ABSTRACT

The study examined the appraisal of local government audit system with respect to revenue generation and overhead cost reduction, a case study of four (4) selected local government in Abia State. Local government is faced with various types of problem which include; embezzlement, receipt of huge kick basic, contract inflation, poor decision making, improper recording, analyzing, interpreting and communicating of policy of down streams, the hierarchy and large scale of salaries, this is because the internal control system is defective via change in government and government policies. The literature review is written under the following, the two various sources of data; primary data which include personal interview, lectures and observation. While the secondary data are text books and journals. The review of the related literature expresses the nature and purpose of auditing in local government and its government control of expenditure mechanisms such as legislative control, executive control, ministerial control and audit control. Where control is in placed on auditing, there will be an appropriate financial report and review of financial statement. The population of the study was forty-eight which was distributed after repeated visit forty-three was returned. This sample size forty-three was used to analyze the research question using descriptive tool, and testing the hypothesis with chi-square. In the local government, it was observed that the auditors are not independent because they are employees of the government, the audit staff should be given total independence for them to work effectively. In other to produce efficient result. The local government lack the use of computer system which could be sued for documentation, of most material records. Where computer system is not available it will continue to increase the paper work and occupation of most vital document, local government should be a matter of urgency embark on computer programme which will not only help to reduce paper work but enhances easy access to document in the council and eliminate the inconveniences resulting to time wasting.