The impact of auditing on the performance of district local government. A case study of lira district

Abstract

Auditing is an examination of certain statements covering the transactions over a period, and the financial position of an organization on a certain date in order that the auditor may issue a report on them. It is carried out by professionals called auditors. Auditing consists of internal and external; internal auditing at the District Local Governments is done by the District internal Auditors and external auditing is done by the Auditors mainly from the national level, outside the District. This study was carried out in Lira District local government headquarters. The study was intended to assess the impact of auditing on the performance of District Local Governments, a case study of Lira District. Auditing has still remained a difficult task to execute due to a high level of corruption in the country and in Lira District as well. A survey was carried out in Lira District Local Government from morning hours, 9:00am to the afternoon at 3:00pm. The study was based on both primary data obtained using questionnaires and secondary data obtained from sources indicated in the references. A minimum of 50 respondents which comprised of 4 staff members from the Auditing department, 18 members from the Finance department, 12 members from the Accounting department and 16 members from other departments in the headquarters, were interviewed regardless of their gender. Data was analyzed using descriptive analysis. The study disclosed that most of the impact on the performance of Local Governments is mainly brought about by external Auditing compared to the internal Auditing which is usually handled with less seriousness. Finally, it is very necessary for the government to take the initiative to encourage Professional Auditors to take full part in the Auditing exercise