Examining Internal Audit Process of Selected Local Governments in the Central Region of Ghana

• Published in: Journal of accounting, finance and auditing studies finance and auditing studies, 2021-04, Vol.7 (2), p.16-37
• Main Authors: Mensah, John Victor, Kumi-Kyereme, Akwasi, Aikins, Anthony Egyir
• Format: Article
• Language: English
• Subjects: Audit departments; Auditing standards; Corporate objectives; Field study; Internal auditing; Internal auditors; Local government; Planning
• ISSN: 2149-0996; 2149-0996
• DOI: 10.32602/jafas.2021.010

The University of Bath (2019), on the other hand, has a six-stage activity namely; identifying areas to review, arranging an audit, fieldwork, minimising disruption during an audit, reporting, and follow-up while the Wayne State University (2018) adopts a three-stage approach in the internal audit process as planning, fieldwork, and reporting. Kwakye (2008) indicates that the tasks to be performed at the planning stage involve the internal auditors making sure that there is adequate staffing of the internal audit units with the required skill-mix to carry out the evaluation processes, developing assignment plans to guide them in the monitoring engagement, conducting risk assessments to ensure that situations that would hinder the effective management of resources in the local governments have been identified, assessed, and managed, and preparing audit programmes which are the step by step approach in the auditing process which need to be followed in order for them to be focused on achieving the objective of the internal audit assignments. The standard internal audit working tools applied in the internal audit process are internal audit documents which aid internal auditors to discharge their duties to expectation and they are the internal audit charter, internal auditing standards, strategic plan for the internal audit unit, code of ethics for internal auditing, internal audit plan, programme of work and audit programme (Kwakye, 2008). Studies Reviewed Some of the studies reviewed were internal audit practices and the performance of internal audit departments in companies in North-Eastern Ohio (Fadzil, 2003) and the focus was on assessment of internal audit function; the effectiveness of internal auditing in the Telecommunication organisations in Lorestan Province in Iran (Hematfar, Marefat & Mozafari, 2013), on effectiveness of internal auditing; the role of internal audit function in enhancing risk management in Rwandan Social Security Fund (Rudasingwa, 2006) which aimed at the role of internal auditing.