nigerian firms. A correlational research design was employed, and primary data were collected through structured questionnaires administered to firms operating in the telecommunications and manufacturing sectors, as well as their external auditors. The Pearson Product Moment Correlation Coefficient (PPMCC) was applied for data analysis. Findings reveal a weak positive correlation (r = 0.10) between the integrity of data produced by AFAS and the effectiveness of audit risk assessment, indicating that the relationship is statistically insignificant. Consequently, the null hypothesis was not rejected. The study concludes that automation alone does not impair audit quality; rather, its influence is largely determined by the competence of auditors and the effectiveness of internal system controls. It is therefore recommended that auditors undergo continuous professional development in advanced accounting technologies and that organizations strengthen internal controls embedded in automated systems to improve data reliability and audit effectiveness.