Effect of Internal Audit Practice on Expenditure Management of Organization in Rivers State
Abstract
The study examined internal audit practices and expenditure management of government organizations in Rivers state. The specific objectives to the study among others were to; determine the effect of asset safeguard on allocation efficiency of government organizations in Rivers state, determine the effect of asset safeguard on operational efficiency of government organizations in Rivers state, determine the effect of auditor’s independence on allocation efficiency in Rivers state, determine the effect of auditor’s independence on operational efficiency in Rivers state. This study adopted survey research design. The population comprised of 5 selected government owned organizations in Rivers state. The study adopted simple sampling techniques; the research utilized primary and secondary data. The research questions were analyzed using descriptive statistics, while the formulated hypotheses were tested using the multiple regression analysis with the aid of SPSS and E=View. From the findings of the study, among others, showed that Asset safeguard as an internal auditor practice also showed a positive but insignificant effect on allocation efficiency. However, Asset safeguard negatively affect operational efficiency as a measure of public expenditure management of government organizations possibly because obtaining the costs of programs can be a difficult task. Auditor independence has negative and insignificant effect on operational efficiency as a measure of public expenditure management of government organizations. This simply means that auditor independence is negative and insignificant to operational efficiency as a measure of public expenditure management of government organizations. The following recommendations are made among others; Auditors independence should be non-negotiable and sacrosanct in government organizations if operational efficiency is to be achieved.
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