Assessing the relevance of internal audit to corporate governance in metropolitan, municipal and district assemblies in Ghana

Abstract

Evidence from studies reveal ineffectiveness of the internal audit investigations regarding its effects on the public sectors and the lack of proper attention being paid to budgetary controls in these public sectors. The study examined the role of internal audit in Metropolitan, Municipal and District Assemblies (MMDAs) in Ghana so as to determine their relevance to governance. Specifically, the study examined the human resource management practices of the Internal Audit Units in the MMDAs; determined the level of independence of the internal audit units in the performance of their functions; and finally evaluated the quality (effectiveness) of internal audit functions in the Assemblies. A structured questionnaire was used as a primary data collection instrument from respondents selected through purposive and convenient means. Items of the questionnaire were measured on the Likert ranking scale. Ten (10) Assemblies in the Greater Accra region were selected. Overall, 70 respondents were sampled including 55 internal auditors, and 15 budget officers of the Assemblies. Data analysis was done using descriptive statistics. The study concludes that the Assemblies have strong human resource management practices in the Internal Audit Unit to ensure effective functioning of the internal auditor. However, the study found that there is weak quality assurance, weak continuous improvement programs for the auditors, and poor conditions of service to motivate the internal auditors in the performance of their functions. The internal auditors in the Assemblies perform their functions with little or no internal and external interferences. The internal auditors in the Assemblies are effective in the performance of their functions. The internal auditors are capable of performing their functions and are therefore relevant to the Assemblies.