ABSTRACT

This is an in-depth study on "The Effectiveness of Internal Audit as an Instrument of Improving Public Sector Management". This topic is all about the importance of Internal Auditing as a tool for efficient and effective fin,ancial recording. The purpose of this study is to define the work of an internal auditor which will help for an effective financial reporting. That is mainly to PREVENT and FISH OUT errors, omissions and frauds that want or might have been present in the organization. In carryout the above aim, available literatures on the area of the study were reviewed. Questionnaires were used to obtain data from respondents. The total population for the study was 50; while the sample size is 44.44 out of 38 questionnaires distributed by the researcher which were returned. The statistical techniques used for the analyses of data, and hypotheses testing were simple percentage and Chi-Square (X2) test respectively. The findings established include; Abia State Ministry of Finance has internal audit department; The audit department in the Ministry has an organizational chart which shows the functions, authorities and xi responsibilities of every staff; Internal auditors inspect the records regularly; etc. Based on the above findinys, the following recommendations were made; The management of Ministry of Finance, Umuahia should ensure that they implement practice of the domestic reports of internal auditor of which will help immensely in increasing the performance of the management; the internal auditor should maintain a regularand periodic inspection of records; the management of Ministry of Finance, Umuahia should maintain its organizational chart that shows the functions, authorities and responsibilities of every staff; the management of Ministry of Finance, Umuahia should maintain its reliable internal control system; the internal auditor should be given free hands in the course of performing his/her work.