The effect of internal audit on organisational performance a case of selected MMDAs in the Central Region of Ghana

Abstract

The purpose of the study is to examine the effect of internal audit on organizational performance. The objectives of the study are as follows; To investigate the effect of internal audit quality on performance, to examine the contribution of the internal audit function to Organizational performance, and to assess the contribution of qualified and professional auditor’s effect on organizational performance. The research adopted census techniques. A population size of 60 was selected from the various departments (Accounts and Internal Audit). All of the 60 questionnaires that were distributed have been successfully answered, indicating a high level of engagement and cooperation from the participants. Instrument used for the study was a questionnaire. The study revealed that, the correlation coefficient between Assemblies’ performance and internal audit quality is 0.97. The positive correlation suggests that there is a strong relationship between the quality of the internal audit and the Assemblies’ performance. The findings of the study also revealed that, the coefficient for qualified and professional auditors is 0.103 with a standard error of 0.125 Qualified and Professional Auditors does not have a statistically significant relationship with the dependent variable, as evidenced by its higher p-value of 0. 412. Based on these findings, it is recommended that adequate resources should be allocated to the internal audit department to ensure its effectiveness. MMDAs should encourage collaboration between the internal audit department and other functional areas to maximize the impact of the internal audit function.