Internal audit perceptions and their impact on performance of the internal audit function

Sifile, Obert ; Munyunguma, Innocent (2014-11-01)


This research sought to examine the factors causing negative perceptions of internal audit and the impact on the performance of the internal audit function. The researcher used questionnaires to collect data. There were 78 questionnaires distributed and 69 were received giving a response rate of 88.46%. The researcher used managers, section heads, supervisors and clerical staff as respondents. The research used exploratory and qualitative techniques. The causes of negative perceptions were agreed by 78% of respondents and some of the causes of negative perception were; auditors failure to meet expectation gap, bad reputation of an auditor, the quality of audit staff, level of professional competence and the absence of independence and objectivity in internal audits. The research proposed strategies which can be used to improve perceptions about internal audit as follows: Internal audit needs to adopt a new mindset in view of the many changes that are taking place in the business environment, to correct the anomalies when you receive a qualified audit opinion and correct the errors rather than change the auditor, in the prevalence of financial scandals, intense focus on corporate governance. Auditing can be improved by getting adequate support from management, recruiting qualified and professional auditors and management can improve internal auditing by demonstrating commitment to implement audit findings.