INTERNAL AUDITING AND P FORMA.NCE OF LOCAL GOVERNMENTS IN UGANDA.,. A CASE STUDY 01? KALIRO DISTRICT LOCAL. G.OVERNMENT BY SEKATIKO JUDE 1163-05O14~07195 A

ABSTRACT

The purpose of this study was to establish the effectiveness of internal audit system in the

performance of local governments in Uganda. The following were the objectives of the Study

to establish how internal auditing helps TCaliro Local Government can improve on the control

environment for better financial performance; to establish any information and

communication system that helps to improve the performance of Kaliro Local Government

and to identify the risks faced by internal audit unit in enhancing financial performance of

Kaliro local governnients The study used both descriptive and quantitative research designs.

Descriptive method was used to describe the characteristics of the research variables.

Quantitative method was used to collect data from a given number of respondents. Data was

presented and analyzed using tables, percentages, frequencies and by the help of SPSS. On

primary data collection, the researcher prepared questionnaires and interviews for the

respondents. An open and close ended questionnaire was constructed and which was selfadministered

for respondents to fill, Open and closed ended questionnaire was used. Editing

of collected data was done to make the data ready and simpler for the presentation. The filled

questionnaires were edited to collect errors that are done by the study respondents. Data were

edited in order to check for accuracy, completeness, consistence, uniformity and reliability of

data. The researcher concluded that that control eiwironment plays an important role of

identifying the structure of the company with the involvement of board of directors and audit

committee. Moreover, risk assessment is a fundamental element of organizational governance

and should be perceived as a new means of strategic business management, linking business

strategy to daily risks and then optimizing those risks in order to realize value. Information

and communication was assessed by respondents as satisfactory; this implies that the local

leaders can have the autonomy of determining how the money received from the central

government can be planned, budgeted and put into proper use. Additionally, financial

liquidity was handled well by the financially department in the local government and finally

employee’s autonomy to work played an important role to the district’s development. The

researcher recommended that recruit more qualified and trained staff in the finance section.

Since time immemorial accountant& expertise has always been an important component of

managing a company efficiently. An efficient accountantst service plan necessitates that a

business enterprise maintains appropriate accounting data files and documentation. This is

undoubtedly an aid to effortless accounts preparation and processing.