Effectiveness of Internal Audit Function (Iaf) Within Metropolitan, Municipal and District Assemblies (Mmdas): a Case Study of Mmdas in the Central Region of Ghana

Abstract

The study examined the extent to which Internal Audit Function (IAF) effectiveness in MMDA’s is influenced by factors such as internal auditors’ independence, competence, internal auditors’ objectivity, management support for internal auditors, and organisational culture. For the purpose of this research, a correlational research design was adopted. The target population consisted of all internal audit staff working in various Metropolitan, Municipal, and District Assemblies (MMDAs) in the Central Region of Ghana with a sample size of one hundred and twenty-three (123). The researcher used questionnaires to gather data from the respondents. The data were analysed with the Statistical Package for the Social Sciences (SPSS) using descriptive, inferential statistics, correlation, and regression analyses. The study found that internal auditor’s independence, internal auditor’s competence effectiveness, and internal auditors’ objectivity significantly predict IAF effectiveness positively. However, the study showed that management support and organisational culture have an insignificant positive effect on IAF effectiveness. Overall, the results contribute to an emerging area within auditing function effectiveness that highlights the significance of understanding the implementation process in adopting and implementing proactive auditing strategies. These findings imply that the MMDAs in Ghana face a number of unique challenges in relation to management support and organisational culture throughout their internal audit function, and for that matter, they are under great pressure and scrutiny to address these issues. The study recommends that resources should be provided by management and management’s commitment to use the audit recommendations and strengthen the internal audit, as a dimension of management support cannot directly create internal audit function effectiveness. Management needs to set the tone by setting leadership by example, coupled with the independence of internal auditors, competence, and objectivity of internal auditors.