CONTRIBUTION OF EXTERNAL AUDITING TO THE PERFORMANCE OF PUBLIC INSTITUTIONS IN RWANDA. A CASE STUDY OF MUSANZE DISTRICT (2013-2015)
This dissertation is entitled “the contribution of external auditing on the performance of the public institutions in Rwanda, especial Musanze district. The specific objectives of this study were to find out how external audit is applied by Musanze District, to analyze the level of performance in Musanze district, to establish the relationship between external audit and performance of Musanze district. This study was guided by the following questions: How the external audit does applied in Musanze district? what is the level of performance of musanze district? what is the relationship between external audit and performance in Musanze District? A questionnaire was distributed to 67 respondents and interviews were conducted with key informants from Musanze district employee and staff. The results show a variation of -5% in operating revenue in 2013 to 2014 and an increase of 17% in 2014 to 2015 if comparing its operating revenue. The results also indicate the same variation in total revenues. Furthermore the results indicate that Musanze district net financial assets were decreased in the period 2013 to 2014 by 103% while in 2014 to 2015 the amount has been increased more than twice as the variation was 206%. The study concluded that within Musanze district in 2015 there is good performance in term of revenue and assets value position. The model summary table shows R square used as test for model fitness. From the results, it was found that the five independent variables (control environment, control activities, risk assessment, monitoring, information and communication moderately predict the performance of public institution (adjusted R squared = .836). That means the model explains 83.6 % the variance in the performance of public institution. And the study provide the following recommendations that constant training to auditors of public institutions should be organized to improve their skills level, an external auditor should be independent from the public institution in order to perform their activities independently and financial motivation for external auditors should be applied to increase their efforts as external auditors.
Key words: AUDITING, EXTERNAL AUDITING, PERFORMANCE, PUBLIC INSTITUTIONS
