Problem Statement

Public sector managers do not support Internal Audit.The Internal Audit function in theGhanaian

public sector faces a perception and, to some extent, a credibility problem as a value-adding unit

of the organisation.The Internal Audit Agency (2006) believes that the importanceof Internal

Audit is "shrouded in obscurity”.This unfortunate background continues to playdown the

importance of Internal Audit as a key function that can strengthen the oversightresponsibility of

the governing body.This reflects in the management attitude towards theInternal Auditor.Most

often than not the budget of the Internal Audit Unit, if any exist at all, iswoefully inadequate to

enable them meet the resource requirements of their annual audit plans.Internal Auditors are seen

more as fault finders rather than solution providers and partners in theGovernment’s strive for

organisational excellence.
Management Question:
Why do public sector managers fail to support the Internal
Audit function and what can be done to curb it?
Research Questions:
1.What account for the low support for Internal Audit by public sector managers?
2.What actions are necessary to get the support of management of internal auditing in the
public sector?
3.Is there a link between the quality of service the Internal Auditor provides for his
organisation and the attitude of managers towards the Internal Audit function?
Hypothesis:
•
There is no relationship between the quality service Internal Auditors provide for their
organisations and the attitude of managers towards the Internal Audit function.
Research proposal – SB/MAC/08/0005
Page 4

Objectives
The objectives of the research project are to:
1.Examine the factors responsible for the low support for the Internal Audit Activity by
managers of public institutions.
2.Identify specific actions required to secure support of managers for the Internal Audit
Activity.
 3.Establish the relationship between quality of service and support of managers for Internal
Audit.
Significance of Study
The significance of the study will be to:
1.Improve public understanding of the role of the Internal Auditor in the achievement of

organisational objectives.

2.Improve literature on public sector Internal Auditing in Ghana.

3.Fulfill the MBA requirement.

Research proposal – SB/MAC/08/0005
Page 5

Literature Review

The Government of Ghana has taken a proactive step in establishing the Internal Audit

Agency(The Agency) by an Act of Parliament in 2003. The IAA is mandated to co-ordinate,

facilitateand provide quality assurance for internal audit activities within the public sector

institutions (theIAA Act 2003, Act 658).The Agency has formulated three strategies which it is

currentlypursuing to improve the image of the Internal Audit function in the public sector. These

are asfollows:

1.Professional Practice Framework which aims at developing key documents and templatesfor use by

the Internal Audit function such the Internal Audit Regulations, InternalAuditing Standards,

Audit Programmes Internal Audit Charter and Annual Audit Planningtemplates.

2.Human Resource Development which seeks to facilitate the recruitment, training anddevelopment

of internal auditors to be proficient in applying internal audit standards,procedures and

techniques in performing engagements.

3.Quality Assurance and Improvement which addresses the issue of continues improvement
 in the performance of the internal audit activity.
Definition of Internal Audit

According to the Institute of Internal Auditors, “internal auditing is an independent,

objectiveassurance and consulting activity designed to add value and improve an

organization’soperations. It helps an organization accomplish its objectives by bringing a

systematic,
Research proposal – SB/MAC/08/0005
Page 6

disciplined approach to evaluate and improve the effectiveness of risk management, control, and
governance processes” (March 2007).

This definition actually seeks to demonstrate the depth and breadth of the internal audit

activitywithin an institution as against the previous orientation of reviewing payment

transactions overthe years. Modern internal audit covers (or should cover) all activities of the

organisation.Therefore the scope of internal audit is no longer restricted to the processes and

systems in theaccounts and finance function.

Role of the Internal Auditor in governance

The value of the modern day internal auditor lies in his ability to help management to achieve

its’objectives.According to a research jointly conducted by Deloitte & Touche and the Institute

ofInternal Auditors, U.K., (2004) “improved attitudes toward internal audit are built on a belief

thatinternal audit functions are creating greater value for their organisations”.

Governance refers to all the strategic plans of the organisation to demonstrate its commitment

toquality and excellence. They reflect the strategic thinking and orientation of the Board

andManagement to achieve the objectives of the organisation.However, every decision

andprogramme carries with it an element of risk of non-achievement, due to uncertainties

associatedwith the implementation of programs.Some of the risks are reputational, financial,

operational,and information technology related. It would therefore be appropriate to have a

structured way ofidentifying events that would impact negatively on the ability of management

to achieve theirobjectives and also to take advantage of opportunities and other events that could

be leveraged toachieve those same objectives.i.e. an integrated risk management framework that

is embeddedin the planning process of the organisations. Internal Auditors are experts in creating

and
Research proposal – SB/MAC/08/0005
Page 7

promoting a risk management culture that is necessary to the effective implementation of the risk
management framework. They can also assist in monitoring the framework.
Methodology
This section presents an overview of the methods to used in the study.Areas covered include the
research design, population, sample and sampling techniques, data collection and analysis.
Research Design

The study will involve the evaluating the role of Internal Auditors in the good governance of

theorganisations in the public sector.Consequently, the research will be designed to achieve

theobjectives set out by the researcher.

Population

The public sector of Ghana is the biggest employer of Internal Auditors and involves

severalorganisations including Ministries, Departments and Agencies (MDAs).The public sector

alsoincludes Metropolitan, Municipal and District Assemblies MMDAs).The targeted

populationfor the study thus includes the following:

1.Chief Directors and Directors of all MDAs.

2.Coordinating Directors, Finance Officers and other staff of MMDAs.

3.Heads and staff of internal Audit Departments (IADs) of MDAs and MMDAs.
Sampling and Sampling Technique
It obvious from the definition of the population above that a census is not feasible in this study.
Accordingly, the researcher will adopt the survey type of research in which a sample from the
Research proposal – SB/MAC/08/0005
Page 8
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this site has helped me a lot, please can you post something about mass communication
01 / 14 / 2011

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thanks, i wanna download this.....?
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i wana to down load this proposal
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