Internal Audit Effectiveness in Public Sector Organizations in Ghana: A Case Study of Wa Municipal Assembly
Author(s)
Download Full PDF Pages: 01-27 | Views: 57 | Downloads: 19 | DOI: 10.5281/zenodo.10673561
Volume 12 - December 2023 (12)
Abstract
This research analyses internal audit effectiveness in public sector organizations in Ghana with the use of the institutional and resource capability-based theories. This has attracted the attention of both academicians and practitioners to evaluate the effectiveness of internal audit functions {IAFs} in achieving their goals. But, there is no harmony among researchers about the antecedents of effectiveness. The study explores the internal and external factors that have an effect on internal audit effectiveness. To achieve this, the study followed the qualitative approach for this study. The findings of the study discovered that, from the external surroundings, internal audit effectiveness is stimulated by means of government laws and regulatory institutions through coercive isomorphism. similarly, the expert power of professional bodies and specialists additionally have an effect on internal audit effectiveness through normative isomorphism whiles mimetic isomorphism impact internal audit effectiveness when the internal audit functions of the public sector organizations in these instances replicate the structure, approaches and useful resource requirements of perceived successful organizations so one can be seen as doing nicely. Moreover, the study located that organizational characteristics, departmental characteristics, employee characteristics and managerial practices are internal elements that influence internal audit effectiveness. Within these internal factors are problems like poor auditee relationships, poor management control supports and high political circumvention, which impedes internal audit effectiveness in those public sector organizations. It is recommended that top managements of these organizations should exert extra interest to the aid needs of the internal audit functions that will render their required services to their respective corporations. It is also encouraged that the internal audit agency need to step up its attentions to the internal audit functions of the various public sector organizations
Keywords
Internal Audit Effectiveness, Public Sector Organizations
References
Adams, M. B. (1993). A Systems Theory Approach to the Internal Audit. Managerial Auditing Journal, 9(8), 8–12.
Ahmad, H. N. (2015). Internal Audit (IA) Effectiveness: Resource-Based and Institutional Perspectives. Australian Journal of Basic and Applied Sciences, 9(9), 95–104.
Ahmad, N. H., Othman, R., Othman, R., & Jusoff, K. (2009). The effectiveness of internal audit in Malaysian public sector. Journal of Modern Accounting and Auditing, 5(9), 53–63.
Akio, T. (2005). The Critical Assessment of the Resource-Based View of Strategic Management. Ritsumeikan International Affairs, 3, 125–150.
Al-TWaijry, A. A., Brierley, J. A., & Gwilliam, D. R. (2003). The Development of Internal Audit in Saudi Arabia: an Institutional Theory Perspective. Critical Perspectives on Accounting, 14(5), 507–531.
Alzeban, A., & Gwilliam, D. (2014). Factors affecting the internal audit effectiveness: A survey of the Saudi public sector. Journal of International Accounting, Auditing, and Taxation, 23(2), 74–86.
Anderson, U. L., Christ, M. H., Johnstone, K. M., & Rittenberg, L. (2010). Effective Sizing of Internal Audit Departments.Institute of Internal Auditors Research Foundation.
Appiah-Kubi, K. (2001). State-owned enterprises and privatisation in Ghana. The Journal of Modern African Studies, 39(2), 197–229.
Arena, M., & Azzone, G. (2007). Internal Audit Departments: Adoption and Characteristics in Italian Companies. International Journal of Auditing, 11, 91–114.
Arena, M., Arnaboldi, M., & Azzone, G. (2006). Internal audit in Italian organizations. Managerial Auditing Journal, 21(3), 275–292.
Buck C.J., Breuker J.B. (2008) Evaluation and Management Step; and Auditing Tool, Saver Verlad. S. 318
Carcello, J. V, Hermanson, D. R., & Raghunandan, K. (2005). Changes in Internal Auditing During the Time of the Major US Accounting Scandals. International Journal of Auditing, 9(2), 117–127.
Chambers, A. D., & Odar, M. (2015). A new vision for internal audit. Managerial Auditing Journal, 30(1), 34–55.
Creswell, J. W. (2009). Research design: Qualitative, quantitative, and mixed methods approach. Sage Publications, Incorporated.
Creswell, J. W. (2012). Qualitative inquiry and research design: Choosing among five approaches. Sage Publications, Incorporated.
Delves, D., & Patrick, B. (2008). Agency Theory Summary. Retrieved March 24, 2016.
Diamond, J. (2002). The Role of Internal Audit in Government Financial Management: An International Perspective. IMF Working Paper.
Dicksee F. (1995) Auditing; A practical manual for Auditors. New York, Roland press. Pg. 54
Dittenhofer, M. (2001). Internal auditing effectiveness: an expansion of present methods. Managerial Auditing Journal, 16(8), 443–450.
Ernst & Young. (2007). Global Internal Audit Survey. Global Internal Audit Survey. A Current State Analysis with Insights into Future Trends and Leading Practices.
Financial Memoranda for District Assemblies (2004). Part VII Section 2 and Part VIII Sections 1 and 2
Hung, J., & Han, H.-L. (2012). an empirical study on the effectiveness of internal auditing for listed firms in TaiWan. Retrieved March 4, 2016.
Kohn, L. T. (1997). Methods in Case Study Analysis. The Center for Studying Health System Change, (2), 1–8.
Mihret, D. G., & Yismaw,W. A. (2007). Internal audit effectiveness: an Ethiopian public sector case study. Managerial Auditing Journal, 22(5), 470–484. 7
Modibbo, S. A. (2015). An Assessment of the Effectiveness of Internal Audit Unit at Local Government Level in AdamaWa State, 5(4).
Onumah, J. M., & Krah, R. Y. (2012). Barriers and catalysts to effective internal audit in the Ghanaian public sector. Accounting in Africa, 12, 177.
Sarens, G., & Abdolmohammadi, M. J. (2011). Monitoring effects of the internal audit function: Agency theory versus other explanatory variables. International Journal of Auditing, 15(1), 1–
Sarens, G., Abdolmohammadi, M. J., & Lenz, R. (2012). Factors associated with the internal audit function’s role in corporate governance. Journal of Applied Accounting Research, 13(2), 191–204.
Sayag, G. (2014). The Effectiveness Of Internal Auditing In Israeli Local Authorities: An Empirical Examination Of It Determinants. Australian Accounting Review, 20(3), 241–255.
Simpson, S. N. Y. (2014). Public sector reform and disclosure practices of state-owned enterprises: the case of Ghana (Doctoral dissertation, University of Birmingham).
Simpson, S. N.Y. (2013). Performance Contract and Performance Evaluation of State-Owned Enterprises: Insights from the Goal Setting Theory. Journal of Public Administration and Governance, 3(2), 22–39.
Van Der Westhuizen E.J. (2005) Managing People in the twenty-fisrt century: integrative public human resource management in Sub-Saharan Africa. Politeia, 24(2): 142-160.
Walsh SeWard J. (1990) on the Efficiency of Internal and External corporate control mechanisms.
Cite this Article: