Published 2025-03-12
Keywords
- Internal Audit, Audit Independence, auditor competence,
Abstract
This study evaluates the effectiveness of internal audit in Nigerian's public sector, focusing on two key determinants: internal audit independence and auditor competence. A descriptive survey design was adopted, gathering data from internal audit staff across various public sector institutions in Nigeria. Simple linear regression analysis was employed to test the formulated hypotheses. The findings reveal a significant positive impact of both internal audit independence and auditor competence on the effectiveness of internal audits.
Specifically, the regression analysis shows that internal audit independence has a coefficient of 0.837 with a p-value of 0.000, indicating that a 1% increase in internal audit independence leads to an 84% increase in audit effectiveness. Similarly, auditor competence has a coefficient of 0.386 with a p-value of 0.000, suggesting that a 1% increase in auditor competence results in a 39% increase in audit effectiveness. The R-squared values of 0.76 and 0.557 respectively imply that these factors explain a substantial portion of the variance in audit effectiveness. These results underscore the importance of both internal audit independence and auditor competence in ensuring effective internal audit practices.
The study concludes with recommendations for enhancing internal audit effectiveness in Nigeria's public sector. These include legislative support to safeguard audit independence, continuous professional development for auditors, and the adoption of advanced audit techniques.