Factors affecting effectiveness of internal audit function in public and private universities In Ghana

Abstract

Internal audit function among the public universities is found to be partially competent to determine the efficiency of risk management, control, and good governance. More so, the independence of internal auditors‟ function was self-determining to exercise good governance and financial irregularities in most public universities in Ghana. Considering the role of internal auditing in assuring the efficiency and effectiveness of an organisation‟s operations, as well as compliance with laws, rules, regulations, policies and procedures, this study set out to investigate the factors affecting effectiveness of internal audit function in universities. Data were collected through questionnaires from employees of internal audit units of public and private universities in Accra. The data were analysed with the use of multiple regression analysis. The study results show that there is no difference between the factors that affect the effectiveness of internal audit function in public universities and private universities. therefore, internal factors that affect internal audit effectiveness of both the public and private universities are management commitment and support, competence, independence, quality and IT. The external factors are regulation, external auditors and effective audit committee and this is influenced by personal characteristics such as education and experience of internal audit staff. The study recommended that management of the universities should provide the need commitment and support for their internal audit unit. Also, there is the need for internal audit staff to collectively possess or develop their knowledge and skills through appropriate professional courses and development programmes There is the need for the internal audit unit to have autonomy in performing their duties and this is critical to the satisfactory performance of an internal auditing unit.