Internal Audit Function and Fraud Detection in Government Agencies. Acase Study of Naads Kumi

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1.0 Introduction
This chapter will cover the background of the study, the statement of the problem, the purpose of the study, the objectives, the research questions, and the scope, the significance of the study and the structure of the report.
1.1 Background of the Study
According to Hector Perela, (2009), Internal auditing function with other intervention mechanisms like financial reporting and external audit to helps maintain cost-efficient contracting between owners and managers. It is designed by government agencies to add value and improve organizational performance. It helps organizations accomplish their objectives by bringing a systematic, disciplined approaches to evaluate and improve the effectiveness of risk
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Farmers must select activities that will result in marketable, profitable goods, with low production costs and about which there is ample knowledge in the district.
One challenge for NAADS is that it spreads very slowly. It does not target whole villages, only groups of people, and then only a few members of a group get assistance initially, while other members wait sometimes for a up to a year before getting any much needed support.
When it began, the service was only offered to 24 sub-counties in six districts. It has since spread to all 79 operational districts, but is still only reaching a few farmers in a few sub-counties within them, which means many farmers are not served.
A 2007 study by the International Food Policy Research Institute (IFPRI) found that while NAADS had promoted the use of improved production technologies and high-yielding crop varieties, only a few farmers were using them even within sub-counties where there service was operating. As a result there was no difference in yield growth between NAADS sub-counties and those without its assistance.
In early 2009, a report by Uganda's auditor general concluded that 63% of money allocated to NAADS activities was wasted because farmers disliked classroom-style training given by contracted service providers. The Ugandan president, Yoweri Museveni, publicly condemned this approach to training as
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