ARTI

CLEREVI
EW

DETERMI
NANTSOFI
NTERNALAUDI
TEFFECTI
VENESSI
N
DECENTRALI
ZEDLOCALGOVERNMENTADMI
NISTRATI
VESYSTEMS

August2021
Ar
ti
cleRev
iew

1.Backgr
oundoft
heAr
ti
cle

Thear
ti
cle,“
Det
ermi
nant
sofI
nter
nalAudi
tEf
fect
ivenessi
nDecent
ral
ized LocalGov
ernment
Admi
nist
rat
iveSy
stems”byGeor
geTacki
e,Edwar
dMar
fo-
Yiadom &SampsonOdur
oAchi
nawas
publ
i
shedi
nInt
ernat
ionalJour
nalofBusi
nessandManagement
;Vol
ume11,
No.11i
nthey
ear2016
G.
C.

Thi
sar
ti
clepr
ovi
desi
nsi
ght
fuli
nfor
mat
ionont
hedet
ermi
nant
sofi
nter
nalaudi
tef
fect
ivenessi
n
decent
ral
i
zedl
ocal
gov
ernmentadmi
nist
rat
ivesy
stems.

2.Summar
yoft
heAr
ti
cle

Themai
npur
poseoft
hear
ti
clei
stoexami
net
hedet
ermi
nant
sofi
nter
nalaudi
tef
fect
ivenessi
n
decent
ral
i
zed l
ocalgov
ernmentadmi
nist
rat
ive sy
stems i
n Ashant
iRegi
on ofGhana.I
nter
nal
audi
ti
ng(
IA)i
sapr
ofessi
onandanact
ivi
tyr
elat
edt
oadv
isi
ngor
gani
sat
ionsr
egar
dinghowt
obet
ter
achi
evet
hei
robj
ect
ivest
hroughmanagi
ngr
iskandi
mpr
ovi
ngt
hei
rint
ernalcont
rolsy
stems.I
thel
ps
anor
gani
sat
ionaccompl
i
shi
tsobj
ect
ivesbybr
ingi
ngsy
stemat
ic,di
sci
pli
nedappr
oacht
oev
aluat
e
andi
mpr
ovet
heef
fect
ivenessofr
iskmanagementcont
rol
,andgov
ernancepr
ocesses.Publ
i
c
sect
oraudi
ti
ng,par
ti
cul
arl
yint
ernalaudi
ti
ngi
susef
uli
nmanagi
ngpubl
i
cexpendi
tur
e,ensur
ing
f
inanci
alaccount
abi
l
ity
,andst
rengt
heni
nggov
ernancesy
stemsofpubl
i
cinst
it
uti
ons.

Thear
ti
clecl
ear
lyst
atedt
hemot
ivat
ionoft
her
esear
chbyexpl
aini
ngt
hef
actt
hatt
hei
ncr
eased
emphasi
sonaccount
abi
l
ity
,tr
anspar
encyandi
mpr
ovementi
npubl
i
csect
orper
for
manceespeci
all
y
i
nthedev
elopi
ngcount
ri
esar
ebecomi
ngmor
eint
erest
edi
nhow publ
i
cfundsar
eal
l
ocat
edand
expended,
iti
simper
ati
vet
hatgov
ernment
sar
eseent
ohav
easenseofr
esponsi
bil
i
tycoupl
edwi
th
anef
fi
ci
entandef
fect
ivef
inanci
alcont
rol
mechani
sm.

Thear
ti
cleal
socl
ear
lyst
atedt
her
esear
chpr
obl
em byexpl
aini
ngt
hatt
heI
Auni
tsofMMDAsi
n
Ghanamai
nlyconcent
rat
eonpr
e-audi
ti
ngofpay
mentv
oucher
s.Ov
ert
ime,noi
mpr
ovement
swer
e
r
ecor
dedi
nthei
nter
nalcont
rolsy
stem asweaknesseswer
ebei
ngr
epeat
edonanannualbasi
s.The
t
hreatt
oef
fect
ivenessandi
ntegr
it
ybecameappar
enti
naser
iesofscandal
sint
hemi
d-1980s
i
nvol
vi
ngof
fi
cer
soft
heAudi
tSer
vice,act
ingasbot
hint
ernalandext
ernalaudi
tor
satt
heGhana
Educat
ionSer
vicet
hatcausedahugef
inanci
all
osst
othest
ate.Rev
iew oft
hisf
unct
ionr
eveal
ed
l
i
mit
ati
onsont
hescopeoft
heaudi
tfunct
ionandunsat
isf
act
oryr
epor
ti
ngr
elat
ionshi
p.

1
Ar
ti
cleRev
iew

I
naddi
ti
on,t
hear
ti
cl
eal
sot
ri
est
oshow t
her
esear
chgapbyr
efer
ri
ngdi
ff
erentr
esear
chesonI
A
ef
fect
ivenessi
nGhanaandel
sewher
ehav
ebeenconduct
ed.Howev
er,
tot
hebestknowl
edgeoft
he
aut
hor
s,no r
esear
ch has f
ocused on t
he i
nter
nalaudi
tef
fect
iveness ofdecent
ral
i
zed l
ocal
gov
ernmentadmi
nist
rat
ivesy
stemsi
nadev
elopi
ngr
egi
onal
cont
ext
.Ther
efor
e,t
hisr
evi
ewedar
ti
cle
i
sexpect
edt
o cont
ri
but
etot
heexi
sti
ngl
i
ter
atur
eaboutt
hesubj
ect
,especi
all
yindev
elopi
ng
count
ri
es.

Pur
pose

3.Obj
ect
ivesoft
heAr
ti
cle

Themaj
orobj
ect
iveoft
hear
ti
clei
stoexami
net
hedet
ermi
nant
sofi
nter
nalaudi
tef
fect
ivenessi
n
decent
ral
i
zedl
ocal
gov
ernmentadmi
nist
rat
ivesy
stemsofGhana.

I
nor
dert
oachi
evet
hest
atedobj
ect
ive,
thear
ti
clef
ormul
atedt
hef
oll
owi
nghy
pot
heses:

H1:Thepr
ofessi
onalpr
ofi
ciencyofi
nter
nalaudi
tor
shasnoef
fectonI
Aef
fect
ivenessi
nthe
MMDSs

H2:Thequal
i
tyofaudi
twor
kofi
nter
nalaudi
tor
shasnoef
fectonI
Aef
fect
ivenessi
nthe
MMDSs.

H3:Theor
gani
sat
ionali
ndependenceofi
nter
nalaudi
tor
shasnoef
fectonI
Aef
fect
ivenessi
n
t
heMMDSs

H4:Car
eeroppor
tuni
ti
esf
ori
nter
nalaudi
tor
shavenoef
fectonI
A ef
fect
ivenessi
nthe
MMDSs

H5:Suppor
tfr
om t
opmanagementhasnoef
fectonI
Aef
fect
ivenessi
ntheMMDSs

4.Resear
chVar
iabl
es

Thear
ti
cledef
inest
hreet
ypesofv
ari
abl
es:i
ndependentanddependentv
ari
abl
es.Thedependent
v
ari
abl
efort
hisst
udyi
sint
ernalaudi
tor
’sef
fect
iveness.Wher
eas,t
hei
ndependentv
ari
abl
esoft
he
st
udyar
e pr
ofessi
onalpr
ofi
ciency
,qual
i
tyofaudi
twor
k,or
gani
sat
ionali
ndependence,car
eer
oppor
tuni
ti
esandsuppor
tfr
om t
opmanagement
.

2
Ar
ti
cleRev
iew

5.Resear
chMet
hodol
ogy

I
nther
evi
ewedar
ti
cl
e,casualsur
veyr
esear
chdesi
gni
sempl
oyed.Thi
swasbecauset
heaut
hor
s
i
ntent
ionwast
odescr
ibet
hef
indi
ngsi
nthecont
extoft
hedev
elopedhy
pot
hesest
hroughcasual
anal
ysi
stodet
ermi
net
heef
fectofonev
ari
abl
eont
heot
her
.

Thear
ti
cl
eexami
nesi
nter
nalaudi
tef
fect
ivenessofMMDAsi
nAshant
iRegi
onofGhana.The
aut
hor
sjust
if
iedt
hei
rsel
ect
ionoft
hest
udyar
eabyst
ati
ngt
hef
actt
hatAshant
iRegi
on,
whi
chi
sthe
l
argestdecent
ral
i
zedgov
ernment
algeogr
aphi
calr
egi
oni
nGhana,hast
hehi
ghestpopul
ati
onand
hi
ghernumberofMMDAs.

I
nther
evi
ewedar
ti
cle,al
lint
ernalaudi
tor
sofMMDAsi
ntheAshant
iregi
onwer
eengagedi
nthe
st
udy
.Si
nceeachMMDAshasf
ouri
nter
nal
audi
tor
s,t
hesampl
esi
zeoft
hest
udywas120.

I
nther
evi
ewedar
ti
cl
e,pr
imar
ydat
awascol
l
ect
edt
hroughsel
f-
admi
nist
eredquest
ionnai
re.The
quest
ionnai
rewasst
ruct
uredandconsi
stsbot
hcl
osed-
endedandopen-
endedquest
ionswhi
char
e
or
gani
zedi
nthr
eepar
ts.

Thei
nst
rumentwaspr
e-t
est
edi
n10i
nter
nal
audi
tuni
tsofsomeMMDAsi
ntheBr
ongAhaf
oRegi
on.
Thi
sregi
onwassel
ect
edbecausei
tisf
air
lyl
argeandshar
essi
mil
archar
act
eri
sti
csast
hoseoft
he
Ashant
iRegi
on.Theaut
hor
sal
socheckedi
nter
nalconsi
stencyoft
hei
nst
rumentusi
ngCr
onbach’
s
al
phar
eli
abi
l
itycoef
fi
ci
ent
.

I
nther
evi
ewedar
ti
cl
e,t
heaut
hor
susedbot
hdescr
ipt
iveandi
nfer
ent
ialst
ati
sti
csf
oranal
ysi
soft
he
st
udydat
athr
ought
hehel
pofSPPS.Descr
ipt
ivest
ati
sti
cswasusedf
oranal
ysi
soft
hest
udydat
a,
whi
l
einf
erent
ialst
ati
sti
cswasused t
o checkt
hest
rengt
h ofr
elat
ionshi
p bet
ween t
hest
udy
v
ari
abl
esandt
otestt
hehy
pot
heses.

Pr
iort
omaj
oranal
yses,t
heaut
hor
scheckedt
hev
ari
abl
esf
orv
iol
ati
onofr
egr
essi
onassumpt
ions
ofnor
mal
i
ty;l
i
near
it
y,mul
ti
col
l
inear
it
yandout
li
ers.Thenr
esi
dual
swer
escr
eenedf
ornor
mal
i
ty
t
hroughexpect
ednor
mal
probabi
l
itypl
ots,
skewnessandkur
tosi
s.

Thespeci
fi
cat
ionoft
her
egr
essi
onmodel
isasgi
venbel
ow:

3
Ar
ti
cleRev
iew

6.Fi
ndi
ngs,
Concl
usi
onsandRecommendat
ions

1.Fi
4. ndi
ngsandDi
scussi
on

Ther
esul
tsf
rom t
hedescr
ipt
iveanal
ysi
sshowt
hatmaj
ori
tyoft
hei
nter
nalaudi
tst
affofMMDAsi
n
t
heAshant
iRegi
onofGhanapossesst
her
equi
sit
epr
ofessi
onal
prof
ici
ency
.

Agai
nthef
indi
ngsshow t
hatt
her
eexi
stshi
ghqual
i
tyofaudi
twor
kduet
ocompl
i
ancewi
tht
he
i
nter
nat
ionalst
andar
dsonaudi
ti
ngandl
ocalaudi
tlegi
slat
ions.Howev
er,t
hisf
indi
ngwascont
rar
y
t
otheper
cept
iont
hataudi
tqual
i
tyi
nthepubl
i
csect
ori
susual
l
ycompr
omi
sed.

Ther
esul
tsal
soi
ndi
cat
ethatt
her
eishi
ghl
evelofor
gani
sat
ionali
ndependenceoft
heI
Auni
ts.Thi
s
f
indi
ngwasi
nli
newi
tht
hesequent
ialt
heor
iesofdecent
ral
i
sat
ionwhi
chent
ailt
hedev
olut
ionof
deci
si
on–maki
ngaut
hor
it
yov
ert
hesepol
i
cies,
butt
hisi
snotanecessar
ycondi
ti
on(
Fal
l
eti
,2004)
.

Thef
indi
ngsf
urt
hershow t
her
eishi
ghpr
ofessi
onaldev
elopmentt
rai
ningoppor
tuni
ti
esi
nthe
MMDAs.Thi
scompar
efer
vent
lywi
tht
hei
nst
it
uti
onalt
heor
ywhi
chaccor
dingt
oMi
hretetal
.(2010)
expl
ainshow or
gani
sat
ionalst
ruct
uresandpr
act
icesar
eshapedt
hroughchangesi
nducedby
nor
mat
ivepr
essur
es,i
ncl
udi
ngbot
hext
ernalandi
nter
nalsour
cessuchasl
awsandr
egul
ati
ons,or
byt
hepr
ofessi
ons.

Fur
ther
mor
e,t
hedescr
ipt
ivest
ati
sti
csi
ndi
cat
est
hatmostoft
heI
Auni
tsandt
hepr
act
iceofI
A
t
echni
quesar
enotsuppor
tedbyt
het
opmanagementi
ntheMMDAs.

Thecor
rel
ati
onanal
ysi
sresul
tsshow t
hatpr
ofessi
onalpr
ofi
ciency
,or
gani
zat
ionali
ndependence,
andcar
eeradv
ancementhav
east
ati
sti
cal
l
ysi
gni
fi
cantposi
ti
ver
elat
ionshi
pwi
thI
Aef
fect
iveness.
Wher
eas,
topmanagementsuppor
twasf
oundt
ohav
enoef
fectonI
Aef
fect
iveness.

Ther
esul
tsf
rom t
hehi
erar
chi
calr
egr
essi
onanal
ysi
sshow t
hatI
Aef
fect
ivenesshasasi
gni
fi
cant
negat
iver
elat
ionshi
p wi
th pr
ofessi
onalpr
ofi
ciency and or
gani
sat
ionali
ndependence,whi
l
ea

4
Ar
ti
cleRev
iew

si
gni
fi
cantposi
ti
ver
elat
ionshi
pwi
thqual
i
tyofaudi
twor
kandcar
eeroppor
tuni
ti
es.Howev
er,
allt
he
f
ourv
ari
abl
eshav
eanef
fectonI
Aef
fect
iveness.Hence,
H1,
H2,
H3andH4ar
enotr
eject
ed.

I
naddi
ti
on,t
her
egr
essi
onr
esul
tsshow t
hatt
her
eisi
nsi
gni
fi
cantnegat
iver
elat
ionshi
pbet
ween
suppor
tfr
om t
op managementand I
A ef
fect
iveness.As af
orement
ioned suppor
tfr
om t
op
managementdonotaf
fectI
Aef
fect
iveness,
henceH5i
srej
ect
ed.

4.
2.Concl
usi
on

Ther
esear
cher
sbegant
heconcl
usi
onbydi
scussi
ng t
heai
m,pur
poseand mot
ivat
ionoft
he
r
esear
ch.Theaut
hor
sout
li
nedt
hatt
hemot
ivat
ionf
ort
hest
udyi
sder
ivedf
rom t
hei
ncr
eased
i
nter
esti
nthei
nter
nalaudi
tsofl
ocalgov
ernmentuni
ts.Hence,
Gov
ernmentcanpr
otectt
hemsel
ves
byi
mpr
ovi
ngt
heI
Apr
ocedur
est
hatwi
l
lpr
ovi
desomel
evelofassur
ancet
hatl
ocalgov
ernment
sar
e
notmi
sappl
yi
ngt
henat
ion’
sresour
ces.

Ther
esul
tsi
ndi
cat
ether
eexi
stef
fect
iveI
Auni
tsi
nGhana’
slocaldi
str
ict
s.Theaut
hor
sfoundst
rong
pot
ent
ialf
ori
ndependenceoft
heI
Adepar
tment
sandatt
hesamet
imet
oindependent
lyev
aluat
e
management
’sef
fect
iveness.Al
so,
theaut
hor
sfoundaposi
ti
vei
mpactofqual
i
tyofaudi
twor
kand
car
eer adv
ancement on I
A ef
fect
iveness wi
th st
ati
sti
cal
l
y si
gni
fi
cant coef
fi
cient but t
op
managementsuppor
twasf
oundt
ohav
enoef
fectonI
Aef
fect
ivenessbecauseoft
hest
ati
sti
cal
l
y
i
nsi
gni
fi
cantcoef
fi
ci
ent
.

Theaut
hor
sfor
war
d somemaj
orr
ecommendat
ions.Theysuggest
ed t
hatt
heI
A uni
tsoft
he
MMDAsneedt
obeadequat
elyandappr
opr
iat
elyr
esour
cedbymanagementi
nor
dert
oenabl
ethe
i
nter
nal
audi
tor
stodoqual
i
tyandi
ndependentaudi
twor
k.Ther
eshoul
dber
egul
aral
sobei
n-ser
vice
t
rai
ningandshor
tter
m cour
sesf
ori
nter
nalaudi
tor
sasi
twoul
dhel
pthem t
oupgr
adet
hemsel
vesi
n
or
dert
omeetchal
l
engesofmoder
nri
sk-
basedi
nter
nalaudi
ti
ng.Mor
eov
er,t
hepr
omot
ionf
or
i
nter
nalaudi
tst
affshoul
dnotbedel
ayedori
nter
fer
edwi
th.TheI
Aagencyatt
henat
ionall
evel
shoul
dmoni
tort
heI
Auni
tsi
nthedi
str
ict
sonr
egul
arbasi
stoensur
ethatt
heuni
tsar
eachi
evi
ngt
he
desi
redr
esul
ts.

Acknowl
edgi
ngt
hel
i
mit
ati
onwi
thr
espectt
othecov
erageofr
espondent
s,t
heaut
hor
spoi
ntedt
hat
t
hest
udyl
ayst
hef
oundat
ionf
orf
urt
herr
esear
cht
oassesst
hei
mpl
ement
ati
onoft
heI
Arepor
ts
andr
ecommendat
ionsov
eral
ongper
iod.Fi
nal
l
y,t
heaut
hor
ssuggest
edf
oracompar
ati
vest
udyof
I
Apr
act
icesi
npubl
i
candpr
ivat
esect
oror
gani
sat
ionst
oascer
tai
nthesi
gni
fi
cantdi
ff
erencest
hat

5
Ar
ti
cleRev
iew

mayexi
sti
nIApr
act
icesi
nthet
wosect
or.

7.Comment
/Gener
alCr
it
ique

Thet
it
leoft
her
evi
ewedar
ti
clei
sdescr
ipt
ive,
becausei
tref
lect
sthecont
entoft
hepaperv
er .I
ywel
l ti
s
al
sounambi
guousandappr
opr
iat
einl
engt
handscope.

Thear
ti
clecl
ear
lyaddr
essedt
hebackgr
ound,
obj
ect
ives,
met
hodol
ogy
,sampl
esi
ze,
dat
acol
l
ect
ion
t
ool
,fi
ndi
ngsandconcl
usi
onsoft
her
esear
chi
ntheabst
ract
.Mot
ivat
ionandset
ti
ngoft
her
esear
ch
aswel
lasr
ecommendat
ionsf
orwar
dedbasedont
hef
indi
ngsar
eal
socl
ear
lyaddr
essedi
nthe
abst
ract
.

Thest
atementoft
hepr
obl
em i
nthear
ti
clecl
ear
lydi
scussedandpr
ovi
desadequat
eknowl
edgeon
t
hebackgr
oundwhi
chhel
pst
her
eadert
ounder
standt
hepur
poseoft
her
esear
ch.I
naddi
ti
on,i
t
cl
ear
lyst
atedt
her
esear
chpr
obl
em,i
dent
if
iedt
her
esear
chgapandj
ust
if
iedwhyt
her
esear
chi
s
donet
hroughexpl
aini
ngpr
evi
ousst
udi
es.

Theaut
hor
sdonotcl
ear
lyandadequat
elyacknowl
edget
hel
i
mit
ati
onsoft
hest
udy
.Theydonot
al
soexpl
ainor
igi
nandconsequenceoft
hel
i
mit
ati
ons.

Ther
esear
chappr
oachchoseni
nthear
ti
clei
snotcl
ear
lyi
dent
if
iedandexpl
ained.But
,theappr
oach
used by t
he aut
hor
sis quant
it
ati
ve.Because t
he dat
a was col
l
ect
ed t
hrough st
ruct
ured
quest
ionnai
reandst
ati
sti
cal
l
yanal
yzedt
oinv
est
igat
ethesubj
ect
.

Ther
esear
chdesi
gnchoseni
nthear
ti
clei
scl
ear
lyi
dent
if
iedbutnotadequat
elydi
scussed.The
chosen r
esear
ch desi
gn i
s appr
opr
iat
etor
esear
ch pr
obl
em and t
he aut
hor
s pr
ovi
ded cl
ear
j
ust
if
icat
ionf
ori
tssel
ect
ion.

Thesampl
i
ngt
echni
queusedi
nther
evi
ewedar
ti
clei
snoti
dent
if
iedordi
scussedadequat
ely
.
Howev
er,
thechosensampl
i
ngt
echni
quei
sinappr
opr
iat
etor
esear
chdesi
gn.

Thedat
acol
l
ect
ioni
nst
rumentusedi
nther
evi
ewedar
ti
cle,st
ruct
uredquest
ionnai
re,di
scussed
adequat
ely
.Thei
nst
rumenti
sal
soappr
opr
iat
etor
esear
chdesi
gnbecausei
tisdesi
gnedt
ogat
her
dat
afr
om l
i
ter
ateI
Aaudi
tst
aff
s.Howev
er,t
hedat
acol
l
ect
iont
echni
quesusedi
nthear
ti
clei
snot
cl
ear
lyi
dent
if
iedordi
scussed.

Thedat
aanal
ysi
stechni
quesadopt
ed i
nther
evi
ewed ar
ti
clecl
ear
lyi
dent
if
ied and di
scussed
adequat
ely
.Thedat
aanal
ysi
stechni
quesar
eal
sov
eryappr
opr
iat
etor
esear
chdesi
gnand/
ort
o

6
Ar
ti
cleRev
iew

dat
aty
pe.

I
nther
evi
ewedar
ti
cl
e,r
esul
tsf
rom dat
aanal
yseshav
ecl
earandl
ogi
calor
derf
rom descr
ipt
ivet
o
i
nfer
ent
ialst
ati
sti
cs.Appr
opr
iat
edat
apr
esent
ati
ont
echni
queswer
eusedf
orpr
esent
ati
onand
i
nter
pret
ati
onoft
her
esul
tswi
thr
espectt
other
esear
chquest
ions.Resul
tsf
rom dat
aanal
ysi
shav
e
f
ulli
nfor
mat
ionwhi
char
erel
evantandenabl
etomeett
heobj
ect
ivesoft
hest
udy
.Theaut
hor
str
ied
t
opr
ovi
dedi
scussi
ont
hati
scl
ear
lyl
i
nkedt
opr
evi
ousr
esear
chort
heor
eti
cal
evi
dence.

Theconcl
usi
onbeganbyr
efocusi
ngt
hebackgr
oundt
other
esear
chpr
obl
em,andr
est
ati
ngt
he
pur
poseoft
her
esear
chv
erycl
ear
ly.I
tal
sopr
ovi
dedav
erycl
earandbr
iefsy
nopsi
soft
hemai
n
f
indi
ngs.I
naddi
ti
on,t
heaut
hor
scl
ear
lycomment
edont
her
eli
abi
l
ityoft
hef
indi
ngsal
ongwi
tht
he
mai
nli
mit
ati
ons.Howev
er,
theynev
erconcl
udedbey
ondt
hef
indi
ngsi
ntoot
heri
ssues.