| dc.description.abstract | The purpose of this study was to investigate the role of internal audit in promoting effective management in public sectors. Internal auditing is primarily directed at improving internal controls designed to provide reasonable assurance regarding achievement of' objectives in effectiveness and efficiency of operations, reliability of financial reporting, compliance with Jaws and regulations. Internal auditor is considered one of the "four pillars" of corporate governances, the other pillars being the board of directors, management and the external auditor (Glascock, 2007).
According to Hamers (1998) duties and responsibilities of Internal Auditor (IA) are reviewing the compliance with the existing governance financial regulations, instructions and procedures, evaluating effectiveness of internal control systems, appraising the economy and the effectiveness with which financial and other resources are being used, reviewing the reliability and integrity of record keeping and reporting the financial and operation information system, post audit of payment, assessment of risk and consulting the management as need arises.
This study aims to establish the relationship between the role of internal audit and effective management in public sectors. The study used a summary based on a case study of the National Water and Sewerage Corporation. The sample for the study was obtained using purposeful sampling technique, stratified sampling and cross-sectional methods since the respondents were from different layers of the company stakeholders, and that the cost of. internal auditing function which results from implementation of internal audit practices (roles) was picked between years (2011 - 2016) in NWSC Main Branch.
The sample used is made up of various categories of stakeholders, roles of internal audit and the consequential cost of internal audit function which includes salaries and wages, 'traveling and accommodation, training and development among others. The benefits of the role of internal audit lead to increased effectiveness of management of NWSC which was able to increase both revenue and house hold water connections. The research established a relationship R a f (c) where R is the total revenue earned by NWSC and C is the cost of implementation of the functional roles of internal audit.
The study used qualitative and quantitative methods of data analysis. Descriptive method was applied on qualitative data. Scales of 1 - 5 were used to qualify the qualitative data which captured the roles and benefits of the internal audit. Qualitative data was fed to the computer and analysed using SPSS version 17 program. Pearson model of analysis, charts and tables were used to present the results conveying visual impression of relationships. Correlation, coefficient was used to establish the relationship. In this study Pearson's correlation was determined at I tail test, 5% significant level and 95% confidence interval, and it was found to be 0.8999 which implies a very high correlation between variables cost of internal audit and revenue earned.
The study has revealed that an increase in cost of internal audit will lead to an increase in the revenue earned when all other variables remain constant. That is Ro. f (c), (revenue is a function of cost). The study found out that 83% of respondents believe that the roles of internal audit increased effectiveness and integrity of financial and operations of NWSC. 75% believe that there is increased reliability and integrity of financial and operational information; 67% of respondents believe there is increased compliance with laws and regulations; ability to validate and honour customer's needs and expectations and that communications of audit findings to the board of directors and shareholders is improved. However, the study found out that only 17% of respondents believe that role of internal audit to enhance Job satisfaction for internal audit staff.
There is efficient and effective internal audit and internal control system and investigating units at NWSC. Thus, the public sectors should be remolded and strengthened to· position them to discharge their duties effectively and efficiently. The component sectors should be unbundled into separate distinct, independent entities that handle generation, transmission distributions and marketing. The public sector should be without falsifications and frauds currently being witnessed. | en_US |
