MEASURING THE IMPACT OF THE INTERNAL CONTROL AND AUDIT SYSTEM IN ACHIEVING THE FINANCIAL OBJECTIVES OF THE TAX AUTHORITY

Abstract

This study explores the efficacy of the internal monitoring and management system within the Tax Authority in meeting its organisational financial objectives. It specifically examines the extent to which internal control frameworks, alongside auditing procedures, contribute to the attainment of financial goals within the General Tax Authority. A quantitative design was used, selecting fifty employees through stratified random sampling from various positions across the authority. Data were gathered using a structured questionnaire assessing three fundamental dimensions: the control environment, control activities, and mechanisms for monitoring and control. Hypotheses were tested using SPSS software, employing analytical techniques such as frequency distributions, means, standard deviations, and linear regression. Findings indicate that each of the three dimensions of internal control meaningfully improves the Authority’s financial performance. Among the examined variables, the control environment exhibited the highest correlation coefficient (r = 0.887) and coefficient of determination (R² = 0.785) followed by monitoring and control (r = 0.916; R² = 0.836), and control activities (r = 0.863; R² = 0.738). The results underline the position of clearly delineated responsibilities, equitable allocation of authority, and independent oversight mechanisms in promoting financial effectiveness and organisational goal realisation. The evidence suggests that internal control systems serve a critical strategic role, offering valuable insights for increasing public sector accountability and operational performance. The study supports for the reinforcement of internal control procedures throughout the central authority and its subsidiaries. For better results, it is recommended that the organisation adopt enhanced surveillance protocols, conduct routine assessments, and introduce systematic adjustments in answer to emerging challenges. These interventions are vital for confirming accurate tax disclosure and refining tax revenue collection efficiency.