The Internal Audit Function of Non-Stock Savings And Loan Associations in Metro Manila

Abstract

The study is exploratory to assess the effectiveness of the internal audit function of the Non-Stock Savings and Loan Associations (NSSLAs) in Metro Manila. There are five variables used in the study, namely: Management Support, Internal Audit Value, Independence of Internal Audit Work, Competence of Internal Audit Staff, and Approved Internal Audit Policies. This study employed the descriptive research method which is designed to gather information about the present and existing conditions needed in the chosen field of study. The respondents are employees of NSSLAs in Metro Manila whose job functions are involved in internal auditing. A survey questionnaire was used to gather pertinent information. The study revealed that out of the 152 respondents, 99 or 65.10% are rank-and-file employees, 113 or 74.30 are bachelor’s degree holders, 52 or 34.20% have 3 to 4 years of work experience in internal auditing, 49 or 32.30% of the respondents have attended more than 48 hours of internal audit-related training, and 59 or 38.80% of the respondents have been employed for 1 to 2 years in the same organizations. The respondents assessed that the internal audit function of NSSLAs in Metro Manila was effective in terms of management support and competence of internal audit staff; and very effective in terms of internal audit value, independence of internal audit work, and internal audit policies. To further improve the effectiveness of the internal audit function of NSSLAs, the management must provide more support to the Internal Audit Department by providing appropriate training and professional certifications and hiring adequate and skillful staff. Internal Audit Department must directly and functionally report to the proper authority to improve the independence of internal audit work. Top management must not interfere with the decision of the Internal Audit Department in planning for scope, time, and extent of procedures performed.