Corporate governance and the performance of the internal audit function in public universities in Uganda

Abstract

The purpose of this study was to investigate the relationship between Corporate Governance and the Performance of the Internal Audit (IA) Function in Public Universities in Uganda. The specific objectives of the study were; to investigate the relationship between board leadership and performance of the internal audit function, to examine the relationship between board composition and performance of the internal audit function, to examine the relationship between the audit committee and performance of the internal audit function and to examine how management support influences the relationship between corporate governance and performance of the internal audit function in Public Universities in Uganda.

The research was carried out using a mixed methods research design involving both a cross sectional survey and a qualitative design. A sample of 47 respondents was purposively and systematically selected using Krejecie and Morgan (1970) sample size determination Tables. Data which were largely primary in nature were collected using self-administered structured questionnaires and an interview guide. Data were analysed using descriptive and inferential statistics in SPSS 21.0.

The study findings indicated that there was no significant relationship between council leadership and the performance of the Internal Audit function (r=0.061, p>0.01) although there was a positive significant relationship between council composition and the performance of the Internal Audit function (r=0.328, p<0.01) and a positive significant relationship between the audit committee and the performance of the Internal Audit function (r=0.217, p<0.01). The study results further established that there is a positive significant relationship between corporate governance and the performance of the Internal Audit function (r=0.679, p<0.01). The study results further established that there is a positive significant relationship between management support and corporate governance and the performance of the Internal Audit function (r=0.675, p<0.01). It was concluded that improving corporate governance would moderately and positively improve the performance of the Internal Audit function while this relationship would slightly improve if management support was provided. Several recommendations including reducing the size of the board, including members with knowledge of finance on the board, induction of the audit committee members into specific accounting, financial and reporting procedures and implementation of audit recommendations would improve corporate governance and ultimately the performance of the Internal Audit function in public universities in Uganda.