Internal audit and financial accountability in local governments:

Abstract

This research examined the effect of internal audit on financial accountability of local governments in Uganda, a case of Iganga District Local Government. Specifically, it examined the effect of audit independence on the financial accountability, the impact of audit competence on the financial accountability and established the impact of ethical compliance on the financial accountability. Applying a cross-sectional research design and a quantitative approach. Utilizing data collected from 40 employees through questionnaires, the study employed SPSS for data analysis. The findings reveal that internal audit significantly improves financial accountability. The study findings also depict that audit independence, audit competence and ethical compliance positively affects financial accountability. The researcher therefore concludes that in order to increase the financial accountability, local governments should strengthen objectivity in financial reporting and ensure fair and transparent disclosure of organizational activities, elevate auditors' knowledge, technical proficiency, and practical experience through continuous training and capacity building and adhere to comprehensive professional policies and standards, particularly attention should be paid to legal compliance, upholding integrity, and protecting the privacy of auditing professionals.