Internal audit and corporate governance at Ghana water company limited: the study of Cape Coast Metropolis in the Central Region, Ghana

Abstract

Effective corporate Governance practices requires appropriate internal audit practices to enhance efficiency. The main purpose of this study was to ascertain the practices of internal audit and corporate governance at Ghana Water Company Limited at the Central Region in the Cape Coast Metropolis. The specific objectives were: identify the Internal Audit practices in Ghana Water Company Limited, assess the corporate governance framework of Ghana Water Company Limited, assess the role of internal audit practice on good corporate governance in Ghana Water Company limited and examine how Corporate Governance practices can be enhanced through audits in Ghana Water Company Limited in Central Region. The population for the study was 72. The simple random sampling was employed to select a sample size of 61. The researcher administered questionnaire to gather information from the respondents. Quantitative analysis and regression analysis were used as data analysis technique. Descriptive statistics such as frequency distribution tables were used in the analysis of data. From the findings, the study revealed that there was greater variation in corporate governance Ghana Water Company due to changes in internal audit control, independence of internal audit function and Good ethical behaviour of auditors. The study also established that there was a strong positive relationship between corporate governance Ghana Water Company and internal audit controls, independence of internal audit function, professional and good ethical behaviour of auditors. Auditors work closely with managers to review operations. The internal auditors are instrumental in guiding and evaluating the efficiency and effectiveness of an organization’s operations and systems, and will be accountable to a governing body. The study recommends that management Ghana Water Company should adopt effective internal audit practices such as internal auditing standards, independence of internal audit, professional competency and internal controls to enhance the corporate governance practices of the Ghana Water Company.