Effectiveness of Internal Audit in Promoting Good Governance in the Public Sector in Ghana


Well-performing internal audit function has been argued as one of the strongest means of internal control to monitor and promote a good governance system in an organization. While internal audit can be used to assist management in order to instil a strong ethical tone in the entire organization, a poor attitude by the management can make it hard for the internal auditor to uphold ethical behaviour. As a result, many countries have increased attention on internal audit as an important component of government financial management and as a tool for improving the performance of the government sector. This paper studies the effectiveness of internal audit in promoting good governance in the public sector in Ghana with special focus on the MDAs and MMDAs. The research is both quantitative and qualitative with a descriptive cross-sectional design method used for the study. The study also uses the logistic estimation technique on the primary data collected to find out the association between corporate governance and internal systems of risk management, compliance and consultancy, and internal controls. It was found that internal audit significantly has effects on internal controls, risk management and compliance, and consultancy. The study also found that improvement in risk management activities is more likely to ensure good corporate governance. However, internal control and compliance, and consultancy are less likely to ensure good corporate governance. It is therefore recommended that for the government to be effective in its operation and service delivery they should recognize the contribution of internal auditing and embrace internal auditing as an effective tool so as to realize their objectives set.

 KEYWORDS: Internal audit, effectiveness, good governance, internal controls

Monica Boateng1 & Senanu Zoiku2