Internal Audit Effectiveness, Ethical Environment and Financial Accountability in Government Entities in Uganda.
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Date
2023
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Abstract
This study examined the relationship between internal audit effectiveness, ethical environment and financial accountability within government entities in Uganda. A cross-sectional research design was used along with a quantitative research approach. The sample constituted 80 government entities from a total of 102. Data was obtained from accounting officers, internal audit officers and assistant heads of internal audit using a structured questionnaire. Validity of the instrument was determined using CVI and reliability using Cronbach Alpha Coefficient. SPSS v.25 analyzed the results to obtain frequency tables, correlation and regression tables to interpret results. This study obtained a positive relationship between internal audit effectiveness and financial accountability. Subcomponents of internal audit effectiveness of risk management, regulatory compliance and internal control review were found to be positively related with financial accountability. The study found a positive relationship between environment and financial accountability. In addition, the sub-constructs of ethical environment of benevolence, egoism and principled were also found positively associated with financial accountability. The study found out that internal audit effectiveness is positively related with ethical environment. More so, the findings revealed that subcomponents of internal control, that is; risk management, regulatory compliance; and internal control review are positively associated with ethical environment. Furthermore, the study found that internal audit and ethical environment are significant predictors of financial accountability. The study confirmed that positive variations in internal audit results in positive variations in financial accountability. Further, the study revealed that positive variations in ethical environment results in positive variations in financial accountability. Moreover, the study obtained that the ethical environment is a better predictor of the variance in financial accountability. This study concludes that internal audit effectiveness and ethical environment are critical factors for fostering financial accountability. Also, the study confirms that government entities need to direct more attention towards ethical environment if they are to intensify the level of transparency and disclosure as well as financial reporting. The study recommends; sensitization of employees about the code of ethics; continuously regulatory compliance audit; and risk management.
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A Dissertation Submitted to Makerere University Business School (Faculty of Graduate Studies and Research) in Partial Fulfilment of the Requirements for the Award of Degree of Master of Business Administration of Makerere University. (PLAN A).
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Miriam, A . I (2023) Internal Audit Effectiveness, Ethical Environment and Financial Accountability in Government Entities in Uganda. Unpublished Masters Dissertation Makerere University Business School. Kampala, Uganda.