The Impact of External Auditing on the Performance of Local Government Council in Nigeria

Local Governments in Nigeria have been featured with gross financial mismanagement to the extent that the government had decides to institute periodical restricting and reform programmers. In the existence of integrity, effectiveness and efficiency in utilization of resources, the council can easily obtain unqualified audit opinion from CAG. Failure to obtain unqualified audit reports may take the council into access to LGCDG and therefore gives a negative impact to the authority it terms of service provision. It was that reason therefore, that prompted to carry about a study to assess whether local authorities effectively implement financial management systems by conducting a study at uyo Municipal Council. The research methods employed were:-questionnaires observation and interviews. The researcher employed simple selection techniques. A sample of 45 respondents was selected from a total population of units of inquiry. The study findings revealed that; still there some weakness in terms of enforcing procedures and principles guiding the authorization and access of organization’s assets and documents Also the study found an increasing rate of improperly vouched expenditure year after year and improper approvals, improper documentation and attachment. The study also found existence of over expenditure on some common items like fuels and allowances, caused by insistence of a reliable computerized system for budgeting and accounting activities. On the part of the functioning of the external audit unit, the findings revealed a weakness on reporting channel. The study finally found that, the financial management systems in local government Authorities are slightly effective, so for improvement, the study recommends: the immediate computerization of the accounting and budgeting systems, that performance. Finally; the council internal auditor should report direct to councilors and to ministry responsible. The researcher really hopes that the output of this research study shall be of practical use to other individual scholars, Institutions of higher learning and Local Government Authorities of Nigeria.