Assessing the interaction between internal control and financial management in local government

Abstract

A well-designed internal control (IC) system should reveal how well the government manages its finances and how effectively they employ its resources. This study studied the interaction between the local government's effectiveness in IC and its financial management. Some issues with IC practice include insufficient accountability, when everyday interactions are not reported for, and inefficient mechanisms are taken into action to catch perpetrators who interfere with the money. The method used in the study depends on a survey research strategy. The research's statistical data were gathered by distributing 250 questionnaires to employees of the ten (10) local governments that were taken into consideration. Selective sampling was used to choose these respondents, and regression analysis was used to examine the questionnaire's results. The analysis's findings demonstrate that IC and financial management are significantly correlated, with a . Because of this conclusion, the research recommends that the management of local governments develop more robust ways for internal control. These approaches will ensure that IC is practical and efficient, allowing for the successful management of financial problems.