Financial management performance of public sector

Quality of internal auditor

Takiah Mohd Iskandar, Yati Md Lasa, Norul Syuhada Abu Hassan

Research output: Contribution to journalArticle

2 Citations (Scopus)

Abstract

This study examines the relationship between internal audit functions and financial management performance in the public sector in Malaysia. The internal auditor is entrusted with a monitoring responsibility to ensure the integrity of the management of public funds. The need for effective monitoring by an internal auditor is increasing as a result of the Auditor General Report concerning weaknesses in the financial management of the public sector. The present study conducts a survey on 80 internal audit units of government agencies and organisations. Financial management performance is measured using the Financial Management Accountability Index issued by the National Audit Department. The results show that the effectiveness of internal audits in enhancing the financial management of public sector relates significantly to the competency of internal auditors, the size of internal audit units, and cooperation between the internal auditors and audit committees. The findings have policy implications concerning the staffing and training programmes of internal audit units that will help improve financial management performance in the public sector.

Original languageEnglish
Pages (from-to)229-254
Number of pages26
JournalInternational Journal of Accounting, Auditing and Performance Evaluation
Volume10
Issue number3
DOIs
Publication statusPublished - 2014

Fingerprint

Financial management
Management performance
Auditors
Public sector
Internal audit
Monitoring
Staffing
Policy implications
Training program
Audit committee
Responsibility
Malaysia
Integrity
Government agencies
Competency
Management accountability
Audit
Internal audit function

Keywords

  • Accountability
  • Competency; independence.
  • Financial management performance
  • Internal audit
  • Public sector

ASJC Scopus subject areas

  • Accounting
  • Organizational Behavior and Human Resource Management
  • Finance

Cite this

Financial management performance of public sector : Quality of internal auditor. / Iskandar, Takiah Mohd; Lasa, Yati Md; Abu Hassan, Norul Syuhada.

In: International Journal of Accounting, Auditing and Performance Evaluation, Vol. 10, No. 3, 2014, p. 229-254.

Research output: Contribution to journalArticle

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