Audit Independence And Effectiveness Of Internal Control Systems In The Public Sector In Nigeria

This study examines the effect of audit independence on the effectiveness of internal control systems (ICS) in Nigeria's public sector, focusing on tertiary institutions. It explores how changes in audit standards and regulatory frameworks influence ICS, particularly in Federal Universities, Southwest Nigeria. The research enhances understanding of governance challenges and accountability within this sector. Prior studies have investigated ICS factors like budget allocation and employee training, but few have focused on audit independence in Nigerian tertiary institutions. This paper addresses this gap. A stratified random sampling method was employed, selecting six federal universities in the southwestern region. Secondary data were collected through an ex post facto research design, using audited financial reports from these universities. Long-run results revealed significant positive relationships between ICS and factors such as budget allocation, employee training, organizational structure, audit independence, and management support. However, technology infrastructure showed no significant impact. In the short run, budget allocation negatively affected ICS, while employee training, audit independence, and technology infrastructure had positive effects. The study offers insights for administrators and policymakers by emphasizing tailored governance strategies to improve accountability in tertiary institutions. It also provides practical recommendations for strengthening governance in Nigeria's public sector.