The role of internal audit in public sector institutions in Abia state: a study of Federal Medical Centre, Umuahia.

ABSTRACT

The study is an insight on the role of internal audit in the public sector performance of the Nigeria economy. The study views the entire public sector at large but with emphasis on the Federal Medical Center, Umuahia. The study identified that despite the legally stipulated function of internal audit which is to verify and examine the documents of accountability, executed by an auditor with the objective of providing him th ability to express an opinion of those documents in such a way as to provide them with greater credibility, yet their has been reported cases of losses of government assets. The Chi-Square (X2) statistical tool was used and questionnaires administered to 40 respondents in various cadres of the audit dept. of Federal Medical Centre, Umuahia. The study found out that internal audit has not significantly affected public sectors performance. Performance could be measured in tern s of efficient and effective service delivery and increase in internally generated revenue (IGR). The study also identified such factors as non independence of the internal auditor, biased and dishonest internal auditor due to the circumstances and environment he finds himself, as the factors responsible for time lapses. Finally, the study found out that inefficient internal audit and internal control systems has hampered reports. To curb such anomalies, the study suggested that there should be a total independent of internal auditors in the discharge of their duties, also the World Bank recommendation in proper public expenditure management and control should be strictly followed by government institutions. Further suggestions are need for qualified, experienced and honest internal audit personnel, and the strict compliance to due process in public procurement in government institutions.