JEFMS Journal

ABSTRACT:

Over the years, internal auditing had been recognized as an important tool of government financial management in enhancing transparency and accountability, effectiveness and efficiency of government operations. The study ascertained the level of responsiveness and challenges encountered by the Internal Audit Services (IAS) in the Local Government Units (LGUs) of Capiz in terms of implementation, resources, qualification, and training and development. The descriptive-correlational research design employing quantitative and qualitative methods was used. The respondents were the individuals associated with the IAS of the LGUs’ accounting, budget, and treasury departments of Capiz. The data were gathered using a researcher-made questionnaire through Google Forms for the respondents and an interview guide for the informants. The statistical tools used to analyze the data were mean, frequency count, rank, and percentage. For inferential analysis, the t-test, Analysis of Variance (ANOVA) and regression analysis were used. On the level of challenges encountered by the IAS in the LGUs when taken as a whole, it is implied that the LGUs were moderately challenged. Statistics showed that the implementation, Internal Audit Services (IAS) qualification, and training and education did not act as significant predictors on their level of responsiveness towards IAS. However, the results further implied that resources did act as a significant predictor on their level of responsiveness. Several noted irregularities and deficiencies within the government financial management and operations, lack of adherence to laws, rules and regulations and the public demand for improved accountability and transparency further entails the need for internal audit in the government sector.

KEYWORDS:

Responsiveness, Internal Audit Services, Local Government Units, Good Governance

REFERENCES:

1) 2020 Annual Financial Report for the Local Government Volume II, Commission on Audit (2021)

2) Administrative Order No. 70. (April 14, 2003).

3) Department of Budget and Management. (2016). Internal Audit Manual for Local Government Units.

4) International Professional Practices Framework (IPPF), (The Institute of Internal Auditors, 2017 Edition).

5) Republic Act No. 3456. (June 16, 1962). Internal Auditing Act of 1962.

6) Republic Act No. 4177. (March 26, 1965).

7) Rom, M. T. (2019). Factors Affecting the Effectiveness of Internal Audit in Public Sectors, A Case of Gambella Regional State of Ethiopia,

8) Yusoff, S. A. (2015). Internal Audit Effectiveness through Risk-Based Auditing: An Empirical Study in the Malaysian Public Sector.