Impact of Internal Audit Independence and Objectivity on Provincial Government Efficiency

Awonke Geqeza

Journal of Accounting and Finance in Emerging Economies, 2025, vol. 11, issue 2, 257-266

Abstract: Purpose: This study is exploring how the absence of internal audit activity independence (IAAI) and auditor objectivity affects governance outcomes, such as effectiveness of service delivery, management of departmental risks and how accountable are provincial governments. The study followed Principal agency theory as the foundation. The theory is applied to explain the relationship dynamics that exist between the taxpayers and IAF through the operations of the provincial government.Design/Methodology/Approach: The study followed mixed research approach, using 260 purposely selected participants. Questionnaires, telephone interviews, and focus group discussions were used as data collection instruments. A triangulation of descriptive statistics and thematic analysis were used to illustrate the findingsFindings: The study found that internal audit function (IAF) is given low status within with department, Auditors lack refresher training on IAAI and objectivity aspects, auditors developed friendship with the auditee, which makes it difficult for internal auditors to remain objective.Implications/Originality/Value: This study closes the existing gaps within governance processes as result of the lack of IAAI and auditor objectivity and recommends policy changes to improve governance outcomes.

Keywords: Cooperate governance; Effectiveness of audit activities; Principal agency theory and provincial government (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:src:jafeec:v:11:y:2025:i:2:p:257-266

DOI: 10.26710/jafee.v11i2.3332

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