Investigating the conditions under which internal auditing is carried out in selected local governments in the Central Region of Ghana

Abstract

Purpose – Internal audit is an essential component of the accountability structure in Ghana's local government system. Favourable conditions are required for its operation to assist management bodies to fulfil their responsibilities efficiently and effectively. Using Internal Control-Integrated Framework, this paper investigates the conditions under which internal auditing is carried out in four selected local governments in the Central Region of Ghana. Design/methodology/approach – Based on interpretivism and qualitative approach, purposive sampling technique was used to select 14 key informants at various levels of governance for primary data by the use of key informant interview guide. The data were analysed using pattern matching and content analysis based on themes. Findings – The findings of the study indicate that internal auditors faced unfavourable conditions including intimidation, threats and administrative interference in the course of performing their duties. Research limitations/implications – This paper is based on qualitative data from four selected local governments in the Central Region of Ghana. Hence these findings are specific to the local governments, internal auditors and management bodies in the country to benefit from them. The implication of the findings is closely related to the efforts to realise the ultimate goal of the recent government reforms and the need for further reforms to enhance independence, objectivity, effectiveness and efficiency. Practical implications – This study helps management of local governments in finding out conditions under which internal auditing operates. This helps to enhance favourable conditions and minimise the unfavourable conditions for the purpose of efficient and effective utilisation of resources towards improvement of service delivery of local government system to meet the needs of the people. Social implications – The study contributes to the understanding and application of Internal Control-Integrated Framework to local government system in the Central Region. It also uses the agency theory to explain the conditions under which internal auditing is carried out in the selected local government institutions. Originality/value – This study provides new insight into the conditions of carrying out internal auditing in local governments and raises awareness of stakeholders on the need to enhance service delivery to the people. It also introduces a novel idea of placing all internal auditors under a newly established Internal Audit Class to advance independence and objectivity.

Keywords

• Favourable conditions
• Unfavourable conditions
• Internal audit class
• Management bodies
• Local government system