Determinants of Internal Audit Effectiveness in the Nigerian Paramilitary Agencies

Abstract

The objective of this study is to examine the determinants of internal audit effectiveness in the Nigerian paramilitary agencies. The methodology of the study is qualitative using a questionnaire as a primary data source. The population and sample size comprises of three hundred and forty (340) audit staff from six (6) paramilitary agencies in Nigeria. The period of this study covers 10 years (2013-2022). Normality Test, Correlation, Regression Analysis were conducted on the collected data. The regression results revealed that internal audit quality with “β” and “sig” values of 0.125, and 0.044 respectively. Hence, internal audit quality has statistical significant impact on internal audit effectiveness of Nigerian Paramilitary services, it also shows that Independency of audit staff with “β” and “sig” values of 0.037, and 0.578 respectively. This indicates that the variable has a positive effect and it is statistically insignificant at 5% because the p-value is greater than 0.05. Hence independency of audit staff has no impact on internal audit effectiveness of Nigerian Paramilitary services, the results also revealed that Professional proficiency and competence of audit staff with “β” and “sig” values of 0.086, and 0.151 respectively. This indicates that the variable has a positive effect and it is statistically insignificant at 5% because the p-value is greater than 0.05. Hence professional proficiency and competence of audit staff has no impact on internal audit effectiveness of Nigerian Paramilitary services, also Organizational setting with “β” and “sig” values of -0.051, and 0.415 respectively. This indicates that the variable has a negative effect and it is statistically insignificant at 5% because the p-value is greater than 0.05. Hence, organizational setting has no impact on internal audit effectiveness in Nigerian Paramilitary services. The regression results revealed that internal audit quality with “β” and “sig” values of 0.189, and 0.003 respectively. This indicates that the variable has a positive effect and it is statistically significant at 5% because the p-value is less than 0.05. Hence, scope of internal audit work has impact on internal audit effectiveness of Nigerian Paramilitaries services and the results revealed that management support with “β” and “sig” values of 0.398, and 0.000 respectively. Hence, management support has statistical significance impact on internal audit effectiveness of Nigerian Paramilitary services. Therefore, we recommend that Internal audit staff should be fully independent in order to have unbiased internal audit report. Paramilitary agencies should implement policies and procedures against which organizational settings are to be gauged. The policies and procedures should be well-understood by the management staff so as to allow the setting of the organization to be effective. Finally, management of Nigerian Paramilitary agency should give support to the internal audit on widening the scope of the audit work in order to have a more reliable and effective internal audit report.