Internal Audit Function and Financial Performance of Public Sectororganizations. Case Study: National Water and Sewerage Corporation Mbale

Abstract

The overall objective of the study was to examine internal audit function and financial performance of public sector organizations while considering National Water and Sewerage Corporation Mbale. The study was guided by the three objectives; to examine the types of internal audit applied by National Water and Sewerage Corporation Mbale, to analyze the importance of internal audit function in the accountability of Public Corporation and to establish the relationship between internal audit and financial performance of National Water and Sewerage Corporation Mbale. Data was collected using a questionnaire and interview guide, and during data collection purposive sampling method was used. Both qualitative and quantitative methodologies were used to analyze data as a sample size of 50 respondents was used.

The study concludes that there are number of Internal audit systems at National Water and Sewerage Corporation Mbale including; checking of goods entering National Water and Sewerage Corporation Mbale after their purchase, checking of people at the building entrance, frequent supervision of the corporation activities, writing of reports to the corporation workers concerning all that has been done under departments by the heads of departments every after five months, use of recording systems, internal audit system, training and workshop programs to the corporation employees, screening of prospective employees in addition to the use of budgetary and financial controls. The study concluded that there is a positive impact of internal audit function on the financial performance of corporation.

The study results indicate that, internal auditing function ensures efficient and effective use of public resources ensures reliability and integrity of information for economics, management system of internal audit among others. However, the study also pointed out that, less developed human capacity, pressure from political leaders, limited human resource review to be among the challenges facing internal auditing.

The study recommended National Water and Sewerage Corporation Mbale to continue practicing book keeping and auditing them and this will improve on their financial performance, human resource in organizations to always conceive and adhere to the Internal audit function in a positive way as it is communicated by workers and follow their contents in the day to day running of the corporation activities, training of employees in corporation as important motivational tool of motivating employees towards better financial performance, corporation to invest in market research so as to understand what people think of their services and or products for improving financial performance of corporation . Lastly, which the impact of organizational structure internal audit function on the financial performance of National Water and Sewerage Corporation Mbale and the impact of salary motivation on the financial performance of corporation in Uganda

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