Building an IFRS-Driven Internal Audit Model for Manufacturing and Logistics Operations

• Author(s): John Oluwaseun Olajide ; Bisayo Oluwatosin Otokiti ; Sharon Nwani ; Adebanji Samuel Ogunmokun ; Bolaji Iyanu Adekunle; Joyce Efekpogua Fiemotongha
• Paper ID: 1709011
• Page: 261-271
• Published Date: 31-08-2021
• Published In: Iconic Research And Engineering Journals
• Publisher: IRE Journals
• e-ISSN: 2456-8880
• Volume/Issue: Volume 5 Issue 2 August-2021

Abstract

This paper presents a comprehensive framework for developing an internal audit model grounded in the principles of International Financial Reporting Standards (IFRS) tailored to the unique operational and compliance needs of the manufacturing and logistics sectors. The research is motivated by the growing demand for improved transparency, risk management, and global standardization in internal auditing, especially in industries characterized by asset-intensity, complex supply chains, and regulatory exposure. The paper begins with an exploration of global compliance trends and the rationale for embedding IFRS within operational audits. It then identifies and analyzes the most relevant IFRS standards—such as those governing revenue recognition, leases, and financial instruments—and examines their application challenges in operational contexts. Subsequently, the sector-specific audit risk landscapes of manufacturing and logistics are compared, highlighting process gaps and maturity discrepancies. The core contribution of this study is the proposed IFRS-driven audit model, which includes structured risk assessment, compliance monitoring, and process validation components supported by digital tools such as ERP systems and AI-enabled analytics. The model aims to enhance internal control, reporting integrity, and governance alignment. The conclusion discusses strategic and regulatory implications for financial executives, audit committees, and policy-makers, and provides recommendations for future research and practical implementation pathways. This study advances the discourse on harmonizing financial reporting standards with operational audit functions, promoting both accountability and strategic agility in complex industrial sectors.

Keywords

IFRS Integration, Internal Audit Model, Manufacturing Sector, Logistics Operations, Risk Governance, Digital Audit Tools

Citations

IRE Journals:
John Oluwaseun Olajide , Bisayo Oluwatosin Otokiti , Sharon Nwani , Adebanji Samuel Ogunmokun , Bolaji Iyanu Adekunle; Joyce Efekpogua Fiemotongha "Building an IFRS-Driven Internal Audit Model for Manufacturing and Logistics Operations" Iconic Research And Engineering Journals Volume 5 Issue 2 2021 Page 261-271

IEEE:
John Oluwaseun Olajide , Bisayo Oluwatosin Otokiti , Sharon Nwani , Adebanji Samuel Ogunmokun , Bolaji Iyanu Adekunle; Joyce Efekpogua Fiemotongha "Building an IFRS-Driven Internal Audit Model for Manufacturing and Logistics Operations" Iconic Research And Engineering Journals, 5(2)