Effect of Internal Audit on Financial Reporting Quality of Selected Government Institution in Rwanda

CPA Gabriel Ntakiyimana
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CPA Gabriel Ntakiyimana: Master student, Graduate school University of Kigali.

International Journal of Research and Innovation in Social Science, 2024, vol. 8, issue 4, 2391-2400

Abstract: The general objective of this research was to examine the effect of internal audit on financial reporting quality of government institutions in Rwanda. with specific objectives, are to describe the implications of auditor’s independence on financial reporting quality of government institution in Rwanda. To determine the effect of Auditor’s experience on financial reporting quality of government institution in Rwanda. To assess the effect of Management support to auditor on financial reporting quality of government institution in Rwanda. To examine the significance qualifications of auditor on financial reporting quality of government institution in Rwanda. Hence The populations of a nation are eligible to assurances of on how administration of institution use country’s economic resources in according the law and regulation of country. The study utilized a descriptive and explanatory research design for cost-effectiveness and flexibility. Primary data was collected through closed-ended questionnaires featuring a 5-point Likert scale. researcher used descriptive statistic, and inferential statistic, regression analysis for the purpose of this study. based on the result of finding in this study, the adjusted R squared value was 0.864, demonstrating that 86.4% of the changes in financial report quality could be explained by the study variable which are Auditor’s Independence, Auditor’s Experience, Management Support and Auditor qualification. On the other hand, the result of hypotheses tested revealed that by mean of the regression analysis results indicate that the standardized coefficient (Beta) value for audit independence (AI) is 0.844, suggesting a minor influence on financial reporting quality. Despite this, the influence is not statistically significant. The results revealed a standardized coefficient (Beta) value of 1.206 for audit experience (AE), indicating a positive effect on financial reporting quality. However, this effect was not found to be statistically significant. The results of the regression analysis indicate that the standardized coefficient (Beta) value for management support is 0.244, suggesting a positive influence on financial reporting quality, but not statistically significant. The regression analysis results indicate that the standardized coefficient (Beta) value for Auditor’s qualification (AO) is 0.892, suggesting a positive effect on financial reporting quality. However, this effect is not statistically significant. based on result the research concludes that internal auditors improve the quality of financial reports of government institutions in Rwanda. and recommends that organization must ensure auditor independence, prioritize recruitment and retention of qualified and experienced Auditor and maintain effective communication with their auditors.

Date: 2024
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