The nature of internal audit practice challenges prevalent in public institutions of higher learning: a systematic literature review

Abstract

Institutions of higher learning, particularly universities, have for long received goodwill and
support as hubs entrusted with developing key human capital and skills, generating knowledge
products and giving evidence-based policy direction to governments essential for national
development. There has, however, been an increased level of scrutiny and greater demand for
such institutions to demonstrate greater value for money in view of the levels of public and
private investment and trust in their programmes and operations. To that end, practices such
as internal auditing have been identified as essential in safeguarding resources, promoting
accountability, transparency and ensuring integrity within such institutions. However, internal
audit practices in public universities, especially in developing country contexts, face persistent
challenges that compromise their effectiveness. This systematic literature review interrogates
these challenges in greater detail. This is achieved through synthesising empirical findings
from 50 peer-reviewed studies (published between 1999 and 2025) retrieved using PRISMA
2020 guidelines from Scopus, Web of Science, JSTOR, and Google Scholar. Guided by agency
theory, which underscores the need for oversight to address conflicts between agents and
principals, the review identifies five recurrent challenges. These are limited auditor
independence, insufficient professional competence, lack of top management support,
inadequate resourcing, and political interference including intimidation. These challenges are
exacerbated by weak reporting structures and a persistent audit expectation-performance gap.
The findings suggest that improving internal audit effectiveness requires strategic interventions
across practice, policy and theory. Recommendations include investing in auditor capacity
development, enforcing structural and operational independence, strengthening governance
oversight, and aligning internal audit functions with institutional strategic objectives. These
measures can enhance audit resilience, promote public trust, and improve decision-making
and performance in higher education institutions. This review contributes to the discourse on
public sector auditing by highlighting contextual barriers and offering, through several
recommendations, a roadmap for reform and future research.