TABLE OF CONTENTS
DECLARATION
APPROVAL
DEDICATION
ACKNOWLEDGEMENT iv
TABLE OF CONTENTS
LIST OF FIGURES ix
LIST OF TABLES
LIST OF ACRONYMS/ABBREVIATIONS xi
ABSTRACT
CHAPTER ONE 1
INTRODUCTION OF THE STUDY 1
1.0 Introduction 1
1.1 Background of the study 1
1.2 Problem Statement 2
1.3 General Objective 2
1.4 Specific Objectives 2
1.5 Research Questions 3
1.6 Scope ofthe Study 3
1.6.1 Geographical AreaS 3
1.6.2 Content Scope 3
1.6.3 Period] Time scope 4
1.7 Significance of the Study 4
1.8 Operational Definitions 4
V
1.9 Conceptual frame work ~
CHAPTER TWO 6
LITERATURE REVIEW 6
2.0 Introduction 6
2.1.0 The effect of Internal Auditor Competency ofPallisa District Local Government 6
2.1.1 Audit Quality 7
2.1.2 Accountability 7
2.1.3 Internal Audit Quality on Accountability 8
2.2 Effect of internal Auditors’ Independence of Pallisa District Local Government 8
2.3. Internal audit procedures performed on utilization of public funds 10
2.4 Relationship between Internal Audit and accountability in local government 10
2.5 Summary 12
CHAPTER THREE 13
RESEARCH METHODOLOGY 13
3.0 Introduction 13
3.1 Research Design 13
3.2 Study Population 14
3.3 Sample Frame and sample size 14
3.3.1 Sample size 14
3.4 Sampling Technique is
3.5 Source of Data is
3.5.1 Primary Data 15
3.5.2 Secondary source 15
3.6 Data Collection Methods 16
3.6.1 Questionnaires 16
vi
3.6.2 Interviewing .16
3.7 Data Analysis and Management 16
3.8 Research Procedure 17
3.9 Ethical Consideration 17
CHAPTER FOUR 18
INTERPRETANTION AND PRESENTANTION OF FINDINGS 18
4.0 Introduction 18
4.1 Results and Discussions 18
4.1.1 Gender 18
4.1.2. Age of the Respondents 20
4.1.3 Education Level of the Respondents 21
4.2 Substantive Audit procedures 24
4.3 Internal Audit Independence 27
4.4 Professional Competence 29
4.5 Service Delivery 31
4.6 Relationship between internal Auditing and Accountability of public funds in Pallisa
District Local Government 32
4.7 The Relationship between the Study Variables 35
4.7.1 Internal auditing of public funds 36
4.8 Accountability of public funds 37
4.9 Regression Model 37
CHAPTER FIVE 40
SUMMARY OF STUDY FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS 40
5.0 Introduction 40
5.1 Summary of the study findings according to objectives 40
VII
5.1.1 The audit substantive procedures used in internal auditing in Pallisa District Local
Government 40
5.1.2 Internal Audit Independence 40
5.1.3 Professional Competence 41
5.1.4 Service Delivery 41
5.1.5 The relationship between internal auditing and accountability of public funds in Pallisa
District Local Government 41
5.2 Conclusion 42
5.3 Recommendations 42
5.4 Limitations of the Study 43
5.5 Areas for Further Research 43
REFERENCES 44
APPENDICES 46
Appendix I: REQUEST FOR PERMISSION 46
Appendix II: QUESTIONNARE 47
Appendix III: IMPLEMENTATION BUDGET 55
ABSTRACT Accountability of public funds requires appropriate internal audit practices to enhance efficiency. For the purpose of this study the researcher sought to determine the effect of internal audit and accountability of public funds in local governments in Uganda. Internal audit and accountability of public funds was looked at from the perspective of internal audit substantive procedures, professional competency and independence of internal audit. The study selected 30 respondents from different departments. The researcher administered a survey questionnaire to each member of the target population since it was the most appropriate tool to gather information. Quantitative analysis and regression analysis were used as data analysis technique. Descriptive statistics such as mean, standard deviation and frequency distribution were used in the analysis of data. Data presentation was done by use of tables for ease of understanding and interpretation. From the findings, the study concludes that internal audit substantive procedures, independence of internal audit, and professional competency had a positive relationship with accountability of public funds of local governments, the study found that a unit increase in internal audit procedures would lead to increase in accountability of public funds of local governments, a unit increase in independence of internal audit would lead to increase in accountability of public funds of local governments, and further a unit increase in professional competency would lead to increase in accountability of public funds of local governments . The study recommends that management in local governments in Uganda should adopt effective internal audit practices such as internal auditing substantive procedures, independence of internal audit and professional competency to enhance accountability.
