Internal Audit Function and Local Government Service Delivery in Southwest, Nigeria

Joel A. Okewale & Awotimehin O. Awosoga

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Abstract

This study investigated the effect of internal audit function on local government service delivery in South-west, Nigeria. The data were collected through primary sources using self-administered structured questionnaires distributed among the 12 selected local governments in the South-west geo-political zone of Nigeria. The study adopted a descriptive research design. Exploratory Factor Analysis (EFA) was employed to analyse the 100 valid questionnaires representing 83.33% of the total questionnaires administered to determine the reliability, sampling adequacy and reduce the data to suitable principal factors for the study. The Cronbach alpha confirmed the reliability of internal consistency of the variables at 0.76, Kaiser-Meyer-Olkin upheld the sampling adequacy of the data at 0.68, while the Bartlett test of sphericity was found significant at 0.00, indicating sufficient correlation among the variables to justify the appropriateness of factor analysis. The findings from the binary logistic regression revealed that internal audit quality and internal audit scope of work are statistically significant at P<0.05 to explain variations in the local government service delivery. Holistically, according to Kaiser’s criterion of eigenvalue, the results of the exploratory factor analysis (EFA) established that compliance with regulatory standards, robust methodology and adequacy of existing internal control are the major determinants of service delivery in local governments. The study concluded that the internal audit function has an effect on local government service delivery in Southwest, Nigeria, and therefore recommended unrelenting management support, provision of adequate resources for effective functioning, and unimpeded autonomy for the internal audit unit.

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