The effect of Internal Aaudit on the implementation of Donor Funded Projects at Veterinaries’ sans frontiers Germany

Abstract

Organizations have increasingly relied on the internal auditors to help identify risks, improve internal control systems and support by laying a strong internal control environment. Non-Governmental Organizations (NGOs) are known deliver services to vulnerable beneficiaries through implementation of various donor funded projects. The main concern for the international development community is arguably the effectiveness of donor aid. This study thus sought to explore the effect of internal audit on implementation of donor-funded projects at Veterinaries’ Sans Frontiers Germany. The study theoretical foundation comprised of the agency theory, the resource based theory and the stakeholders’ theory. The study adopted a case study method and the population comprised of the 145 donor funded projects which had been undertaken and implemented by Veterinaries’ Sans Frontiers Germany in Kenya, Sudan, Ethiopia, Somalia and South Sudan. The study used secondary data which was sourced through the review of existing information between 2014 and 2018. Data was analysed using descriptive statistics and inferential statistics which included correlation and binary logistic regression using the SPSS software. The study revealed a positive and insignificant effect between internal audit staffing and implementation of donor funded projects; but a negative and insignificant link between experience by internal audit staff and implementation of donor-funded projects at VSF Germany. The findings also established that the frequency of internal audit reviews had a positive and significant effect on implementation of donor-funded projects and a significant negative relationship between budget size and implementation of donorfunded projects at VSF Germany. The study concluded that that frequency of internal audit reviews and budget size were the key factors that influence implementation of donor-funded projects at Veterinaries’ Sans Frontiers Germany.