THE ROLE OF INTERNAL AUDIT ON PERFORMANCE OF NON-PROFIT ORGANIZATIONS: CANDLELIGHT ORGANIZATION, HARGEISA, SOMALILAND

Author Name: Mrs. Hanna Saeed Sulub

Volume: 01 &  Issue:

Country: Somaliland

DOI NO.: 08.2020-25662434 DOI Link: http://www.doi-ds.org/doilink/01.2021-18273674/UIJIR

Affiliation:

1. Independent researcher, Somaliland

ABSTRACT

The main objective of the study was to examine the role of internal audit on performance of nonprofit organizations. Candlelight was used as a case study. The major issue covered was Reliability of financial reporting, preparation of timely, reliable and relevant reports needed for decision-making, safeguarding the resources and finally monitor the organization’s compliance with all applicable laws, rules, codes and standards. The research questions were answered using both quantitative and qualitative research methods which integrate a descriptive research design. Questionnaire and interviews were the instruments used. A target population was 50, from which a sample size of 45 participants was selected using stratified sampling. The major findings of study show that internal audit significantly promotes organizational performance of NGOs. The findings show that management support, organizational independence, staff competency and sound management controls enhance internal audit effectiveness and the ways to promote internal audit effectiveness so that the organization triumphs. Finally, this research paper recommended that Candlelight Organization should try to apply bench marking as a tool to evaluate and assess how other internal audit functions in their sector are operating and must adopt in order to improve.

Key words: Financial reporting, internal audit, performance, non-governmental organizations.