Role of Internal Audit in the Efficient and Effective Financial Management of the Cocoa Research Institute of Ghana

Abstract

The aim of the study was to ascertain the role of internal audit in the effective and efficient financial management of the Cocoa Research Institute of Ghana. Specifically, the study examined the role of internal audit at the Cocoa Research Institute of Ghana, ascertained the effective and efficient financial management of the Cocoa Research Institute of Ghana, determined the relationship between the role of internal audit and the effective and efficient financial management of the Cocoa Research Institute of Ghana, and identified the factors hampering the effective and efficient financial management at the Cocoa Research Institute of Ghana. A survey research strategy coupled with a quantitative methodology approach was used in the study in order to achieve the objectives of the study. A structured questionnaire was used to conveniently gather data from the respondents, and the items on the questionnaire were measured on a five-point ranking scale. Overall, 81 respondents were sampled for the study. A non-parametric spearman correlation was used to relate the role of internal audit and financial management practices at the Cocoa Research Institute. The study revealed that the internal auditors performed their role frequently, regularly, and effectively; the Institute was effective and efficient with regards to prudent financial management and the internal audit function had significant positive relationship with the financial management practices of the Institute. The study recommends that the internal audit staff must be well-motivated and frequent training and retraining must be undertaken in order to improve upon, not only the role of the internal auditors, but ultimately, the effective and efficient financial management of the Cocoa Research Institute of Ghana