Audit Committee Expertise and Quality of Internal Audit Report: The Case of Metropolitan, Municipal and District Assemblies in the Central Region of Ghana

Abstract

The study assessed audit committee expertise and quality of internal audit report nexus among Metropolitan Municipal and District Assemblies in the Central region of Ghana. Primary data was collected from 150 audit committee members. Explanatory research design was adopted. Following this, the study adopted a quantitative approach and employed questionnaire as its primary data collection instrument. Using PLS-SEM, the study revealed positive nexus between audit committee expertise and quality of internal audit report. The study further found that audit committee independence impact quality of internal audit report significantly and positively. Likewise, audit committee’s role performance is seen as important promoter of quality of internal audit report. Therefore, it was recommended that MMDAs should prioritize training and development programs for their audit committee members to ensure they remain well-informed and effective in their roles. Moreover, the management of MMDAs are entreated to continuously emphasize the independence of the audit committee from management and any undue influence. MMDAs are encouraged to develop and communicate clear and comprehensive terms of reference for their audit committee, outlining its roles, responsibilities and objectives.