Internal audit practices and operational performance in government ministries a case of ministry of health.

Abstract

The study examined the effect of internal audit practices on the operational performance in mainstream government ministries, a case of Ministry of Health. The study objectives were; to establish the impact of audit independence on the operational performance at Ministry of Health in Uganda, to examine the influence of Audit Risk Management on the operational performance at Ministry of Health in Uganda and to determine the influence of audit compliance on the operational performance at Ministry of Health in Uganda. The study adopted a deductive research approach, using a case study strategy with a quantitative paradigm to test hypothesized relationships between internal audit functions and organizational performance through questionnaires. A descriptive, cross-sectional design was applied to collect data from Ministry of Health staff between 2020 and 2024. The study targeted 95 Ministry of Health officials, including internal audit, finance, senior management, procurement, M&E staff, and Auditor General officials, with a sample of 76 determined using Yamane’s formula. Data were collected using self-administered questionnaires, interviews, and documentary review. Questionnaires, containing both open and closed questions, captured numerical and qualitative data from all respondents, while interviews with senior management and Auditor General officials. Documentary review involved analyzing internal audit reports, Ministry minutes, and Auditor General reports to verify facts and supplement primary data. Quantitative data were edited, coded, and analyzed using SPSS to generate descriptive statistics, presented in tables for clear interpretation. Qualitative data were transcribed into themes and categories, with findings reported through paraphrases or quotes to support each research objective. The analysis shows that audit independence (r = 0.134, p = 0.000), audit risk management (r = 0.058, p = 0.003), and audit compliance (r = 0.116, p = 0.002) each have very weak but statistically significant positive effects on operational performance, explaining only 1.3–1.8% of its variance. The study concluded that audit independence, risk management, and compliance each have a positive but very weak effect on operational performance at the Ministry of Health, with minimal variance explained. Recommendations for the Ministry of Health include strengthening audit independence, risk management, and compliance through training, oversight, direct reporting, and robust procedures, while integrating these practices into decision-making and accountability mechanisms.