Effectiveness of the internal audit function in promoting good governance in public educational Institutions. A case of Makerere University in Uganda

Abstract

Internal audit and good governance have received wide attention due to major accounting scandals and large-scale corporate failures with recent public scandals (Carcello et al., 2005). This triggered the researcher to investigate the subject. The overarching objective of this study was to establish the effectiveness of internal audit in promoting good governance in the public sector in Uganda with special focus on Makerere University – a public educational institution. The study was guided by the following specific objectives: to assess the role of the internal audit unit in the university’s planning processes, to establish the key stakeholders in the university’s planning process and to determine the extent of influence that the internal audit unit has on openness and engagement of stakeholders of Makerere University in the planning process. Generally, internal audit is an integral part of the university. Also, internal audit is a strategic governance arm of the board for the university. The major and significant descriptions of the university’s internal audit function are: adds value to the operations of the university, it has a formal mandate, it comes with competent staff. Some of the roles of the internal audit unit in the university’s planning processes are: helps in future planning, plays a vital role in the governance and accountability of the institution, helps auditees to operate in more effective and efficient manner. Some of the major and significant key stakeholders in the university’s planning process are: the university board, student’s body, the academic staff and the planning department. The responsibilities of the university board are well specified, key to them being the provision of information to the wider public when it's clearly demanded. The major and significant influence of the internal audit unit on openness and engagement of stakeholders of Makerere University in the planning process are: it’s ethical values which are fundamental for internal auditors, the impact on the ability of the university to remain a going-concern. Accountability is the basis of trust in the university, internal audit significantly affects the operations of the university. The top recommendations were: strengthen the involvement of auditees as stakeholders, increase information flow to enable proper monitoring and control of management actions, the need to involve more individual citizens as stakeholders, strengthen communication and consultation methods, and further allow stakeholders to express their views freely and make informed decisions based on unbiased information