The impact of internal auditing on public management: the case of portuguese local authorities

Research on Public Administration has evolved significantly in recent times, but despite that evolution, several questions remain unanswered. Study of the impact and importance of internal auditing activity in municipal management is one example. The main aim of this study is to understand the influence of internal auditing on decision-making in local authorities’ executive organs. Two questionnaire surveys were applied, one to those in charge of internal auditing and the other to a member of the executive organ of the 278 local authorities in mainland Portugal. The results obtained allow the conclusion that the two groups of respondents have the same understanding of the impact and importance of internal auditing activity on municipal management. There was statically evidence that the requesting internal auditing services for internal consulting is associated with the executive organ’s decision-making process. The degree of importance given to internal auditing activity as an instrument to assess the internal control system and fulfilment of norms and procedures was also found to contribute to the executive organ’s decision-making.This study was conducted at Research Centre in Political Science (UID/CPO/0758/2013), University of Minho and supported by the Portuguese Foundation for Science and Technology and the Portuguese Ministry of Education and Science through national funds. UNIAG, I&D unit funded by FCT – Portuguese Foundation for Science and Technology and the Portuguese Ministry of Education and Science, in the project “UID/GES/4752/2016”.