Abstract:
This paper examines the determinants of internal audit effectiveness in decentralized local government
administrative systems of Ghana. Ghana’s local government system is structured into metropolitan, municipal,
and district assemblies (MMDAs). For the purpose of the study, we focused on the Ashanti region of Ghana
which has the highest number of MMDAs. The motivation for the study is derived from the increased interest in
the internal audits of local government units. Using a descriptive survey, the data gathered, through the use of
questionnaire, revealed that majority of the internal audit staff of MMDAs in the Ashanti Region of Ghana
possess the requisite professional proficiency. Contrary to the perception that audit quality in the public sector is
usually compromised, the study revealed that there exists high quality of audit work due to compliance with the
international standards on auditing and local audit legislations. Professional proficiency, organizational
independence, and career advancement were found to have statistically significant positive relationship with
internal audit effectiveness, whiles top management support was found to have no effect on internal audit
effectiveness.
