Evaluation of internal control system and audit function in local authority sector: a case study of Lusaka city council.

Abstract

This research was done with the purpose of evaluating the internal control system and internal audit function of Lusaka city council in ensuring good performance of LCC. The following are the objectives. To examine the effectiveness of the internal control system and audit function in LCC. To identify any controls that helps the performance of local authority. To establish the relationship between the internal controls system and performance of LCC. The study population was 63 out of these a sample of 57 individuals was selected by employing purposive and simple random sampling techniques because of their knowledge or information of the study. The study population was finance department, human resource and administration, political leaders, internal audit unit, members of the finance account committee. The descriptive case study method was employed to describe the characteristics of the research variables; the design provides an opportunity to obtain responses which are more accurate and factual. Independent variable and the dependent variable were discussed together with the problems hindering the internal control system and audit function of local authority. Conceptual frame work that reflected the variables whose relationship was studied was developed. The mixed methods approach combines both qualitative and quantitative approaches simply for collecting and analyzing data but involves the application of both approaches in parallel in order to strengthen the study. Findings reveal that internal control systems have direct influence on the performance of the Lusaka city council, and indicate a positive relation between internal controls and performance of the local government. A perfect internal control system leads to better services delivery The findings indicate that inappropriate control elements of Control Environment, Risk Assessment, Information and Communication, Control activities and Monitoring may lead to the weak internal controls system. This implies that the more sound the Internal Control Systems are adhered too, the higher the chances that local authority will achieve better performance.