The role of the internal audit function and the performance of government institutions: A case study of Uganda Revenue Authority

Abstract

The purpose of the study was to understand the role of internal audit and the performance of Government institutions. The objectives of the study were to examine the scope and priorities of the internal audit function, to examine the internal control system and reporting function in URA and to establish the level of independence of the internal audit function in URA. A Case study was selected for this research and the researcher used both qualitative and quantitative research design. The study was also cross-sectional in nature with a population of 20 staff and data was collected using questionnaires. Key findings in the research included: less effort was devoted to performance improvement audits and Risk management compared to Compliance and Advisory Audits, Priorities and work plan of the Internal Audit was to a greater extent determined by the Risk function rather than Management, the internal audit work plan was approved by the Board Audit Committee, Staff had autonomy in making audit recommendations and that internal Auditor’s independence resulted into an improvement in performance, as process loopholes could independently be reported and the solutions to process improvements suggested. Recommendations were increased diversity in the nature of audit work, and continuous assessment of control activities, procedures and policies. Areas of further research may include the role of internal audit on risk management and performance.