SAMPLE RESEARCH PROPOSAL

PROMOTING GOOD GOVERNANCE IN PUBLIC

INSTITUTIONS OF GHANA: THE ROLE OF THE
INTERNAL AUDITOR
5/5/2009
SCHOOL OF BUSINESS, UNIVERSITY OF CAPE COAST, GHANA
ISHMEAL OFORI AMPONSAH (STUDENT)
Research proposal SB/MAC/08/0005 Page 0
Table of Contents
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Research proposal SB/MAC/08/0005 Page )
Promotin !oo" !o#ernan$e in P%bli$ Instit%tions
of !&ana' T&e Role of t&e Internal A%"itor
Intro"%$tion
All over the world there is a realization that the Internal Audit activity has the potential to
provide hitherto unparalleled services to management in the conduct of their duties. This
potential has been turned into a challenge and embodied in the new definition of Internal
Auditing from the Institute of Internal Auditors (the IIA).
(a$)ro%n" of t&e St%"*
The Government of the Republic of Ghana by the Internal Audit Agency A ct !""# (Act $%&)
established the Internal Audit Agency 'as an ape( oversight body to co)ordinate facilitate and
provide *uality assurance for Internal Audit activities within the public sector+ (,ection -$ of Act
$%&). The Internal Auditor.s value lies in how well he has been able to contribute to the
achievement of the overall organisational ob/ective. The Internal Auditor should constantly see0
to ma0e himself relevant to his organisation by providing information that will ma0e
management ta0e decisions that impact positively on their ability to achieve the organisational
goals.
1owever according to research and surveys conducted by 2eloitte 3 Touche (!""4) and the
Internal Audit Agency of Ghana (!""$) much of the wor0 of Internal Audit has been very
restrictive in terms of scope. This needs to be addressed if the re*uired return on investment in
the Internal Audit activity is to be attained.
Research proposal SB/MAC/08/0005 Page 2
Problem Statement
5ublic sector managers do not support Internal Audit. The Internal Audit function in the
Ghanaian public sector faces a perception and to some e(tent a credibility problem as a value)
adding unit of the organisation. The Internal Audit Agency (!""$) believes that the importance
of Internal Audit is 6shrouded in obscurity+. This unfortunate bac0ground continues to play
down the importance of Internal Audit as a 0ey function that can strengthen the oversight
responsibility of the governing body. This reflects in the management attitude towards the
Internal Auditor. 7ost often than not the budget of the Internal Audit 8nit if any e(ist at all is
woefully inade*uate to enable them meet the resource re*uirements of their annual audit plans.
Internal Auditors are seen more as fault finders rather than solution providers and partners in the
Government.s strive for organisational e(cellence.
Manaement +%estion' 9hy do public sector managers fail to support the Internal
Audit function and what can be done to curb it:
Resear$& +%estions'
-. 9hat account for the low support for Internal Audit by public sector managers:
!. 9hat actions are necessary to get the support of management of internal auditing in the
public sector:
#. Is there a lin0 between the *uality of service the Internal Auditor provides for his
organisation and the attitude of managers towards the Internal Audit function:
H*,ot&esis'
There is no relationship between the *uality service Internal Auditors provide for their
organisations and the attitude of managers towards the Internal Audit function.
Research proposal SB/MAC/08/0005 Page 6
Ob-e$ti#es
The ob/ectives of the research pro/ect are to;
-. <(amine the factors responsible for the low support for the Internal Audit Activity by
managers of public institutions.
!. Identify specific actions re*uired to secure support of managers for the Internal Audit
Activity.
#. <stablish the relationship between *uality of service and support of managers for Internal
Audit.
Sini.$an$e of St%"*
The significance of the study will be to;
-. Improve public understanding of the role of the Internal Auditor in the achievement of
organisational ob/ectives.
!. Improve literature on public sector Internal Auditing in Ghana.
#. =ulfill the 7>A re*uirement.
Research proposal SB/MAC/08/0005 Page 9
Literat%re Re#ie/
The Government of Ghana has ta0en a proactive step in establishing the Internal Audit Agency
(The Agency) by an Act of 5arliament in !""#. The IAA is mandated to co)ordinate facilitate
and provide *uality assurance for internal audit activities within the public sector institutions (the
IAA Act !""# Act $%&). The Agency has formulated three strategies which it is currently
pursuing to improve the image of the Internal Audit function in the public sector. These are as
follows;
-. 5rofessional 5ractice =ramewor0 which aims at developing 0ey documents and templates
for use by the Internal Audit function such the Internal Audit Regulations Internal
Auditing ,tandards Audit 5rogrammes Internal Audit ?harter and Annual Audit 5lanning
templates.
!. 1uman Resource 2evelopment which see0s to facilitate the recruitment training and
development of internal auditors to be proficient in applying internal audit standards
procedures and techni*ues in performing engagements.
#. @uality Assurance and Improvement which addresses the issue of continues improvement
in the performance of the internal audit activity.
De.nition of Internal A%"it
According to the Institute of Internal Auditors 'internal auditing is an independent ob/ective
assurance and consulting activity designed to add value and improve an organization.s
operations. It helps an organization accomplish its ob/ectives by bringing a systematic
disciplined approach to evaluate and improve the effectiveness of ris0 management control and
governance processes+ (7arch !""A).
Research proposal SB/MAC/08/0005 Page 5
This definition actually see0s to demonstrate the depth and breadth of the internal audit activity
within an institution as against the previous orientation of reviewing payment transactions over
the years. 7odern internal audit covers (or should cover) all activities of the organisation.
Therefore the scope of internal audit is no longer restricted to the processes and systems in the
accounts and finance function.
Role of t&e Internal A%"itor in o#ernan$e
The value of the modern day internal auditor lies in his ability to help management to achieve its.
ob/ectives. According to a research /ointly conducted by 2eloitte 3 Touche and the Institute of
Internal Auditors 8.B. (!""4) 'improved attitudes toward internal audit are built on a belief that
internal audit functions are creating greater value for their organisations+.
Governance refers to all the strategic plans of the organisation to demonstrate its commitment to
*uality and e(cellence. They reflect the strategic thin0ing and orientation of the >oard and
7anagement to achieve the ob/ectives of the organisation. 1owever every decision and
programme carries with it an element of ris0 of non)achievement due to uncertainties associated
with the implementation of programs. ,ome of the ris0s are reputational financial operational
and information technology related. It would therefore be appropriate to have a structured way of
identifying events that would impact negatively on the ability of management to achieve their
ob/ectives and also to ta0e advantage of opportunities and other events that could be leveraged to
achieve those same ob/ectives. i.e. an integrated ris0 management framewor0 that is embedded
in the planning process of the organisations. Internal Auditors are e(perts in creating and
promoting a ris0 management culture that is necessary to the effective implementation of the ris0
management framewor0. They can also assist in monitoring the framewor0.
Research proposal SB/MAC/08/0005 Page :
Met&o"olo*
This section presents an overview of the methods to used in the study. Areas covered include the
research design population sample and sampling techni*ues data collection and analysis.
Resear$& Desin
The study will involve the evaluating the role of Internal Auditors in the good governance of the
organisations in the public sector. ?onse*uently the research will be designed to achieve the
ob/ectives set out by the researcher.
Po,%lation
The public sector of Ghana is the biggest employer of Internal Auditors and involves several
organisations including 7inistries 2epartments and Agencies (72As). The public sector also
includes 7etropolitan 7unicipal and 2istrict Assemblies 772As). The targeted population
for the study thus includes the following;
-. ?hief 2irectors and 2irectors of all 72As.
!. ?oordinating 2irectors =inance Cfficers and other staff of 772As.
#. 1eads and staff of internal Audit 2epar!0e!2 =IAD2> #+ MDA2 a$ MMDA2(
Sam,lin an" Sam,lin Te$&ni0%e
It obvious from the definition of the population above that a census is not feasible in this study.
Accordingly the researcher will adopt the survey type of research in which a sample from the
target population will be used for the study. In total a sample of -&% elements will be selected
from a targeted population of #"". 2etails of the sample are as follows;
-% ?hief 2irectors and #" 2irectors of 72As.
!" ?oordinating 2irectors !" =inance Cfficers and !" other staff of 772As.
4" 1eads of I2As and 4" Internal Auditors of 72As and 772s.
Research proposal SB/MAC/08/0005 Page <
The study will adopt a multistage stratified sampling method to select elements. =irst the
population will be divided into 72As and 772As. De(t the 72As will be grouped into
7inistries 2epartments and Agencies and the 772As into 7etropolitan 7unicipal and
2istricts. This will ensure a fair representation of each group of institutions since their
operations are significantly different.
Data Colle$tion
The focus of study is on attitudes and perception and the importance of primary data cannot be
over)emphasised. 1owever secondary data will also be collected to augment the studies.
>efore the actual data collect the researcher will collect introductory letter from the ,chool of
>usiness of the 8niversity of ?ape ?oast to the sampled institutions. The initial visit to the
selected institutions will therefore be to introduce himself familiarize himself with those
institutions as well as see0 their consent for the study.
Data $olle$tion instr%ment
The researcher will collect data by administering a *uestionnaire. The *uestionnaire will use
structured *uestions consisting of appro(imately !" *uestions divided into three sections EA.
E>. and E?.. ,ection EA. will consist of seven *uestions see0ing to answer the first research
*uestion. ,ection E>. will consist of si( *uestions covering the second research *uestion whereas
,ection E?. will consist of *uestions to test the hypothesis and also answer the third research
*uestion.
Sample investigative questions: Table - below provides samples of the investigative
*uestions.
Research proposal SB/MAC/08/0005 Page ?
Table 1: Sample Investigative Questions
Section Research Question Investigative Questions
EA.
9hat account for the low
support for Internal Audit by
public sector managers:
Are you aware of the role of the Internal Auditor
in you organisation:
1ow important do you thin0 is the role of the
Internal Auditor to your organisation:
In your view is the 1ead of Internal Audit placed
appropriately on the organisational chart:
E>.
9hat actions are necessary to
get the support of
management of internal
auditing in the public sector:
Generally how will you ran0 the relevance of
Internal Audit in your organisation:
9hat reasons account for your answer above:
9hat do you consider the three most important
actions needed to promote Internal Auditing in
the public sector:
E?.
Is there a lin0 between the
*uality of service the Internal
Auditor provides for his
organisation and the attitude
of managers towards the
Internal Audit function:
9hat do you consider to be the highest achieve of
your internal audit department:
9ould agree to the statement that one.s
perception of the Internal Auditor is influenced by
how they perceive his role in the company:
9ill your attitude towards Internal Audit be
different if they help you achieve your ob/ectives:
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Research proposal SB/MAC/08/0005 Page 9
Data Anal*sis
The responses to the structured close)ended *uestions will be rated in percentages. The
percentage of respondents for each alternative will be given and analysed. The data collected
will be analysed using the computer software 0nown as ,tatistical 5ac0age for ,ervice ,olution
(,5,,).
Times$ale
June July 200: review of literature
!ugust 200: draft literature review
September 200: agree research strategy with supervisor
"ctober 200: agree formal access to organisations for collection of primary data
#ovember 200: compile pilot and review *uestionnaire
$ecember 200 % January 2010: administer *uestionnaire
&ebruary 2010: final collection of *uestionnaire
'arch 2010: data analysis
!pril 'ay 2010: final writing of pro/ect report.
Limitations
The researcher cannot cover all the ten regions of Ghana. The research will therefore be restricted to five
out of the ten regions.
Research proposal SB/MAC/08/0005 Page )0
Referen$es
The Institute of Internal Auditors (the IIA). (!""A) The Professional Practices Framework.
=lorida 8.,.; The IIA Research =oundation.
,pencer 5. B. 1. (!""#) The Internal Auditing Handbook. 8.B. ?ity 8niversity 5ress.
2eloitte 3 Touche <nterprise Ris0 ,ervices 3 Institute of Internal Auditors F 8B and Ireland
(!""4) The Value Agenda. Available at www.iia.org.u0 (Accessed on -4 April !""G).
Internal Audit Agency Republic of Ghana. (!""A) Annual Report to the Office of the President.
Accra; the IAA
Internal Audit Agency Republic of Ghana. (!""$) hampioning !"cellence in #ni$ersities of
%hana& The Role of the Internal Auditor. A paper presented to the Association of the
Internal Auditors of the 8niversities of Ghana at their annual congress in !""$. Accra;
Ransford Agyei 2eputy 2irector)General.
,aunders 7. Hewis 5. 3 Thornhill A. (!""A) Research 'ethods for (usiness )tudents (4
th
ed.) 1arlow <ngland; =T 5rentice 1all
>lumberg >. ?ooper 2.R. and ,chindler 5.,. (!""%) (usiness Research 'ethods
7aidenhead 7cGraw)1ill
Research proposal SB/MAC/08/0005 Page ))