Internal audit function and financial performance of organizations in Uganda: a case study of Nssf-head office Kampala
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Date
2017-05
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Publisher
Kampala International University, College of Economics and Management
Abstract
The study was done on internal Audit function and Financial Performance. The study was carried out at NSSF-head office Kampala. The researcher collected both primary and secondary data, using the survey method and review of the existing literature respectively. Questionnaires were used for data collection. Data obtained from findings indicate that internal audit has several function on the financial performance at NSSF. Some of the roles realized from the study findings include, advising the management for reliability and authenticity in financial reporting, Recommends improvements in controls which reduce internal risks for better financial performance, Assessing compliance with policies and procedures and sound business practices, Helps in investigating occurrences of fraud, embezzlement, theft, and waste within an organization which leads to better financial pe1formance. The study also revealed several challenges limiting the carrying out of independent audits at NSSF. Some of the challenges include Lack of independence, lack of efficient and effective internal audit system, Conflict of interest situations, Lack of professional in reviewing financial statements, biased opinions in reviewing financial statements. The study also revealed a strong relationship between internal audit and financial pe1formance. It was revealed that internal audit is part and partial of the financial performance of any organization working as a watchdog on issues of fraud, embezzlement and checkups in the internal control systems for improved financial pe1formance. It was recommended that it is necessary for the management at NSSF to provide support to the audit department and internal auditors in order to have successful audit reports for better financial pe1formance. Evidence from this research suggests that increasing the capacity and support to the audit department reduces system loopholes for better financial pe1formance. From the findings and conclusions, it is recommended that: A well-established internal audit control system must be created with its staff fully equipped with qualified personnel and resources needed by them to pe1form effectively. The internal training programmes given to the staff at the internal audit unit in the form of seminars and accounting courses should be continued with. Management should not in any way interfere in the work of the internal auditor, although the internal auditor is employed by management. The co-operation between management and internal audit staff should be maintained and strengthened. Management should always take the recommendations of the internal audit unit into consideration. This may serve as a morale booster to the staff at the unit and cause them to work harder.
Description
A research report submitted to the college of Economics and Management in partial fulfillment of the requirements for the Award of the Bachelors Degree of Business Administration and Management of Kampala International University
Keywords
Internal audit, Financial performance, Nssf-head office, Kampala