Abstract:
The main purpose of the study is to find out significant factors affecting the
effectiveness of internal audit reporting in the Northern Provincial Council of Sri
Lanka. Factors cover accountability & transparency, audit evidence, competence of
internal auditors, independence of internal auditor, materiality, performance audit,
true and fair view, and usage of resources and facilities. Primary data was used in
this study, were collected from heads of the departments or divisions and internal
auditors of the Northern Provincial Council through a Likert scale questionnaire.
Descriptive and inferential statistics were performed with the help of SPSS. Mean
analysis confirmed that internal audit evidence and internal audit reporting is above
satisfaction level in the Northern Provincial Council of the Sri Lanka. Regression
analysis confirmed that factors tested in this study significantly impact the
effectiveness of internal audit reporting in the Northern Provincial Council of Sri
Lanka, those factors have 67.5% impact. Further, correlation analysis revealed that
accountability and transparency, independence of internal auditors, true and fair
view, and performance audit have significant positive relationships with the
effectiveness of internal audit reporting in the Northern Provincial Council of Sri
Lanka. According to the findings of the study, top management and internal auditors
should consider accountability and transparency, independence of internal auditor,
performance audit, true and fair view, and usage of resources and facilities, to
increase the effectiveness of internal audit reporting in the Northern Provincial
Council and other similar government sector institutes in Sri Lanka.
