The practice of internal auditing in the banking institutions in Tamale

Abstract

A well performing internal audit function is one of the strongest means to the promotion of the good corporate governance system in an organisation. The study was conducted to evaluate the extent to which the internal audit function is positioned to contribute towards one of the major objectives of achieving good corporate governance in the banking institutions in Tamale for accountability and service improvement. The respondents of the study were drawn from banking institutions in Tamale. The sample included internal auditors, managers, accountants or operations officers, tellers and other bank staff. Both simple random and purposive sampling techniques were used in selecting the sample size for the study. Primary data were sourced by means of questionnaires. The study has revealed that only one branch bank in Tamale has an Internal Audit Department. All other banks in Tamale have their internal audit services performed by the Internal Audit Department at the head Offices. The independence of the Internal Audit Departments in the banks has been noted to be quite strong though inadequate funding has been realised as a major threat to the provision of quality internal audit services. It is recommended that internal audit departments be established in the branch banks to make the internal audit function more responsive to the risk exposures of the banks. Whiles ensuring a strict adherence to the standards for the Professional Practice of Internal Auditing, it is recommended that the programme of continuing professional education in the banks be given much attention.