MODERNIZATION AND INTERNAL AUDIT QUALITY OF PUBLIC SECTOR ENTITIES IN EDO STATE, NIGERIA

Abstract

The study examined modernization and internal audit quality in the public sector, Edo State Nigeria.  The objective of the study was to determine the significance of technology, governance structure, competence, integrity, independence and objectivity influenced internal audit quality of the public sector, Edo State, Nigeria.  The population was 96 MDAs and 72 MDAs as samples using the Krejcie and Morgan techniques. Three hundred and eighty questionnaires were distributed and three hundred and sixty (360) were retrieved for analysis resulting to 94.7%.  The dependent variable was Internal Audit Quality while independent variables were governance structure, technology, competence and integrity, independence, and objectivity.  Findings of the analysis showed that all coefficients tested were different from zero meaning that the model was good.  Panel regression analysis (PRA) using E-Views 10.0 was used to analyze the data.  The pre-test analyses are the multicollinearity and normality tests.  The probability values of the Jarque-Bera statistics revealed that all variables satisfied the normality requirement because the values are greater than 5%. The investigation revealed that technology positively and significantly influenced the internal audit quality of the public sector.  Governance structure positively and significantly influenced the internal audit quality. All variables of competence, integrity, independence and objectivity positively and significantly influenced the internal audit quality. The paper concluded that auditing as the language of today’s corporate survival must reflect the effects and mechanism of modern approaches.  It recommends that, internal audit should be independent.  Internal auditing should be regularly reviewed. Staff whose integrity is in doubt should not be allowed in the internal audit department.  Internal auditors should be protected legally by management, society and also government in doing their best for the establishment.