Internal audit systems and performance of local governments in Uganda. a case study of Sheema District Local Government

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Kampala International University, College of Economics & Management
The research was based on Internal Audit Systems and Performance of Local Governments in Uganda. The purpose of this study was to establish the effectiveness of internal Audit systems in the financial performance of local governments in Uganda. The study involved secondary sources qf data where the research related his study to dUferent author ‘s work and authentication and afterwards he made conclusions. The study used a descriptive research design in which both qualitative and quantitative techniques were used. The target population was all employees at the district in different departments. The study therefore used a sample of sixty eight people (68) respondents from allover the district. It employed a stratified probability sampling technique to avoid bias in data presentation. This study used both primary and secondary sources which all involved data from the field and literature already written by other authors. Due to limited time the researcher used questionnaires (respondent ‘s fill-in what they knew about the topic in regard with the formulated questions) and interviews (face to face narration). After data collection, it was ethically analyzed by use offrequency tables andpercentages. The findings revealed that male participated more in the study with a percentage of 58and 42% for female respectively, people aged 30 — 35 participated more in the study with a 35% response, married respondents participated more with a percentage of 68%, most ofthe respondents had diploma awards with a 52% response and most of them were civil servants (5 7.5%,). The study findings depicted that financial performance (95%,) is related to internal audit. Further Internal audit system is mostly characterized by having well trained and competent auditors. Objective two analyzed that internal audit in accountability ofpublic funds mostly ensures effective and efficient use of public resources (30) and the internal audit system is challenged by less developed human capacity(28.8%), limited competence resulting from professionalization hardships (17.8%) and limited communication between auditors and managers(20%) . The study therefore concluded that political interference, corruption, conflict of interest, inadequate skills, inadequate ii’~formalion, inadequate funds, and improper communication flow are the major challenged faced by internal audit andfinancial performance of Sheema local government. Therefore the study recommended that local governments’ employees should always follow the drafted workplan in the departments ifthe auditing is to be effective.
A report submitted to the College of Economics and Management in partial fulfillment of the requirements for the award of a Bachelor’s Degree of Business Administration of Kampala International University
Internal audit systems, Local governments, Uganda, Sheema District, Sheema District Local Government