Internal audit independence and audit effectiveness the role of organisational support and internal audit quality in metropolitan, municipal and district assemblies in the Eastern Region of Ghana

Abstract

This study examines internal audit independency and audit effectiveness among local government in Ghana: The role of organizational support and audit quality. Ghana‘s local government system is structured into metropolitan, municipal and district assemblies. For the purpose of the study, the researcher focused on the Eastern region of Ghana which has the second highest number of metropolitan, municipal and district assemblies. The motivation for the study is derived from the increased interest in the internal audits of local government units. Using a descriptive survey, the data gathered, through the use of questionnaire, revealed that majority of the internal audit staff of metropolitan, municipal and district assemblies in the Eastern Region of Ghana possess the requisite professional proficiency. Contrary to the perception that audit quality in the public sector is usually compromised, the study revealed that there exists high quality of audit work due to compliance with the international standards on auditing and local audit legislations. Internal audit independence has positive yet insignificant relationship with internal audit effectiveness. However, audit quality and organisational support were found to have statistically insignificant and negative relationship with internal audit effectiveness. Audit quality and organisational support positively and insignificantly moderate the internal audit and effectiveness of internal audit relationship.