This study analyzes internal audit performance factors and provides suggestions for improvement in self-inspection based on the Daegu Metropolitan City by identifying the importance of internal audit performance in the local government according to the expansion of the municipal governments, budgeting, and functions and authority.
Based on prior research, the researcher defined independent variables as independence, expertise, responsibility and efficiency, conducted a questionnaire to collect data, and used the SPSS statistical program for correlation, t-test, and multi-regression analyses.
The researcher conducted multiple regression analyses to examine the effects of independent variables on internal audit performance in the Daegu Metropolitan City. The findings showed that expertise, responsibility, and efficiency have positively affected internal audit performance, which is statistically significant, forecasting that a higher level of expertise, responsibility, and efficiency can improve internal audit performance. Meanwhile, Independence did not have a statistically significant effect on self-inspection.
Based on survey results, self-inspection in Daegu has three problems in general: less secured independence in personnel assignment, insufficient expertise in auditors, and low efficiency caused by overlaps of audit performances.
This research provides three suggestions to address these problems in internal audit performance and strengthen self-inspection in the Daegu metropolitan city. First, independence must be secured in organizations, institutions, and personnel assignments. Second, the city must consider assigning auditors with various hands-on experiences and expertise in auditing. Last but not least, the internal organization must recognize the importance of internal audit performance and be fully aware of the importance of self-inspection by the chief official.