TITLE:
The Study on Effectiveness of Internal Audit on the Performance of the Public Sector in Sierra Leone: A Case Study of the National Social Security Insurance Trust
AUTHORS:
Abu Kai Kamara
KEYWORDS:
Effectiveness, Internal Audit, Performance, National Social Security Insurance Trust (NASSIT), Supreme Audit Institutions (SAIs)
JOURNAL NAME:
Open Access Library Journal,
Vol.10 No.8,
August
25,
2023
ABSTRACT: Internal auditing is an important component of the public financial management system. It plays a crucial role in evaluating and improving internal control processes, providing independent assessments to senior management, and enhancing accountability and value for money in government operations. Internal audits can be conducted at various levels within the government, such as central agencies, ministries, departments, or even individual entities. The primary objective of an internal audit is to assess the effectiveness and efficiency of internal controls, risk management, and governance processes. By identifying weaknesses and suggesting improvements, internal auditors contribute to strengthening the overall control environment and ensuring that resources are utilized efficiently. While internal audit in the public sector focuses on evaluating the quality of budgeting, financial, and accounting information and assessing the extent to which organizations have met their established objectives, the external function of auditing is performed by Supreme Audit Institutions (SAIs). SAIs are independent governmental bodies responsible for conducting external audits of public sector entities. Their role is to evaluate the effectiveness and efficiency of financial management, compliance with laws and regulations, and the overall stewardship of public resources. Although internal auditors and SAIs have different roles and responsibilities, they work together to promote good governance, transparency, and accountability in the use of public resources. Internal audit provides the first line of defense by assessing internal controls and ensuring that financial information is reliable. SAIs, on the other hand, have the mandate to evaluate the effectiveness of the internal audit function itself, providing an external perspective on the quality and impact of internal auditing within government entities. A robust control system that encompasses internal control, risk management, and audit is vital for good governance, safeguarding public funds, and maintaining public trust. By adopting a risk-based approach to integrity and implementing targeted controls, governments can assure citizens that public resources are being used efficiently and effectively. Collaboration with citizens, the media, and non-governmental organizations further strengthen the functioning of the control system.