Internal Audit Effectiveness within the Public Tertiary Institutions of Ghana: The Influence of Audit and Organizational Characteristics

Abstract

The effectiveness of an internal audit function is importantly dependent on the outcome of its objectives. However, during the achievement of the internal audit function’s objectives, the function is mandated to contribute to the effectiveness of the organization’s risk management, governance, and internal control processes. This research examines the level of effectiveness of the internal audit function of public tertiary institutions in Ghana and its influencing factors such as audit processes and organizational characteristics. These characteristics in particular, relates to the involvement in risk management, corporate governance and internal controls, the ability to manage the internal audit function and its activities and internal audit relationship with senior management are examined. This study uses survey method to gather data from the heads of 90 Ghanaian public tertiary institution’s internal audit functions. Data was analyzed using the Partial Least Square-Structural Equation Model tool. The results show that the effectiveness of the public tertiary institution's internal audit function is on the medium-low level scale adopted in the study. This level of effectiveness is characterized by involvement in internal control audit process, top-level management support, resource availability and the management of the internal audit department. The study contributes to literature by showing evidence on governance audit process variable, internal control audit process variable and managing of internal audit function variable in the public sector of Ghana. This research also provides regulatory authorities with knowledge on tertiary institutions’ internal audit effectiveness and helps identify audit work engagement strategies.