Abstract:
Well performing internal audit function has been argued as one of the strongest
means of internal control to monitor and promote good governance system in an
organization. While internal audit can be used in order to assist management in
order to instill a strong ethical tone in the entire organization, a poor attitude by the
management can make it hard for the internal auditor to uphold ethical behaviour.
As a result, many countries have increased attention on internal audit as an
important component of government financial management and as a tool for
improving the performance of the government sector. The objective of this study
was to establish the effectiveness of internal audit in promoting good governance
in the public sector in Ghana with special focus on the Ministries, Department and
Agencies (MDAs) and Metropolitan, Municipal and District Assemblies
(MMDAs). The research was both quantitative and qualitative in nature with both
descriptive cross-sectional design method and regression analysis preferred for the
study. The study also uses logistic estimation technique on the primary data
collected to find out the association between corporate governance and internal
systems of risk management, compliance and consultancy and internal controls.
The research established that internal audit significantly affects internal controls,
risk management and compliance and consultancy. However, internal control and
compliance and consultancy are less likely to ensure good corporate governance.
The study therefore recommend that the government should recognize the
contribution of internal auditing and embrace it as an effective tool so as to realize
their objectives set.
