EFFECT OF INTERNAL AUDITING ON PERFORMANCE OF MICROFINANCE INSTITUTIONS: A CASE STUDY OF STAGE WELFARE SACCO, ENTEBBE

CHAPTER ONE

1.0       Introduction

This chapter presents background to the study, statement of the problem, purpose of the study, objectives of the study, research questions, scope of the study, significance of the study and definition of key terms.

• Back ground to the study.

Over the years, the microfinance sector has thrived and evolved into its current state thanks to various financial sector policies and programmes undertaken by governments and the Bank of Uganda. The early forms of the microfinance module have evolved over the years into three major categories due to the kind of policies and programmes put in place to regulate its activities. Formal suppliers (1st tier) such as savings and loans companies, rural and community banks, as well as some development and commercial banks form the first category of the microfinance module and regulated by the Banking Act 2004 (Act 673).

Asiama and Osei (2007) stated that, since the beginning of government involvement in microfinance in the 1950s, the sub-sector has operated without specific policy guidelines and goals. Despite the regulatory framework put in place by the Bank of Uganda over the years to regulate the activities of the microfinance industry, the industry could be characterized by a lot of challenges like poor internal controls. In light of this, it has become very imperative for firms in the microfinance industry especially savings and loans companies to establish proper internal audit functions.

For the past decade, many savings and loans companies have come to appreciate the importance of establishing internal audit functions. In this light, savings and loans companies that have established an internal audit function operate it based on its own internal audit charter. The Institute of Internal Auditors (IIA), the international governing body for internal auditors brings some level of uniformity and consistency to internal audit functions. The Institute of Internal Auditors (IIA) provides general standards for performing internal audits and serves as a source for education and information. All internal audits in private institutions like savings and loans companies are conducted in accordance with the International Auditing Standards (IAS). The history of the IIA is closely intertwined with the establishment, growth, and evolution of the contemporary internal auditing profession. For the past sixty (60) years, the internal audit profession appears poised for continued dynamic growth and promises to become a profession for the twenty-first (21st) century.

This worldwide expansion, continuing relevance and increasing influence and recognition of the IIA and the internal auditing profession over the last 60 years constitutes remarkable growth and progress. Auditing, being it external audit or internal offers an independent verification to reduce record keeping errors, asset misappropriation and fraud in business and this function of audit goes back to times scarcely less remote than that of accounting. Throughout European history, for instance, fraud cases such as the South Sea bubble of the 18th century, and the tulip scandal provided the justification for exercising more controls over managers (Ramamoorti, 2003).

As business grew in size, scope, and complexity, a critical need for a separate internal assurance function that would verify the accounting information used for decision making by management emerged. In the 20th century, the establishment of a formal internal audit function became the logical answer to many problems.

Stage Welfare Sacco, Entebbe focuses on the protection of the payroll against fraud, loss of cash, and other assets. This primary focus was quickly extended to the verification of almost all financial transactions.

1.2 Problem statement

The establishment of internal audit function in MFIs is not enough but internal audit functions should be effective to the extent of contributing to the achievement of the overall organisational goal. Internal auditing should not only serve basic functions of monitoring internal and financial control systems and making recommendations to management as its primary and initial focus but should be effective to contribute to the achievement of organisational profitability. Sawyer (1995) stated that internal auditor’s job is not done until defects are corrected and remain corrected.

Notwithstanding the importance of internal audit effectiveness on the achievement of the objectives of MFI, the problem is how some major factors influence internal audit effectiveness and the extent to which audit effectiveness contributes to profitability of savings and loans companies. As such this study seeks to assess the effects of internal auditing on performance of microfinance institutions.

1.3 Objectives of the study

1.3.2 General objectives of the study

• To assess the effect of internal auditing on performance of microfinance institutions

1.3.2 Specific objectives of the study

The objectives of the study will include the following:

1. i) To assess degree of the functionality of the internal audit unit in MFIs.
2. ii) To assess the impact of the internal audit function on the effective and efficient management of funds in MFIs.

• iii) To examine the challenges facing the internal audit function in MFIs.

1.4 Research questions

1. i) What is the degree of functionality of the internal audit unit in MFIs?
2. ii) What is the impact of the internal audit function on the effective and effective management of funds in MFIs?

• iii) What challenges are facing the internal audit unit in MFIs?

1.5 Scope of the study

1.5.1 Content scope

The research examined the impact of Internal Audit Function on the performance of MFIs but specifically assessing the functionality of the internal audit unit, the impact of the internal audit function on the effective and efficient management of funds and the challenges facing the internal audit function.

1.5.2 Geographical scope

The study will be carried out at Stage Welfare Sacco, Entebbe.

1.5.3 Time scope

The study will be carried for a period of four months from May to August, 2017.

1.6 Significance of the Study

This study will help in increasing the role and image of internal audit in MFIs to make it more effective and professional.

It will help the shareholders appreciate the role of the internal audit as one of the most important managerial control systems in an organization required to safeguard their interests.

The management of MFIs will be able to look for ways of making Internal Audit a completely independent function from the management thus making it more effective. By implementing recommendations given on the internal audit reports management will be able to enhance performance of the bank.

For scholars it will help them to appreciate and enhance their knowledge of internal audit so as to adhere to the professional ethics as required by the IAS.

1.7 Definition of the key terms

1.7.1 Internal audit

Internal audit is an independent, objective assurance and consulting activity designed to add value and improve company’s operation. It helps an organization accomplish objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control and governance process (Savcuk 2007)

1.7.2 Efficiency

According to Peter (2006), efficiency signifies a level of performance that describes a process that uses the lowest amount of inputs to create the greatest amount of outputs. Efficiency relates to the use of all inputs in producing any given output, including personal time and energy.

1.7.3 Effectiveness

Effectiveness is the capability of producing a desired result or the ability to produce desired output. When something is deemed effective, it means it has an intended or expected outcome, or produces a deep, vivid impression (Peter F. Drucker, 2006).

CHAPTER TWO

LITERATURE REVIEW

• Introduction

This chapter presents an exploration of the various perspectives on the subject of internal auditing on performance of microfinance institutions. The review is based on the study objectives.

2.1 Definition of Internal Audit Function

The Institute of Internal Auditors (IIA) has provided an overarching definition of internal audit that influence the prominence of internal audit in organization. IIA (2011) defines internal audit as “Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control and governance processes.” This definition has expanded the role and responsibility of internal audit in an organization’s value creation process.

The relevance of internal audit functions in organizational setups recently cannot be overlooked. The rate of expansion of organisations coupled with the growth of complexities of internal control systems has made it imperative for organisations to establish internal audit function. Prawitt, Smith, and Wood, (2009), acknowledge the fact that as the result of the increase in accounting scandals in recent years, the internal audit functions has received impressive attention as an important contributor to effective corporate governance and financial reporting, because a high quality internal audit function focused on improving financial reporting through ensuring adherence to standards.

In light of this, many research studies were conducted in the area of internal audit until the Institute of Internal Auditors (IIA) recently caused a paradigm shift in the importance of internal audit function on audit effectiveness and achievement of organizational objectives through their definition.

This new phase of internal audit functions caused a lot of research studies on the factors influencing audit effectiveness and how audit effectiveness contributes to achievement of organizational objectives, especially in the MFIs. Badara and Saidin (2013), agreed to this fact stating that, the importance of internal audit in an organizational setting, especially in regard to organizational objective achievement, enable various researchers to continue to show concern over its operation.

2.2 Functionality of the internal audit function

According to the Institute of Internal Auditors (2009), internal audit is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control and governance processes. As can be seen from the above definition, the objective of internal auditing not only includes involvement in governance but also highlights the importance of evaluating and improving risk management and control.

According to Cai Chun (2007) Independence is the essence of auditing. An internal auditor must be independent of both the personnel and operational activities of an organization. Otherwise, the integrity of the auditor‘s opinions, conclusions and recommendations would be suspect. So, independence is necessary for the effective achievement of the function and objective of internal audit. This independence is obtained mainly from two characteristics – organizational status and objectivity.

Haylas and Ashton (2002) in their effort to provide evidence on the effectiveness of particular audit techniques in detecting errors that affect the financial statements suggested that all intentional errors are concentrated in relatively few audits and these are fairly predictable by industry. The great majority of such errors affect income but the direction of effect may either be an understatement or over statement. Regarding the signaling of an error, they found that the large portion of financial statements errors are initially signaled by less rigorous audit procedures such as analytical review and discussions with the client. Client personnel problems such as inexperience, incompetence and insufficient knowledge and inadequate control follow up or reviews were found instrumental in causing the errors.

Esmailjee (2003) studied the internal audits of Nyayo Bus Service Corporation – a state corporation. He observed that cash receipts as well as cash disbursements bear fairly strong audits attributed to the fact that the government accounting system is still in operation. However, the payroll and the stores accounting systems had a lot to be desired. Regarding the Organizational chart, a lot of information was missing. The internal auditor was being underutilized as he was charged with the responsibility of performing routine control checks which were also performed by the examination section. This led to duplication of efforts and down playing of the internal auditor‘s effective role.

Glazer and Jaenike (2010) argued that performing auditing work according to internal auditing standards contributes significantly to the effectiveness of auditing. Standards for audits and audit-related services are published by the IIA (2008) and include attribute, performance and implementation standards. In general, formal auditing standards recognize that internal auditors also provide services regarding information other than financial reports.

In a study investigating the effects of internal control deficiencies on firms risk and cost of equity capital, Ashbaugh, Collins, and Kinney (2006) concluded that firms that disclose an internal control problem experience a significant increase in market-adjusted cost of capital and firms that subsequently improve their internal control systems exhibit a decrease in their market-adjusted capital. This study provides evidence that internal control risk matters to investors and those firms reporting strong internal audits or firms that correct prior internal control problems benefit from lower costs of equity capital beyond that predicted by other internal control risk factors.

Findings by Schneider and Church (2008) on the effect of auditor‘s internal audits opinion on loan decisions suggested that an adverse internal control opinion can underpin the assurance provided by unqualified opinion on financial statements taken as a whole and have a negative effect on lenders assessment. Adverse internal control opinion weakens the importance assigned to the balance sheet and income statement in lending decisions and that it reduces lenders confidence that financial statements are presented fairly in conformance with the generally accepted accounting principles. Khandawalla (2015) carried out a research on the relationship between the degree of competition and control. He concluded that the greater the degree of competition, the greater would be the need to control costs and evaluate whether actual performance meets the target performance expectations.

Control audits are designed to ensure that appropriate audits over systems and software are in place to ensure that internal audits and internal checks are functioning as designed, (Haylas and Ashton, 2002). Control audits can have features built into them to ensure that fraudulent truncations are flagged or made difficult, if not impossible, to transact. Control audits provide assurance that audits are working, but they do not necessarily detect fraud or corruption. Internal audits audit objectives relate to management‘s plans, methods, and procedures used to meet the organization‘s mission, goals, and objectives. Internal control includes planning, organizing, directing, and controlling program operations and the systems put in place to measure, report, and monitor program performance, (Esmailjee, 2003).

Detecting fraud is a challenging task. Perpetrators actively engage in deception in an attempt to conceal their behavior, auditors may have limited experience in fraud detection, and fraudulent activities are inherently unpredictable and difficult to detect (Kaplan et al., 2010; Nieschwietz et al., 2000). Hence, the organization would be optimally served by identifying and utilizing those individuals who, because they appear to share certain unique personality traits or characteristics, may be best suited to the fraud detection task.

Salih (2013) evaluated the internal audits of Ethiopian Airlines in Nairobi branch and concluded that the lack of segregation of accounting and custodian functions was the greatest weakness of the branch office. He argued that there is need to centralize cash receipts, establish an audit unit, separate accounting unit from sales section, separate duties of purchase activities and establish a perpetual inventory system for the tickets. He further emphasized that the existence of control is very crucial especially under today‘s condition with severe competition which place premium on reliable customers‘ services, on consideration of cash, on realization of capital assets and manpower and on other reduction costs.

Keitany (2000) in a study of internal audit control functions and its implications for risk assessment by the internal auditor: A case of quoted companies concluded that even though the extend of reliance on internal control is not sensitive to the strengths of audit departments, companies should not do away with it. This is because as a management tool it should assist management in its day to day operations and not necessarily of any relevance to the external auditor. This may be attributed to the fact that external auditor may have specific considerations which may be beyond the strength of internal audits. However, though the system of internal control was ranked as the most important factor in obtaining audit evidence other indicators followed. It therefore implies that once the auditor establishes the strength of the audit department, other risk indicators come into play notwithstanding the strength of internal control.

Internal Audit is an objective and independent appraisal service within an organization on risk management, control and governance by measuring and evaluating their effectiveness in achieving the organization‘s agreed objectives. The service applies the professional skills of internal audit through systematic and disciplined evaluation of the policies, procedures and operations that management put in place to ensure the achievement of the organization‘s objectives, and through recommendations for improvement (Dumitrescu, 2004).

The internal audit department must be independent from the activities which it controls and must likewise be independent from the day-to-day internal control processes. In this way it is guaranteed that this department performs its activities objectively and impartially (Dumitrescu, 2004).

Internal audit must be objective and impartial, meaning that it should perform its activity free of doubts and interference. Members of the internal audit team may not participate in the organization’s operations or in the selection and implementation of internal control systems. The professional competence, as well as internal motivation and systematic professional development of each internal auditor are essential factors for the correct functioning of the whole internal audit department (Salih, 2013).

The Board of Directors of the Institute of Internal Auditors in June 1999 described internal audit as an independent, material and consultancy activity, which adds value and improves the functioning of an organisation. Its sound when the organizations achieve its aims by means of a systematic, disciplined approach to evaluating and improving the effectiveness of risk management, control and the management process.

Internal audit is sound when there is repetitive monitoring of the internal control systems of the organization and its procedures for evaluating internal capital. As such, it assists management and the board of directors in the effective performance of their responsibility as outlined above (Gramling, 2007).

2.3 The impact of internal audit function on the effective and efficient management of organizational funds.

Government has the responsibility of instituting an effective internal audit that will keep it on track in actualizing its goals in stewardship toward public accountability. However, this has failed in the MFIs .Rhahleh (2011), argue that there is council of overlapping control in the MFIs and attention is not paid to such. Ajenjo (2011) argues that the duty of accountability is an inescapable element of governance.

Internal control is a key institutional driver to performance Kiabel (2012), Baltasi and Yilmaz (2006), INTOSAI (2004), explain that internal control elements reflect locus of controls in the management mode of operation.

It requires organization to institute self-control adjustment as backed by organization’s structure and effective business process mechanism. However, literature discusses the deficient nature of the internal control system that is attainable in the MFIs. For instance, Kiabel (2012) considers the assessment of internal Auditing practices of financial performance of government in government owned companies in Nigeria. Amudo and Inanga (2009) argue that effective internal control system is lacking in the MFIs in Uganda.

Larry (2006), however argues that the importance of internal audit is seen in the conduct of the business in an orderly and efficient manner Abel (2002), look at the importance of internal controls as their way ofensuring adherence to the management policies and directives aimed at ensuring the smooth operation of the business. French (2002), views the importance of internal controls on the safeguarding of the organization, the set rules help the organization ensure sustainability and long usage of the employed in business.

With St Folks Lynch (2002), the objectives of the internal audit are to ensure adherence to the management  polices, management will have many polices in place e.g. personnel procurement , asset management ,stock valuation and many other expressed in the budget, long range forecasts  and cooperate  plans . Such adopted polices will be relevant to the auditor as it will be able to evaluate whether or not management is adhering with the set polices.

The management control guidelines (2002) attributes that internal  audit help organization to secure as far as possible the completeness and accuracy of the records .internal control promote timely preparation of financial information as a matter  of policy .internal controls require management to prepare financial statements for audit purposes.

Pandy (2009) says that internal controls prevent the loss of resources ensuring reliability of financial reporting and ensuring organizational compliance with laws and regulations. This helps to avoid the damage of organizational reputation and consequences. He further states that internal controls enable the mission of an organization to be accomplished and avoid surprises on the way.

2.4 Challenges faced internal audit function

In most organizations, some members of the senior management team view internal audit as threats to the achievement of their individual goals .in addition, some staff view internal controls as blockades against career progress. Consequently, the internal audit will be useful if management do not take appropriate actions to control resource mismanagement .if an organization is to achieve its objectives management needs to be supportive to the internal control system (Chepkorir, 2010).

Fish & Young (2012), inadequate qualified personnel.in order to effectively implement the management policies and procedures there is need to employ experienced personnel. The internal audit department must be highly committed and capable of producing timely reports identifying deviation, frauds, omissions, and other forms of management to take appropriate actions.

However , Uganda’s economy has faced a challenge qualified staff due to brain drain in search for greener pastures .in addition , the locally trained persons have  more theoretical knowledge with less skill for applying in an international trade organization (Chepkorir, 2010).

According Dumitrescu (2004), independence of the auditor’s .more frequently in application of internal controls, auditors are not independent from political and management pressures .this threatens the effective performance of auditors.

Control procedures may become inadequate due to changes in conditions and compliance with the procedures hence the conditions and compliance may decline (Chepkorir, 2010).

Gramling (2004), argues that human errors due to judgment of interpretation, misunderstanding, carelessness, fatigue. Most of the control procedures are devised in relation to the anticipated type of transactions and therefore may not be effective in relation to the usual or extraordinary transaction.

2.5 Conclusion.

Internal audit as noted from the different views form an important core in different organizations not only as the implementation and achievement of organizational objectives are concerned but also in the management of organizational funds especially in public entities .an organization that adheres to the key components of an internal audit system enjoys the benefits that accrue from maintaining proper control systems. Therefore organizations need to design their controls in such away that they are useable and can attain results.

SECTION THREE

RESEARCH METHODOLOGY

3.1 Introduction

This section discusses the research design, data type and sources, sample size and selection, data collection tools/methods, data presentation and analysis, data collection procedure and limitation of the study.

3.2 Research Design

A descriptive in nature research design will be used because it is flexible in both quantitative and qualitative data collection. Descriptive research design will also be used because it is effective to analyse non-quantified topics and issues, the possibility to observe the phenomenon in a completely natural and unchanged natural environment and the opportunity to integrate the qualitative and quantitative methods of data collection which other designs do not provide.

3.3 Data type and sources

Data will be collected from both primary and secondary source.

Primary data will be collected by use of questionnaires and interview guide. Secondary data will be collected from published journals, reports, text books, and company records.

3.4 Sample Size, Selection and Procedure

The sample size will be 70 respondents. The sample size will be determined using Krejcie and Morgan (1970).

Table 3.1: Sample Size and Composition

Krejcie and Morgan (1970)

The study will use both purposive sampling method and simple random sampling. Purposive sampling is one of the most cost-effective and time-effective sampling methods available, it may be the only appropriate method available if there are only limited number of primary data sources that can contribute to the study and this sampling technique can be effective in exploring anthropological situations where the discovery of meaning can benefit from an intuitive approach.

The study also will use simple random method to reduce on the biasness of the purposive data and will mainly be used on residents because it is free of classification error, and it requires minimum advance knowledge of the population other than the frame. Its simplicity also makes it relatively easy to interpret data collected in this manner. For these reasons, simple random sampling best suits situations where not much information is available about the population and data collection can be efficiently conducted on randomly distributed items, or where the cost of sampling is small enough to make efficiency less important than simplicity.

3.5 Data collection methods and procedures

The study will involve questionnaires and interview method.

The questionnaire will be used because it is practical, also large amounts of information can be collected from a large number of people in a short period of time and in a relatively cost effective way, can be carried out by the researcher or by any number of people with limited affect to its validity and reliability, the results of the questionnaires can usually be quickly and easily quantified by either a researcher or through the use of a software package, can be analysed more ‘scientifically’ and objectively, when data has been quantified, it can be used to compare and contrast other research and may be used to measure change.

Interview guide will also be used since it helps in the collection of more data as it allows the interaction of both the researcher and the respondents, any misunderstanding and mistake can be rectified easily in an interview. Interview can help to collect the fresh, new and primary information as needed.

3.6 Data management, presentation and analysis

3.6.1 Data management

This will include all measures put in place to ensure that quality data is obtained. The management will include data editing before leaving the area of study to ensure that there are no mistakes or areas left blank and if any mistakes are found they will be corrected before leaving the field. The researcher will also code the interview and store them in the file for safety and locked in a place which can only be accessed by the researcher.

3.6.2 Data presentation and analysis

3.6.2.1 Qualitative Data

Data processing will involve editing raw data to detect errors and omissions, classifying data according to common features, and tabulation to summarize and organize it. Data analysis will involve the qualitative approach of identifying the major themes arising respondents’ answers; assigning of codes to the themes: classification of the themes under the main theme; and integrating the responses into the report in a more descriptive and analytical manner.

3.6.2.2 Quantitative Data

Manual editing of questionnaires will be done to eliminate errors. After coding, tabulation will be done to clearly present various responses and the interpretation. Frequencies and percentages will be used to portray statistics used to analyze and interpret the findings of the study. Frequency tables, graphs and charts will aid in presenting the data using statistical packages like Microsoft excel.

3.7 Limitations of the study

The researcher further will be faced with a problem of some respondents not providing information for the study as information relating to the study variables, however to this, researcher will be explained to respondents that the information will only be for the academic purpose while making them to understand the study variables.

The study is limited to a representative sample due to high expenses that are involved in terms of time and funds since this research is self-funded. However, the researcher will strive to solicit for funds from family members and friends.

Another limitation will be the scarcity of recent literature relating to the effect of tourism activities on people’s welfare due to lack of text books in the library. However, the researcher source information from the internet, newspapers and previous reports.

This unrealistic expectation from the respondents is also another problem the researcher will face. It is argued that very many people will expect too much thing from researcher for example money etc, yet the researcher is totally student who does not have money. The researcher will convince the respondents that the information required will be used for academic purposes only.

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APPENDICES

APPENDIX I: QUESTIONNAIRE

DEAR RESPONDENT,

I am Kasande Edinah, a student of KYU, pursuing Bachelor of Microfinance degree. As part of the requirement for the completion of my course, I am carrying out a study on “the impact of internal auditing on the performance of MFIs. You have been selected to be part of this study; the success of this study therefore depends on your kind cooperation. You are kindly requested to answer the questions below according to the best of your understanding. The information given will be treated with utmost confidentiality and used strictly for academic purposes.

Kindly tick and/or fill in

Section A- BIO DATA

1. Age

18-22                           23-27              28-35                           36-40               Above 40

2. Sex:

Male                            Female

3. Marital status:

Single                          Married                     other (Specify)…………………..

4. Educational background:

Degree                         Masters                       PhD                 other (specify)…………………

5. What is your position?

Auditor                        Accountant                  Others (specify)………………………………

6. How long have you worked in this organization?

Less than 1 year                      1-5years                                  6-10years

Above 11 years

Section B: Functionality of Internal Auditing in an Organization

7. What professional qualifications are required for staff?

CA                              ACCA                         CPA                            others Specify ………….

8. Is the internal audit department in Organization technically competent?

Yes                              No                   Not Certain

9. Are there training opportunities in internal audit department in the organization?

Yes                              No

10. On a scale of 1-10, rate the degree of effectiveness and relevance of the internal audit function to the need of society in the organization?

………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………..

11. Does the internal audit department possess any independence in their operations?

Yes                              No

Section C: Impact of internal audit function on effective management of funds

12. In your own opinion, does internal Auditing play any role in fund management?

Yes                              No

13. If yes, what role do you think Internal auditing plays in fund management?

Compliance with laws and regulations for example procurement laws

Detecting frauds and errors thus reliability of financial reporting

Timely preparation of financial information

Timely service delivery

Completeness and accuracy of the records

Others specify………………………………………..

14. What is your general comment on the role played by internal auditing function in fund management?

………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

Section D: Challenges facing internal audit function

15. What challenges are facing the internal audit function in the organization, if any?

………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

Thank you for your time

APPENDIX II: INTERVIEW GUIDE

1. Do the staff poses desirable training & qualification/technical competence?
2. Do they do their expected work to the required level or they leave out a lot to be desired?
3. Are there training opportunities in internal audit department in the organization?
4. What is the degree of relevance of the function to the need of the organization?
5. What is your general comment on the role played by internal auditing function in fund management?
6. Are staff given refresher courses, conferences and workshops to improve on their knowledge of the internal audit function.
7. What challenges are facing the internal audit function in the organization?

THANK YOU FOR YOUR TIME