An investigation of the effects of non-implementation of internal audit recommendations on the financial performance of an organisation: a case of MSU.

Abstract

This research was undertaken to investigate the effects of impact of non-implementation of internal audit recommendations on the financial performance of MSU. The objective of this study is to identify factors hindering the implementation of internal audit recommendations and to determine the relationship between effective implementation of the recommendations and organisational performance. The research is qualitative in nature. The research was based on case study of Midlands State University. Likert scale questionnaires and structured interviews were used as research instruments. The descriptive research design method was also used in gathering data on a chosen sample of 45 participants. Primary sources of data were used in gathering data namely questionnaires and face to face interviews and 90% respond rate was obtained from data gathering. Major findings showed that the lack of finance and resources and the lack of progress checks or follow ups are the major factors and challenges affecting the implementation process thus resulting in higher business risk. The researcher recommended that regular progress checks and follows ups be made by the IAF and an established, vibrant audit committee and also training and continuous development of management and employees at MSU to appreciate the functions and value of the internal audit team and also stay abreast with happenings in the business environment. The research was a success with an originality report result of 7%.