Abstract:
Internal audit plays a major role on overall
performance of the organization. Generally
internal audit involves with monitoring of
internal control, examination of financial
and operation information, review of
efficiency and effectiveness of operation,
review of compliance with laws, regulations,
other external requirements, management
policies and system. The main purpose
of the study is to find out the impact of
internal audit practices on satisfaction of
administrators in University of Peradeniya
and University of Jaffna, Sri Lanka. Primary
data was collected from administrators
(academic and non-academic
administrators) through developed 5
point likert scale questionnaire. This study
considered the administrative system
review, legal compliance, control on assets
usage, control on purchase & procurement
and control on payment, research grant &
allowance under internal audit practices of
Universities. Descriptive analysis revealed
that most of the internal audit practices are
at moderate level based on administrator’s
satisfaction in both universities. Internal
audit practices on administrative system
review are below moderate level in both
universities. Correlation analysis confirmed
that there is positive significant relationship
between internal audit practices and
satisfaction of administrators in above
universities. Regression analysis confirmed
that there is positive significant impact
of internal audit practices related with
administrative system review, control
on purchase & procurement and legal
compliance on internal audit quality in
University of Jaffna however there is
no significant impact of internal audit
practices on administrator’s satisfaction in
University of Peradeniya. According to the
findings of the study, the top management
of both universities and the government
should improve internal audit practices in
state universities as they have to improve
the internal audit practices related to the
administrative system review.
