Relationship of Internal Audit Functions to Governance of Local Government Units

Janet N. Sabado, Reuel E. Narbarte, Robert A. Borromeo, Ruben Carpizo

Abstract


The study determined the relationship between internal audit functions and governance in Local Government Units (LGUs) in Metro Manila, Philippines. The data were gathered from 510 employees of LGUs using stratified sampling. Majority ( 359 or 70.6%) of the respondents belonged to 31-50 years old; majority of them worked in finance (181 or 35.5%) and in social service provider department (179 or 35.1%) and were managers (44 or 8.6%), supervisors (188 or 36.9%), and in clerical position (278 or 54.5%). Results of the study revealed that the internal audit functions of the Internal Audit Units of the LGUs were very good. However, the respondents perceived that the internal audit units seldom retain an independent outlook in presenting their suggestions. The overall status of governance of LGUs included in the study was very good although they sometimes spend more than what they earned. Loans from private institutions are sometimes obtained. Further results revealed that all the dimensions of governance, i.e., financial management and reporting, delivery of basic services, legal compliance, and internal government were perceived very good but the respondents were most satisfied on financial management and reporting. There was a strong positive relationship of internal audit functions to governance. The findings showed that the predictors of governance included consulting services, assurance services, and age.

Full Text: PDF

Refbacks

  • There are currently no refbacks.