Audit Committee and Internal Control Effectiveness in Public Sector Entities (original) (raw)
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2020
The objective of this study is to examine the effects of audit committee on internal audit function effectiveness of listed companies in Tanzania. The agency theory produced a framework that guided this study. Data for the study were collected through a cross-sectional survey questionnaire from DSE top management members, board of directors and members of audit committees. Partial Least Square Structural Equation Modeling (PLS-SEM) was used for data analysis. The study reported R of 0.506 implying that audit committee explained 50.6% variation in dependent variable, internal audit function effectiveness. The study observed thataudit committee is significantlyassociated with internal audit function effectiveness of listed companies in Tanzania. Keyword:Audit Committee, Internal audit function effectiveness, Agency theory; PLS, DSE.
The study assessed the capacity of internal audit units of public sector organizations to enhance good governance. Data for the study was collected through questionnaire sent to chief internal auditors, audit managers and senior managers of public sector organizations. Responses received from respondents were based on a five point scale, ranging from strongly disagree to strongly agree. The study results indicate that internal audit's ability to ensure better governance is limited by; technical and profession skills set, low motivation, limited spending on IA, and little support for the IA function from management. Other limiting factors include, the issue of independence of the internal auditor which directly impact on IA's objectivity and indirectly may influence which audit gets performed as planned.
The Evaluation of Internal Audit Function Effectiveness in Public Sector: A Case of Tanzania
This study evaluates internal audit function in Tanzanian public sector context based on determinants established from literature. Criteria used for effectiveness are adequacy and competence of internal audit staff, management support and perception, independence of internal audit units, internal audit charter and audit committee. Documentary review and content analysis approach is used to this end. The study found that there are efforts to establish effectiveness of internal audit function in public sector organizations, although criteria for existence of effective internal audit function are not fully implemented. The findings reveals that there is inadequate internal audit staff, lack of career development plan, inadequate resources and absence of internal audit charter in public sector organization. This has partly caused inefficiency audit committee. The study recommend for implementations of laws, rules and regulations which govern internal audit units and compliance to IPPF (...
2019
The purpose of this study is to examine the Influence of Internal Control Activities and The Characteristics of The Audit Committee on The Quality of Audit Performed by aPublic Accountant Firm by conducting asurvey on General Insurance Companies in Indonesia. The method used is descriptive analysis. Ourpopulation is made of Internal Auditors and Audit Committee of General Insurance Companies in Indonesia registered onthe Financial Services Authority as of October 2017. We found out that The Characteristics of an Audit Committee had a positive and significant effect on The Quality of Audit Performed by aPublic Accountant Firm on General Insurance Companies in Indonesia. We fount also that Internal Control Activities and The Characteristics of the Audit Committee as a whole, have a positive and significant effect on The Quality of Audit Performed by aPublic Accountant Firm on General Insurance Companies in Indonesia.
This research work is on effective audit as a tool for improving institutional governance and accountability in the public sector. Data were gathered through questionnaire and hypotheses stipulated which basically questioned the existence of auditing departments, the activity of effective governance in the public sector and define the key element needed to maximize the value of the public sector audit provided to all levels of government. To test these hypotheses, Anovas was employed. We found out that the internal audit can effectively check fraud and fraudulent activities in the Imo State public sector and a significant number of internal audit departments functioning effectively exist. It is recommended that government should provide an adequately equip staff with electronic data processing and also maintain an environment within which internal auditors can have sufficient freedom to accomplish their task effectively.
An Assessment of the Factors Influencing Internal Audit Effectiveness in the Public Sector
The purpose of this study is to identify and analyze factors that influence internal audit effectiveness in the public sector of Liberia. Using the University of Liberia as a case study, the researcher investigates whether internal audit functions are effective or ineffective and identify policy measures adopted by the university to mitigate ineffectiveness. This is multi-method research, a study in which the researcher adopts and employs both qualitative and quantitative strategies to collect and analyze data (De Liste, 2011; Foeday, 2015; Johnson &Onwuegbuzie, 2004; Johnson, Onwuegbuzie, & Turner, 2007). In this study, the researcher presented both qualitative and quantitative data. The researcher selected (25) participants within the business and Finance office of the University which include internal auditors, managers, finance officers, comptrollers, and procurement officers within the finance department. This research is a case study looking at internal audit practices at the University of Liberia. Though the study is about internal audit effectiveness in the public sector, due to time and financial constraints, the researcher considers the Business and Finance offices at Liberia’s highest public institution of learning. The findings arising from this research reveal management support, low numbers of staff, lack of structure, and lack of professional training opportunities as factors influencing internal audit effectiveness in the public sector. Analysis of the findings, conclusion, and recommendations are presented in subsequent chapters
Audit Committees’ Effectiveness in Tanzania: The Case of Selected Public Authorities in Tanzania
Asian journal of economics, business and accounting, 2022
Audit committees are important parts of an entity's governance structure which play a significant role in assisting entities in achieving their planned objectives. This study aimed at assessing the factors affecting audit committees' effectiveness in the selected public authorities in Tanzania specifically Morogoro region. The study used survey research design based on the mixed research approach i.e., both qualitative and quantitative research approaches were used. A multistage sampling technique were used to select 120 representative respondents for this study. Both primary and secondary data were collected using questionnaires and documentary review respectively. The Logit regression model was used in this study in examining the factors affecting the auditing committees (AC) effectiveness. Also, the maximum likelihood method using SPSS 25 was used to estimate the coefficients of the specified logistic regression model. The study result from logit regression analysis revealed that independence and number of meetings of AC members were statistically significant and positively related to effectiveness of AC while age and gender of the audit committee members were significant but negatively related. Moreover, education level, size of AC and expertise were not statistically significant but positively related to dependent variable. Therefore, for the aim of attaining effective performance of the audit committee in the stated public bodies in Tanzania, it is very vital to take into account the contributions of the determining factors.
International Journal of Auditing, 2017
The effectiveness of the internal audit function is important to improve performance in the public sector. This study provides insight into the drivers and measures of internal audit effectiveness. The heads of the internal audit function, senior management of public institutions and chairpersons of the audit committee, within a South African public sector context, responded to a survey based on an extensive review of the internal audit function. Exploratory factor analysis was applied to facilitate the reduction of 92 items into a meaningful number of independent (drivers) and dependent (measures) variables. The result of the study identifies a refined list of drivers and measures of internal audit effectiveness that adds to existing knowledge and presents a foundation for further research.
The quality of internal audit plays a significant role in enhancing organizational performance of public sector bureaus. So, the objective of this study was to examine the effect of internal audit quality on organizational performance of public sector selected bureaus in southern Ethiopia. To this end, the researcher employed quantitative research approach with explanatory research design where the effect caused by the independent variable on the dependent variable is observed through regression analysis. The primary data was collected using structured questionnaire from 112 respondents out of total 148 respondent's selected using simple random sampling technique from bureaus of southern Ethiopia. Then, both descriptive and inferential statistics analysis (multiple linear regression) have been done through SPSS version 21.0 and E-views version 9 in order to get the reliable research findings. Consequently, the result of regression analysis showed that, four variables such as independency of internal audit (positive), competency of internal audit staff (positive), management support (positive), and formal mandate of internal audit (positive) and statistically significant out of eight variables incorporated in the model. Whereas, other explanatory variables like objectivity, internal audit standard, competent leadership and unrestricted access to audit evidence were not statistically significant respectively. Based on the findings of the study, the researcher forwarded possible recommendations for bureaus to work on independency of internal audit, competency of internal audit staff, management support, and formal mandate of internal audit due to the fact that they are statistically significant and has positive influence in improving internal audit quality on one hand and organizational performance of bureaus on the other hand.
Journal of Financial Reporting and Accounting, 2018
Purpose The purpose of this study is to investigate the contribution of internal audit function and audit committee effectiveness on accountability in statutory corporations (SCs). Design/methodology/approach This study is cross sectional and correlational. Data have been collected through a questionnaire survey of 52 SCs in Uganda through their Chief Internal Auditors and Chief Finance Officers. Data have been analysed using Statistical Package for Social Sciences. Findings The internal audit function significantly contributes to accountability of SCs in Uganda and audit committee effectiveness is not where effective internal audit is present in such organisations. However, audit committee effectiveness significantly contributes to accountability when an internal audit function is not present. Research limitations/implications The use of hierarchical regression is prone to problems associated with sampling error. However, the likelihood of these problems is mitigated by the interfa...