Abstract:
Internal auditing is expected to monitor resource mobilisation and utilisation in order to achieve development objectives at the local level. However, the Auditor-General's reports on local governments in Ghana depict irregularities which recur year after year since 1997. Using the interpretive research philosophy and a qualitative research design, the study examined how internal auditing is carried out that it could not stop the irregularities in local governments. The study was conducted in selected local governments in the Central Region of Ghana. The explorative research design was employed. The study population covered Chief Executives of the local governments, Co ordinating Directors, Chairpersons of Audit Report Implementation Committees, Internal Auditors, District Auditors, Chairman of Public Accounts Committee of Parliament, Director-General of Internal Audit Agency, Auditor-General, President of Institute of Internal Auditors (GH), and a representative from the DDF FOAT Secretariat. A sample size of 25 was purposively selected but 20 took part in the study. The data collection method was key informants interview and the data collection instruments were interview guides and checklists. The data was analysed manually using pattern matching, comparison, interpretation, and content analysis. The study revealed that internal auditing was carried out poorly because management bodies did not support internal auditors to discharge their duties in an independent and objective manner. It is recommended that an Internal Audit Class should be established so that internal auditors in the local government institutions could be placed under the Class for them to report administratively to its Head in order to ensure their independence and objectivity in discharging their duties
