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Promoting Good Corporate Governance in Local Authorities through Dimensions of Internal Audit. A Case Study of Harare, Bulawayo, and Mutare City Councils

Author

Listed:
  • Loice Magweba

    (Women’s University in Africa)

  • Josphat Nyoni

    (Women’s University in Africa)

  • Martin Dandira

    (Namibia University of Science and Technology)

  • Efigenia Semente

    (Namibia University of Science and Technology)

  • Davy Julian du Plessis

    (Namibia University of Science and Technology)

Abstract

The aim of this study was to create an accounting-auditing framework that supports good corporate governance in local authorities in Zimbabwe. The study was driven by the low corporate governance index in all Zimbabwean local administrations. Low index contributed to inadequate service delivery in all Zimbabwean authorities. Existing literature shows that some elements of the internal audit may be used to enhance corporate governance in local authorities. It was against this background that this study sought to determine the extent to which some elements of the internal audit may be used to promote corporate governance. Pragmatism research philosophy guided the study. Due to this philosophy, mixed research design was used. The study examined the relationship between internal auditing pillars and corporate governance in local authorities using an explanatory research design. Data was gathered from internal auditing members at three local government and Accounting Association of Zimbabwe members A probability and non-probability sampling strategies were utilized to create 250 participants. The quantitative data was analysed using regression, and correlation. Qualitative data was analysed using the thematic approach. The study found that internal auditing dimensions, including audit committee, audit quality, and consulting role of internal audit, are crucial for the promotion of good corporate governance in local authorities. The study revealed that increasing the scope of internal audit to include three dimensions is crucial for building strong corporate practices in local authorities. The study found that improving the effectiveness of the three internal audit dimensions involves focusing on moderating factors such as audit committee independence, accounting experience/professional capacities, size of the audit committee, funding of internal auditing processes, internal audit staff competences, and stakeholder engagement. The study found that the three internal audit dimensions and six moderating factors can serve as a framework for local authorities to enhance good corporate governance. To promote excellent corporate governance, local authorities should adapt and expand their internal auditing operations and procedures to effectively develop and use the three dimensions and moderating elements in enhancing good corporate governance in addition to their traditional finance controlling mandate. The study suggests that local authorities adopt the presented framework which focuses on three pillars and 6 moderating variables. Future research may examine the framework’s effectiveness in other local authorities not included in this study.

Suggested Citation

  • Loice Magweba & Josphat Nyoni & Martin Dandira & Efigenia Semente & Davy Julian du Plessis, 2024. "Promoting Good Corporate Governance in Local Authorities through Dimensions of Internal Audit. A Case Study of Harare, Bulawayo, and Mutare City Councils," International Journal of Research and Scientific Innovation, International Journal of Research and Scientific Innovation (IJRSI), vol. 11(6), pages 1-13, June.
  • Handle: RePEc:bjc:journl:v:11:y:2024:i:6:p:1-13
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    References listed on IDEAS

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