The impact of internal audit on financial control empirical evidence of some selected local governments in North Eastern Nigeria

Abstract

This study is set out to examine the role of internal audit in ensuring effective financial control at local government level in North-east Nigeria. The study employs survey research design using questionnaire. The questionnaire was administered to internal audit units, finance and administrative staff of the local governments. Descriptive statistics and Chi-square technique were used to analyze the data obtained. The study found that independence, competence and scope of the internal audit are the factors responsible for effective financial control. It also revealed that the role that an internal auditor largely depends on the competence of the internal auditor. Moreover, it was discovered that there are internal auditors with lower qualifications
like diploma and have no professional certificate who works as internal auditors in local governments. Furthermore, the study discovered that most Internal Auditors do not carry out assessment of the prevailing system, because there are number of areas that they are not involved particularly the award of contract in the local governments. Therefore, the study recommends that internal audit report should reflect the actual findings of the internal auditor, and the management should implement the recommendations of the audit findings.