Internal Audit Practices and Financial Performance of Public Institutions in Rwanda: A Case of Rwanda Social Security Board


  • Mr. Richard Twagira Mount Kenya University, Kigali, Rwanda
  • Dr. Osiemo A. Kengere Mount Kenya University, Kigali, Rwanda



This study investigated effect of internal audit practices on the financial performance of public institutions in Rwanda with reference to Rwanda Social Security Board. The study used both descriptive and correlational research design. The target population 148 using census approach all respondents were considered as the sample size. The study used simple random sampling method. The study employed primary data obtained using questionnaires first pilot tested to ensure they were valid and reliable. Secondary data was obtained from Rwanda Social Security Board. The collected data was analyzed using descriptive statistics such as means, standard deviation and frequencies and inferential statistics such as correlation and regression with help from statistical product and service solution. Results from the first objective show that the tenure was strongly agreed by 44.7%, ensured of the qualification as strongly agreed by 30.1%, for tenure influence, there was a positive significant correlation between tenure and compliance with policies (r=.320**, p-value =0.001), reliability and integrity of information (r=0.0317, p-value =0.001). There was positive significant correlation between qualification and compliance with policies (r=0.408*, p-value=0.048), qualification and cost relative to the intended results (r 0.716, p-value=0.000). Results to the second objective felt unrestricted adopted by strongly agreement with 54.4%., and 40.8% strongly agreed with the fact that involvement in budget. There were significant correlations found between unrestricted access organizational and compliance with policies (r=0.424**, p-value=0.000), compliance with policies (0.740**, p-value= 0.000), compliance with policies reliability and integrity of information (0.484**, p-value=0.000). To the third objective, the study found segregation of duties as agreed by 36.9%, using password evidenced that 53.4% strongly agreed, 44.7% strongly agreed with security for authorization and approvals. Results indicated, significant correlations were established between the segregation of duties and compliance with policies (r=0.244**, p-value=.013). Significant positive correlations were found between physical control and reliability and integrity of information (r=0.253**, p-value=0.010), physical control and cost relative to the intended results (r=.796*, p-value=0.000) and not correlation found between physical control and cost relative to the intended results (r=-0.127*, p-value=0.203).  The researcher recommends that the management should focus on the supporting internal audit with adequate budgetary allocations, the management should ensure that the auditors are recruited in their right proportion to reduce shortage of staff members in these organizations for effectiveness. Similar studies should be simulated in other institutions with the view of establishing the factors affecting the effectiveness of staff members in public institutions. 

Keywords: Internal audit practices, financial performance, public institutions, Rwanda Social Security Board, Rwanda

Author Biographies

Mr. Richard Twagira, Mount Kenya University, Kigali, Rwanda

School of Business and Economics, Master of Business Administration (MBA), finance, Mount Kenya University, Kigali, Rwanda

Dr. Osiemo A. Kengere, Mount Kenya University, Kigali, Rwanda

Mount Kenya University, Kigali, Rwanda


Adeola, O., Gyimah, P., Appiah, K. O., & Lussier, R. N. (2021). Can critical success factors of small businesses in emerging markets advance UN Sustainable Development Goals? World Journal of Entrepreneurship, Management and Sustainable Development, 17(1), 85–10

Adeosun, O. A., J. A. Adekanmbi, and W. A. Ogunleye. (2021). Perception of Accounting Educators and Practitioners towards the Practices of Creative Accounting. EPRA International Journal of Research and Development 6: 28–35.

Agyei-Mensah, B.K. (2019). The effect of audit committee effectiveness and audit quality on corporate voluntary disclosure quality, African Journal of Economic and Management Studies, Vol. 10 No. 1, pp. 17-31.

Alam, M. M., Said, J., & Abd Aziz, M. A. (2019). Role of integrity system, internal control system and leadership practices on the accountability practices in the public sectors of Malaysia. Social Responsibility Journal, 15(7), 955–976

ALbawwat, Ibrahim Emair, Mohammad Eid AL-Hajaia, and Yaser Saleh AL Frijat. 2021. The Relationship between Internal Auditors’ Personality Traits, Internal Audit Effectiveness, and Financial Reporting Quality: Empirical Evidence from Jordan. The Journal of Asian Finance, Economics and Business 8: 797–808.

Ali I. (2017). “Effect of internal audit on financial performance of Micro-Finance institution in Kenya.” Research Project. International Review Paper, 1 (1), 2-10.

Amidjaya, P.G. and Widagdo, A.K. (2019). Sustainability reporting in Indonesian listed banks. Do corporate governance, ownership structure and digital banking matter?” Journal of Applied Accounting Research, Vol. 21 No. 2, pp. 231-247.

Anggreni, Dewa Ayu Rai, and Made Yenni Latrini. 2021. Effect of auditor ethics and audit tenure on auditor ability to detect creative accounting practices. American Journal of Humanities and Social Sciences Research 5: 330–36

Anh, T., Thi, L., Quang, H., & Thi, T. (2020). Factors influencing the effectiveness of internal control in cement manufacturing companies. Management Science Letters, 10(1), 133–142

Appiah, K. O., Gyimah, P., & Adom, M. B. (2020). Advancing firm’s performance in Ghana: does IFRS adoption matter. African Journal of Accounting, Auditing and Finance, 7(2), 143–154.

Arun, T., Adhikari, P., & Mohan, R. (2020). Learning accountability in the public sector: the experience of Kerala. Financial Accountability and Management, 37(2), 184–203.

Bananuka, J. and Nkundabanyanga, S.K. (2022). Audit committee effectiveness, internal audit function, firm-specific attributes and internet financial reporting: a managerial perception-based evidence, Journal of Financial Reporting and Accounting, Vol.-07-2021-0198

Bananuka, J., Nkundabanyanga, S.K., Nalukenge, I. and Kaawaase, T. (2018). Internal audit function, audit committee effectiveness and accountability in the Ugandan statutory corporations. Journal of Financial Reporting and Accounting, Vol. 16 No. 1, pp. 138-157.

Bananuka, J., Walugyo, A.K., Mukyala, V., Muramuzi, B. and Namusobya, Z. (2019), “Audit committee effectiveness, isomorphic forces, managerial attitude and adoption of international financial reporting standards. Journal of Accounting in Emerging Economies 9(4)502-523.

Betti, Nathanaël, Gerrit Sarens, and Ingrid Poncin. 2021. Effects of digitalization of organisations on internal audit activities and practices. Managerial Auditing Journal 36: 8722

Buallay, A. and Al-Ajmi, J. (2019). The role of audit committee attributes in corporate sustainability reportin. Journal of Applied Accounting Research, 21(2), 249-264.

Cevahir, A., & Çalıyurt, K. T. (2021). Evaluation and rating of corporate governance and internal auditing in Turkish public companies. Singapore: Springer.

Chalmers, K., Hay, D., & Khlif, H. (2019). Internal control in accounting research: a review. Journal of Accounting Literature, 42, 80–140.

De Villiers, C. and Sharma, U. (2020), “A critical reflection on the future of financial, intellectual capital, sustainability and integrated reporting”, Critical Perspectives on Accounting, 1(7)10-19.

Drábková, Zita, and Martin Pech. 2022. Comparison of Creative Accounting Risks in Small Enterprises: The Different Branches Perspective. E&M Economics and Management 25: 113–129.

Fries, A., Kammerlander, N., & Leitterstorf, M. (2021). Leadership styles and leadership behaviors in family firms: a systematic literature review. Journal of Family Business Strategy, 12(1), 100374.

Gyimah, P., & Adeola, O. (2021). MSMEs sustainable prediction model: a three-sector comparative study. Journal of the International Council for Small Business, 2(2), 90–100.

Hess, J. P. (2021). A multi-level analysis of sustainability practices in Ghana: examining the timber, cocoa, and gold mining industries. International Journal of Organizational Analysis, 30(3), 2022760–2022777.

Hinson, R. E., Madichie, N., Adeola, O., Nyigmah Bawole, J., Adisa, I., & Asamoah, K. (2022). New public management in Africa: an introduction. In New Public Management in Africa (1–15). Cham: Palgrave Macmillan.

Jacob, Martins Sigah and Edheku, Ochuko Joy and Obembe, Olalekan J (2022) Internal Audit Practices and Financial Performance of Construction Companies in Nigeria. European Journal of Accounting, Auditing and Finance Research, 10 (11). 87-140.

Journeault, M., Levant, Y. and Picard, C.F. (2021). Sustainability performance reporting: a technocratic shadowing and silencing, Critical Perspectives on Accounting, 1(74), 102145.

Karaman, A.S., Kilic, M. and Uyar, A. (2020). Green logistics performance and sustainability reporting practices of the logistics sector: the moderating effect of corporate governance”, Journal of Cleaner Production (25(8), 12-24.

Madawaki, A., Ahmi, A. and Ahmad, H.N. (2022). Internal audit functions, financial reporting quality and moderating effect of senior management support, Meditaric Accountancy Research, 30(2), 342-372.

Nerantzidis, M., Pazarskis, M., Drogalas, G. and Galanis, S. (2022). Internal auditing in the public sector: a systematic literature review and future research agenda, Journal of Public Budgeting, Accounting & Financial Management 34(2), 189-209.

Newman, W., & Comfort, M. (2018). Investigating the value creation of internal audit and its impact on company performance. Academy of Entrepreneurship Journal, 24(3), 1-21.

Nyamokami K. and Muturi W., (2018). Effects of Internal Controls on Financial Performance of Deposit-Taking Saccos in Kisii County, Kenya. International journal of social science and information technology, 4(10), 2012-029.

Odhiambo S.O (2018). Determinants of financial performance of Savings and Credit Cooperative Societies in Nakuru town, Kenya. Journal of Business and Management (IOSR-JBM) 20 (8) 36-45

Orazalin, N. and Mahmood, M. (2018). Economic, environmental, and social performance indicators of sustainability reporting: evidence from the Russian oil and gas industry, Energy Policy, 121, 70-79.

Prakoso, Robby. (2020). Covid-19: The New Normal Risk Based Internal Auditing.

Sije, A. O. (2017). Relationship between turnaround strategies and performance of small and medium enterprises in Kenya. (Unpublished PhD thesis Jomo Kenyatta University of Agriculture and Technology. Nairobi)

Tauringana, V. (2021), “Sustainability reporting adoption in developing countries: managerial perception-based determinants evidence from Uganda”, Journal of Accounting in Emerging Economies, 11 (2), 149-175.

Thottoli, M.M. (2021), "The relevance of compliance audit on companies’ compliance with disclosure guidelines of financial statements", Journal of Investment Compliance, 22(2), 137-150.




How to Cite

Twagira, R., & Kengere, O. A. (2023). Internal Audit Practices and Financial Performance of Public Institutions in Rwanda: A Case of Rwanda Social Security Board. Journal of Finance and Accounting, 7(4), 63–86.