Internal audit quality and financial accountability in local governments:

Abstract

The study examined the relationship between internal audit quality and financial accountability in local governments in Uganda; a case study of Pallisa District Local Government. The objectives of the study were to examine the effect of audit committee on financial accountability, to examine the effect of audit competence on financial accountability and to establish the effect of audit independence on financial accountability in local government. The study adopted a cross sectional research design and quantitative approach. Data was collected from 80 as a study population with accessible unit of inquiry being 66 respondents consisting of finance officers, accountants, parish chiefs, commercial officers and community development officers. Data was collected using a closed ended questionnaire, descriptive and inferential statistics as multiple regression model that showed that there was a positive and significant influence of internal audit independence on financial accountability of public technical vocational institutes. The study concluded that there was a positive relationship between audit committee effectiveness and financial accountability in Pallisa district local governments, it was also concluded that there was positively significant relationship between internal audit competences on financial accountability The researcher recommended to the management of Pallisa District local government to have a strong and competent audit committee, to put in place different risk management strategies and function in the organization, to diversify internal audit function competency and staffing on transparency and fairness in reporting, to use professional independence and also to ensure that there should not be interference with the functions of internal auditors in the local government. The intervention would enhance a conducive internal audit quality and improve on financial accountability.