Effect of Auditor Proficiency and Audit Quality on Internal Audit Effectiveness in Nigeria’s Federal Public Service

Abstract

The internal audit function, with clearly defined competence and process requirements, has despite its presence within the operations of federal public sector organizations in Nigeria being unable to check the rising cases of frauds and financial improprieties which have continuously been highlighted against them. Furthermore, sufficient attention has not been given to related control issues regardless of the increasing use of information technology (ICT) in public sector operations. The study investigates the effects of competence; the role of ICT; and the quality of internal audit on internal audit effectiveness in Nigeria's federal public service which is charged with the responsibility of the management of over half of the public revenues accruing to the Nigerian federation but with particular reference to 28 self-accounting federal public organizations operating in the North East Geo-Political Zone. Primary data was obtained from 139 valid responses out of 148 questionnaires administered on the internal auditors of such organizations. Partial least square structural equation modeling (PLS-SEM) was employed as the technique of data analysis to test the relationships. The finding of this study revealed that competence and the quality of internal audit showed positive and significant influence on internal audit effectiveness. Information and Communication Technology (ICT) however showed positive but insignificant contribution. The study recommends an effective compliance with minimum entry requirements in the employment and deployment of Internal Auditors; a review and continuous improvement of operating regulations and standards; as well as the deployment of appropriate ICT audit tools and continuous training of internal audit staff by the relevant government offices (Offices of the Accountant General and that of the Head of Civil Service of the Federation-OAGF & OHCSF; and the Nigerian Information Technology Development Agency-NITDA).