Factors Influencing Effectiveness of Internal Audit Function in the Ghanaian Banking Industry

Abstract

The research studied on the factors influencing internal audit effectiveness in the Ghanaian banking Industry. The study employed the explanatory research design since the study tested the relationship between the various variables. The data collection instruments were questionnaire. The study employed the quantitative research approach. The simple random sampling technique was used in selecting 142 respondents. Descriptive and Multiple Regression were also used to analyse the objectives of the study. The result from the analysis showed that, Management support has significant effect on internal audit effectiveness. The study showed a positive effect of management support on internal audit effectiveness. The regression table also shows that, competence is established to be statistically significant at 95% level of confidence. The model showed a positive effect of competence on internal audit effectiveness. Also, the study showed that relationship between external auditors and internal auditors is established to be statistically significant at 95% level of confidence. The model showed a negative effect of relationship on internal audit effectiveness. The study showed that independence is established to be statistically insignificant at 95% level of confidence. The model showed a positive effect of independence on internal audit effectiveness but the effect was insignificant. Finally, the study also showed that number of internal auditors is established to be statistically insignificant. The study recommended that management of various banks in Ghana should be made to understand the importance of internal audit within the framework of organisational building and value for money.