INTERNAL AUDIT FUNCTION AND FINANCIAL ACCOUNTABILITY IN ENUGU STATE CIVIL SERVICE: A STUDY OF ENUGU STATE MINISTRY OF FINANCE AND ECONOMIC DEVELOPMENT (2020-2024)

Abstract

The study examined the internal audit function and financial accountability in Enugu State civil service, focusing on the State’s Ministry of Finance and Economic Development. The study covered the period of 2020-2023. The main thrust of the study was to: find out if prepayment audit has significant positive effect on financial accountability in Enugu State Ministry of Finance and Economic Development between 2020-2024; identify if post-payment audit has significantly improved financial accountability in Enugu State Ministry of Finance and Economic Development between 2020-2024; and find out if internal audit’s investigation of cases of fraud, embezzlement and loss of funds has significantly enhanced financial accountability in Enugu State Ministry of Finance and Economic Development between 2020-2024. The theory applied in the study is the Public Financial Management theory. The study was conducted in four phases. In the first phase, the articulation of the background to the study was provided, wherein introductory insight was provided about the topic, focusing on the key variables. The actual problem examined by the study was clearly stated, followed by research questions and broad and specific objectives of the study. The significance of the study was stated theoretically and empirically. This phase ended with the articulation of the scope of the study. The second phase centred on the review of extant literature patterned into a conceptual framework, theoretical review and empirical review, which enabled the identification of a gap in the literature, closed by the current study. Alternative hypotheses were postulated, and the key concepts in the study operationalised. Also treated in this phase were the research methods. The third phase centred on data presentation, analysis and discussion of findings. While the last phase comprises the study summary, conclusion and recommendations. The findings of the study revealed that: prepayment audit has significant positive effect on financial accountability in Enugu State Ministry of Finance and Economic Development between 2020-2024; post payment audit has significantly improved financial accountability in Enugu State Ministry of Finance and Economic Development between 2020-2024; and internal audit’s investigation of cases of fraud, embezzlement and loss of funds significantly enhanced financial accountability in Enugu State Ministry of Finance and Economic Development between 2020-2024. The internal audit function of pre-payment audit should continually be engaged with in the promotion of financial accountability in Enugu State Ministry of Finance and Economic Development. Investigation of cases of fraud, embezzlement and loss of funds should be continued as an internal audit function in the Ministry.