The effect of external auditing on the performance of local governments in eastern Uganda a case study of Iganga district local government:
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Date
2019-08
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Kampala International University, College of Economics and Management.
Abstract
This report is under the topic of effect of external auditing on the performance of Local Governments in
eastern Uganda a case study of Iganga District Local Government. It was further broken down into three
specific objectives and these were; 1) the effect of verification of accounting data on the performance
of local governments; 2) effect of records vouching or examination on the performance of local
government and 3) was the effect of internal control on the performance of local government. The
research design that was used in this study was specifically quantitative and qualitative research design
and the furthermore the study population was 20 respondents from which the sample size of 19 was
derived. The findings showed that responses on the effect of Verification of Accounting data on the
performance of local governments were. 48% conceded/agreed with a frequency of 83. 35% strongly
agreed with a frequency of 61, 10% were uncertain with a frequency of 18, 5% disagreed with a
frequency of 9 and 2% strongly disagreed with a frequency of 3 hence stipulating a total frequency of
174. Therefore verification of accounting data is very significant or of great importance on the
performance of local governments. The findings on second objective showed that the responses on the
effect of records vouching or examination on the performance of local governments were as follows;
53% with a frequency of 92 agreed, 33% with a frequency of 57 strongly agreed, and 12% with a
frequency of 21 were uncertain, 2% with a frequency of 4 disagreed and none strongly disagreed hence
with a total frequency of 174. This connotes that records vouching or examination is of great implication
on the performance of local governments. And on the final objective it was found that the responses on
the effect of internal control on the performance of local governments were, 53% of the respondents
with a frequency of 7l agreed, 30% with a frequency of 40 strongly agreed, 10% with a frequency of 13
were uncertain, 4% with a frequency of 5 disagreed and 3% with a frequency of 4 strongly disagreed.
This implies that internal control is of great effect on the performance of local governments. Conclusions
and recommendations were then drafted that much as Internal auditing exist in lganga District local
government, it is inadequate and inefficient in management of accountability and improvement of
performance. This therefore calls for a stronger and effective auditing genre (External auditing or
statutory auditing) to help the local government improve on Accountability, Quality service delivery
and Economic efficiency alias Performance of the local government appropriately. There is need for the
external auditors to continuously update themselves with the changing times and technologies and
sharpen their skills. By applying skills to the most critical points, building personal and professional
credibility and recognizing and responding to the needs, external auditors can become indispensable
thus speeding good governance and enhancing efficiency of external audit. The local government should
enhance verification of accounting data and all financial transactions or statements to improve
accountability and acknowledgement of public funds and resources hence enhancement of
accountability, quality service delivery and economic efficiency. The local government should enhance
the vouching or examination of records where there are more than two examiners or accounting officers
to ensure genuine and authenticated transactions, segregation of duties or division of labour, proper
preparation of financial transactions or statements, implementation of computerized systems of
accounting (Accounting Information Systems) among others hence improvement and enhancement of
funds and resources accountability, quality service delivery and economic efficiency. The local
government should look forward to establishing internal checks and balances of the all accounting financial statements and transactions ensure effective internal audit for the enhanced performance of the local government.
Description
a research report submitted to the college of economics and management in partial fulfillment of requirements for the award of bachelor’s degree in business administration accounting and finance of Kampala international university.
Keywords
external auditing, performance, local governments