ROLE OF INTERNAL AND EXTERNAL AUDIT IN PUBLIC SECTOR GOVERNANCE. A CASE STUDY OF KURDISTAN REGIONAL GOVERNMENT

Abstract

The study examined the role of internal and external auditing on public sector governance in Kurdistan Regional government. Data was retrieved using questionnaires. The ordinary least Squares regression method was used to estimate the model. Results of the study showed that risk management, internal control and compliance had significant positive effects on public sector governance. The results of the study revealed that public sector performance and governance are mutually and positively related to risk management, internal opportunity and compliance roles of auditing. The results further showed that factors such as providing assurance that risks are being appropriately managed, reviewing individual systems and processes, assessing performance management and ensuring that spending is within budgetary are significantly essential towards improving public sector governance. Policy implications advocated for an increase in efforts to be exerted towards improving risk management, internal control and compliance initiatives.