WOMEN’S UNIVERSITY IN AFRICA

BACHELOR OF SCIENCE HONOURS DEGREE IN ACCOUNTING SCIENCE

MARCELYN MASHINGAIDZE (BAS) (W190655)

RESEACH TOPIC. THE ROLE OF INTERNAL AUDITING IN ENHANCING GOOD

CORPORATE GOVERNANCE UNDER THE MINISTRY OF LOCAL GOVERNMENT
PUBLIC WORKS AND NATIONAL HOUSING: THE CASE OF CITY COUNCILS
Contents
CHAPTER I....................................................................................................................................................5
1.0 Introduction.......................................................................................................................................5
1.1Background of the study.....................................................................................................................5
1.2 Statement of the problem...............................................................................................................10
1.3 Objectives of the study....................................................................................................................10
1.4 Research Questions.........................................................................................................................11
1.5 Hypothesis.......................................................................................................................................11
1.5.1 Assumptions..........................................................................................................................11
1.6 Justification of the Research............................................................................................................11
1.7 Significance of the study..................................................................................................................11
1.7.1 To Policy makers of Urban City Councils...................................................................................11
1.7.2 To the researcher......................................................................................................................12
1.7.3 To the university.......................................................................................................................12
1.8 Delimitations...................................................................................................................................12
1.9 Limitations.....................................................................................................................................12
CHAPTER II.................................................................................................................................................14
LITERATURE REVIEW..................................................................................................................................14
2.1 Theoretical reflection of internal auditing in enhancing good corporate governance.....................14
2.1.1 The policeman theory...............................................................................................................14
2.1.2 The lending credibility theory...................................................................................................14
2.1.3 Agency theory...........................................................................................................................14
2.1.4 Stewardship theory...................................................................................................................16
2.1.5 Stakeholder theory...................................................................................................................17
2.2 Role of internal auditing in enhancing good corporate governance................................................17
2.2.1 Risk management role of internal auditing function.................................................................17
2.2.2 Control role of internal audit function......................................................................................18
2.3 Effectiveness of internal auditing in enhancing good corporate governance..................................19
2.4 Compliance of the internal auditing with policies and regulations..................................................22
2.5 Challenges faced by internal auditing in enhancing good corporate governance............................24
2.5.1 Negative public perception (Expectation Gap) due to corporate scandals and failures............24
3.6 Empirical review..............................................................................................................................25
CHAPTER THREE........................................................................................................................................28
METHODOLOGY.........................................................................................................................................28
3.1 Research design...............................................................................................................................28
3.2 Population and population size.......................................................................................................28
3.3 Sampling Techniques and procedure...............................................................................................28
3.3.1 Sample size...............................................................................................................................28
3.4 Data collection.................................................................................................................................29
3.4.1 Sources of Data.........................................................................................................................29
3.4.2 Types of Data............................................................................................................................29
3.5 Data Collection Instruments............................................................................................................30
3.5.1 Questionnaire...........................................................................................................................30
3.5.2 Interviews.................................................................................................................................31
3.6 Data presentation and analysis........................................................................................................32
3.7 Validity.............................................................................................................................................32
3.8 Reliability.........................................................................................................................................32
3.9 Ethical considerations......................................................................................................................32
3.10 Summary........................................................................................................................................33
Reference List............................................................................................................................................33
CHAPTER I
1.0 Introduction
This study evaluates the role of internal audit in enhancing corporate governance in City
Councils. This chapter deals with the identification of the symptoms of the problem in the
background to the study and then defines the problem and formulates the research objectives and
questions. The significance, assumptions, delimitations and limitations of the study are then
discussed.

1.1Background of the study

In public sector organizations, the internal audit determination holds high potential for
stimulating accountability and improving government performance (Shamsuddin, 2014). In
opinion of this development, several countries have established policies aimed at emphasizing
public sector internal audit department to enhancement their capacity for contributing to these
objectives. Establishment of internal audit units, professional standards for conducting audit
work, training and resource allocations were some of the few steps taken by the government of
certain countries to promote accountability in internal audit (Ali, 2014). However, the public
sector operations are obstinate where there are more laws and regulation authorize the activities
of internal audit. Mihret , 2007 debated that there are two types of audit that are suitable to the
public sector: financial-related audits and performance audits. Financial-related audits are audits
which have ideas on financial statements or were based on the audit of financial statements. The
objective of a financial statement audit is to decide whether the financial statements are fairly
stated. Performance audit highlights on whether public assets are being used in a well manner,
with an aim of analyzing and reducing wastage.

Corporate governance has been recognized as an indispensable factor in ensuring sound financial
reporting and deterring misappropriations of capital in an organization. The growth of corporate
governance has been of immense help to the internal audit function and has raised it to a
professional status by emphasizing the benefits of independent judgment and objectivity in
reporting. Internal auditing serves as a monitoring device, the organizational policeman and
watchdog, thus, an integral component of corporate governance (Omolaye and Jacob, 2017).

The internal audit division has its purpose, authority and responsibilities clearly definite by the
internal audit charter. According to the charter internal auditing is measured as an independent
appraisal department within Harare, Bulawayo, Gweru, Masvingo and Mutare councils,
established to review activities as a service to all levels of management. It is a control which
measures, evaluates and reports upon the effectiveness of internal controls financial and other
operations as an influence to the efficient use of resources within councils. The charter states that
all internal auditing endeavors are to be conducted in compliance with Public Finance
Management Act, Council’s Standing Resolutions, and Proceedings of the Councils as read
together with the code of ethics and the Standard for the Professional Practice of Internal
Auditing amended from time to time by the Institute of Internal Auditors.

The public sector comprehends of governments and all publicly controlled or publicly funded
agencies, enterprises, and other entities that deliver public programs, goods, or services
(Goodson, 2012). A public sector organization may exist at any of these four levels which
include 2 international, national, regional and local government. The public sector provides
services such as banking service, financing, education, communication service, healthcare,
police, transportation, electric services, security and so on, which benefit all of the society and
inspire equal opportunity to benefit from those services provided (Hailemariam, 2014). Harare,
Bulawayo, Gweru, Mutare and Masvingo town councils are Local Authorities Bodies under the
Ministry of Local Government. The core business of town councils is specified in the Urban
Council’s Act Chapter 29.15. It is a non-profit making entity which fundamentally focuses on the
provision of water, sewerage disposal, fire, ambulance, road maintenance, water and sewerage
connection, parks and gardens services to the Community as a whole at a fair charge.

It was observed that corporate governance alone was not enough without internal audit. There
was poor performance, corruption due to lack of accountability that is why there was the
introduction of internal audit to work as a major tool for good corporate governance. The role of
internal audit is to ensure accountability in city councils. The issue of accountability is key,
because without it there is no development. Before internal audit city councils had been
tolerating poor performance but now they are listening to the demands of internal audit and they
are now improving their performance. The motto of internal audit department is “Driving change
and delivering results.”

Delivering sound governance in public institutions has become a major cause of concern and
governments have been stimulated to be effective and efficient in the provision of services so as
to instigate economic growth and development. However poor practices of governance have
impacted development in the world especially in Africa where there is high rate of corruption
and poor delivery in local governments. This was a result of weak internal audit that governed
the operations of the organisations. Furthermore, (Suyono et al., 2012) are of the view that from
independence up to 2009 there was high corruption in Indonesia particularly in Singapore which
was accredited to lack accountability and poor financial management in the public sector. Hence
as a result the delivery of good governance became a topical issue in the 21st century and
Singapore was on the fore front to reduce corruption and unethical practices through some
organizational and fiscal reforms.

The International Monetary Fund (IMF) 2012 report shown that corruption have become a
blockade to development and developing countries especially Africa, have been greatly affected.
The practice of bad governance is rampant in Southern Africa except for South Africa, as
indicated by high levels of corruption and poor administration. Bissessar et al., (2012) states that
corruption is a major infirmity affecting development in Mozambique, Zambia and Zimbabwe.
Thus, in order to remodel their economies and performance, many African countries needed to
strengthen efforts at reforming service delivery institutions such local government and public
service management so as to promote local economic development and economic growth hence
the issue of regulatory instruments (internal audit) came to the fore.
The following cases that happened in some of the local authorities in Zimbabwe will support the
proclaim that was made by Sithole (2013) that of late urban local authorities have been the
catalysts of poor service delivery and hyper corruption as these cases have been skyrocketing
lately at a spiral trend.

Harare City Council

In the case of Harare city council, it surfaced out that internal audit division failed to detect fraud
timely when external auditors uncovered the issue of ghost workers after one year. Hundreds of
dead and nonexistent workers were appearing on the pay roll since 2011. This was only revealed
in 2013. Both the complete failure to detect fraudulent activities and the failure to detect
fraudulent activities timely could be attributed to, among others, lack of requisite skills among
staff in the internal audit division. As a result, there could be a need to assess the competencies
of the internal auditors.

In another scenario the internal audit team was supposed to take their duties serious since it is the
major city where results matter most but they are failing to take their duties. Most common
forms of corruption included the illegal sale of commercial stands, illegal allocation of
residential infill stands, illegal conversion of land earmarked for community development
projects such as recreational facilities, schools and business to residential stands, and preferential
treatment of firms with political connections during procurement processes. For example, tenders
for repairing the council’s vehicle fleet were awarded to high-ranking political officials
(MunyaradziMukonza 2015).

The internal audit division failed to detect risks and consequences attached thereon, as for the
entire year, 2016; the collection of funds from residents was low with the councils being owed in
excess of close to US$ 150 million as of October 2016. Residents were protesting payments of
rates and other charges because of poor service delivery and the fact that some of the charges
were not affordable to the residents. This create a conception that internal audit failed to detect
the likelihood of this risk.

Gweru City Council

There was mismanagement of council funds and assets, including the sale of council assets such
as vehicles to local councilors at very low prices below the par value, embezzlement, (Sithole
2013). Leaked audit report dated January 27, 2020, Gweru City officials made questionable
procurement decision of purchasing a second hand back-hoe loader which was recorded as new.
This was only discovered by external auditors and the council lost close to $USD 93 000. The
reported further indicates that the council lost close to seven thousand dollars in repairing the
machinery well before the two-year guarantee period lapse. (ZBC Reporter March 12, 2020)

Bulawayo City Council

During the period of September 2016, an investigation by the Ministry of Local Government,
Public Works and National Housing found that Bulawayo councilors had corruptly amassed
commercial and residential stands, leading to suspension of five councilors, including the Deputy
Mayor of Bulawayo, Gift Banda. According to the ministerial report of the investigations,
Bulawayo councilors had not only awarded themselves prime commercial and residential stands,
but had also not paid for them and owed the Bulawayo City Council US$ 650 000. One of the
suspended councilors, Reuben Matengu bought a stand at a discount and sold it for a profit on
the open market. There were also suspicions that Deputy Mayor, Gift Banda had taken
possession of prime commercial land for development of town houses for less than the market
value of the land. The investigations on the City of Bulawayo were instituted after the Bulawayo
Progressive Residents Association (BPRA) raised the red flag on discovering a trend whereby
councilors were being awarded prime land despite Bulawayo having a steadily increasing
housing waiting list of over 100 000.

Mutare City Council

In 2015, a housing scheme in Mutare, known as the Gimboki South Housing Scheme, allegedly
cost beneficiaries millions of dollars (The Manica Post, 21 August 2015). More than 5000 would
be beneficiaries who had deposited their money in the scheme failed to get any benefits amid
incidents of double allocation of stands and allegations of willful abuse of beneficiary’s deposits.
This prompted the Ministry of Local Government, Public Works and National Housing, through
the Manicaland Provincial Administrator, FungaiMbetsa, to set up a five-member team to
investigate the matter, which concluded that there was fraud, corruption and double allocation of
stands in the scheme.

Another case was of a senior engineer who was suspended after he orchestrated the awarding of
a $330 000 contract to a shelf company in 2012 (Newsday, 9 August 2012). The botched deal
had a negative impact on delivery of water services, as the shelf company, Shitazburg
Enterprises (Pvt) Ltd failed to supply and fix water pipes that would have alleviated water
problems in Mutare. In Bulawayo, local authority documents suggest that up to $70 000 was
spent on a contract to rehabilitate a bulldozer, when the bulldozer was either not attended to, or a
shoddy job done. Investigations show that while the Bulawayo Council spent $70 000 on repair
of the bulldozer, to buy a functional bulldozer costs between $75 000 and $125 000 (depending
on model and specifications) for the most commonly purchased models with 110 to 130 hose-
power. The Bulawayo City Council was also accused of corruption in tender processes by the
Affirmative Action Group, which in 2015 filed a court application seeking to compel the
minister of local government to suspend then Deputy Mayor Gift Banda over tender irregularities
involving allocation of stands for development of town houses (Chronicle, 18 August 2015).
Meanwhile in Hwange, a coterie of councilors in 2009 allegedly contracted a company to service
stands without going to tender. The contract was reportedly worth $1.6 million (Chronicle, 21
January 2017).

Corruption and poor governance have had a major influence in the provision of effective services
as most Local authorities are dwindling to meet their set objectives and accomplishing their
corporate vision therefore all these sudden negative developments have called for the need for
public sectors to be transparent, accountable and scrupulousness in delivering their services.
These issues have given rise to the need of coming up with complex systems of checks and
balances that have legal repercussions. Internal audit promotion the organization to accomplish
its set goals, reduce errors, vindicating risks as well as ensuring compliance to the set rules and
principles.

Against corporate turmoil and loss that may be distressed by urban councils and the nation at
large as a result of negligence to the connotation of corporate governance and corruption, the
researchers seek to contribute to address the role of internal auditing in enhancing good corporate
governance: A case study of selected town councils which are Harare, Bulawayo, Gweru,
Masvingo and Mutare.

1.2 Statement of the problem

Local authorities are conceived to function effectively given that they appreciate full preference
to raise their own funds and make policies that ensembles their operations. The concept of good
governance has become a global phenomenon as public institutions are stimulated to confirm
quality of services delivery. However local authorities in Zimbabwe are branded by poor
governance which is affecting effective service delivery and this is ascribed to weak internal
audit department that govern the institutions. The study was conducted to examine the role of
internal audit in enhancing good corporate governance in selected local authorities in Zimbabwe
which include Harare, Bulawayo, Gweru, Masvingo and Mutare.

1.3 Objectives of the study

1.3.1To assess the role of internal audit as a tool to enhance good corporate governance.

1.3.2To evaluate the effectiveness of internal auditing in enhancing good corporate governance

1.3.3 To evaluate compliance of the internal audit with policies and regulations.

1.3.4 To evaluate challenges that hinder internal auditing in enhancing good corporate
governance

1.3.5 To identify strategies of improving internal audit effectiveness.

1.4 Research Questions

1.4.1What is the role of internal audit as a tool to enhance good corporate governance?

1.4. How effective is internal auditing in enhancing good corporate governance?

1.4.3Is the internal audit complying with policies and regulations of Urban City Councils?

1.4.4 What are challenges that hinder internal auditing in enhancing good corporate governance?

1.4.5What are the strategies of improving internal audit effectiveness?

1.5 Hypothesis
H0: There is no relationship between internal auditing and good corporate governance

H1: There is relationship between internal auditing and good corporate governance

1.5.1 Assumptions
This study assumes that the scope of work of the corporate governance function at Local
Authorities, among others, is centered on appraising and reviewing the internal audits at city
councils. In order to evaluate the effectiveness of internal audit and corporate governance in
monitoring compliance with internal controls in city councils it should be mandatory to the
internal audit department to assess the effectiveness of internal controls and suggest possible
ways of strengthening or improving them.

1.6 Justification of the Research

The research will seek to find a solution to close the gap, if any, between internal audit and
corporate governance implementation in the Ministry of Local Government Public Works and
National Housing, which will help to increase operational efficiency and transparency in the
Ministry.

1.7 Significance of the study

1.7.1 To Policy makers of Urban City Councils
The research study is anticipated to benefit the policy makers as the project seeks to bring out
peoples‟ views about the effectiveness of internal audit as a tool to good corporate governance.
Also, effects of the policy are going to be discussed which will help the policy makers to review
the policy and make some fortitude where they see it fit. This will help them for future decisions
with issues concerning policy making.

1.7.2 To the researcher

The research study is being carried out in partial accomplishment of the Masters. This will, in
turn, help the researcher in launching research skills and at the same time obtain knowledge and
a deeper understanding of the effectiveness of internal audit as a tool for good corporate
governance, how and it can be prompted and its possible effects on internal audit to enhance
corporate governance.

1.7.3 To the university

This empirical examination of the capabilities of internal audit in local authorities is therefore an
appreciated contribution to existing literature or studies therefore also enable scholars to expand
their understanding on the topic under study.

1.8 Delimitations
The following delimitations to the study were a guideline in conducting this research:
Information was acquired from the internal audit personnel and line management in other
departments and ordinary workers in urban city councils of Harare, Bulawayo, Gweru, Masvingo
and Mutare.
1.9 Limitations
During the research process the researcher is likely to meet the following challenges that will
affect the results of the research in terms of quantity of data and the quality of information
contained therein

Financial
The researcher faced difficulties in gathering financial resources required to complete the
research to be used in travelling, printing and distribution of questionnaires. The researcher tried
to be as economic as possible and making use of budgets in terms of funds available and at the
same time but was not able to obtain the quality of research results.

Acquiring of evidence
Collection of reliable data was associated with challenges as some employees could not divulge
some confidential information. To overcome the information, constrain the researcher wrote a
declaration that assured the respondents that their information will be used confidentially and
privately. Triangulation was used to obtain various sources of information and includes review of
documents, interviews and questionnaires.

Time
The period required by the university to complete the research paper was too limited as there
were also other modules to attend lectures and short period. The researcher did the research
overnights and holidays which cramped for bottlenecks of time. The researcher resorted to
sending the questionnaires by mail through internet, fax and the use of telephone service.
CHAPTER II

LITERATURE REVIEW
2.1 Theoretical reflection of internal auditing in enhancing good corporate governance
There are several different theories that may explain the demand for auditing services in public
sectors as identified by different researchers though some of them are well known in research
and some of them are more based on perceptions. Hayes,(2005) identified four audit theories
namely policemen theory, lending credibility theory, theory of inspired confidence and agency
theory .

2.1.1 The policeman theory

This theory claims that the auditor is responsible for searching, discovering and preventing fraud.
In the early 20th century this was certainly the case. However, more recently the main focus of
auditors has been to provide reasonable assurance and verify the truth and fairness of the
financial statements. The detection of fraud is, however, still a hot topic in the debate on the
auditor’s responsibilities, and typically after events where financial statement frauds have been
revealed, the pressure increases on increasing the responsibilities of auditors in detecting fraud.
2.1.2 The lending credibility theory
This theory suggests that the primary function of the audit is to add credibility to the financial
statements. In this view the service that the auditors are selling to the clients is credibility.
Audited financial statements are seen to have elements that increase the financial statement
users’ confidence in the figures presented by the management (in the financial statement). The
users’ are perceived to gain benefits from the increased credibility, these benefits are typically
considered to be that the quality of investment decisions improve when they are based on reliable
information.
2.1.3 Agency theory
Jensen &Meckling (1976) developed the agency theory and in explaining the theory viewed the
firm as a nexus of contracts between different stakeholders of the organisation. They pointed out
that the owners and executives of an organisation may have differences in opinion with regard to
the best interests of the organisation. The objective of agency theory is to determine optimal
contract between the principal and the agent. The agent tries to maximize personal gains by
satisfying principal's economic objectives and as such the agent's commitment level is a function
of perceived reward value for satisfying principal's objectives.

The agency theory is based on the agency relationship. Jensen &Meckling (1976) pointed out
that an agency relationship is one in which one or more persons (the principal) engage another
person (the agent) to perform some service on their behalf which involves delegating some
decision making authority to the agent. Perhaps, the most recognizable form of agency
relationship is that of an employer and employee. Other examples include state (principal) and
ambassador (agent); constituents (principal) and elected representative (agent); organization
(principal) and lobbyist (agent); or shareholders (principal) and board of directors (agent). Thus,
the relationship between the principal and the agent based on the contract is a focal point of
agency theory. Principal wants to maximize his/her benefits while minimizing reward to the
agent at the same time. On the other hand, the agent wants to maximize his/her benefits. The
basic assumption of agency theory is that the principal's wealth, per se, would not be maximized
because of the following reasons; the agent and the principal have different goals, the agent and
the principal have different access to information; thus, the principal cannot effectively monitor
what the agent does and know which information the agent has and the agent and principal have
different propensity towards risk.
 Fig 2.1: Agency and Principal Relationship

Source: Kaplan Financial Knowledge Bank (2016)

Despite possible good intentions on all parties involved, problems arise in the relationships
between various parties necessitating the introduction of monitoring. The problems can be
summarised by Figure 2.2 below:

Fig 2. 2Challenges to Agency theory

Source: http://www.roymogg.com/

Figure 2.2above shows that the serving of self-interests between the Principal (P) and his Agent
(A) has a potential to cause problems within the contract terms. The Principal expects his
interests to be served to achieve his set objective yet the person chosen to accomplish those
objectives has undisclosed self-interests that may conflict with those of the principal. These self-
interests may negatively affect the primary contract objectives. The principal must therefore
devise ways to monitor and keep in check the self-interest of the agent. An independent third
party is needed to give assurance to the Principal that the Agent is serving only the Principal’s
interests at all times.

2.1.4 Stewardship theory

Another important theory that is considered relevant to the internal audit – corporate governance
effectiveness relationship is stewardship theory. Stewardship theory was developed by Lex
Donaldson and James Davies. Stewardship theory is a new perspective to understanding the
existing relationship between ownership and management of a company and assumes that the
manager is a steward of the business with behaviors and objectives consistent with those of the
owners (Donaldson & Davies, 1991). Stewardship theory holds that there is no conflict of
interest between managers and owners, and that the goal of governance is, precisely, to find the
mechanisms and structure that facilitate the most effective coordination between the two parties
(Donaldson, 1990). This theory also suggests that there is no inherent problem of executive
control, meaning that organizational managers tend to be in their actions (Donaldson, 2008).

Unlike agency theory which assumes conflict of interest between the agent and principal(s),
stewardship theory assumes that the behaviors of the manager are aligned with the interests of
the principals and places greater value on goal convergence among the parties involved in
corporate governance than on the agent’s self-interest (Van-Slyke, 2006).

2.1.5 Stakeholder theory

Edward Freeman advanced the Stakeholder Theory in 1984. Stakeholder theory has attracted
widespread support because of its simplicity and logical application even though it is not a fully
developed theory (Emerson, Alves&Raposo, 2011). No organisation exists in isolation, rather,
every organisation (whether profit making or not-for-profit) exists for various categories of
persons (stakeholders) who have interest in the organisation. Stakeholder theory is, therefore,
based on the assumption that the responsibility of the business is to take into consideration the
interests of other stakeholders, in addition to the shareholders, who impact the firm. Stakeholders
are those groups who have a stake in or claim on the firm. Stakeholders of an organisation
include management, employees, customers, suppliers, debt providers, government and the local
community (the environment). The idea behind the stakeholder theory is that these group of
persons influence the operations of the organisation and as such, their influence should be
considered in the decision making process and the conduct of the operations of the organisation
(Tse, 2011).

Freeman & Reed (1983) identified two sets of stakeholders in an organisation – those groups
who are vital to the success and survival of the organisation and those groups who affect or are
affected by the organisation. Emerson, Alves&Raposo (2011) supported this view when they
pointed out that stakeholders could be primary or secondary; primary stakeholders are those that
are contractually involved with the organisation such as employees, customers, and suppliers
while secondary stakeholders are those that have no formal contracts with the organisation such
as governments and the local community.

2.2 Role of internal auditing in enhancing good corporate governance

2.2.1 Risk management role of internal auditing function
The demand for proper risk management strategies in the public sector emanates from the
complexity and dynamism of the operating environment, ever-increasing needs of society
coupled with general unpredictability pattern and dwindling (decreasing) of resources for
national development (Mebratu, 2015). The author further noted the internal auditor’s role in risk
management involving assessing and monitoring the risks that the organization faces,
recommending the controls required to mitigate those risks and evaluating the trade-offs
necessary for the organization to accomplish its strategic and operational objectives. Internal
audit activity must evaluate risk exposures relating to the organization’s governance, operations
and information systems regarding the: reliability and integrity of financial and operational
information, effectiveness and efficiency of operations and programs, safeguarding of assets and
compliance with laws, regulations, policies, procedures and contracts. In the context of
governance, the key activity of internal auditing with respect to risk is to monitor all the
subsidiary steps of identifying risk, assessing the potential effect of the risk on the organization,
determining a strategy to address the risk and then monitoring the environment for new risks as
well as monitoring the existing risk strategy and attendant controls (Hermanson, 2013).

Hass, (2016), on their American literature review of internal auditing noted that internal auditors
must not only be able to assess risks in their large organizations, but they must also be able to
complete complex risk analyses.The authors in addition included, accomplishing this, internal
auditors need to possess increasing levels of critical thinking, analysis, decision making and
logic.

2.2.2 Control role of internal audit function

Mebratu (2015) states that internal auditing as a control measure does not only minimize the
opportunities for corruption through the verification of procurement processes but also ensures
effective physical monitoring of capital items procured and actual utilization to avoid fraud and
abuse. In addition to these, internal audit has played an active role in implementing effective
governance and controls while being asked to assess the effectiveness of management’s control
practices. In the context of governance, the key activities of internal auditing with respect to
control is that to ensure controls in place to address key organizational risks (Hermanson, 2013).

The internal audit activity must assist the organization in maintaining effective controls by
evaluating their effectiveness and efficiency and by promoting continuous improvement. Similar
to this, an internal audit function typically evaluates the system of internal control of the whole
management process of planning, organizing and directing to determine whether reasonable
assurance exists so that objectives and goals of the company will be achieved (Haron, 2013). To
achieve these roles internal auditors must incorporate knowledge of controls gained from
consulting engagements into evaluation of the organization’s control processes (Eke, 2018).

Control is any action taken by management to enhance the likelihood that established objectives
and goals will be achieved (Eke, 2018). Management plans, organizes, and directs the
performance of sufficient actions to provide reasonable assurance that objectives and goals will
be achieved. Thus, control is the result of proper planning, organizing, and directing by
management. In the context of governance, the internal auditor’s role is to monitor the system of
internal control to determine whether it is adequate and operating effectively; and hence make
recommendations to management for improvement. Eke (2018) summarized the role of the
internal audit function in relation to internal control as follows:

 Assisting management in designing a comprehensive assessment, including testing of

controls across the organization.
 Testing compliance with controls in functional areas, report findings to management, and
if important, to the audit committee.
 Assisting management in preparing a report on the effectiveness of internal controls.
  Identifying significant control deficiencies, including elements of the tone at the top, and
communicate to the audit committee (for areas examined).
 Implementing computerized testing techniques, e.g., continuous control monitoring
techniques, to monitor effectiveness of controls.
 Facilitating the understanding and development of controls within functional areas
through control self-assessment techniques.
2.3 Effectiveness of internal auditing in enhancing good corporate governance
It is now generally accepted that the correlation between internal auditing and corporate
governance affects all kinds of economic activity and that the perceived implications and
consequences of this interaction have changed considerably in the recent years. Internal auditing
and corporate governance have now become a matter of major public concern. In this concept,
international guidelines perceive that effective cooperation of corporate governance and internal
auditing improves performance, and is a source of competitive advantage. The contribution of
internal auditing to corporate governance is depicted via demarcating the relationship between
internal audit and key elements of corporate governance. In this concept, it is a fact that the
Board of Directors has been recognised as the key player in corporate governance by regulators
and governance committees around the world (US Congress, 2002); ASX,(2003). The new
definition of internal auditing focus on corporate governance, especially the Board of Directors.
This definition emphasizes internal’s audit role in aiding the entity to achieve its objectives.

Internal audit is an independent, objective assurance and consulting activity designed to add
value and improve an organization's operations (Drogalas et al, 2014). The quality of internal
audit helps an organization to accomplish its objectives by providing a systematic approach to
evaluate and improve the effectiveness of risk management processes, internal control and
corporate governance (Coram et al., 2008). In this context, Karagiorgos et al. (2010) recognize
the contribution of internal audit to enhancing the effectiveness of corporate governance. The
results of their study confirm the positive relationship between the broad attributes of corporate
governance and internal audit. Moreover, the International Professional Practice Framework
(IPPF), developed by the Institute of Internal Auditors in North America, states that the internal
audit activity should assess and make appropriate recommendations for improving the
governance process (IPPF, 2017). Moreover, Saud and Marchand (2012) examined the
contribution of internal audit to effective corporate governance. The results showed that the
internal audit contributes to the achievement of organization goals and enhance the
organization’s corporate governance.

Moreover, internal auditors are charged with ensuring that corporate processes and associated
controls are functioning as intended. Savcuk (2007) stated that internal auditors are developing
new strategies and are becoming more proactive, providing a broadened variety of services.
Cohen and Sayag (2010) find that appropriate staffing of an internal audit department and good
management of that staff are keys to the effective operation of an internal audit and effective
corporate governance.

The increasing need for transparency in corporate operations and financial reporting is of
paramount importance for an organization in order to be successful at this unstable period for the
economy. Consequently, internal audit and corporate governance have attracted much attention
by authorities and researchers (Dewing and Russell, 2004). Corporate governance defines the
corporate structure of an organization, the relationships and responsibilities of the various parts
of the organization and ensures the transparency in these relationships. On the other hand,
internal audit is considered as a tool for enhancing transparency, regarding financial information
which is used by stakeholders of the organization. The recent corporate scandals (such as Enron),
many of which are attributed to weak corporate governance structures, have brought into
attention the need for examining and understanding the different aspects of corporate governance
and its relationship to the organizational bodies which are responsible for the monitoring
processes, such as the internal audit department and the audit committee. Building on the above,
and in the light of the recent regulations published for corporate governance and internal audit,
the conceptual framework of these two fields must be reviewed and the relationship between
corporate governance, internal audit and audit committee must be examined in order for the
critical points of this relationship to be highlighted.

Eulerich et al. (2015) on their study on the effectiveness and efficiency of corporate governance
show that the internal control function, the members of the internal auditing and the audit
committee are positively linked with the efficiency and effectiveness of the governance
processes, internal controls and risk management. Moreover, Abbott et al. (2016) show that the
joint presence of competence and independence is a necessary antecedent to effective internal
auditing and financial reporting monitoring.
However, despite of this increasing concern, the published guidelines and regulations for the
audit committees, Cohen et al., (2002) find that audit committees do not have the expertise to
reach their objectives and to communicate effectively with theauditors and the board of directors.
After the recent regulations, concerning the mandatory publication of reports, it was expected the
audit committee to contribute even more to the improvement of corporate governance by
facilitating and ensuring the transparency of financial reporting (Rezaee et al., 2003). However,
there is no straightforward relationship between the constitution and activity of the audit
committee and specific corporate governance structures. There is evidence that the interaction of
audit committee with corporate governance characteristics and internal audit addresses some
weaknesses in corporate governance. Nevertheless, the claim that the creation of audit
committees will result in specific corporate governance strictures this cannot be generalized
(Turley and Zaman, 2004).

It is ultimately responsible for the entity’s accomplishment of its objectives, the internal auditor’s
contribution is to providing information to that group (Colbert, 2002). Apart from the above,
internal audit’s role is crucial to assisting the Board of Directors in its governance self-
assessment. According to Cook and Wincle (1976), the Internal Control System resembles the
human nervous system which is spread throughout the business carrying orders and reactions to
and from the management. In this concept, by measuring and evaluating the effectiveness of
organizational controls, internal auditing, itself, is an important managerial control device
(Carmichael, 1996), which is directly linked to the organizational structure and the general rules
of the business (Cai, 1997). In today’s business environment internal auditors are now providing
management with a far broader range of information concerning the organization’s financial,
operational and compliance activities to improve effectiveness, efficiency, and economy of
management performance and activities (Rezaee, 1996).

Based on the Audit Committee, on the one hand internal auditing contribute to corporate
governance by:

 Bringing best practice ideas about internal controls and risk management processes to
the audit committee.
 Providing information about any fraudulent activities or irregularities (Rezaee and
Lander,1993)
  Conducting annual audits and reporting the results to the audit committee.
 Encouraging audit committee to conduct periodic reviews of its activities and practises
compared with current best practises to ensure that its activities are constituent with
leading practises (Sawyer, 2003).
2.4 Compliance of the internal auditing with policies and regulations.
Good governance requires an organisation to have proper framework in place to ensure
excellence in decision making, and that decisions are implemented efficiently and effectively.
Key components of good governance include the use of:

 Audit Committees
 Internal and External Audit
 Enterprise Risk Management
The Audit Committee

An audit committee plays a pivotal role in the governance framework. It provides councils with
independent oversight and monitoring of the council’s audit processes, including the council’s
internal controls activities. This oversight includes internal and external reporting, risk
management activities, internal and external audit, and compliance. Given the key role of the
Audit Committee, for it to be most effective it is important that it is properly constituted of
appropriately qualified independent members. A strong relationship between the audit committee
and internal audit enables the committee to meet its responsibilities and carry out its functions.
An audit committee establishes the role and direction for internal audit, and maximizes the
benefits from the internal audit function.

External Audit

External audit is a statutory function that provides an opinion on the council’s annual financial
reports. The primary focus and responsibility are on providing an opinion on the financial report
to council and its external stakeholders. Councils should be aware that the external auditor
should not be expected to conduct a deep or thorough review of the adequacy or effectiveness of
a council’s risk management framework or internal controls. To obtain a deeper understanding
of the scope of the external auditor's report it is recommended that you read the disclaimer
contained in the external audit report in your council’s statutory financial reports. The external
auditor may place some reliance on internal audit reviews, monitoring of internal control,
including fraud control and risk management. An effective internal audit function may contribute
to the performance of external audit, as the external auditor may be able to rely on some of the
internal audit work performed, and the stronger internal control environment that a strong
internal audit function can create. This may have an indirect benefit in reducing audit fees.

Management

Management has primary responsibility for the design and operation of the risk management and
internal control frameworks of the council. It is separate from the responsibilities of external
audit, internal audit and the audit committee. While these functions provide advice and oversight
in relation to the risk management and internal controls, they are not responsible for its design or
implementation. This responsibility lies solely with management. Good governance in local
government relies on a robust independent review of management, finances, risks and
operations.

Risk Management

Risk management is an important component of corporate governance. Risk management is the

responsibility of management with oversight by council and the audit committee. Internal audit
can assist management to identify and evaluate the effectiveness of council’s risk management
system and contribute to the improvement of risk management and control systems. The annual
Internal Audit plan should be developed after consideration of the council’s risk registers and
those areas that are high risk to the organisation. Internal audit will usually provide advice and
assurance over the risk management and internal control frameworks, but in order to maintain
independence, internal audit will not be responsible for its implementation of risk management
or making decisions on how risks should be treated.

2.5 Challenges faced by internal auditing in enhancing good corporate governance

Independence cannot be enforced, it is a self-regulated value based on personal ethical
considerations. In executing his/her duties with independence and objectivity, the internal auditor
will at some point face challenges in corporate governance audits.
2.5.1 Negative public perception (Expectation Gap) due to corporate scandals and failures

The corporate and accounting scandals that have occurred in the past years globally and locally
have brought the profession of both the internal auditor and the external auditor into question and
under scrutiny. These have been necessitated by the heightened materialism which also provides
a context for the arguably declining ethical standards among company directors, accountants and
auditors,(Cooper, 2005). The Zimbabwe internal auditor is in a similar predicament as contended
by Magaisa (2005) who asserted that auditors have come under the spotlight for their role in the
corporate scandals and collapses. Society has started to boldly call for the role of auditors in
corporate failures to be documented and a level of liability established. In recent decades,
considerable attention has been given to the existence of an "expectations gap" between what
"the public" believes auditors should do against how auditors have defined their roles and
responsibilities, (Young, 1997).

The audit profession has been allowed to operate under a self-regulation environment but society
has started to doubt if this modus operandi can continue. Young (1997) further posits that in
exchange for defining its professional work and responsibilities, a profession must also be seen
to perform the work as set out in its jurisdiction mandates. In other words, an obligation is
imposed upon a profession to do what it says it will do (Wiggins, 2014) in a case study of The
Role Ernest & Young played in the Lehman Brothers Collapse engendered debate regarding the
historic role of the independent auditor. As one of the few checks on management, have such a
function lost significance to the investing public? Some of the pertinent issues that were raised in
this case study have significant bearing on the present study. These questions, whether
developments in the profession and the economy nullified the auditor’s duty to the public and if
it is realistic to expect the auditor to take positions against its clients’ interests no matter what the
regulatory scheme, (Wiggins, 2014). Though these questions were raised over the external
auditor, they are equally applicable to the internal auditor and his relationship with his
management.

3.6 Empirical review

Series of studies have been carried out on internal audit (as independent variable) and corporate
governance (as dependent variable). Some of the empirical studies carried out on these two
variables are examined below.
Asaolu, Adedokun& Monday (2016) examined the effect of internal audit function (IAF) on
good governance in the public sector in Nigeria. The main objective of the study was to
determine the role of the internal audit function in ensuring good governance in the public sector
in Nigeria. Primary data for the study were obtained using structured questionnaire and data
analysis was done using correlation analysis and multiple regression technique. The study found
that internal audit moderately contributes to the effectiveness of corporate governance in the
public sector in Nigeria and concluded that the internal audit function is a veritable tool for
promoting good governance in the Nigerian public sector. The study recommended that there
should be legal mandate in public sector organisations that allows government information to be
publicly published and that special funds should be made available to internal auditors as it
would enhance the effectiveness of the internal audit function and boost good governance in
public organisations.

Abdullah (2014) carried out an investigation on ‘redefining internal audit performance: impact
on corporate governance’. The specific purpose of the study was to explore the ways internal
auditing is practiced in Malaysian public listed companies and as such establish internal audit’s
contribution to corporate governance of such companies. The study adopted the survey research
design and data were collected using mail questionnaire and interviews. Analysis of data was
done using the Rasch model. The findings of the study reveal that internal audit has a significant
impact on corporate governance and that collaborations particularly in risk management,
information technology audits and quality audits, are increasingly being used as a strategy in
internal audit to provide value-added services. It concluded that internal audit significantly
influence corporate governance of Malaysian public listed companies and recommended that the
practice of internal audit in future should be more collaborative to harness the expertise and
experience of other departmental personnel in producing effective internal audit, ultimately
creating a greater impact on corporate governance.

In another study, Changwony&Rotich (2015) examined the role of internal audit function in
promoting effective corporate governance of commercial banks in Kenya. The purpose of the
study was to determine the role of the internal audit function in promoting effective corporate
governance of commercial banks in Kenya. Survey design was adopted for the study and
stratified sampling technique used in selecting the sample elements. The findings of the study
revealed that internal audit has a positive and significant influence on effective corporate
governance. The study concluded that internal audit function plays a positive and significant role
in promoting effective corporate governance of commercial banks in Kenya. The study
recommended that the audit committee should take responsibility for approving the appointment,
remuneration and disengagement of the Chief Audit Executive to enhance the effectiveness of
the internal audit function.

Njunwa (2013) conducted a study on internal audit and corporate governance in local
governments in Tanzania, using Mwanza city council as a case study. The primary objective of
the study was to determine the factors that contribute to ineffectiveness of the internal audit
function in promoting good corporate governance in the public sector in Tanzania. Data were
obtained primarily using structured questionnaire. The study which adopted the multiple
regression approach to data analysis found that factors such as lack of independence, lack of
proficiency of internal auditors as well as lack of integrity on the part of internal auditors
contributed to the ineffectiveness of the internal audit function in Mwanza city council and hence
the public sector in Tanzania. The study concluded that the internal audit function in Mwanza
city council does not promote good corporate governance. Consequently, it was recommended
that internal auditors should ensure they improve their skills to enable them perform better and
assist the council in promoting good corporate governance.

Odoyo&Omwono (2014) investigated the role of internal audit in enhancing corporate

governance for companies listed at the Nairobi stock exchange. The objectives of the study were:
to assess the auditor’s role in corporate governance, to assess the internal audit’s capacity to
achieve its objectives, and to suggest how internal auditors’ independence can be achieved. The
descriptive research design was used and the data collection instrument was the questionnaire.
The study employed both stratified and systematic sampling procedures. The sample size was
thirty (30) companies quoted in the Nairobi stock exchange. The study found that eighty four
(84) percent of the respondents were of the opinion that internal audit influence corporate
governance of companies listed in the Nairobi stock exchange, hence it was concluded that the
internal audit function contributes to corporate governance. One of the recommendations made
in the study was that internal auditor should report functionally to the audit committee and
administratively to the chief executive officer of the organization.
In another study, Mohammed, Unuigbokhai, &Ihimekpen (2014) investigated the role of internal
audit in strengthening corporate governance in Nigeria. The main purpose of the study was to
examine in a theoretical level the contribution of internal auditing to corporate governance. The
study also examined the interaction between various corporate governance factors such as the
board of directors, the audit committee and the external auditor, and the internal audit process.
To achieve the objectives of the study, the researchers conducted an extended literature review.
The study found that a positive relationship exists between internal audit and corporate
governance and concluded that internal audit plays a vital role in strengthening corporate
governance in Nigeria. The study aimed at surfacing out the role of internal auditing in
enhancing and elevating good and sound governance in local authorities of Zimbabwe which
included Harare, Bulawayo, Gweru, Mutare and Masvingo urban local authorities.

CHAPTER THREE

METHODOLOGY
3.1 Research design
Research design can be defined as the conceptual structure within which research is conducted; it
constitutes the blueprint for the collection, measurement and analysis of data (Kothari, 2004).
The process of designing a research study involves many interrelated decisions. The most
significant decision is the choice of the research approach because it determines how the
information will be obtained. This was a crosscutting study. The main reason for employing this
design was to enable researcher in investigating the role of internal auditing in enhancing good
corporate governance within public organizations in Zimbabwe with minimum expenditure of
effort, time allocated and money.

3.2 Population and population size

Cooper & Schindler, (2011) defines population as a collection of all the subjects in the sampling
frame and it is explained in terms of elements and sampling units. The group of people to whom
we want our research results to apply is the targeted population (Marshal, 2011). The targeted
population consists 100 workers. The researcher targeted respondents from the internal auditors,
accounting department, management directors, administration and councilors from Harare,
Bulawayo, Gweru, Mutare and Masvingo city councils.

3.3 Sampling Techniques and procedure

According to Cresswell, (2003) sampling is the use or taking of certain part of the population to
represent the whole population. Judgemental and selective sampling were used in this research
because of different reasons fully described below. For effective and efficient distribution of
questionnaires to workers in the ministry specifically targeting the road construction department,
the researcher used judgemental sampling. Convenience sampling will be adopted because it will
be the most suitable for the researcher who wanted to carry out interviews on ministry workers
but majority coming from the department of road construction.

3.3.1 Sample size

Rule of the thumb was used in determining the sample size of this research. Using rule of thumb,
a sample size larger than 30 and less than 500 is recommended in most studies (Roscoe, 1975).
The researcher used 50 workers from Harare, Bulawayo, Gweru, Mutare and Masvingo city
council departments guided by rule of thumb.

3.4 Data collection

3.4.1 Sources of Data
The researcher will use mainly journals, websites, articles and publications as they help the
researcher to obtain a deeper understanding, diversity of information and reliable and updated
research findings.
3.4.2 Types of Data
Qualitative data is extremely varied in nature. It includes practically any information that can be
captured that is not numerical in nature. Data can be acquired from secondary and primary
sources. For this research both primary data and secondary data were used to obtain the results to
the study objectives.

Primary data
The researcher employed self-administered questionnaires, face to face interviews as primary
data collection techniques. The primary data was collected from a sample of employers in
selected local authorities. The collection of data specifically addressing capability of internal
audit in the selected local authorities was facilitated by the use of questionnaires and interviews
since the researcher was able to collect information straight from the source. However, the use of
questionnaires and interviews could not be done without its limitations in that those who
provided the information might deliberately give distorted information to reflect their favourable
positions

Secondary data

Secondary data is the type of data that was previously compiled by other researchers, and is
easily accessible for the public. Secondary data was collected from accredited websites; journals
and publications. This study utilized secondary data which include the Auditor general reports
(2014 to 2018), corporate governance framework for SEPs (2010), published journals on
corporate governance and internal audit, and other appropriate information the researcher desired
to utilize. Secondary data was also obtained through document review, desktop review and
internet browsing. Secondary data was used because information was less subjective to
intentional bias was compared to primary data. This source of data is easily accessible,
inexpensive and does not consume a lot of time in accumulation

3.5 Data Collection Instruments

The research instruments which were used to collect data were questionnaire, and interview
schedules. The research used both closed and open-ended questions to gather up primary data.
The questionnaires were self-administered to the ordinary workers and to the line managers at all
City Councils. For close-ended questions, the answers were predetermined and could be marked
and for open-ended questions, the ample spaces were left for respondents to express their
opinions. Questionnaires were used for the reason that they ensure reasonable confidentiality,
which promotes frankness interview schedule was used to collect primary data soon after the
collection of the questionnaires were already responded to. Interviews were held with head of
departments. They were used to rectify ambiguous responses on the questionnaires and for those
areas which required thorough explanations.

The document schedules were used to collect secondary data. The study analyzed quarterly
financial reports of City councils, the internal auditors’ working papers for the year ended 2009
and the Internal Audit Charter (2009). These were used to collect data which the interview
schedule could not address and were good for trend analysis, for example, in risk assessment and
consistency of documentation of internal auditors’ working papers throughout from the first to
the final quarter were assessed. Pilot study was conducted to refine all the research instruments
and get rid of any problems and ambiguities. This also enabled the researcher to assess the
questions validity and the reliability of the data collected. The questionnaires were given to
fellow students and they filled in the information and discussions were later held with them in
order to refine the questionnaires. These students understand internal auditing because they
studied it and some were once attached as internal auditors. Interviews were held with the
students as well and refinements were made. The document schedules were also given to
students for data collection, followed by refinements after comparisons and discussions.

3.5.1 Questionnaire
A questionnaire is a list of questions that are given to the respondent so that they may answer in
written form and send back the questionnaire to the researcher. Best, (1981). The questionnaire
comprised of a bulk of closed ended questions and a few open-ended questions. A bulk of closed
ended questions were used because they are easier to administer and faster for data tabulation.

Justification of Questionnaires
The researcher took the following into consideration in choosing the questionnaire as his
research tool. It enabled the researcher to gather data beyond the physical reach of the observer
and it was easier on the part of the researcher to administer. Questionnaires were also convenient
since most respondents did not have time to attend to long hours of survey discussions and the
limiting factor of time was saved greatly on the part of the researcher as the questionnaire was
sent out to different people at the same
3.5.2 Interviews
The researcher in addition to questionnaires further used the face to face interviews and these
enabled him to adapt the questions as necessary, clarify doubt and ensure that the responses were
free from any bias. Through the interview the researcher will be able to read facial expressions
which are useful in making evaluations, unlike questionnaires which a senior person can delegate
the answering to a subordinate, interview reach the original person targeted. Executives targeted
are always busy hence interviews take shorter time than questionnaires.

The researcher used interviews in Harare, Bulawayo, Gweru, Mutare and Masvingo senior
management since they have in depth knowledge on the subject matter that could not be
provided by non-managerial staff. The face to face interaction with the selected senior
management also gave the management some degree of confidence to divulge some sensitive
information that could not be provided through the use of questionnaires. In addition, the
interviewer was able to clarify questions that the respondent found difficult to understand. The
interviewer was also able to ask more explanations for clarity on areas that were vague thereby
reducing the risk of having a biased conclusion.

This was possible because of the use of open-ended questions and that the respondents were free
to answer according to their line of thinking and not constrained by any alternatives, the fact that
the interviews were pre-tested enhanced the validity and reliability of the interviews. It is the
only means of obtaining personal information, attitudes, perceptions and beliefs. Interviews are
fairly easy to analyses as you have to simply go back to the answers you received and decide
how to use them within your writing. Allows quick collection of data much to the benefit of both
the researcher and the interviewee (time saving). Interviews allows for probing more deeply into
issues of interest being raised. Issues not previously thought of when planning the study may be
explored, thus providing valuable insights on the problem. Information provided in the
respondents’ own words might be useful as examples or illustrations, which add interest to the
final report.

3.6 Data presentation and analysis

In this study data analysis were analyzed through Statistical Package for Social Sciences (SPSS)
software program. After data clearing and data coding, the data will be transferred to SPSS 20.0
version and do the statistical analysis to accomplish the research objectives. The statistical
analysis that were used in this study included Cronbach’s Alpha and regression analysis for
reliability and validity testing. Descriptive data was analyzed and results were defined in terms
of percentage, frequencies and presented into charts and tables.
3.7 Validity

Validity as the extent to which data collection method or methods accurately measure what they
were intended to measure. The authors have indicated that validity is concerned with whether the
findings are really about what they appear to be about. Data was collected from reliable sources;
from the respondents who understand the revenue collection constrains facing local authorities.
The questionnaires used were examined to ensure that the questions asked sought the
information that was related to the problem in order to incorporate validity in this study.
3.8 Reliability

Reliability refers to the degree to which data collection method or methods will yield consistent
findings, similar observations would be made or conclusions reached by other researchers or
there is transparency in how sense was made from raw data. The researcher formulated questions
that cover the content of each objective to ensure that the research instruments were reliable and
valid. Questionnaires were pretested in an effort to reveal ambiguities, conflicting items and
items that were not relevant to the purpose of the study. Straight questions were asked and
related questions followed each other in sequence to ensure a coordinated response.
3.9 Ethical considerations
The data collection from Harare, Bulawayo, Gweru, Mutare and Masvingo city councils was
solely for the purpose of this research. Permission was sought by the researcher to carry out this
research of the organization and the confidentiality policy of role of internal auditor to enhance
good corporate governance: A case study of Harare, Bulawayo, Gweru, Mutare and Masvingo
city councils was maintained. Data collected was not shared to any other individual expect the
researcher‘s supervisor to ensure confidentiality. The process of data collection had several
ethical considerations such as non-voluntary participation of people. The respondents were not
forced to provide information or involve in interviewing process. No names are quoted in the
report and confidentiality is maintained through data processing.
3.10 Summary
This chapter summarized the research methodology used by the researcher in this study.
Research designs, sampling techniques, population under study, data presentation, analyses
techniques used by the researcher were discussed in this chapter. The researcher used interviews
and questionnaires to collect data from Harare, Bulawayo, Gweru, Mutare and Masvingo city
councils. Chapter four will cover on data presentation and analysis.

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