Internal Audit Practices and Financial Performance of Public Institutions in Rwanda: A Case of Rwanda Social Security Board
DOI:
https://doi.org/10.53819/81018102t2168Abstract
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
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