 |
customer@davidpublishing.com |
 |
3275638434 |
 |
 |
| Paper Publishing WeChat |
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License
Justice Stephen Tetteh Zotorvie, James Dickson Fiagborlo, Matthew Brains Kudo, Jennifer Ella Adaletey
Full-Text PDF
XML 152 Views
DOI:10.17265/1548-6583/2026.01.001
Ho Technical University, Ho, Ghana
Persistent financial irregularities continue to undermine public sector accountability in Sub-Saharan Africa, raising concerns about the effectiveness of internal audit functions. This study investigates the effectiveness of internal audit in promoting accountability and good governance within Ghana’s Ministries, Departments and Agencies (MDAs). The study employs a quantitative research design using survey data collected from audit committee members, internal auditors and external auditors in selected MDAs in Ghana. Data were analysed using descriptive statistics and regression analysis with Statistical Package for the Social Sciences (SPSS) to identify the core roles of internal audit and the institutional factors influencing its effectiveness. The results reveal that audit committee support, internal auditors’ independence and objectivity, auditor competence, management support, availability of resources, and collaboration between internal and external auditors have a positive and statistically significant effect on internal audit effectiveness in the Ghanaian public sector. The regression model demonstrated strong explanatory power, correctly classifying 84.7% of cases, thereby providing robust empirical support for the research model. The findings underscore the importance of well-resourced, independent, and institutionally supported internal audit functions in strengthening accountability in public sector organisations.
accountability, internal audit, financial irregularities, governance, public sector organisations
Abu-Azza, W. (2012). Perceived effectiveness of the internal audit function in Libya: A qualitative study using institutional and Marxist perspectives. Critical Perspectives on Accounting, 23(3), 224-246.
Ademola, O. A., Adegoke, A. K., & Oyeleye, A. O. (2017). Impact of international public sector accounting standards (IPSAS) adoption on financial accountability in selected local governments of Oyo State, Nigeria. Asian Journal of Economics, Business and Accounting, 3(2), 1-9.
Akwenye, N. J., Chata, T., & Benedict, O. H. (2016). Establishment of audit committees in government ministries of a developing country. Risk Governance and Control: Financial Markets and Institutions, 6(4), 282-290.
Albaity, M., Md Noman, A. H., & Mallek, R. S. (2021). Trustworthiness, good governance and risk taking in MENA countries. Borsa Istanbul Review, 21(4), 359-374. Retrieved from https://doi.org/10.1016/j.bir.2020.12.002
Alqudah, H., Afza, N., Hassan, H., & Lutfi, A. (2023). Examining the critical factors of internal audit effectiveness from internal auditors’ perspective: Moderating role of extrinsic rewards. Heliyon, 9(10), e20497. Retrieved from https://doi.org/10.1016/j.heliyon.2023.e20497
Alzeban, A., & Sawan, N. (2015). The impact of audit committee characteristics on the implementation of internal audit recommendations. Journal of International Accounting, Auditing and Taxation, 24(1), 61-71.
Arena, M., & Azzone, G. (2009). Internal audit effectiveness: Relevant drivers of auditees’ satisfaction. International Journal of Auditing, 13(1), 43-60.
Asare-Baffour, F., Manu, D., Opoku, H., & Oppong, M. (2020). Challenges and recognition associated with internal audit function to promote good governance system in selected public universities in Ashanti Region, Ghana. Africa Development and Resources Research Institute Journal, 31(1), 112-137.
Asiedu, K. F., & Deffor, E. W. (2017). Fighting corruption by means of effective internal audit function: Evidence from the Ghanaian public sector. International Journal of Auditing, 21(1), 82-99.
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120. Retrieved from https://doi.org/10.1177/014920639101700108
Basavarajappa, B. C. (2020). The effects of political corruption on economic development. International Journal of Research and Analytical Reviews, 7(4), 1269-2348.
Bello, S. M., Ahmad, C., & Yusof, N. Z. M. (2018). Internal audit quality dimensions and organisational performance in Nigerian federal universities. Journal of Business and Retail Management Research, 13(1), 156-170.
Bender, R. (2006). What is an effective audit, and how can you tell? Retrieved from https://dspace.lib.cranfield.ac.uk (accessed on 30 June 2024)
Betri, B., Handayani, M. A., Putra, M. A. D., & Kanza, K. M. (2024). Impact of communication, culture, control, and risk management on internal audit effectiveness. Proceedings of the Bengkulu International Conference on Economics, Management, Business and Accounting (BICEMBA), 2(1), 1869-1878.
Bjurstrøm, K. H. (2020). Principal-agent or principal-steward. Public Performance & Management Review, 43(5), 1053-1077.
Bonrath, A., & Eulerich, M. (2024). Internal auditing’s role in preventing and detecting fraud. International Journal of Auditing, 28(1), 615-631.
Brunelli, S. (2018). Audit reporting for going concern uncertainty. Cham: Springer. Retrieved from https://doi.org/10.1007/978-3-319-73046-2
Chan, J. Y. L., Leow, S. M. H., Bea, K. T., Cheng, W. K., Phoong, S. W., Hong, Z.-W., & Chen, Y.-L. (2022). Mitigating the multicollinearity problem. Mathematics, 10(8), 1-17. Retrieved from https://doi.org/10.3390/math10081283
Darko, W. O., Aboagye-Otchere, F., & Owusu, G. M. Y. (2025). Financial irregularities and fiscal autonomy nexus. Journal of Accounting & Organisational Change, ahead-of-print. Retrieved from https://doi.org/10.1108/JAOC-06-2024-0202
Dellai, H., & Omri, M. A. B. (2016). Factors affecting internal audit effectiveness in Tunisian organisations. Research Journal of Finance and Accounting, 7(16), 208-221.
DiMaggio, P. J., & Powell, W. W. (1983). The iron cage revisited: Institutional isomorphism and collective rationality in organisational fields. American Sociological Review, 48(2), 147-160. Retrieved from https://doi.org/10.2307/2095101
Dyhati, A. S., & Wahyudi, T. (2022). Integrity, objectivity and management support and internal audit effectiveness. Journal of Accounting, Finance and Auditing Studies, 8(4), 197-218.
Đorđević, M., & Đukić, T. (2017). Independence and objectivity of internal auditors. Facta Universitatis: Series Economics and Organisation, 14(3), 231-242. Retrieved from https://doi.org/10.22190/FUEO1703231D
Eulerich, M. (2021). The new three lines model. Corporate Ownership & Control, 18(2), 180-187.
Fisher, A., Rudin, C., & Dominici, F. (2019). All models are wrong, but many are useful. Journal of Machine Learning Research, 20(177), 1-81.
Faulkner, P. (2021). The presumption of assurance. Synthese, 199(3), 6391-6406. Retrieved from https://doi.org/10.1007/s11229-021-03074-y
Fonseca, R., & Jorge, S. (2020). The role of internal auditing in promoting accountability. Journal of Public Administration, 54(2), 243-265.
Gamayuni, R. R. (2018). The effect of internal auditor competence and objectivity, and management support on effectiveness of internal audit function and financial reporting quality implications at local government. International Journal of Economic Policy in Emerging Economies, 11(3), 248-261. Retrieved from https://doi.org/10.1504/IJEPEE.2018.093951
Gofe, T. E. (2020). Role and effectiveness of internal audit in public enterprises. Public Policy and Administration Research, 10(10), 25-37. Retrieved from https://doi.org/10.7176/ppar/10-10-04
Government of Ghana. (2016). Public financial management act, 2016 (Act 921). Accra: Ministry of Finance.
Grima, S., Baldacchino, P. J., Grima, S., Kizilkaya, M., Tabone, N., & Ellul, L. (2023). Designing a characteristics effectiveness model for internal audit. Journal of Risk and Financial Management, 16(1), 1-44. Retrieved from https://doi.org/10.3390/jrfm16020056
Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European business review, 31(1), 2-24. https://doi.org/10.1108/EBR-11-2018-0203
Hamawandy, N. M., & Omer, R. (2020). Internal and external audit in public sector governance. International Journal of Advanced Science and Technology, 29(8), 1452-1462.
Hamzah, N., Maelah, R., & Saleh, O. M., (2022). The moderating effect of human capital on the relationship between enterprise risk management and organization performance. International Journal of Business and Society, 23(1), 614-632.
Hegazy, K., & Stafford, A. (2021). Auditors’ responsibilities and audit committees. Corporate Ownership & Control, 18(3), 395-409.
Henry, M. M., Duncan, N., & Robert, M. (2022). Effect of the size of audit committee on internal audit effectiveness in Kericho and Nyandarua County Governments in Kenya. International Journal of Academic Research in Business and Social Sciences, 12(3), 1-8.
Hosmer, D. W., Lemeshow, R. X., & Sturdivant, R. X. (2013). Applied logistic regression. Hoboken, NJ: Wiley.
Institute of Internal Auditors. (2024). Definition of internal auditing. Retrieved from https://www.theiia.org (accessed in 14 May 2025)
Institute of Internal Auditors (IIA). (2020). International professional practices framework (IPPF). Altamonte Springs, FL: IIA.
Irwansyah, I., & Zega, W. (2023). The influence of good corporate governance, the role of internal audit, the effectiveness of internal controls, and the appropriateness of compensation on fraud trends. International Business and Accounting Research Journal, 7(1), 37-51.
Ismail, R., Mohd-Saleh, N., Yakob, R., & Hussin, A. H. (2023). The effectiveness of internal audit function and risk management in the Malaysia consumer products industry. Journal of Academia, 11(1), 19-25.
Jaber, T. A., Shah, S. M., Mustapha, M., Johari, J., & Tesfagebreal, G. M. (2024). Internal auditors’ characteristics, internal audit effectiveness, and enterprise risk management in Jordan: A resource-based view. International Journal of Economics & Management, 18(2), 273-286.
Jachi, M., & Yona, L. (2019). The impact of professional competence and staffing of internal audit function on transparency and accountability: Case of Zimbabwe local authorities. Research Journal of Finance and Accounting, 10(8), 149-164.
Jensen, M. C., & Meckling, W. (1976). Theory of the firm: Managerial behaviour, agency costs, and capital structure. Journal of Financial Economics, 3(4), 305-360.
Jóhannesdóttir, A. M., Kristiansson, S. N., Sipiläinen, N., & Koivunen, R. (2018). Internal audit in the public sector–comparative study between the Nordic countries: The development of internal auditing within the public sector in the Nordic countries. Stjórnmál og stjórnsısla, 14 (2), 19-44. https://doi.org/10.13177/irpa.a.2018.14.2.2
Khelil, I., & Khlif, H. (2022). Internal auditors’ perceptions of their role as assurance providers: A qualitative study in the Tunisian public sector. Meditari Accountancy Research, 30(1), 121-141. Retrieved from https://doi.org/10.1108/MEDAR-04-2020-0861
Kukuiah, V. K. (2019). Factors affecting internal audit effectiveness in the Ghanaian public sector in Central Region (Ph.D. thesis, University of Cape Coast, 2019).
Lenz, R., & O’Regan, D. J. (2024). The global internal audit standards—Old wine in new bottles? Edpacs, 69(3), 1-28.
Maama, H., & Marimuthu, F. (2020). Accountability in the Ghanaian local governance structure. Problems and Perspectives in Management, 18(4), 475-485.
Maeda, J. G. (2023). Assessment of factors affecting effectiveness of internal audit function in public institutions in Tanzania. International Journal of Science and Research, 12(5), 2102-2113.
Mahzan, N., & Hassan, N. (2015). Internal audit quality in 5S environment: Perception on critical factors, effectiveness, and impact on organisational performance. International Journal of Academic Research in Accounting, Finance and Management Sciences, 5(1), 92-102.
Mangasih, E. T., Pinasti, M., & Bawono, I. R. (2020). The effect of quality of internal audit and effectiveness of internal control systems on good corporate governance in finance companies. Journal of Accounting and Business, 5(1), 56-82.
MacCarthy, J., & Adoboe-Mensah, N. (2023). Exploring the best corporate governance practices in public sector organisations in Ghana: The challenges, issues and prospects. In E. Karger and A. Kostyuk (Eds.), Corporate governance: An interdisciplinary outlook (pp. 100-107). Sumy: Virtus Interpress.
Meijer, A., Hart, P., & Worthy, B. (2018). Assessing government transparency: An interpretive framework. Administration and Society, 50(4), 501-526.
Menza, S. K., Aga, A., & Jerene, W. (2019). Determinants of internal audit effectiveness (IAE) in the Ethiopian public enterprise: The case of Southern Region. Journal of Resources Development and Management, 52(1), 22-36.
Mihret, D. G., & Grant, B. (2017). The role of internal auditing in corporate governance: A Foucauldian analysis. Accounting, Auditing & Accountability Journal, 30(3), 699-719.
Mustika, A. C. (2015). Factors affecting the internal audit effectiveness. Journal of Accounting and Auditing, 12(2), 89-109.
Nadirsyah-Indriani, M., & Mulyany, R. (2024). Enhancing fraud prevention and internal control: The key role of internal audit in public sector governance. Cogent Business and Management, 11(1), 1-22.
Nedyalkova, P. (2020). Specifics of the assessment as a process of internal audit activity. In Quality of internal auditing in the public sector (pp. 31-44). Cham: Springer. Retrieved from https://doi.org/10.1007/978-3-030-29329-1_4
Netshifhefhe, K., Netshifhefhe, M. V., Naphtali, M., & Mupa, K. A. (2024). Integrating internal auditing and legal compliance: A strategic approach to risk management. Iconic Research and Engineering Journals, 8(4), 446-465.
Ofori, C. F., & Lu, L. (2018). The evaluation of internal audit functions for effective public sector administration: A survey of Accra Metropolitan Assembly, Ghana. International Journal of Academic Research in Accounting, Finance and Management Sciences, 8(2), 19-27. Retrieved from http://dx.doi.org/10.6007/IJARAFMS/v8-i2/4076
Okodo, B. D., Aliu, M. M., & Yahaya, A. O. (2019). Assessing the reliability of the internal audit functions: The issues. Journal of Contemporary Research in Business, Economics and Finance, 1(3), 46-55. Retrieved from https://doi.org/10.33094/26410265.2019.13.46.55
Onay, A. (2021). Factors affecting the internal audit effectiveness: A research of the Turkish private sector organisations. Ege Academic Review, 21(1), 1-15. Retrieved from https://doi.org/10.21121/eab.873867
Osagioduwa, L. O., & Atube, E. N. (2023). Internal audit roles and its challenges in public sector governance. Global Journal of Accounting, 9(2), 10-20.
Parliament of Ghana. (2003). Internal audit agency act, 2003 (Act 658). Accra: Government of Ghana.
Pelser, T., Mensah, O. A., & Ngwenya, B. (2020). Investigating the impact of antecedents of internal audit function effectiveness at a private university in Ghana. Acta Commercii, 20(1), 1-11. Retrieved from https://hdl.handle.net/10520/EJC-203d60ab42 (accessed on 10 May 2025)
Quampah, D. K., Salia, H., Fusheini, K., & Adoboe-Mensah, N. (2021). Internal audit effectiveness in Ghanaian local governments. Journal of Accounting and Taxation, 13(4), 255-269.
Ratmono, D., & Darsono, D. (2022). Internal audit effectiveness in local governments. Accounting, 8(2), 177-186.
Republic of Ghana. (2023). Consolidated report of the Auditor-General on the accounts of MDAs. Accra: Ghana Audit Service.
Republic of Ghana. (2025). Report of the Auditor-General on the Public Accounts of Ghana—Ministries, departments and other agencies for the year ended 31 December 2024. Accra: Ghana Audit Service. Retrieved from https://audit.gov.gh/3/latest-reports-of-the-auditor-general (accessed on 15 September 2025)
Rulashe, T., & Ijeoma, E. O. C. (2022). An exploration of public accountability and service delivery at the Buffalo City Metropolitan Municipality in the Eastern Cape Province, South Africa. Africa’s Public Service Delivery & Performance Review, 10(1), 1-12.
Sarens, G., & De Beelde, I. (2006). Internal auditors’ perception of risk management. Managerial Auditing Journal, 21(1), 63-80.
Serra, A., Perchinunno, P., & Bilancia, M. (2018). Predicting student dropouts in higher education using supervised classification algorithms. In Computational science and its applications—ICCSA 2018 (pp. 18-33). Cham: Springer.
Setyaningrum, D., & Kuntadi, C. (2019). The effects of competence, independence, audit work, and communication on the effectiveness of internal audit. Journal of Economics, Business, and Accountancy Ventura, 22(1), 39-47.
Shamsuddin, A. (2014). Factors that determine the effectiveness of internal audit functions in the Malaysian public sectors. International Journal of Business, Economics and Law, 5(1), 9-17.
Taber, K. S. (2018). The use of Cronbach’s alpha. Research in Science Education, 48(6), 1273-1296.
Turetken, O., Jethefer, S., & Ozkan, B. (2020). Internal audit effectiveness. Managerial Auditing Journal, 35(2), 238-271.
Udeh, S., & Clement, N. (2016). Internal audit and public accountability. International Journal of Development Research, 6(7), 8780-8795.
Watts, R. L., & Zimmerman, J. L. (1983). Agency problems, auditing, and the theory of the firm. Journal of Law and Economics, 26(3), 613-633.
Wernerfelt, B. (1984). A resource‐based view of the firm. Strategic Management Journal, 5(2), 171-180.
Wooldridge, J. M. (2010). Econometric analysis of cross section and panel data. Cambridge, MA: MIT Press.
Zahari, A. I., Said, J., & Muhamad, N. (2022). Public sector fraud. Journal of Financial Crime, 29(1), 309-324.
Zakwan, Z., Muda, I., & Sadalia, I. (2024). The influence of auditor competence, auditor independence, and auditor objectivity on internal audit effectiveness with top management support as a moderating variable (studies at legal entity state universities in Indonesia). International Journal of Current Science Research and Review, 7(5), 2432-2443.