Performance Effects of Internal Audit Characteristics and Relationships in Nigerian Local Governments

The performance of local governments in Nigeria has been on the decline as service delivery to communities has become a challenged due to mismanagement and widespread corruption. Literature supports the value-adding role of internal audit and the ability of the function to enable an organization minimize opportunistic behaviours that are inimical to the performance of the organization. In view of this, the study examined the effect of internal audit characteristics and relationships on the performance of local governments in Nigeria. Self-reported questionnaires were used to obtain data from 301 heads of internal audit unit in local governments. The multiple regression analysis was utilized for testing the study's hypotheses. The results indicated that internal audit characteristics and internal audit relationship with management were positively and significantly related to performance. Also, collaboration between internal audit and external audit showed a negative and non-significant relationship with performance. Based on the findings, it was concluded that internal audit characteristics and internal audit relationship with management are important for internal audit value-adding capacity for improved performance of local governments in Nigeria. DOI: 10.5901/mjss.2016.v7n3p110