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The Role of Internal Audit in Enhancing Corporate Governance: A Case of Zambian Breweries Plc

Author

Listed:
  • Kateule, Margaret

    (Graduate School of Business, University of Zambia)

  • Kapotwe, Euston

    (Graduate School of Business, University of Zambia)

Abstract

An internal audit is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It plays a critical role in evaluating financial records, internal controls, and governance processes. In recent years, Zambian Breweries Plc has faced increased competition from foreign alcoholic beverage producers, alongside financial and governance challenges. Notably, the company recorded losses exceeding K15.5 million in 2020, largely attributed to currency depreciation, rising production costs, and weakness in governance structures, including concerns related to internal audit effectiveness. This study aimed to evaluate the importance of the role of internal audit in enhancing corporate governance: a case of Zambian Breweries Plc. The specific objectives of the study were to assess the relevance of internal audit in enhancing corporate governance at Zambian Breweries, to evaluate the adoption of internal audit in enhancing corporate governance at Zambian Breweries, and determine the challenges facing internal audit in enhancing corporate governance at Zambian Breweries. The study adopted a deductive research approach and a quantitative research design. The study population comprised of 750 employees from Zambian Breweries Plc, sample size 220 employees that was determined using Yamane (1967) formula. Structured questionnaires were employed to collect primary data from a stratified randomly selected sample. The findings revealed that internal audit is highly relevant in enhancing corporate governance. A total of 84% of the respondents agreed that internal audit contributes to organizational growth, while 76.4% confirmed the existence of a dedicated internal audit department. The majority also indicated that internal auditors effectively evaluate control systems, apply professional standards, and support governance processes. Regression analysis confirmed that internal audit significantly enhances corporate governance at a 95% confidence level (p

Suggested Citation

  • Kateule, Margaret & Kapotwe, Euston, 2026. "The Role of Internal Audit in Enhancing Corporate Governance: A Case of Zambian Breweries Plc," African Journal of Commercial Studies, African Journal of Commercial Studies, vol. 7(2).
    • Handle: RePEc:cwk:ajocsk:2026-32
    DOI: 10.59413/ajocs/v7.i2.14
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    References listed on IDEAS

    as
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    3. Elvira Zeyn, 2018. "The Effect of Internal Audit Quality on Financial Accountability Quality at Local Government," Journal of Accounting, Business and Finance Research, Scientific Publishing Institute, vol. 4(2), pages 74-82.
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    Keywords

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    JEL classification:

    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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