ABSTRACT

The topic, "the impact of audit report in the management of Local Government funds", a study of Afikpo North Local Government Area, is to appraise the role and importance of audit in the financial management of Local Governments. This motivated the researcher into formulating the following objectives:- To find out the role played by the audit reports, in the management of local Government's funds, to find out the extent of compliance with the financial regulations, to find out the problems involved' in exercising audit duty Following these objectives of the study, questionnaires were distributed to staff of Afikpo North Local Government Area and Local Government Audit department as the sample size. Data were generated from both secondary and primary source, X2 was used to test the three hypothesis formulated for the study. Finding were made which among others stated that audit reports create no remarkable impact in the management of Local Government funds hence audit reports are addressed to chairman of the Local Government Area who are usually victims of the audit reports and as such always shun the implementation of the audit reports. Based or these findings the following recommendations were made - That audit reports should be addressed to state chief executive, i.e. the state Governor and audit committee established in Governor's office to enforce implementation of audit report(s). That regular training, courses and seminars should be organized for Local Government Executive, the legislative arm and the key functionaries of the Local Government Areas on the importance of audit and its report(s) and that implementation of audit reports should not be the responsibility of the Local Government Chairmer1 if audit report(s) should create positive impact in the management of Local Government funds.