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Fighting Corruption by Means of Effective Internal Audit Function: Evidence from the Ghanaian Public Sector
Author(s) -
Asiedu Kofi Fred,
Deffor Eric Worlanyo
Publication year - 2017
Publication title -
international journal of auditing
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.583
H-Index - 21
eISSN - 1099-1123
pISSN - 1090-6738
DOI - 10.1111/ijau.12082
Subject(s) - internal audit , accounting , public sector , promulgation , accountability , language change , transparency (behavior) , business , audit , chief audit executive , joint audit , audit committee , empirical evidence , control environment , independence (probability theory) , political science , law , art , philosophy , literature , epistemology , statistics , mathematics
Using structural equation modelling (SEM) we analysed the link between corruption and effective internal audit function (EIAF) in Ghana through a survey of directors and managers of selected public sector organizations. A decade after the promulgation of the Internal Audit Agency Act (IAAA), 2003 (Act 658) as an instrument to fight administrative corruption in Ghana, there is little empirical evidence to show its impact on corruption, though anecdotal evidence suggests it has played a critical role in maintaining financial discipline and public sector accountability and transparency. We established that full implementation of Act 658, size of the internal audit department and independence of the audit department significantly affect the effectiveness of the internal audit function which negatively impact on corruption. We conclude that strict adherence to and the implementation of regulations and laws as well as independence of the internal audit function will help fight administrative corruption in Ghana.