Internal Audit Independence and Effectiveness Among Metropolitan, Municipal and District Assemblies in the Central Region of Ghana: The Mediating Role of Auditor Satisfaction

Abstract

This research investigated the connection between internal audit independence and internal audit effectiveness, considering the mediating role of auditor satisfaction. Primary data were gathered from 113 internal auditors representing all Metropolitan, Municipal, and District Assemblies in the Central Region of Ghana. The data collection method employed in this study was a questionnaire. The analysis of the research data was performed using the Partial Least Square estimation technique, guided by an explanatory research design. The principal discovery of the study indicated a positive and substantial correlation between internal audit independence and internal audit effectiveness. Also, the study found that the nexus between internal audit independence and internal audit effectiveness is partially mediated by auditor satisfaction. Hence, it was recommended that the Metropolitan, Municipal and District Chief Executives (MMDCEs) and Metropolitan, Municipal and District Coordinating Directors (MMDCDs) of Metropolitan, Municipal and District Assemblies (MMDAs) should be more responsive to employees by seeking for innovative ways of making their internal auditors independent in the performance of their audit work in order to enhance their internal audit effectiveness. Thus, internal auditors should have unrestricted access to all information, records, property, personnel, systems and processes, promotion and appointment. Again, the MMDCEs/ MMDCDs of MMDAs should pay attention to auditors’ job satisfaction as the means through which internal audit independence converts into internal audit effectiveness.