TABLE OF CONTENT
Declaration
Approval
Dedication
Acknowledgement IV
Abstract
Table Of Content VI
Chapter One 1
1 .0 Introduction 1
1.1 Background Of The Study 1
1.1.1 Historical Perspective 1
1.1.2 Theoretical Perspective 3
1.1.3 Conceptual Pei~peCtiVe 3
1.1.4 Contextual Perspective 4
1.2 Statement Of The Problem 4
1.3 General Oblective Of The Study 5
1.4 Objective Of The Study 5
1 .5 Research Questions 5
1.6 The Scope Of The Study 6
1.6.1 Geographical Scope 6
1.6.2 Content Scope 6
1 .6.3 Time Scope 6
vi
1.6.4 Significance Of The Study .6
1.6.5 Justification Of The Study 7
1.7 Conceptual Framework 7
1.8 Definition Of Key TeflTls
Chapter Two 10
Literature Review 10
2.0 Introduction 10
2.1 Theoretical Review 10
2.2 Conceptual Review 10
2.3 Related Literature 13
2.3.1 Effect Of Verification Of Accounting Data On The Performance Of The Localgovernment 13
2.3.2 Effect Of Vouching! Examination On The Performance Of The Local Government 15
2.3.3 Effect Of Internal Control On The Performance Of The Local Government 17
2.3.4 Accountability 20
2.3.5 Service Delivery 21
2.3.6 Efficiency 21
2.3.7 Economy 22
Chapter Three 24
Methodology 24
3.0 Introduction 24
3,1 Research Design 24
VI
3.2 Area Of Study .24
3.3 Population 24
3.4 Sample Size 25
3.5 Sampling Techniques 26
3.6 Data Collection Procedures 26
3.6.1 Interview 26
3.6.2 Questionnaire 26
3.6.3 Observation 27
3.6.4 Documentary Analysis 27
3.7 Data Analysis And Presentation 27
3.8 Validity Of Data 27
3.9 Reliability Of Data 28
3.10 Ethical Considerations 28
3.11 Limitation Of The Study 29
Chapter Four 30
Presentation, Analysis Anu ii~t~rpretation Of Findings 30
4.0 Introduction 30
4.1 General Findings 30
4.2 Conclusion
VIII
Chapter
Summary
Five
Of Findings,
.
Conclusions And Recommendations 45
5.0 Introduction
5.1 Summary Of Findings 45
5.1.1 Effectiveness Of Verification Of Accounting Data On The Performance Of The Local
Government 45
5.1.2 Effectiveness Of Vouching Or Examination Of Records On The Performance Of The Local
Government
5.1.3 Effectiveness Of Internal Control On The Performance Of The Local Government 45
5.2 Conclusion 46
5.3 recommendations 46
5.3.1 Effectiveness Of Verification Of Accounting Data On The Performance Of The Local
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 of7l 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 ofthe local government.
