The Impact of Ethics & Objectivity of Internal Audit Personnel on Transparency & Accountability Case of Zimbabwe Local Authorities

Abstract

The study aimed at examining the impact of Ethics & Objectivity of Internal Audit Function on transparency and accountability. The study adopted ethics & objectivity (as determined by internal auditors’ personal needs strength and enhanced by the Chief Audit Executive’s leadership style), as the independent variable and transparency & accountability as the dependent variable. The effect of internal audit function on transparency & accountability was assessed through management perception, organization policy, auditees’ cooperation and risk exposure of the organization. Survey data was obtained from a sample of 182 internal audit and management personnel from local authorities in Zimbabwe using semi-structured questionnaires. Correlation and regression analysis were used to test the hypothesis that internal audit function ethics & objectivity is positively associated with transparency and accountability. Study findings reveal that internal audit function ethics & objectivity is positively associated with transparency & accountability. The study established the need to improve operational paradigms guiding internal audit in Zimbabwe local authorities so as to empower internal audit functions and ensure they judiciously act in the best interest of the public, especially in circumstances where the general ethical conduct of their respective local authorities is defective and against public interest.

Keywords: Ethics &Objectivity, Internal Audit Function, Transparency & Accountability

DOI: 10.7176/EJBM/11-7-09

Publication date:March 31^st 2019