ABSTRACT

This research work is an appraisal of internal audit functions on public sector governance. It was conducted on the following objectives: to evaluate the influence of internal audit functions on public sector performance. Specifically ascertain whether Internal Audit Departments of the Public Sector in Abia State are adequately staffed to check fraud and fraudulent activities in such Ministries. and why there is the persistent existence of frauds and fraudulent activities in ministries despite the existence and adequate functioning of Internal Audit Departments. This was done using 80 structured questionnaire distributed randomly to administrative, accounts and audit units of three parastatals. The gathered data were analyzed using frequency distribution tables, percentages and chi-square. The findings of this study are as follows: that there is need for adequate staffing in terms of numbers, qualification and experience in the Internal Audit Departments of these parastatals, as well as the establishment of the Department where it is nonexistent. It was also discovered that there is persistence of fraud and fraudulent activities because the internal audit in the public sector is ma! by: poor accounting system, poor policy implementation, political interference, dishonesty among staff, none prosecution of offenders, lack of professionalism, weak Internal Control and many other problems; from the hypothesis testing, the null hypothesis was accepted while the alternate was rejected, it was then concluded that Internal audit does not effectively check fraud in Abia State public sector. It is therefore recommended that there should be a creation of an Infernal Audit Department in those parastatals where there is none. Existing Departments then should be strengthened by according them the necessary professional independence and employing adequate number of experienced and qualified staffs to enable the Department extend coverage of the audit to all significant activities of ii. the public sector.