Abstract
Abstract:-In this study, the impact of audit control on two major bank variables namely liquidity and profitability was empirically analysed in order to determine their overall effect on the health of the first generation banks in Ilorin as a case study. Primary data, which were obtained through the instrumentality of questionnaire, were subjected to Z-statistical analysis and used to test our proposed hypothesis. Secondary data consist of the banks audited accounts for a period of five years (1995-2000). This was subjected to a multiple regression analysis in order to determine the strength of the relationship between audit control which was hitherto quantified using Like scale 1to 5, and the two bank variable of liquidity and profitability. AT a reference z-table value of 1.96 at 5 of significance, the study revealed significant impact of audit control on liquidity with a calculated z-value of z-value of 6.47, on profitability with a calculated z-value of 3.67 and on the overall health of the bank with a calculated Z-value of 4.03. This validated our hypothesis putting paid to the argument that, indeed, a relationship actually exist between audit control and the two bank variables. The strength of the relationship was revealed further by our study when at a significant level of 95probability, the coefficient of correlations of audit control and the two bank variables were sufficiently significant. Consequently, we propose among other things that bank generally should endeavour to step-up the quality and the frequency of their audit practice if the must continue to remain afloat.