Corporate governance, internal audit function and accountability in statutory corporations

Figures & data

Table 1. Background characteristics of the respondents

Item	Description	Frequency	Percent
Sex	Male	44	66.7
	Female	22	33.3
Age group	Below 25	4	6.1
	25–34	29	43.9
	35–44	28	42.4
	45–54	5	7.6
Education level	Certificate	2	3.0
	Diploma	23	34.8
	Bachelors	27	40.9
	Masters and above	14	21.2
Working experience	less than 1	5	7.6
	1–5	47	71.2
	6–10	10	15.2
	10 and above	4	6.1

Source: Primary data

Table 2. Factor structure of the corporate governance

Item	Board size	Audit Committees	Board Composition	Board Independence
Our Board size provides a strong and effective leadership for the organization.	.89
In this entity, the number of board members is adequate to fulfill its requirements.	.83
The Board we have possesses qualities to identify where they may be gaps.	.78
Our Board is about the right size, not too big, and not too small.	.75
In this entity, the audit committee gives input to the internal audit annual work plan.		.78
The chair of the audit committee is an independent director and not be chairperson of the board.		.77
In this entity, audit committee promote financial reporting quality.		.74
Audit committee ensures the integrity of the financial reporting process in the organization.		.64
There’s a policy of rotation of Board members in this organization.			.78
In this entity one of Board members has recent relevant financial experience.			.74
Interest of all stake holders are well presented on the board.			.58
The board periodically reviews the policies & procedures designed for proper internal controls.				.77
In this entity there’s clear separation of the board chair and CEO roles/Duties.				.77
All information is made available to stakeholders in a clear manner in this entity.				.74
Potential conflicts of interest and own account transactions disclosed to other board member in this entity.				.74
Board members rarely get involved in operational or administrative matters of the entity.				.68
Eigen Values	4.88	3.52	3.21	3.21
Variance (%)	12.19	8.79	8.02	8.02
Cumulative Variance (%)	12.19	20.98	29.00	37.02

Source: Primary data.

Table 3. Factor structure of the internal audit function

Item/Factor	Internal controls	Risk Management
Internal audit staff in this entity have developed fraud detection mechanisms.	.82
Internal control measures in place safeguard the assets of the company from misappropriation.	.75
Internal audit in this entity report directly to the Audit Committee or to supervisory boards.	.67
There is proper monitoring of internal control systems	.66
Identified risks in this organization managed immediately.		.76
Internal auditors monitor risk management policies in this entity.		.66
In this entity Internal audit staff takes all necessary measures to control risks in audit process.		.65
There’s an effective system to responds to business risk faced by the entity.		.63
There’s an internal audit function effective in reporting on the “tone at the top” as part of its function.		.58
Eigen Values	3.22	3.05
Variance (%)	16.12	15.24
Cumulative Variance (%)	16.12	31.36

Source: Primary data.

Table 4. Correlation analysis of the study variables

Variable	(1)	(2)	(3)
Corporate Governance (1)	1
Internal audit function (2)	.525**	1
Accountability (3)	.410**	.608**	1

**. Correlation is significant at the 0.01 level (2-tailed).

Source: Primary data.

Table 5. Regression analysis

	Unstandardized Coefficients		Standardized Coefficients	t	Sig.
	B	Std. Error	Beta
(Constant)	.809	.259		3.131	.003
Corporate Governance	.130	.120	.126	1.080	.284
Internal audit function	.479	.103	.542	4.658	.000

R Square = 0.381, Adjusted R Square = 0.362; F—Statistic = 19.420; Sig = 0.000

Source: Primary data.