Internal audit function, audit committee effectiveness and accountability in the Ugandan statutory corporations
Journal of Financial Reporting and Accounting
ISSN: 1985-2517
Article publication date: 12 March 2018
Abstract
Purpose
The purpose of this study is to investigate the contribution of internal audit function and audit committee effectiveness on accountability in statutory corporations (SCs).
Design/methodology/approach
This study is cross sectional and correlational. Data have been collected through a questionnaire survey of 52 SCs in Uganda through their Chief Internal Auditors and Chief Finance Officers. Data have been analysed using Statistical Package for Social Sciences.
Findings
The internal audit function significantly contributes to accountability of SCs in Uganda and audit committee effectiveness is not where effective internal audit is present in such organisations. However, audit committee effectiveness significantly contributes to accountability when an internal audit function is not present.
Research limitations/implications
The use of hierarchical regression is prone to problems associated with sampling error. However, the likelihood of these problems is mitigated by the interface with data.
Originality/value
Whereas hitherto both internal audit function and audit committee effectiveness had been viewed as explanations of accountability, this study only confirms the internal audit function as a significant predictor of SCs’ accountability relative to audit committee effectiveness.
Keywords
Citation
Bananuka, J., Nkundabanyanga, S.K., Nalukenge, I. and Kaawaase, T. (2018), "Internal audit function, audit committee effectiveness and accountability in the Ugandan statutory corporations", Journal of Financial Reporting and Accounting, Vol. 16 No. 1, pp. 138-157. https://doi.org/10.1108/JFRA-07-2016-0062
Publisher
:Emerald Publishing Limited
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