Effectiveness of internal audit in metropolitan, municipal and district assemblies in the Ashanti region of Ghana

Abstract

The purpose of this study was to examine the effectiveness of the internal audit in the MMDAs in the Ashanti Region. The motivation of the study was derived from the fact that, there has been an increased interest in the internal audit function in the MMDAs to enhance corporate governance. The data were collected through the use of questionnaire after the census sample had been employed. The study design was a quantitative survey. The study revealed that there is professional proficiency in the internal audit of the MMDAs in the Ashanti Region. Also it was found that, there exists a quality audit work by the unit due to its strong compliances with the international auditing standards. In relation to the hypotheses testing it was revealed that professional proficiency and organisational independence have effect on the effectiveness of an internal audit department. Also quality of audit work and career and advancement were found to have a positive impact on the effectiveness of the internal audit department with statistically significant coefficient hence they were not rejected but top management support was found to have no effect on the effectiveness of the internal audit. It was therefore recommended that the internal audit units need to be adequately resourced including the use of appropriate resources and again, the internal auditors should be given high status in the MMDAs so that they cannot be influence by management. Finally for improved performance, it is recommended that the internal auditors’ promotion should not be prolonged and interfered.