Factors affecting the effectiveness of the internal audit function in Valley View University, Ghana

Abstract

Corporate governance has become important in the management of every organization over some time now. The need for sound corporate governance has directed attention to internal auditing in both public and private sector organizations. This study, therefore, seeks to explore these factors and examine the effect of management support and commitment, staff competence and independence of internal auditors on the effectiveness of the internal audit function at Valley View University. The study is a cross-sectional quantitative study that utilized a causal research design. The main instruments for data collection are structured questionnaires and oral interviews to the targeted population. It adopted 250 respondents for the questionnaire and 15 for the interview. Inferential statistics were used throughout the study and analyses of the data obtained.The results revealed that management support and commitment, the competence of the internal audit function and independence of internal audit staff significantly and positively predict effectiveness of the internal audit function (r = 0.834*, r2 = 0.686, p< 0.01). The study concluded competence of internal auditors, their level of independence and corresponding management support and commitment are key predictors of the overall effectiveness of the internal audit function. Therefore, management should ensure that (1) the internal audit work is sufficiently resourced to allow it to fulfil its mandate, (2) the internal audit staff in key positions have a recognized skill set appropriate to their functions, and (3) the auditors receive the training and development they need to deal with the increasing challenges organizations are facing.