Factors Influencing The Internal Audit Function In Public Sector: A Case Of Ministry Of Finance And Economic Planning Of South Sudan

Abstract

Internal auditing is primarily directed at improving internal controls designed to provide reasonable assurance regarding achievement of organizational objectives, effectiveness and efficiency of operations, reliability of financial reporting and compliance with existing laws and regulations. By serving as an objective source of assurance and advice, the internal audit function can provide the senior management with insight on an entity’s governance, operations and risk management thereby adding significant value to its performance. However, the effective operation of the internal audit function is contingent on a number of factors. This study sought to determine the factors influencing the internal audit function in public sector using a case of Ministry of Finance and Economic Planning of South Sudan. Specifically, the study sought to establish the influence of competency of internal audit staff, top management support for internal audit and independence of internal audit staff on the internal audit function in the Ministry of Finance and Economic Planning of South Sudan. The study adopted a descriptive research design. The target population of the study was 86 internal auditors working in Departments under the Ministry of Finance and Economic Planning of South Sudan. The study was a census survey. The study used primary data which was collected using a self-administered questionnaire. In data analysis, the study data was analyzed through descriptive statistics using the Statistical Package for Social Science (SPSS version 23.0) and presented through percentages, frequencies, mean and standard deviation. Further, linear regression analysis was used to analyze the relationship between the study variables. The study established that the internal auditors of Departments under the Ministry of Finance and Economic Planning of South Sudan did agree that the internal auditor reports informs management’s decision making; independence of the IA function could only be achieved by allowing the internal audit department to perform its responsibilities free from any interference; for the internal audit department to be able to meet its responsibilities, the department must have or be able to attract persons with the required knowledge, skills and experience; the internal audit function helps expedite external audits and that for the internal auditors to be deemed competent, they must have a good understanding of the entity’s system of internal controls. Further, the study results revealed a significant positive relationship between competency of internal audit staff, top management support for internal audit as well as independence of internal audit staff and the internal audit function in the Ministry of Finance and Economic Planning of South Sudan. The study concluded that competency of internal audit staff, top management support for internal audit and independence of internal audit staff played a significant role in enhancing the effectiveness of internal audit function in the Ministry of Finance and Economic Planning of South Sudan. The study recommended that the heads of departments in the Ministry of Finance and Economic Planning of South Sudan should recognize the internal audit function as a value-adding service to their organizations. Further, the study recommends that the heads of departments in the Ministry of Finance and Economic Planning of South Sudan should ensure that the internal audit function operates free from any interference.