The perception of the internal audit contribution to the control of indebtedness in Portuguese municipalities: The case study of the north and center region

Given the role that internal audit can play in control and efficiency of processes, reducing costs, the main objective of this study is to understand the perception of the internal audit contribution to the control of indebtedness of municipalities. For this purpose, a sample of municipalities composed of those that are most heavily indebted and less indebted from the northern central region of Portugal was considered; an analysis was made of their organizational structure, as well as of the results of a questionnaire. The results show a positive perception by the respondents about the contribution of the internal audit to control the excessive indebtedness. This research provides information that may be useful to the municipalities, in their economic and financial decision-making. Furthermore, it represents an important step in terms of literature, since, despite the service provided by local authorities, there is no evidence of studies of the same nature in Portugal.