Impact of Internal Auditing on Financial Management in Ohimini Local Government Area, Benue State, Nigeria
DOI:
https://doi.org/10.64348/zije.2026532Abstract
This study examined the impact of auditing on financial management with specific focus on Ohimini Local Government Council, Benue State, Nigeria. The study was anchored on Agency Theory, Accountability Theory, and Systems Theory. A descriptive survey research design was adopted. The population comprised 60 staff of the Finance and Supplies Department, Internal Audit Unit, Budget and Planning Unit, and Management of Ohimini LGC. A sample of 65 respondents was selected using Taro Yamane’s formula and stratified random sampling. Data were collected through a structured questionnaire and interviews, and analyzed using descriptive statistics, Pearson Product Moment Correlation, and Multiple Regression Analysis with SPSS version 26. Findings revealed that internal auditing has a significant positive relationship with financial accountability, budget discipline, and fraud prevention in Ohimini LGC. The independence of the internal audit unit and implementation of audit recommendations were found to significantly affect financial management outcomes. However, the effectiveness of internal auditing is constrained by inadequate funding, shortage of professional staff, political interference, and poor management response to audit reports. Regression results showed that internal audit variables explained 55.2% of the variation in financial management of the council. The study concluded that internal auditing plays a vital role in enhancing financial management in Ohimini LGC. Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. According to the Institute of Internal Auditors (IIA). Financial management in local government refers to the planning, organizing, directing, and controlling of financial activities such as revenue generation, budgeting, expenditure control, accounting, and reporting.
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