MacCharles Tamakloe Dissertation UGSM

Monarch Business School Switzerland
Doctoral Dissertation
Financial Management in the Ghanaian Economy:

Performance Assessment of Internal Audit in the Fight against
Financial Corruption in the Public Sector
PROGRAM: Doctor of Business Administration

SUBMISSION DATE: 7th March, 2024
CANDIDATE: Mr. MacCharles Tamakloe, MBA
DISSERTATION SUPERVISOR: Dr. Donald York D.Ph.D
COMMITTEE CHAIR: Dr. Caroline Ntara, Ph.D
COMMITTEE MEMBER: Dr. Julie Breadshell, Ph,D
COMMITTEE MEMBER: Dr. Henderson, Ph.D.
ABSTRACT
Internal Audit serves as a catalyst to improve on an organization's governance, risk
management, and control mechanism by providing insight, and recommendations based
on analyses, and assessments of data and business processes. The Public Sector
Financial Management in Ghana has fallen short of financial loss, fraud, external debt
increases because of financial corruption, although, Internal Audit has the key function of
reporting to management of public sector entities on the functioning of the management
control systems, and recommending improvement where applicable. It is necessary to
determine the level of internal audit performance in Ghana so that its performance could
be enhanced to execute its mandatory functions to fight financial corruption effectively.
The Ghanaian economy is characterized by persistent increases of external debt due to

Financial Corruption. As at 31/12/21 the external debt of Ghana stood at 58.64 billion US
dollars. Internal Audit is to help an organization accomplish its objectives a by bringing
systematic, disciplined approach to evaluate, and improve on effectiveness of risk
management, control, and governance processes. The research examines the main
research question through analysis of seminal literature including theories on: Corruption,
Social justice, Governance, and Technical focused Quasi-Academic materials as well as
IA Practical Approaches in other part of the world. The research developed a conceptual
model to better explain and improve on effectiveness of internal audit function, in order to
enhance Internal Audit Performance. Furthermore, the research evaluates the impact of
internal audit performance on PSFM through methodological triangulation.
The introduction presents the background of the problem. Literature review of seminal
authors who contributed in the domains of theories on: governance, social justice, and
corruption and were informed by Technical Quasi-Academic Materials from the
professional arena. Literature gaps identifies were filled. The methodology, and data
presentation unveil the research method, design, and data collected during the field work.
Theoretical, and practical contribution to the domain were shown in the Synthesis and
Integration in Chapter five. The conclusion covers: research findings, future research
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Mr. MacCharles Tamakloe, MBA
Doctor of Business Administration Thesis
UGSM-Monarch Business School Switzerland
areas, and recommendations for execution to improve on PSFM in order to detect, and
prevent financial corruption in order to protect the public purse.
The research focuses on the nexus within the academic literature with respect to the Main
Research Question, investigates the correlation between Internal Audit Performance,
Public Sector Financial Management, and Financial Corruption, and other constituents of
the research. Also, develops a Conceptual Model of Anti-Corruption, introduced as
MacCharles Tamakloe Model (MTM) of Ant-Corruption. The research further formulates
Anti-Corruption Equation (ACE), and Policy and Procedures to buttress the MTM.
The research used qualitative approach. The key finding of the research is Low Level of
Internal Audit Performance due to militating factors include, weak Public Sector Financial
Management, lack of technical and legal support for internal audit units, no political will and
commitment, exclusion of internal audit on the Ghana Integrated Financial Management
Information System (GIFMIS) platform, and Programmed Based Budget Estimates, weak
ant-corruption institutions, and promotional challenges facing internal auditors. In
conclusion, the research recommends strengthening and empowerment of internal auditors
to enhance Internal Audit Performance, review of the Public Financial Management Act,
22016. Public Services Commission should appoint heads of public institutions instead of
the president to avoid political influences. Also, IA policy and procedures is a key to IAP.
Keywords: Internal audit, Ghanaian economy, theories, public sector, financial corruption,
correlation, social justice, financial management, conceptual model, performance, quasi-
academic material, Ant-Corruption, Internal Audit Function
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QUOTES
“In order to eliminate waste, you must develop the eyes to see waste and think of how to
eliminate the waste that you see and we must repeat this process forever and ever,
neither tiring nor ceasing”
Taiichi Ohno
“Colorful demonstrations and weekend marches are vital but alone are not powerful
enough to stop wars. Wars will be stopped only when soldiers refuse to fight, when
workers refuse to load weapons onto ships and aircraft, when people boycott the
economic outposts of Empire that are strung across the globe.”
Arundhati Roy
“Even though you want to move forward in your life, you may have one foot on the brakes.
In order to be free, we must learn how to let go. Release the hurt. Release the fear.
Refuse to entertain your old pain. The energy it takes to hang to the past is holding you
back from a new life. What is it you would go of today?”
Mary Manin Morrissey
“I am in the knowledge that death can never extinguish the torch which I have lit
in Ghana and Africa. Long after I am dead and gone, the light will continue to burn and be
borne aloft, giving light and guidance to all people”
DR. Kwame Nkrumah, Former President of Ghana.
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DEDICATION
I heartedly dedicate this dissertation to my beloved family, especially to my sons and
daughters whom through the grace of Almighty God have made me a responsible father of
seven children.
This actually encouraged and motivated me to fight academically, intellectually and

professionally as a family head to attain a qualification of Doctorate Degree that would be
a foundation block for my nuclear family to emulate and invest in education for exploitation
of modern technology.
My mother, Juliana Ama Sefa, this dissertation would not have been possible without
giving birth to me, your: prayers, love, support, and encouragement. During the past few
decades, you showed unmatched help to me for the time and effort needed to learn to this
stage. For all your prayers, encouragement, and support, this dissertation goes to you and
your grandchildren; I love and highly appreciate you and God willing, we would read this
paragraph to our extended family in the foreseeable future to motivate them.
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ACKNOWLEDGEMENTS
The most thanks goes to my academic research supervisor: Professor Dr. D. York. Ph.D.
The Dean of Student Development, UGSM-Monarch Business School, Switzerland, for his
inspiration, support, commentary, guidance and diligence in overseeing the entire process
of my research work. I have great appreciation for his thoughts, insight, and comments
concerning the material and form of the dissertation. Secondly, I want to express my
heartfelt gratitude to Professor Dr. Jeffrey Shawn Henderson, Ph.D., Dean of Studies,
UGSM-Monarch Business School Switzerland, for his meticulousness, encouragement,
mentorship, guidance, and provision of academic direction duration the period of my
dissertation. His professional guidance, and insight into my research are highly esteemed,
and appreciated, and have proven to be an integral part of the research. Thirdly, my
utmost gratitude goes to Dr. S.K. Appiah Kubi, and Prof. Dr. Clevenger, UGSM-
Switzerland, for the content review, and Mohammed Sadiq, University of Profession
Studies, Accra-Ghana for proof reading of my dissertation. Fourthly, I thank my wife Agnes
Akrong a member of La Royal family, Greater Accra Region of Ghana for her
encouragement, support, insightfulness, and accepting my absence from home, and
taking good care for my Children during my Doctorate studies. Furthermore, a special
thanks goes to my beloved Madam Alice Acquandoh, Head of IT Unit of Okaikwei
Municipal Assembly, for her assistance, and encouragement throughout my dissertation.
Furthermore, my special thanks go to all those who helped me in diverse ways, but could
not find their names here for all of their inputs, support and guidance throughout my
studies at UGSM-Monarch Business School, Switzerland.
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STATEMENT OF ORIGINALITY
The current research takes a novel approach to enhance Internal Audit Performance (IAP)
and Public Sector Financial Management (PSFM) in fighting financial corruption (FC). The
research builds on the seminal author’s works, who have contributed significantly to
theories on: governance, corruption, and social justice. The literature triangulation was
well informed by quasi-academic materials. Some of the seminal authors including: Gjalt
De Graaf, Millchamp, Riggs, Caiden. Rose-Ackerman, John Rawls, Frankes, Punch,
Daban, Fumiko, Nozick, Millar and Collier. The seminal authors quested for an expansive
view of IAP impacts on PSFM research for efficiency, effectiveness, and economy. The
research examines the paradigms of PSFM considering the fact that, scholarship area is
dominates by diverse views, and global management paradigms, which focus on anti-
corruption. The research uses the emerging paradigm of anti-corruption to supplement the
concepts of PSFM that can benefit from the theories of governance, corruption, social
justice integration informed by quasi-academic materials, and few of these to mention are:
World Bank, USAID, Transparency International, IMF, and International Finance
Corporation. With the insights gained on achievements, challenges, and solutions of IAP,
and PSFM procedures, a new conceptual model is developed to fight FC. Moreover, an
ant-corruption equation to help fight FC is formulated. The conceptual model to improve
on IAP to enhance anti-corruption drive is considered original and an innovative tool to
improve on the fight against FC in Ghanaian economy.
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PURPOSE AND ATTESTATION
This document is prepared as a Dissertation submission to UGSM-Monarch Business
School Switzerland in fulfilment of the degree of:
Doctor of Business Administration
The author hereby attests that the work herein provided in fulfilment of the above degree
requirements is exclusively of his own effort, and hand. Further, the author attests that this
document constitutes the entire submission of the dissertation component.
Dissertation Committee Members:

Thesis Supervisor Dr. Donald Oxford York, D.Phil.
Committee Chairperson Dr. Caroline Ntara, Ph.D.
Secondary Reader Dr. Julie Breadshell, Ph.D.
Third Reader Dr. Henderson, D. Ph.D.
7 th March, 2024
---------------------------------------------- --------------------
Mr. MacCharles Tamakloe, MBA Date
© 2024 MacCharlesTamakloe, All Rights Reserved to Author
TABLE OF CONTENT
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ABSTRACT………………………………………………………………………………………..ii
QUOTES…………………………………………………………………………………………..iv
DEDICATION……………………………………………………………………………………...v
ACKNOWLEDGEMENTS..................................................................................................vi
STATEMENT OF ORIGINALITY.......................................................................................vii
PURPOSE AND ATTESTATION……………………………………………………………....viii
TABLE OF CONTENT..................................................................................................... ..ix
LIST OF FIGURES AND TABLES…………………………………………………………….xvii
LIST OF ABBREVIATIONS………………………………………………………………….....xix
CHAPTER ONE – INTRODUCTION…………………………………………………………….2
1.0 Introduction................................................................................................................ ...2
1.0.1 Policy and Procedures to enhance IAP in the Fight against FC..............................…5
1.1 Historical Backdrop of the Problem............................................................................…8
1.2 Problem Statement.................................................................................................... ..12
1.3 Relevant of the Research.............................................................................................13
1.3.1 Research Question………………………………………………………………………...14
1.3.2 Sub Research Question............................................................................................14
1.4 The Research Methodology.........................................................................................15
1.5 Purpose of the Research........................................................................................... ..17
1.6 Theoretical Framework.............................................................................................. ..18
1.7 Nature of the Research................................................................................................20
1.8 Level of Analysis........................................................................................................ ..21
1.9 Definition of Terminologies...........................................................................................22
1.10 Limitations and Delimitations of the Research...........................................................23
1.10.1 Delimitation........................................................................................................... ..24
1.11 Assumptions...............................................................................................................25
1.12 Summary of Chapter One..........................................................................................25
CHAPTER TWO- LITERATURE REVIEW……………………………………………………..28
2.0 Literature Review....................................................................................................... ..28
2.1 Overview.................................................................................................................... ..28
2.1.1 Literature Integration.................................................................................................29
2.1.2 Literature Sources.....................................................................................................33
FIGHT AGAINST FINANCIAL CORRUPTION IN GHANA…………………………………...35
2.2 Overview.................................................................................................................... ..35
THEORIES ON GOVERNANCE………………………………………………………………..40
2.4 Governance Theory................................................................................................... ..40
2.4.1 Historical Background of Governance.......................................................................40
2.4.2 Theories on Governance...........................................................................................41
2.5 Summary and Gaps on Seminal Authors’ Works.........................................................65
THEORIES ON CORRUPTION…………………………………………………………………66
2.6 Theories on Corruption.............................................................................................. ..66
2.6.1 Historical Background of Corruption..........................................................................66
2.6.2 Theory on Corruption................................................................................................66
2.6.3 Review of Seminal Authors’ Works on Corruption Theories.....................................70
2.7 Summary and Literature Gaps on Corruption Theories...............................................96
LITERATURE REVIEW-THEORIES ON SOCIAL JUSTICE…………………………………97
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2.8 Theories on Social Justice...........................................................................................97
2.8.1 Justification to Include Social Justice Theory............................................................97
2.8.2 Historical Background of Social Justice………………………………………………....98
2.8.3 Seminal Authors who contributed to the Theory of social Justice…………………....99
2.8.4 Review of Seminal Authors’ Works on Social Justice Theories……………………..100
2.9 Summary and Literature Gaps on Social Justice Theories........................................113
QUASI-ACADEMIC MATERIA..........................................................................................114
2.10 Quasi-Academic Materials.......................................................................................114
2.10.1 Overview............................................................................................................... 114
2.10.2 Historical Background- Quasi-Academic Materials...............................................116
2.10.3 Review of Contributions of Quasi-Academic Materials on Anti-Corruption...........118
2.10.4 Literature Triangulation, Level of Analysis, and Purpose of the Research............133
2.11 Summary and Literature Gaps on Quasi-Academic Materials.................................136
2.12 Overview.................................................................................................................. 138
2.12.1 Achievements of the fight against FC....................................................................138
2.13 Challenges of Fight against Financial Corruption.....................................................141
2.13.1 Financial Corruption..............................................................................................141
2.13.2 Internal Audit Performance................................................................................... 142
2.13.3 Public Sector Financial Management....................................................................144
2.13.4 Social Justice........................................................................................................ 145
2.13,5 Ghana Integrated Financial Management Information System (GIFMIS).............146
2.13.6 Good Governance.................................................................................................147
2.13.7 Internal Audit Function..........................................................................................148
2.13.8 Anti-Corruption......................................................................................................149
2.14 Solutions to the Challenges of the Fight against FC................................................150
2.15 Summary..................................................................................................................151
METHODOLOGICAL AND LITERATURE GAPS…………………………………………....153
2.16 Overview……………………………………………………………………………………153
2.16.1 Literature Gaps..................................................................................................... 153
2.16.2 Methodological gap...............................................................................................155
2.17 Summary..................................................................................................................157
SUMMARY AND LITERATURE GAPS………………………………………………………..159
2.18 Summary and Literature Gaps………………………………………………………......159
PRACTICAL APPROACH IN OTHER PARTS OF THE WORLD…………………………..162
2.19 Practical Approaches of IA……………………………………………………………….162
2.19.1 Overview............................................................................................................... 162
2.19.2 Practical Approach of Internal Audit in Guatemala and Peru................................162
2.19.3 Practical Approach of Internal Audit in United Kingdom........................................163
2.19.4 Practical Approach of Internal Audit in South Africa..............................................164
2.19.5 Practical Approach of Internal Audit in the United State of America.....................165
2.19.6 Practical Approach of Internal Audit in Canada.....................................................165
2.19.7 Practical Approach of Internal Audit in China........................................................166
2.19.8 Practical Approach of Internal Audit in Kenya.......................................................167
2.19.9 Practical Approach of Internal Audit in Malawi......................................................168
2.19.10 Practical Approach of Internal Audit in Saudi Arabia...........................................169
2.19.11 Practical Approach of Internal Audit in India.......................................................170
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2.19.12 Practical Approach of Internal Audit in Brazil......................................................171
2.19.13 Practical Approach of Internal Audit in France....................................................172
1.19.14 Practical Approach of Internal Audit in Spain......................................................173
2.10.15 Practical Approach of Internal Audit in Japan.....................................................173
2.19.16 Practical Approach of Internal Audit in Germany................................................174
2.20 Gold Standard of Internal Audit Approach in Ghana................................................175
2.21 Comparative Analysis.............................................................................................. 176
2.22 Summary of Content Analysis of Practical Approaches...........................................178
CHAPTER THREE- RESEARCH METHODOLOGY………………………………………..180
3.0 Overview.................................................................................................................... 180
3.1 Appropriateness.........................................................................................................180
3.1.1 Rational for the choice of methodology...................................................................182
3.2 Research Design........................................................................................................183
3.2.2 Adoption of Monarch Research Process Flow........................................................186
3.3 Validity and Reliability................................................................................................190
3.4 Sampling Method....................................................................................................... 191
3.4.1 Sampling for Content Analysis................................................................................193
3.4.2 Sampling for Semi-structured Interview..................................................................194
3.5 Data Collection...........................................................................................................194
3.5.1 Data Collection from Reports and Financial Management Tools............................195
3.5.2 Validity and Reliability of Data Collection from Content Analysis............................196
3.5.3 Directing and Designing..........................................................................................196
3.5.4 Access to Participants.............................................................................................197
3.5.5 Interview and Transcription.....................................................................................198
3.5.6 Coding of Interview Responses..............................................................................199
3.5.7 Administration of Research Questionnaire..............................................................200
3.6 Data Analysis............................................................................................................. 201
3.6.1 Qualitative Data Analysis........................................................................................202
3.6.2 Research Data to be Distillated...............................................................................202
5.6.3 Evaluation of Results.............................................................................................. 203
3.7 Summary of Chapter Three........................................................................................204
CHAPTER FOUR-PRESENTATION OF DATA AND FINDINGS…………………………...206
4.0 Overview.................................................................................................................... 206
4.1 Review of Purpose of the Research...........................................................................208
4.2 Reliability and Validity................................................................................................208
4.3 Review of Design and Data Collection.......................................................................209
4.3.1 Data on Interviews, Questionnaires, and Profile of Participants.............................210
4.3.2 Coding and Organization........................................................................................ 212
4.3.3 Descriptive Factors................................................................................................. 212
4.3,4 Performance of Internal Audit in the Public Sector..................................................214
4.3.5 Presentation of Pre-study Data...............................................................................215
4.4 Presentation of Data from Public Sector Interview.....................................................216
4.4.1 Factors to improve on IAP.......................................................................................216
4.4.2 Correlation between IAP and PSFM.......................................................................217
4.4.3 Number Three: Factors Reducing IAP....................................................................218
4.4.4 Effectiveness of PSFM to curb FC..........................................................................219
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4.4.5 Objectives of IAP.....................................................................................................220
4.4.6 The Roles of Anti-Corruption Institutions.................................................................220
4.4.7 Effectiveness of IAF and IAP on IAP, and IAF........................................................221
4.4.8 Impacts of IAP on PSFM.........................................................................................222
4.4.9 Influence of IAP on FC............................................................................................222
4.4.10 Impacts of Good Governance on IAP, PSFM and FC...........................................223
4.4.11. Good Governance, IAP, PSFM, and Anti-Corruption...........................................223
4.4.12 Impacts of Social Justice on IAP, PSFM, and FC.................................................224
4.3.13 Audit Committee....................................................................................................224
4.4.14 Signing of Annual Audit Statement........................................................................225
4.4.15 Review of PFM Act, 2016......................................................................................225
4.4.16 Submission of Annual Audit Statement.................................................................225
4.4.17 Demand for PSO to sign Quarterly Reports..........................................................226
4.4.18 Promotional Challenges........................................................................................227
4.4.19 Grades of HIA and PSO........................................................................................227
4.4. 20 Relationship between Superior and Junior Officer...............................................228
4.4.21 Internal Audit Performance and Anti-Corruption...................................................228
4.5 Findings to the Research Question............................................................................228
4.6 Identification of Themes.............................................................................................229
4.7 Presentation of Data from Public Sector Survey........................................................229
4.7.1 Demographics of Responded Questionnaire Participants.......................................230
4.7.2 Awareness of the impact of IAP on the PSFM to avert FC.....................................230
4.7.3 Establishment of Anti-Corruption Institutions in Ghana...........................................231
4.7.4 Public Expectation of IAP in Anti-Corruption Venture.............................................232
4.7.5 Effectiveness of Anti-Corruption Institutions............................................................232
4.7.6 The Level of IAP in the Fight against FC.................................................................233
4.7.7 Incapacity of Anti-Corruption Institutions in Ghana.................................................233
4.7.8 Weaknesses of Anti-Corruption Institutions............................................................234
4.7.9 The PSFM in the fight against FC and Financial Loss............................................234
4.7.10 Impact of IAP on the PSFM in the Fight against FC..............................................235
4.7.11 Governance and Social Justice enhance IAP to minimize FC..............................235
4.7.12 Factors Militating Against IAP in the Public Sector...............................................236
4.7.13 Correlation between IAP and PSFM in the fight against FC.................................236
4.7.14 Correlation between IAP and FC..........................................................................237
4.7.15 Relationship between IAF and IAP........................................................................237
4.7.16. The Level of Internal Audit Performance..............................................................238
4.7.17 Characteristics of IAP that explain Effectiveness of IAF.......................................238
4.7.18 Mandate of Internal Audit Agency.........................................................................239
4.7.19 Treatment of Internal Auditors by IAA to fight FC..................................................240
4.7.20 Needed Support to Improve Effectiveness of IAP and PSFM...............................240
4.7.21 Status of Audit Committee.................................................................................... 241
4.7.22 Frequency of Audit Committee Meetings..............................................................241
4.7.23 Effectiveness of Audit Committee.........................................................................242
4.7.24 GIFMIS Platform................................................................................................... 242
4.7.25 Evaluation and Strength of Internal Control Mechanism.......................................243
4.7.26 Recognition of Internal Audit.................................................................................243
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4.8 Presentation of Data from Content Analysis..............................................................244
4.8.1 Audit Reports.......................................................................................................... 244
4.8.2 The causes of Financial Weaknesses and Irregularities.........................................244
4.8.3 Data from Program Base Budget Estimates (PBBE)..............................................247
4.8.4 Data from the Literature Review............................................................................. 248
4.9 Presentation of Pre-study Data..................................................................................248
4.9.1 The Relationship between Good Governance and Financial Corruption................249
4.9.2 The Relationship between Internal Audit Performance and Financial Corruption.. .250
4.9.3 The Relationship between Social Justice, and Good Governance..........................250
4.9.4 The Relationship between Social Justice and Financial Corruption........................251
4.9.5 Relationship between Internal Audit Function and Internal Audit Performance......251
4.9.7 The Relationship between Anti-Corruption, and Financial Corruption.....................252
4.9.8 Ghana Integrate Financial Management Information System.................................252
4.9.9 Determinants of the Level of IAP............................................................................ 253
4.10 Pre-study Data Analysis...........................................................................................253
4.11 Qualitative Analysis..................................................................................................254
4.12 Findings of the Research.........................................................................................259
4.13 Findings of Follow-Up Interviews.............................................................................264
4.14 Conclusion............................................................................................................... 264
4.15 Summary of Chapter Four........................................................................................266
CHAPTER FIVE- SYNTHESIS AND INTEGRATION………………………………………..268
5.0 Overview.................................................................................................................... 268
5.1 Distillation of Data...................................................................................................... 268
5.2 Review of the Research Method................................................................................269
5.3 Findings from Survey, Interview, Literature, and Content Analysis............................269
5.3.1 Analysis of IAP in fighting FC..................................................................................269
5.3.2 Analysis of Impacts of IAP on PSFM in fighting FC................................................271
5.3.4 Analysis of Factors to Improve on the Effectiveness of: IAP and IAF.....................273
5.3.5 Analysis of Correlation between IAP, PSFM, and FC.............................................274
5.3.6 Analysis of Factors Militating against IAP...............................................................276
5.3.7 Analysis of Characteristics that better explain IAF..................................................277
5.3.8 Analysis of Knowledge Gaps identified in the Literature review..............................277
5.3.9 Analysis of the Main Causes of FC.........................................................................279
5.3.10 Analysis of Characteristics of IAF that better explain IAP in Anti-Corruption........281
5.3.11 Analysis of the Roles of Internal Audit in the fight Against FC..............................284
5.4 Data Distillation from Follow-up Interview..................................................................287
5.4.1 Data Triangulation...................................................................................................288
5.4.2 The Public Dilemma Theme....................................................................................289
5.4.3 FC Drivers...............................................................................................................289
5.4.4 IAP Inhibitors...........................................................................................................290
5.4.5 FC Cost- Neutralizers..............................................................................................292
5.4.6 Impact Inhibitors......................................................................................................293
5.4.7 PSFM Inhibitors.......................................................................................................294
5.4.8 Public Guide............................................................................................................295
5.4.9 AP Determiners.......................................................................................................296
5.4.10 FC inhibitors..........................................................................................................297
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5.4.11 PSFM Determiners................................................................................................298
5.4.12Institutional Dilemma..............................................................................................299
5.4.13 SJ Inhibitors.......................................................................................................... 300
5.4.14 Institutional Challenges.........................................................................................301
5.4.15 Governance Factors..............................................................................................303
5.4.16 Public Expectation.................................................................................................304
5.4.17 Institutional Guide................................................................................................. 305
5.4.18 Desire Outputs...................................................................................................... 305
5.4.19 Right Principles..................................................................................................... 306
5.4.20 Wrong Principles...................................................................................................307
5.4.21 SJ Promoters........................................................................................................ 308
5.4.22 Role Definitions.....................................................................................................309
5.5 Description of the Existing Model...............................................................................311
5.5.2 Factors Militating Against Existing Model of Anti-Corruption...................................313
5.5.3 Negative Effects of Existing Model of Anti-Corruption.............................................314
5.6 Development of a New Model....................................................................................315
5.6.1 Factors to Make the New Model of Anti-Corruption Effective..................................315
5.6.2 Mac Charles Tamakloe Model of Ant-Corruption....................................................317
5.7 Significant of Research Findings................................................................................319
5.8 Contribution to Knowledge.........................................................................................321
5.8.1 The Characteristics of MacCharles Tamakloe Model..............................................325
5.8.2 How MacCharles Tamakloe Model can be Executed..............................................325
5.8.3 Where MacCharles Tamakloe Model can be executed...........................................326
5.9 Congruency of Praxis Gap.........................................................................................327
5.10 Summary of Chapter Five........................................................................................329
CHAPTER SIX- CONCLUSION AND RECOMMENDATIONS……………………………..331
6.0 Review and Summary of the Research......................................................................331
6.1 Limitation and Solution to Data Collection..................................................................332
6.2 Contribution to Theories on Governance, Social Justice and Corruption...................333
6.3 Research Reliability and Validity................................................................................335
6.4 Recommendations for Future Research....................................................................337
6.4.1 Policy and Procedures to enhance IAP in the Fight against SVIFC........................339
6.5 Conclusion of the Research.......................................................................................340
6.6 Summary of Chapter Six............................................................................................341
LIST OF APPENDICES................................................................................................... 372
APPRNDIX A: AFRICAN MAP SHOWING GHANA.........................................................373
APPENDIX B: DATA COLLECTION STAGES.................................................................374
APPENDIX C: DISSERTATION FIELD LETTER.............................................................375
APPENDIX D: HUMAN SUBJECT APPRAISAL FORM..................................................376
APPENDIX E: CONSENT TO PARTICIPATE IN RESEARCH........................................377
APPENDIX E1: CORRESPONDENCE WITH RESPONDENTS......................................379
APPENDIX F: SEMI-STRUCTURED INTERVIEW QUESTION.......................................384
APPENDIX G: FOLLOW-UP INTERVIEW QUESTION..................................................388
APPENDIX H: SURVEY QUESTIONNAIRE....................................................................392
APPENDIX HH: COMPARISM OF COUNTRIES USING IA APPROACHES ON
ACHIEVEMENT, CHALLENGES, AND SOLUTIONS......................................................396
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APPENDIX H1: FACTORS TO IMPROVE ON EFFECTIVENESS OF IAP.....................400
APPENDIX H2: FACTORS PROMOTING EFFECTIVENESS OF IAP............................401
APPENDIX H3: ROLES OF ANTI-CORRUPTION INSTITUTIONS.................................402
APPENDIX H4: IMPACTS OF IAP ON FC THROUGH PSFM.........................................403
APPENDIX H5: QUESTIONNAIRE VALIDITY TESTING RESULT.................................404
APPENDI X I: INITIAL INTERVIEW PROBABILITY TREE..............................................405
APPENDIX J: FOLLOW-UP INTERVIEW PROBABILITY THREE..................................406
APPENDIX J1: IMPACTS OF IAP ON PSFM..................................................................407
APPENDIX J2: SIGNING OF ANNUAL AUDIT REPORT AND IAP.................................410
APPENDIX K: CORRELATION BETWEEN IAP AND PSFM...........................................412
APPENDIX L: SIGNING OF INTERNAL AUDIT QUARTERLY REPORT........................414
APPENDIX M: CHARACTERISTICS OF IAP AND IAF...................................................416
APPENDIX N: HIA AND GIFMIS..................................................................................... 417
APPENDIX O: IAP WITH BOA AND COA.......................................................................418
APPENDIX P: CORRELATION BETWEEN PSFM AND SJ............................................419
APPENDIX Q: NEEDS TO REVIEW PFM ACT, 2016 (ACT 921)....................................420
APPENDIX R: INTEPRETATION OF ADOPTED CODES...............................................421
APPENDIX S: WORDS, PHRASES AND SENTENCES CODES....................................423
LIST OF FIGURES AND TABLES

FIGURE 1.1 : GLOBAL CORRUPTION BAROMETER.............................................................................10
FIGURE 1.2 : WGCCI FROM 2008 TO 2014............................................................................................ 13
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FIGURE 1.4 : METHODOLOGICAL TRIANGULATION............................................................................16
TABLE1.6 : THEORIES AND QUASI-ACADEMIC MATERIALS REVIEWED...........................................19
FIGURE 1.8 : LEVEL OF ANALYSIS AND PARTIAL STAKEHOLDERS’ SCHEME.................................22
TABLE 1.9 : DEFINITION OF TERMINOLOGIES USED..........................................................................23
FIGURE 2.1.1 : LITERATURE REVIEW INTEGRATION..........................................................................32
TABLE 2.1.2 : SOURCES OF LITERATURE............................................................................................ 33
FIGURE 2.2A : KEY MANDATORY ROLES OF INTERNAL AUDIT IN ANTI-C DRIVES..........................36
FIGURE 2.2 B : ARCHITECTURE OF IAP, PSFM AND PSOG................................................................37
FIGURE.2.2 C : TARGETS OF THE LITERATURE REVIEW...................................................................38
FIGURE: 2.4.2A : CORRELATION BETWEEN IAP, PSFM AND FC........................................................42
FIGURE 2.4.2B : CORRELATION BETWEEN INEFFECTIVE IAP, INEFFECTIVE PSFM AND FC.........43
FIGURE: 2.4.3 : PILLARS OF GOOD GOVERNANCE.............................................................................55
FIGURE: 2.6.2B: RELATIONSHIP BETWEEN IAP, PSFM,1 AND FC......................................................70
FIGURE: 2.10.2 : SCHOLARSHIP DOMAINS CONTRIBUTING TO ANTI-CORRUPTION....................118
FIGURE: 2.10.3. : MAIN DRIVERS OF FC.............................................................................................. 133
FIGURE 2.10.4A : LITERATURE TRIANGULATION...............................................................................134
FIGURE 2.10.4B : LEVELS OF ANALYSIS & PARTIAL STAKEHOLDERS SCHEMA...........................135
TABLE 2.16.1: LITERATURE GAPS AND RESEARCH CONTRIBUTION..............................................153
FIGURE 3.2 : METHODOLOGICAL TRIANGULATION..........................................................................184
FIGURE 3.2.2 : UGSM STANDARD MIXED RESEARCH METHOD......................................................189
TABLE 4.4.2A : PARTICIPANT PROFILE OF ENTIRE SAMPLE INTERVIEW RESPONDENTS...........213
TABLE 4.4.2B : PROFILE OF THE ENTIRE SAMPLE OF QUESTIONNAIRE RESPONDENTS...........214
TABLE 4.4.1 : FACTORS TO IMPROVE ON THE EFFECTIVENESS OF IAP.......................................217
TABLE 4.4.3 : FACTORS REDUCING THE LEVEL OF IAP...................................................................219
TABLE 4.4.5 : OBJECTIVE OF IAP IN THE PSFM.................................................................................220
TABLE 4.4.7A : CHARACTERISTIC THAT DETERMINE THE EFFECTIVENESS OF IAP AND IAF.....221
TABLE 4.4.7 B : THE LEVEL OF IAP IN YOUR ORGANIZATION..........................................................221
TABLE 4.4.8 B : IAP IMPACTS ON PSFM.............................................................................................. 222
TABLE 4.4.11 : EFFECTS OF GOVERNANCE ON IAP, PSFM AND ANTI-CORRUPTION...................223
TABLE 4.4.12 : INFLUENCE OF SOCIAL JUSTICE ON IAP, PSFM, AND ANTI-CORRUPTION..........224
TABLE 4.4.13 : AUDIT COMMITTEE...................................................................................................... 224
TABLE 4.4.14 : SIGNING OF ANNUAL AUDIT STATEMENT................................................................225
TABLE 4.4.15 : REVIEW OF PFM ACT, 2016........................................................................................225
TABLE 4.4.16 : SUBMISSION OF ANNUAL AUDIT STATEMENT.........................................................226
TABLE 4.4.17 : DEMAND FOR PSO TO SIGN QUARTERLY REPORTS..............................................226
TABLE 4.4.18 : PROMOTIONAL CHALLENGES....................................................................................227
TABLE 4.4.19 : GRADES OF HIA AND PSO..........................................................................................227
TABLE 4.4.20 : RELATIONSHIP BETWEEN SUPERIOR AND JUNIOR OFFICER...............................228
TABLE 4.7.2 : AWARENESS OF IAP IN THE PUBLIC INSTITUTIONS.................................................231
TABLE 4.7.3 : ESTABLISHED ANTI-CORRUPTION INSTITUTIONS IN GHANA..................................231
TABLE 4.7.4 : PUBLIC EXPECTATION OF IAP IN ANTI-CORRUPTION PROGRAMS.........................232
TABLE 4.7.5: EFFECTIVENESS OF ANTI-CORRUPTION IN GHANA..................................................232
TABLE 4.7.6 : LEVEL OF INTERNAL AUDIT PERFORMANCE.............................................................233
TABLE 4.7.7 : INCAPACITY OF ANTI-CORRUPTION INSTITUTIONS IN GHANA................................233
TABLE 4.7.8 : WEAKNESS OF ANTI-CORRUPTION INSTITUTIONS...................................................234
TABLE 4.7.9 : CAN PSFM HELP TO FIGHT FC AND PREVENT FINANCIAL LOSS.............................234
TABLE 4.7.10 : IMPACTS OF IAP ON PSFM HELP IN THE FIGHT AGAINST FC................................235
TABLE 4.7.11 : GOVERNANCE, SOCIAL JUSTICE, IAP, AND FC........................................................235
TABLE 4.7.12: FACTORS MILITATING AGAINST IAP...........................................................................236
TABLE 4.7.13 : CORRELATION BETWEEN IAP, AND PSFM................................................................237
TABLE 4.7.14 : CORRELATION BETWEEN IAP, AND FC.....................................................................237
TABLE 4.7.16 : LEVEL OF IAP IN THE FIGHT AGAINST FC.................................................................238
TABLE 4.7.17 : CHARACTERISTICS OF IAP THAT EXPLAIN EFFECTIVENESS OF IAF....................239
TABLE 4.7.18 : IAA MANDATED TO SUPPORT IAP IN THE PSOG......................................................239
TABLE 4.7.19 : TECHNICAL SUPPORT BY IAA TO INTERNAL AUDITORS........................................240
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TABLE 4.7.20 : NEEDED SUPPORT FOR IAP AND PSFM TO BE MORE EFFECTIVE.......................240
TABLE 4.6.21 : AUDIT COMMITTEE IN THE PUBLIC SECTOR...........................................................241
TABLE 4.7.22 : AUDIT COMMITTEE MEETINGS...................................................................................241
TABLE 4.7. 23 : EFFECTIVENESS OF AC TO ENHANCE IAP..............................................................242
TABLE 4.7.24 : GIFMIS IN THE PSOG................................................................................................... 242
TABLE 4.7.25 : EVALUATION OF CONTROL MECHANISMS...............................................................243
TABLE 4.7.26 ; RECOGNITION OF INTERNAL AUDITORS..................................................................243
TABLE 4.8.1A : FINANCIAL WEAKNESSES AND IRREGULARITIES..................................................244
TABLE 4.8.2C : CAUSES OF PAYMENT IRREGULARITY....................................................................245
TABLE 4.8.2 D : CAUSES OF TAX IRREGULARITIES..........................................................................245
TABLE 4.8.2 E : CAUSES OF RENT IRREGULARITIES........................................................................245
TABLE 4.8.2 F : CAUSES OF CASH IRREGULARITY...........................................................................246
TABLE 4.8. 2G; CAUSES OF STORE AND PROCUREMENT IRREGULARITIES................................246
TABLE 4.4.8.2H : CAUSES OF CONTRACT IRREGULARITIES............................................................247
TABLE 4.8.2I : CAUSES OF LOAN IRREGULARITIES..........................................................................247
TABLE 4.8.3 : AUTHORIZATION AND FEATURING IN COA AND BOA UNDER PBBE.......................248
TABLE 4.8.4 : DATA FROM LITERATURE REVIEW..............................................................................248
TABLE 4.11A: DISTRIBUTION OF INTERVIEW PARTICIPANTS..........................................................254
TABLE 4.11B : DISTRIBUTION OF QUESTIONNAIRE PARTICIPANTS...............................................255
Figure 4.11E: Determinants of Internal Audit Performance……………………………....261
TABLE : 4.13 : FINDINGS FROM FOLLOW-UP INTERVIEWS..............................................................264
FIGURE 4.14 A THE LEVEL OF IAP IN THE PUBLIC SECTOR OF GHANA.........................................265
FIGURE 4.14B : CHARACTERISTICS THAT DETERMINE THE EFFECTIVENESS IAF.......................266
FIGURE 5.5.1 : EXISTING PSFM MODEL.............................................................................................. 312
FIGURE 5.6.2 : MACCHARLES TAMAKLOE MODEL OF ANTI-CORRUPTION....................................319
LIST OF ABBREVIATIONS
AC Audit Committee
ACA Anti-Corruption Agency
Page | xvii
ACE Anti-Corruption Equation
A Accountability
AGR AGR- Auditor General Report
AFA French Anti-Corruption Agency
AFCE Association Fraud Certified Examiners
Ant-C Ant-Corruption
ARIC Audit Report Implementation Committee
AUCPCC African Union Convention on Preventing and Combating Corruption
BOA Bill of Appropriation
BPEMS Budget and Public Expenditure Management System
CAAT Computer Assisted Audit Technology
CFP Corporate Financial Performance
CG Corporate Governance
COA Chart of Account
CGU Controladoria General da União
CPI Corruption Perception Index
CSP Corporate Social Performance
D Discretion
DPS Deterrent Punitive System
EIA Effective Internal Audit
EIAP Effective Internal Audit Performance
EPSFM Effective Public Sector Financial Management
FC Financial Corruption
FRS Financial Report System
FCEF Financial Corruption Equation Formula
FCL Financial Corruption Level
FIIA French Institute of Internal Auditors
FTE Fiscal Transparency Evaluations
GCBA Global Corruption Barometer Average
GCDD Ghana Centre for Democracy and Development
GCWMF Good Conscience with Moral Fiber
GCWSMF Good Conscience with Strong Moral Fiber
GIFMIS Ghana Integrated Financial Management Information System
GG Good Governance
GII Ghana Integrity Initiative
IA Internal Audit
IAA Internal Audit Agency
IAF Internal Audit Function
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IASB International Accounting Standard Board
IFC International Finance Corporation
IMF International Monetary Fund
MDAs Ministries Departments and Agencies
MFs Militating Factors
MM Modigliani and Miller
UNDP United Nations Development Program
MMDA Metropolitan Municipal District Assemblies
M Monopoly
MTM MacCharles Tamakloe Model
NACAP National Anti-Corruption Action Plan
PAC Public Account Committee
PBBE Program Base Budget Estimate
PFs Promoting Factors
PWAPC Political Will and Political Commitment
PwC PriceWaterCoopers
OECD Organization for Economic Corporation and Development
SJ SJ- Social Justice
SRQ Sub Research Question
SVIFC Social Vices Including Financial Corruption
TI Transparency International
WBG World Bank Group
USAID United State Agency For International Development
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CHAPTER ONE
INTRODUCTION
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CHAPTER ONE - INTRODUCTION
1.0 Introduction
Internal Audit is an independent, objective assurance and consulting activity designed to
add value and improve an organization’s operations (Unice Ku, 2023; IIA, 2023). Also, It
helps an organization accomplish its objectives by bringing a systematic, disciplined
approach to evaluate and improve the effectiveness of risk management, control, and
governance processes (Unice Ku, 2023; IIA, 2023). Also, financial management data in
the Ghanaian economy notes, African Union estimates that financial corruption (FC)
costs Africa more than $150 billion dollars yearly, and it costs Ghana $3 billion annually
(Allotey, 2019). Hence, representatives of the civil society in Ghana raised concerned
on the abuse of the state resources (Freedom House, 2018). Internal auditors job is not
done until defects are corrected and remain corrected (Sawyer, 195). In view of this,
Jeppesen,(2019); IIA, (2020); Perterson et al., (2019); Neratzidis et al.,(2020); Brenk et
al.,(2022), point out that, internal audit (IA) has the role in fighting corruption in the
public sector, and internal auditors supposed to be at the forefront for public interest.
According to Jeppesen (2019) and Thomas Dye (1998), Internal Audit is considered one
of the eight pillars of a national integrity system to fight corruption. These are feasible
approaches by which public organizations can solve administrative and financial
corruption (IIA, 2021; Diab Abuliala, Waheeb Gadour,Khali Yousif,Sukinah, 2020) .The
issue of concern in Ghana is the corrosive impacts of financial corruption on the
economic growth, human rights, and poverty reduction (UNDP, 2020). The effect of
Social Vices including Financial Corruption (SVIFC) has been a setback to national
development. Also, the level of FC in Ghana poses an obstacle for business operating
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and planning to invest in the country (Global Integrity, 2020).This calls for effective
Internal Audit Performance to fight the SVIFC. Internal Audit drives in management and
planning play a fundamental and important role in promoting and improving good
governance (IIA China, 2020; 2022,Christopher, 2019), also, it is one of the internal
control mechanisms to improve and strengthen governance (Kotb et al., 2020 ;
Matarneh, 2011, IIA, 2022), to combat financial corruption., and other social vices.
For internal auditing to be a value-added activity, it is important for internal auditors to
comply with the International Standards for Professional Practice of Internal Auditing
( Albin and Montondon, 1995; Chambers, 1998; Witt & Moeller, 1999; IIA, 2022).
However, the various governments in Ghana made an attempt to improve on the
economy but were impeded by the effects of SVIFC, and militated against their efforts.
The effects of financial corruption retard socio-economic development and persistently
increase the national debt stock. The public debt of Ghana as at December 31, 2021
stood at GhC381.96 billion equivalent to $ 58.64 billion US dollars (Bank of Ghana,
Ministry of Finance, and Ghana Annual Debt Reort, 2022). Ineffective Internal Audit
Performance (IIAP) and Infective Public Sector Financial Management (IPSFM)
contribute to factors of financial corruption. Despite Ghana’s democratic governance
and multi-party credentials, corruption remains cancerous in its public service and
society (World Bank, 2013). The complex socio-economic phenomenon that is difficult
to quantify and has drawn much attention in recent years in the Public Sector of Ghana
(PSoG) is corruption because of its negative impacts on people. It prevents the
economic development and social stability of a nation since it is rooted in the existence
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of privileges and incomplete market mechanisms (Asiedu & Deffor, 2017). FC is the
abuse of public office for private and financial gains (World Bank, 2020). It is one of the
most destructive impediments to socio-economic development in Ghana; it takes away
resources from the common pool and deprives the larger population of benefiting from
the state coffers resulting in social injustice, inequity, and economic hardship (Asiedu &
Deffor, 2017). This calls for the way out.
The cardinal focus of this research was to answer the main research question and
assess Internal Audit Performance and its impacts on Public Sector Financial
Management in the fight against financial corruption. It is important to think through the
process of managing performance and using performance as a means of accountability
in a systematic manner to avoid financial corruption (Shah, n.d). According to Internal
Audit Agency (2013), Internal Audit (IA) is a catalyst for the detection and prevention of
corrupt activities in order to enhance Public Sector Financial Management.
Performance-based accountability systems measure both performance of policy
delivery systems, and the performance of the managers of those systems and to
assume that the latter determines the former (Shah, n.d). This idea well represents
Internal Audit Performance, and its impacts on the Public Sector to determine the
instrumentation of social vices including FC in the Public Sector of Ghana. FC fosters
public sector incompetence and ineptitude; it debases public morality, promotes and
sustains inefficient service delivery, perpetuates poverty and ultimately entrenches
underdevelopment (Hanna, Bishop, Nadel, Scheffler & Durlacher, 2021).
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1.0.1 Policy and Procedures to enhance IAP in the Fight against FC
Apparently, mechanism in form of policy and procedures for detection, prevention, and
correction of threats, errors, and infractions is crucial to protect the public sector against
the menace of SVIFC. These policies, and procedures will enhance effectiveness of
internal audit function (IAF), and Internal Audit Performance to impact on all units and
directorates of the Ministry, Department and Agencies (MDAs), as well as Metropolitan,
Municipal and District Assemblies (MMDAs). Various factors affect the evolution of
internal audit effectiveness in the public sector (Cohen, 2010, and Musah 2018) .
However, effectiveness of Internal Audit (EIA) bases on its core principles. Internal Audit
Function remains effective, if all principles are present, and operate effectively (Gleim,
2019). The core principles asserts by Gleim (2019) include:
 Demonstration of integrity,
 Demonstration core competence and professional care,
 Objectivity and freedom from undue influence,
 Aligns plans with strategies, objectives, and risks,
 Appropriately positioned and well resourced,
 Demonstration of continuous improvement,
 Effective communication,
 Provision of risk-based assurance
 Being insightful, proactive, and future-focused and
 Promotion of organizational improvement (Gleim, 2019).
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Internal Audit, as a vital component of financial management, should always strive to
meet public expectations and be able to detect, prevent and correct corrupt activities
according to its mandated functions (Limperg, Ismajili, Bett and Memba, 2017). Internal
Audit Agency (IAA) and Institutes of Internal Auditors (IIA) defines Internal Audit as an
independent, objective and consulting activity designed to add value and to improve on
the organization’s operations through a systematic and disciplined approach, which
includes evaluating and improving on the effectiveness of risk management, control
system and corporate governance (Gansberghe & Nordin, 2005; IIA,2017, and IIA,
2021). Similarly, Wood (2021) notes, Internal Audit function is still at its infancy, its
largest time is spent on pre-auditing transactions, which are ex-ante, check of
compliance to the rules and procedures and limited time is allocated to post-audit and
systemic issues. Many external parties influenced the audit strategies and internal
controls which results in the impairment of Internal Audit Performance and its
independence (Hellman, 2022).
The causes of corruption in Africa include: weak control system, the negative colonial
legacy, poor leadership, manipulation of financial documents, selfishness, favoritism,
nepotism, non-adherence to procedures, weak anti-corruption institutions, lack of
accountability, lack of transparency, lack of political will, weak ethical values, weak
judicial system, insecurity and conflicts of interest (Lumumba , 2015). Highlighting on
the menace of financial corruption, Africa Development Bank (2018) re-emphasizes
that, African continent loses US$150 billion annually through financial corruption, which
exceeds donor funds and financial aids to Africa. Generally, the effects of corruption in
Page | 6
Africa have been so monumental that, corruption and HIV/AIDS are noted as the two
major killers (Murray & Meghji, 2013). According to Murray & Meghji (2013), corruption
is a complex and beguile phenomenon that takes place not only in the finance field, but,
in multifarious domains in the social environment, which includes: administration,
government, judiciary, health care system, and education. Covering all types of
corruption is a mammoth task (Murray & Meghji, 2013), therefore, it was beyond the
domain of this research, hence, the research concentrated only on financial corruption.
Performance mandate of Internal Audit was derived from: Section 83 (3c) of the Public
Financial Managemnt Act, 2016 (ACT 921), which stipulates that, internal auditor of a
covered entity shall provide assurance on efficiency, effectiveness, and economy in the
administration of the programs and operations of a covered entity.
The domain of this research would provide an avenue to provide a broad knowledge in
the field of internal auditing, public sector financial management and internal audit
function in the fight against financial corruption. Also, the research reviewed thirty-three
(35) seminal authors’ works of scholarly literature on theories centered on: corruption,
social justice, and governance as well ten (10) scholarly academic-quasi materials
technically in nature and from professional arena. Additionally, review of IA approaches
of 16 countries use in, other parts of the world to solve similar problems facing Ghana
were not exclusive. Moreover, the research attempts to bridge the knowledge gap
between IAP and PSFM in fighting financial corruption. Furthermore, the research
developed a conceptual model to be backed by policy, and procedures to enhance
effectiveness of IAP to fight SVIFC in Ghana.
Page | 7
1.1 Historical Backdrop of the Problem
Corruption has been a major bane to Ghana’s socio-economic and political
development since its independence (Anon, 1984). Added to this, Tsikata & Yaro (2014)
state that, in Ghana, “corruption has weakened most state institutions, the diaspora of
Ghanaian academics and professionals, the weakening of institutions were to have
serious consequences when economic reforms were finally initiated". The various
governments made efforts to avert corruption, and according to Kermeliotis (2013), this
is not to imply that Ghana's governments are corruption-free. Internal polling and
anecdotes suggested that there is still rampant corruption within many branches of the
government (Churchill et al., 2013). Attesting to the fact that, corruption is factual in
Ghana, Lekalake et al. (2017) stressed that, 73% of the Ghanaians wanted corrupt
officials prosecuted and jailed, and 64% opined that, in addition, corrupt officials should
return the stolen funds and be publicly named and disgraced. This proved that FC is
palpable in Ghana and it remains a problem, despite legal and institutional frameworks,
active media coverage and government anti-corruption initiatives to counter it (Freedom
House, 2018). Also, Bertelsmann Stiftung (2018) noted that, corruption scandals have
weakened the legitimacy of democratic institutions among the broader population.
Kofi Annan (Kofi Annan, 2003, 2017; NACAP, 2011: 2021) stipulate that, corruption is
an insidious plague that has a wide range of corrosive effects on societies. It
undermines democracy and the rule of law that leads to violation human rights, distort
markets, and erodes quality of life and permit organized crime (Kofi Annan, 2003, 2017;
NACAP, 2011: 2021). The foundation of Ghana was laid in 1957 on the pillars of
Page | 8
Freedom and Justice with the contention of making every citizenry to enjoy freedom
devoid of any social injustice (Republic of Ghana, 2022). Freedom and Justice is the
motto of national aspiration of Ghana, and equal opportunity means equal freedom
under, what Dorn (n.d) called the “law of justice” that is, the law of liberty. Mechanisms
to check and ensure that freedom and justice prevail in Ghana progressed through
many stages and ended with weaknesses and no compliance. Since the 1960’s,
researchers tried to discover and clarify differences in the effective public sector
financial management (EPSFM) and ineffective public sector financial management
(IPSFM) depending on the impacts of Internal Audit Performance, which revealed by the
audit and financial reports of public institutions by means of corruption (Guthrie, Petty,
Yongvanich, & Ricceri, 2022). An analysis supported the idea that no research had
been conducted with concentration on Internal Audit Performance as the best anti-
corruption tool, and a catalyst of Public Sector Financial Management in Ghana. Based
on the research question, a qualitative research approach was utilized as a suitable
research tool to help answer the research question adequately. The level of financial
management performance is quantified in annual reports using analysis as they appear
in the annual reports (Guthrie, Petty, Yongvanich, & Ricceri, 2022). Within the literature
review section, PSFM reporting studies in the various years used corporate annual
reports as the major source of data and employed content analysis as the investigative
tool to determine report trends, practices and repercussion of ineffective IAP and PSFM.
Although it can be argued that, all forms of external communication of the MDAs and
MMDAs should be monitored and evaluated if researchers want to capture reporting of
Page | 9
actual financial management to avoid material misstatement and FC. Gray et al. (n.d)
claimed that, the difficulty is that it is impossible to determine with certainty that all
communications are taken into accounts of all issues bothering on nation building.
Afesorgbor (2017) stipulates that, Global Corruption Barometer Report (GCBR) on
Ghana by the Transparency International (TI) indicates that more than 50% of the
respondents perceived that corruption has increased while 35% think it is extreme.
Afesorgbor (2017) added that among the different institutions, percentage of
respondents perceived the following public institutions as extremely corrupt: Police
(92%), Judiciary (71%), Political Parties (76%) and Civil Service (59%), though, all
these institutions have Internal Audit Unit and Finance Directorate in place. Figure 1.1
below shows the Global Corruption Barometer of institutions with respect to corruption.
Figure 1.1
Global Corruption Barometer
INSTITUTIONS RATE
Business Executives 34%
Elected representative 36%
Government officials 35%
Local Government 33%
Police Service 36%
Prime Minister/President 32%
Religious Leaders 18%
Tax Officials 30%
Source Adapted: TI (2020)
Page | 10
It evidenced that, social vices including financial corruption (SVIFC) is real but
inherently pervasive in Ghana as proved by exposé of the corrupt Judiciary staff by
Anas Aremeyaw Anas (2010), the undercover journalist of Tiger Eye . The exposé
established that, there is social vice in the judiciary service, which expected to
adjudicate, preserve and safeguard the laws to protect citizenry and prevent SVIFC. It is
therefore worth noting that, if significant members of the bench could easily be
compromised, then, Ghana is in a serious quagmire (Afesorgbor, 2017). World Bank
(2017; 2021) and Oppong et al. (2014) indicate that a high percentage of firms in Ghana
required to pay bribes in obtaining licenses, government contracts and business
permits. Based on the analysis of Auditor General Report, Ghana losses over three (3)
billion US dollars of taxpayers’ money in corrupt activities annually (Franklin, 2019).
Also, Briggs and Philip (2016 ; 2019) established that Ghana lost one thousand, two
hundred (1,200) school blocks and three thousand (3,000) boreholes through corrupt
activities. Nevertheless, it has been estimated that every USD 100 million recovered
can fund complete immunizations for 4 million children or provide water connections for
some 250 000 households (Perdriel, 2019). Today, in the world of democracy, FC is a
nuisance in first, second and third world countries, though, Sanyal & Samanta (2017)
categorized same countries of the world into most corrupt and less corrupt. Further,
Sanyal and Samanta (2017) claim that, there appeared to be a general breakdown of
the moral fiber of the society. This culminated in the conspicuous material consumption,
misappropriation of societal and national assets on a massive scale and the devaluation
of the ideals of nationhood and patriotism (Owiredu & Churchill, 2014, 2019 ; Klitgaard,
2017).
Page | 11
1.2 Problem Statement
Having proven that social vices including financial corruption undermines democracy
and the rule of law ( NACAP, 2011: 2021; Kofi Anann,2013 : 2017), then ones can say
SVIFC is a big problem and needs formidable solution. It is deduced that, the acts of
corruption contribute to global poverty, obstructs development, and drives away
investment ( World Bank, 2020). Although, Public Sector Financial Management bases
on the legal and regulatory framework, the Ghanaian economy is fraught with Financial
Corruption. Ghana Centre for Democracy and Development (GCDD, 2000) revealed
that: 75% of Ghanaians regard corruption as a serious national problem, 59% of them
saw it as a major problem in the private sector and 86% also saw it as a major problem
in the public sector. Ghana Innovation Index (GII) (GII, 2021), also indicated that
Ghanaians perceived corruption as equally serious, with 92% of urban households in
Southern Ghana citing corruption as prevalent in the country, while 90% of them
considered it as a serious problem. The GCDD and GII affirmed the awareness and
occurrence of FC in the PSoG, because of an ineffective check system. Financial
Corruption can reduce a country's Gross Domestic Product by 0.5% (IMF, 2021).
Moreover, IBRD (2022) notes that, SVIFC weakens the ability of a nation to enforce
compliance with rules and institutional laws. Bank-IMF (2021) emphasizes there need to
ensure the rule of law to on improves the tansperancy, efficiency and accountability of
public sectors to combat corruption. The research assessed Internal Audit Performance,
and provided a framework to fight Financial Corruption. This is because, FC continues
to exact a heavy toll on Ghana’s economy, society, politics, and national development
Page | 12
(NACAP, 2018). Hence the needs to assess IAP and to provide a model to fight FC.
World Bank (2016; 2020) notes that Ghana’s percentile rank expressed the trend in
Figure 1. 2 below showing Worldwide Governance Control of Corruption Indicator
(WGCCI).
Figure 1.2
WGCCI from 2008 to 2014
WGCCI
60
58
56
54
52
50
48
2007 2008 2009 2010 2011 2012 2013 2014 2015
Source: WGCCI (2017)
1.3 Relevant of the Research

The relevance of research was to examine and ascertain the correlation between the
Internal Audit Performance and Public Sector Financial Management in the fight against
Financial Corruption. Furthermore, the research proposed a conceptual Model to bridge
the gaps between IAP, and PSFM, and enhance the effectiveness of duo to the fight
against financial corruption and avert its effects.
1.3.1 Research Question
The research aimed to analyze the Internal Audit Performance and the relationships
between Internal Audit Performance and Public Sector Financial Management in the
Page | 13
fight against financial corruption. The research critically analyzed the existing literature
relevant to Internal Audit Performance and Public Sector Financial Management aim to
fight Financial Corruption. It developed a conceptual model that better explains, and
enhances the effectiveness of IAP and IAF in the Public Sector. The research answered
the following main research question
Main Research Question:
What are the characteristics of a new conceptual model that better explains the
effectiveness of the Internal Audit Function in the public sector of Ghana?
1.3.2 Sub Research Question
In order to respond to the main research question and provide in depth understanding of
the study phenomenon. Seven sub research questions (SRQ) are developed to provide
qualitative yardstick and data points for contemplation in the qualitative analysis of the
subject matter of the research. The SRQs are as follow;
SRQ1. What is the relationship between Good Governance and Financial
Corruption in the Public Sector of Ghana?
SRQ2. What is the relationship between Internal Audit Performance and
Financial Corruption in the Public Sector of Ghana?
SRQ3. What is the relationship between Social Justice and Governance in
the Public Sector of Ghana?
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SRQ4. What is relationship between Social Justice and Financial
SRQ5. What is relationship between Internal Audit Performance and Good
Governance in the Public Sector of Ghana?
Function in the Public Sector of Ghana?
SRQ7. What is the relationship between Anti-Corruption and Financial
Corruption in the Ghana?
1.4 The Research Methodology

The research used abductive approach taking inputs from deductive and inductive
approaches as illustrated by Bougie, Eisenhardt, & Sonenshein (2016), Patton et al.,
(2017). The research generates insights into the practice of IAP and how it impacts on
PSFM to fight SVIFC. The problem and objectives of the research call for inclusion of
survey. Hence, both interview, and questionnaire were used to gather qualitative data
from a specific group of public servants, analyzed it qualitatively, and drew conclusion
based on the findings. The nature of this research calls for and affirm methodological
triangulation as suitable, and perfect. Figure 1.4 below shows data triangulation
integrating the literature review, content analysis, and field work, which enabled the
researcher to answer the research question.
Page | 15
Figure 1.4
Methodological Triangulation
Source Adapted: UGSM-Monarch Business School Switzerland
The literature review covered scholarship domains on theories of: governance,
corruption, and social justice including Quasi-academic materials and IA approaches
used in other parts of the world .The quasi-academic materials from the professional
arena informed the literature review focusing on IAP, PSFM, GG, SJ, IAF, and FC. The
content analysis consists of Budget Chart of Account (COA), Bill of appropriation (BOA),
Audit General Reports (AGR), and Public Financial Management tools. Moreover,
questionnaires, and interviews were conducted to obtain responses from anonymous
selected public servants. The research interrogates the perceptions, personal beliefs,
life experiences, and understand of the roles, and impacts of IAP on PSFM in the fight
against SVIFC. Moreover, qualitative analysis of the sub research questions were
Page | 16
employed to find out the relationship between dependent variable, and Independent
variables. The results of the pre-study inform the interview questions. Phenomenology
was then used for the interview process to ensure that individuals who have experience
in the public sector state the realities on the ground for clarity, and frankness. UGSM-
Monarch Research Standard Mixed steps as a process flow was adapted and utilized to
assess the Internal Audit Performance as a tool to fight Financial Corruption in the
Ghanaian economy. The qualitative findings were then compared, contrasted, and a
model in a circular form presented to be back by IA policy, and procedures.
Qualitative research approach was employed for data collection, and analysis.
Respondents of both interviews conducted and questionnaire administered, ‘’The Level
of IAP is Low, or Below Standard’’ (Research, Tables 4.4.7B, 4.7.6, & 4.7.16)
respectively, due to 21 militating factors against IAP (Research, Tables 4.4.3). The
interview responses were transcribed and coded accordingly. Appendices R, S, and S1
demonstrate the transcribed interview responses, interpretation of thematic codes, and
thematic codes of the research respectively. Answering the main research question
adequately, the research participants involved in the field work showed, the
characteristics that better explains effectiveness of IAF in Tables 4.4.7A, and 4.7.17.
1.5 Purpose of the Research

The primary aim of the research was to assess Internal Audit Performance and its
impacts on Public Sector Financial Management in fighting Financial Corruption. The
intent was to answer the Main Research Question:
Page | 17
effectiveness of Internal Audit Function in the public sector of Ghana?
This aimed to avoid repercussions of Financial Corruption, which are but not limited to
social injustice, inequity, inequality, less socio-economic development, poverty,
persistent increase in national debt, and financial loss to the state. Moreover, the
research was to develop a conceptual model that could better explain and improve on
the effectiveness, and correlation between Internal Audit Performance, and Public
Sector Financial Management with a special focus on improvement on the anti-
corruption strategies in the Ghanaian economy. Furthermore, the research aimed to fill
the knowledge gaps identified in the literature, and will be significant to scholarly, helps
government on policy issues, and guide public institutions in the effective anti-corruption
programs. Finally, the research was to interrogate, and ascertain: the factors militating
against Internal Audit Performance, why IAP impacts on the PSF, yet, the public purse
is not well protected.
1.6 Theoretical Framework

The theoretical framework of the research was built on an integrative review of
appropriate literature. It was structured in relation to the literature on Public Sector
Financial Management, Financial corruption, and Internal Audit Performance. The
literature was further divided into three interdisciplinary areas in order to develop a
better understanding of the phenomenon of Public Sector Financial Management, and
Internal Audit Performance in the fight against Financial Corruption in the Ghanaian
Page | 18
economy. Furthermore, to meet the international benchmark, scholarly quasi-academic
materials were included to complement the three theories.
These quasi-academic materials are the professional, educative, intuitive reading, and
global materials provided by multi-national organizations for socio-economic
development, and global wellbeing. The academic triangulation as an integrative
concept, and considered the main theories and seminal academic authors from three
different academic domains: Theories on Governance, Theories on Corruption, and
Theories on Social Justice, and informed by Quasi-Academic Materials. A new
conceptual model was developed to improve on Internal Audit Performance in the
theoretical framework. Scholarship areas were used as a starting point.
Table1.6
Theories and Quasi-Academic Materials Reviewed
Governance Theory Social Justice Theory
Effective Internal
Audit Performance
QUASI-Academic Material
Technically in Nature from Corruprion Thoery
Professional Arena
Source: MacCharles Tamakloe (2021)
Page | 19
Figure 1.8 above shows the theories, and quasi-academic material reviewed under
discussion. This to better understand and explain the correlation between the
dependent variable, and Independent variables. The Academic literature is to provide
deep insight of the scholarship domain in the larger context of the research. Also, to
help answer research question, and achieve its objectives, the researcher used the
suggestions of: Ismael, Hazem Ramadan, Kamel, Hany (2020), and De Graaf, Gjalt
(2007) as an inspiration for the current research. The literature review was categorized
into seven sections covered in details in Chapter two as follows:
 Part 1: Literature Overview
 Part 2: Understanding the Fight Against FC in Ghana
 Part 3: Theoretical Framework
 Part 4: Critique from the Literature
 Part 5: Literature Gaps and Methodological Gaps, and
 Part 6: Practical Approach of Internal Audit in Other Parts of the World
 Part 7: Summary and Literature Gaps
1.7 Nature of the Research

A research must add value to the existing literature by contribution to theories,
techniques, knowledge, methodology, and practice. The objectives should be clearly
linked to the theoretical and physical context and contribution (Odartey-Wellington,
2014). The nature of this research was to contribute to understanding of IAP and its
impacts on PSFM from theoretical and practical viewpoints within the context of the fight
against Financial Corruption in the Ghanaian economy. The research aimed at
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interrogating the impacts of IAP on PSFM using qualitative research approach. The
research used qualitative approach made up of: interviews, and survey questionnaire to
solicit data from participants knowledgeable, and experienced in internal auditing and
PSFM. Qualitative research approach allowed the research to carry out data
triangulation, and complementation. The nature of the research focused on the main
dynamics of Internal Audit Performance, and its impacts on Public Sector Financial
Management in the fight against Financial Corruption.
1.8 Level of Analysis

Three Levels were utilized and analyzed to achieve purpose of this research, which
were: Macro, Meso, and Micro. The research focused on Meso, and Macro. At Meso
level, the research investigated effectiveness of Internal Audit Performance, and its
impacts on Public Sector Financial Management. At the macro level, the research
revisited elements of the Meso levels, and focused on the governmental aspects in the
fight against Financial Corruption. The micro-level as secondary concern was analyzed
indirectly from the responses, but are restricted to those who held positions in
governmental (Macro) level, and, at the departmental (Meso) level. Micro-level was not
discussed, because the research did not take into account the workers within the
research domain who were not within PSFM decision-making positions.
Figure 1.8 above shows the level of analysis, and partial stakeholders’ scheme,
provided the research with obvious opportunities to make the analysis from the
viewpoints of Mecro and Meso. Ultimately all beliefs, and behaviors are individual, and
Page | 21
are influenced by other members outside of management (York, 2000). Because of
resource limitations, the focus of analysis remains on senior-level staff. The analysis is
done from a ‘top-down’ approach taking into account the ‘bottom-up’ and ‘horizontal’
influences on the PSFM and IAP. The data solicited from interviews, and questionnaires
were analyzed, examined, and tested for reliability and validity to ensure consistency,
credibility, and clarity from both Meso and Macro levels.
Figure 1.8
Level of Analysis and Partial stakeholders’ Scheme
LEVEL AREA FOCUS
Prevent FC, Provides funds, assess, and improve on
MACRO Government, IAA and IIA
IAP, and PSFM
PSFM tools, budget, and reports. Senior staff of IA, and

MESO MMDAs and MDAs PSFM, Correlation between IAP, PSFM, and FC.
Heads of directorates
MICRO Individual PSFM Staff, Citizens, and communities

1.9 Definition of Terminologies

To assist the readers of the research to better understand its content and have the
desire to put into practices some of or all of the research recommendations. The Table
1.9 below to provide the definitions of the terminologies used in the research.
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Table 1.9
Definition of Terminologies used
TERMS DEFINITION
District Assembly An Assembly with minimum population of 75,000 and less than 90,000
people (Crook,1994)
Municipal An assembly with minimum population of 90,000 and less than 250,000
Assembly people (Crook,1994)
Metropolitan An assembly with minimum population of 250,000 people (Crook,1994)
Assembly
Corruption Abuse of public office for private gains (World Bank, 1997; 2004).
Governance Lawful control over the affairs of a political unit or the act of looking after
and making decision about something (Weber, 1986)
Injustice Moral exclusion of individuals or groups outside the boundary of moral
values, rules, and considerations of fairness apply (Opotow, 1990)
Internal Audit An independent, objective and consulting activity designed to add value
and improve on the organizational operations (IAA, 2004;IIA, 2005)
Performance Process to accomplish a function (Spencer et al., 1991).
Anti-Corruption Opposing and discouraging corruption(Weber, 1986)
Justice Conformity to truth, fact or the quality of being just, impartial, or fair
(Weber, 1986)
Financial Planning, organizing, directing and controlling the financial activities
Management ( Buck, Getz, & Guthman, 1997)
Financial The most prevalent type of administrative corruption, as the employee
Corruption gets on the financial amount for the service rendered (World WISC,
2020)
Public Sector The part of an economy that comprises of all organizations owned,
controlled, and financed by the Government ( PrivacySense,2021)
1.10 Limitations and Delimitations of the Research

Limitations of a study are areas that the researcher had no control over. These are the
deficiency or inadequacy of scarcity of resources, small sample size or flawed
methodology among other issues. No study is completely inclusive or flawless of all
Page | 23
likely aspects (Fountouki, 2018; Wargo, 2015). The limitations of the present research
included;
 The difficulty in accessing some of the respondents due to Covid-19 restrictions.
 Limited time and resource constraints during the data collection.
 Female managress are common members of the small minority, whereas, males
tend to be the majority. Gender differences exist because, women tend to have
the status of ‘token’ due to the rarity of higher positions, salary differences and
gender differences in evaluation (Johnson & Eagly, 1990).
 There was a tendency that the selected participants might not answer the
interview questions candidly, due to, lack of self-assurance, personal values,
risks, and too much exercising of professional care in their responses.
Although, the above limitations were encountered, the research was conducted in the
most in-depth and objective manner possible
1.10.1 Delimitation
The delimitation of the current research are:
 Personal bias of participants was one of the delimitation and it was almost to
influence the results of the interviews.
 Officers of Internal Audit and PSFM at senior management levels accounted for
the interview sample due to its limited size with a gap in questing for a full
understanding of the issues under review.
 Almost all the interviewees were most likely to be males, which were explained
explicitly by the dominance of the male gender on senior positions in the public
Page | 24
sector; this might also, directly and indirectly, influence the responses of the
participants in certain unforeseen circumstances. However, the researcher
ensured that these delimitation did to affect the study negatively.
1.11 Assumptions
The following assumptions were considered during the conduct of the research. Most of
the PSFM systems had similar functions due to the code and ethics of the public
service, hence, the research was conducted with the assumption that almost all of the
major stakeholders of PSFM have similar functionalities and responsibilities. The
research based on the assumption that the available set-up procedures, processes and
requirements need financial management tools, where IAP and PSFM are positively
correlated in performances. It assumed not to have a negative influence on the results
of the research. Furthermore, the focus of the research was primarily on impacts of IAP
on PSFM and the correlation between them in the fight against Financial Corruption. It
assumed that, the data to be used for the research meet validity and reliability status.
1.12 Summary of Chapter One

The current research believes that underlying design of the current PSFM system might
contain compatible elements of Internal Audit principles, and therefore does not render
Public Sector Financial Management, and Internal Audit Performance mutually
exclusive. An investigation, and literature review supported the idea that no research
had been conducted with respect to Internal Audit Performance as the best anti-
corruption tool, and a catalyst of Public Sector Financial Management. Based on the
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research question, a mixed-methods approach was utilized as a suitable tool to answer
it. It was expected that the outcome of the research would further give insight in the
identification, and development of a model to enhance Internal Audit Performance, and
Public Sector Financial Management to avert Financial Corruption. Relevant literature
was reviewed to gain better insight into the scholarship domains. Chapters two and
three, respectively focused on presenting the literature review, and research tools used
for data collection, and analysis. Chapter Four covers the Data presentation, and
findings. In chapter five, the research result was synthesized and integrated with the
findings. Chapter Six concluded with a summary of findings, recommendations, and
future research areas to enhance the fight against Financial Corruption in the Public
Sector of Ghana.
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CHAPTER TWO-PART ONE
LITERATURE OVERVIEW
CHAPTER TWO- LITERATURE REVIEW
Page | 27
2.0 Literature Review
2.1 Overview
The research is to find out how the effectiveness of IAP can be enhanced to impact on
PSFM effectively and efficiently to fight FC in the Ghanaian economy. The operational
challenges facing the IAP with PSFM have been accompanied by growth in the
academic literature on this subject matter with significant contributions from researchers
in the public sector financial management studies with special focus on IAP as catalyst
of Anti-Corruption. The literature review follows a thematic integrative approach bringing
together literature on but not limited to: IAP, PSFM, SJ, GG, GIFMIS and FC.
Achievements, challenges, solutions, and theories related to IAP in the fight against FC
within the PSFM were deliberated. Furthermore, Internal Audit is considered as one of
the "four pillars" of corporate governance, and the other pillars are: Board of Directors,
Management, and External Audit (Kaufmann et al., Kaufmann, Kraay & Mastruzzi,
2019). Governance principles can be found elsewhere and do provide some valuable
food for thought (Kaufmann et al.,, 2019). The section covers: Overview of the literature,
Understanding the fight against FC, Theoretical Framework, Critique of Literature on the
Fight against FC, Methodological Gaps and Literature Gaps, Summary of the chapter
two, and Practical approaches of internal Audit used in other parts of the world to fight
social vices including financial corruption.
2.1.1 Literature Integration
The literature review is informed by the academic work of Ismael, Hazem Ramadan,
Kamel, Hany (2020), and De Graaf, Gjalt (2007). The approach helps in providing
Page | 28
understanding and elaborating on the gaps that the researcher fills. The literature
review first covers Governance Theory (System theory and Prismatic theories), which
can help to understand a wide variety of physical, biological, social, behavioral, and
communication processes (Bubnaitiene et al., 2005). System Theory offers a good
framework for Internal Audit Performance in the Ghana’s Public Sector Financial
Management. Human service systems are stable are better performers (Provan &
Milward, 2022). Usefulness of systems theory is the understanding of administration,
IAP, FC, and financial management processes proves that systems are different from
one another, and their components consist of ministries, departments, agencies,
procedures, processes, policies, plans, rules, management styles, people and
techniques. On the other hand, Prismatic Theory offers a good framework for
decentralization policy in Ghana, and relevant to the research. Also, the theory is a
social system that is semi-different and stands midway between an undifferentiated
good society and a highly differentiated society. The field participants of the public
sector serves as a system is influenced by external factors, and variables resulting in
social injustice, inequality, and inequity due to FC. An important feature of Gurian &
Riggs (1960) model is formalism and it is seen as normative and behavioral, which exist
in the Public Sector of Ghana. Eleven (11) seminal authors’ works on governance were
reviewed in the part 3 of this chapter.
The second theory discusesed is Corruption Theory, which focuses on the: causes,
effects, types, and prevention strategies in the global society. The more known about
corruption, the better decisive policy instrument is used to combat it (Gjalt de, 2015).
Page | 29
The identified acts of financial corruption: bribery, embezzlement, fraud, intimidation,
extortions, abuse of power, conflict of interest, insider trading, receiving an unlawful
gratuity, favoritism, nepotism, illegal contributions, money laundering, identity theft and
white-collar crime (Gray & Kaufmann, 2019). Socially, corruption is increasingly being
seen as a threat to human existence to the extent that some commentators have called
for it to be recognized as a ‘crime against humanity (Bantekas, 2016). It increases the
unemployment rate, due to the weakness of the economic cycle and national
production, encourage the brain drain. Discourage of domestic and foreign investors
and causes of inequality and reduction of the fair competition in the economy (Heo & de
Roucn, 2018). Corruption theory, as part of the scholar domain had, thirteen (13)
seminal authors’ works, which are significant to the research were reviewed detailed in
Part 3 of the chapter two in order, to achieve the intent of the research.
Thirdly, the literature review discussed theories on Social Justice. The assessment of
IAP, and its impacts on PSFM in the fight against financial corruption involves societal,
and human issues. To combat FC needs fairness, transparency, equality, satisfaction,
ethics, and others, which are based on social justice system. Insight for the theories on
social justice is the judgment of fairness and satisfaction, which is congruent to internal
audit, and financial management in the public sector. Unfairness, and dissatisfaction are
often derived not on the basis of some abstract or absolute standard (Huckle and
Sterling, 1996; 2014). The works of eleven (11) seminal authors, who contributed
significantly to the academic scholarly in social justice theory were reviewed detailed in
Part three of chapter two. It is clear that, the principle of equality and merit is well-
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matched in certain ways, and social justice may require integration of the two (Miller,
n,d). Social justice is based on the concepts of human rights and equality, and can be
defined as how human rights are manifested in the daily lives of people at every level of
society (Miller, n,d). The control of Financial Corruption within the Public Sector in
Ghana should be the responsibility of each citizen and should be given the opportunity
to join hands to tackle it in order to secure, and sustain the nation’s development
(NACAP, 2011; 2021).
Lastly, to get the scholarship domain well informed, Quasi Academic Materials from the
professional arena were included in the review. Not less than ten (10) quasi-academic
materials technically in nature were reviewed in Part-Three of the literature. Inability of
IAP to detect, and prevent Financial Corruption, costs Ghana economically, politically,
socially, and detrimentally to the citizenry (Allotey, 2019). The World Bank Group
committed $52.6 billion in loans, grants, equity investments, and guarantees to help:
promote economic growth, overcome poverty, and promote economic enterprise in
developing countries (World Bank, 2020). Musa (2001) underscores that Public Sector
Financial Management in Africa has faced a number of challenges that have limited the:
scope, speed, and quality of services rendered. Nevertheless, there was a consensus
that public sector performance, particularly in the area of service delivery, needs to
improve on institutional capacity, multiple accountability, public service ethics, social
values, civil service morale, and anti-corruption mechanisms (World, 2020).
Unfortunately, values such as integrity, honesty, dependability, helpfulness, impartiality,
courteousness, and fairness are gradually disappearing from public services (Sam
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Agere, 2000). Both grand and petty corruptions are classified as: administrative or
political (World Bank, 2012; 2020), incidental, systemic or systematic (Kpundeh, 1998),
passive or active (UNODC, 2011; 2019), a way of life (Kpundeh, 1998), well organized
act (Degli Esposti, 1998), administrative or state capture (Hellman & Kaufmann, 2019).
Figure 2.1.1 below shows the literature review Integration.
Figure 2.1.1
Literature Review Integration
Theories on
Social Justice
Literature Review
Theories on Integration Theories on
Corruption Governance
Quasi-Academic
Materials: Fight
Against FC
Source Adapted : UGSM-Monarch Business School.
Per the backdrop on Assessment of IAP in the fight against financial corruption in the
public sector, a critique of the literature was conducted while considering seven SRQs
that the present research qualitative analysis. Critique of the literature section looks at
researches on FC, and IAP, PSFM, Good Governance, Social Justice, IAF, and GIFMS.
Moreover, the literature review discusses the theories on: Governance, Corruption, and
Social Justice. However, Quasi-Academic Material Technical in nature was fine-tune in
the review to well inform the literature integration. Furthermore, Financial Corruption,
Page | 32
IAP, Financial Management, social justice system and socio-economic development
relate to the current research. Lastly, the methodological, contextual, and theoretical
gaps in respect to the current research are highlighted, and explained. In all forty-five
(45) works of seminal authors who contributed significantly to scholarship domain were
explored and reviewed in detailed. Literature sources of the research is discuss below.
2.1.2 Literature Sources
Many reliable sources were explored by the researcher for the needed information
during the literature review. These sources are but not limited to: pre-reviewed journal
articles, policy frameworks, books, book chapters, reports, working papers, and
conference proceedings. The sources, numbers, rates, and rankings of the literature are
depicted on the Table 2.1.2 below.
Table 2.1.2
Sources of Literature
Literature Source Number Of Sources Rate (%) Ranking
Review Journals Articles 325 59.00% Ist
Policy Frameworks 38 6.60% 6th
Book and Chapter of Books 69 12.50% 2nd
Conference Proceedings 41 7.40% 4rd
Working Papers 39 7.01% 5th
Professional and Academic Reports 42 7.59% 3rd
TOTAL 554 100.00
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CHAPTER TWO-PART TWO
UNDERSTANDING THE FIGHT AGAINST
FINANCIAL CORUPTION IN GHANA
FIGHT AGAINST FINANCIAL CORRUPTION IN GHANA

2.2 Overview
The research is purposely to evaluate Internal Audit Performance and its impacts on
PSFM in the fight against financial corruption, develop a conceptual framework that
Page | 34
better explains and improves on the effectiveness Internal Audit Performance. Also, it
aims to: fill knowledge gaps in academia, help in policy issues, and ascertain the factors
militating against IAP. Unlike other types of performances, Internal Audit Performance
serves as a determinant of performance of PSFM in the fight against financial
corruption. Managers should be directed and controlled by objectives of performance
and their existence, because, the enterprise needs and requires it (Drucker &
Maciariello, 2022). The determinants of organizational performance are the direct effect
of the structural differences of the economy to which the organization belongs to (D. of
Ghana, 2016). Fiscal decentralization is being implemented by the Government of
Ghana under its decentralization policy and specifically, as a component of its Public
Financial Management Reform Program (PUFMARP). This program aims to transfer
budgetary authority and expenditure control to MMDAs and MDAs in order to ensure
efficiency, effectiveness, and economy in the use of the limited state resources (D. of
Ghana, 2016). According to Public Financial Management (PFM) Act (2016) and IAA,
Act (2003), the mandatory role of Internal Audit is to add value to operations and
improve on the public sector. Figure 2.2A below, illustrates the key mandatory roles of
Internal Auditors to provide value addition as an effective anti-corruption system.
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Figure 2.2A
Key Mandatory Roles of Internal Audit in Anti-C Drives
Consulting
service
Assurance Internal
service Audit
Preventive role
Dective role
Government of Ghana enacted the Internal Audit Agency Act, 2003 (Act 568) that led to
the establishment of Internal Audit Agency, in 2005, with a view to facilitate, coordinate
and provide quality assurance, and consulting services through Internal Audit in MMDAs
and MDAs (Region, 2006;2021). The ability to detect, prevent, and correct errors and
threats that result in abuse of public office has also suffered as a result (Region, 2006;
2021). Internal Audit has been confronted with greater complexity and lack of clarity and
recognition in terms of performance, effect, purpose and resource (Region, 2006; 2021).
Really, Internal Audit Performance assessment lacks research within this area to
investigate and ascertain the dynamics of internal audit profession is confronted with
(IIA, 2021). While some of the audit techniques underlying internal auditing is derived
from management consulting and

Page | 36
public accounting professions (IIA, 2021). Figure 2.2B below; indicates the architecture
of IAP, PSFM, PSoG, and Ghanaian economy.
Figure 2.2 B
Architecture of IAP, PSFM and PSoG
Ghanaian
Economy
Public
sector
PSFM
IAP
To better understand, explain, and determine the relationship between IAP and PSFM
in the fight against FC, the research depended mostly on review of seminal authors’
works on: theories of governance, social justice, and corruption, informed by quasi-
academic materials, and IA practical approaches to divulge ideas to enhance IAP to
fight FC. A new conceptual model was also developed to improve on the IAP and
PSFM. When the effectiveness of IAP improves, it impacts on PSFM to minimize FC.
This is because IAP and PSFM are positively correlated, but both of them are negatively
correlated with FC. Figure 2.2C below shows the targets of the literature review of:
seminal authors’ works on the 3 theories, quasi-academic materials, and IA approaches
to help answer the research question and achieve the objectives of the research.
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Figure.2.2 C
Targets of the Literature Review
LITERATURE TARGET OF THE LITERATURE REVIEW
DOMAIN
To enhance effectiveness, and understanding of; Anti-
Corruption, Good Governance, IAP, IAF, and PSFM.
Seminal Authors’ Work Promote detection and prevention of SVIFC, and Social
on Governance
Justice System. As well as interrogate, ascertain needed
Theories
facts and fill knowledge gap
on Corruption Theories
on Social Justice
Theories
Quasi-Academic Promote detection and prevention of SVIFC, and Social
Materials
Content Analysis Of To ascertain the practical approaches of IA used in the other
Practical Approach Of parts of the world to fight SVIFC, so that, Ghana can emulate
Internal Audit to solve its challenges of FC
Source : MacCharles Tamakloe (2021)
2.3 Summary
This section describes the overview of the fight against financial corruption. The
architecture of the Ghanaian economy is demonstrated with its subsets. The targets of
the literature review is also indicated by the section. The roles of internal audit to fight
financial corruption is briefly discussed.
Page | 38
CHAPTER TWO-PART THREE
THEORITICAL DOMAINS
Page | 39
THEORIES ON GOVERNANCE
2.4 Governance Theory
2.4.1 Historical Background of Governance
Governance was first used in the 15th Century ( Weber, 1986). More importantly,
governance can be traced back to the time of Adam in the Bible when God asked him to
have dominion on the whole earth few days after creation, and everything within
(Wenham, 2017). The reign of King David, King Solomon and King Nebuchadnezzar in
the Bible, and King Hammurabi in Babylon dynasty that represented dominion of
governance, and it has existed as long as Roman empire between 1809- 1751BC. In
Ghana, the districts were re-organized in 1988/1989 by the Provisional National
Defiance Council government in an attempt to decentralize system of governance
system to combat the rampant corruption amongst officials (Local Governmnet Act,
1993). Furthermore, the governance principles can be found elsewhere and do provide
some valuable food for thought (Kaufmann et al., 2009). The research deduces that, IA
is not just one of the four pillars of corporate governance but rather a backbone and
catalyst for the other three components as it provides very vital contributions to the rest
of the pillars. It provides: management with quality assurance, and consulting services
for value addition, external auditors with bases, and residual information for external
audit, and board of directors with status of risk management, financial management,
status of audit implementation and operational performance. From the audit standpoint,
Figure 2.4.1 below, illustrates how IA impacts on the others pillars of corporate
governance.
Figure: 2.4.1
Page | 40
Impacts of IA on the others Pillars of Corporate Governance
Internal Audit
Management
Board of Directors
External Audit
2.4.2 Theories on Governance
The research covers system and prismatic theories propounded by Easton (1957) and
Gurian & Riggs (1960) ) respectively under governance theory. These two theories
explain a wide variety of physical, biological, social and behavioral processes, including
communication (Murray & Cooper, 1997). System theory offers a good framework for
IAP impacting on PSFM for anti-corruption drives in Ghana. Human service systems are
stable and better performers (Provan & Milward, 2006), The concept of system theory
has been defined and utilized by earlier authors in: cybernetics, physics, sociology,
economics, management, and variety of basic and applied fields (Easton, 1957). The
research finds system theory very useful and compatible, because, it provides better
understanding of administrative machineries and operations of PSoG and correlation
between IAP, PSFM and FC. Figure 2.4.2A above shows the correlation between
effectiveness of IAP, effective PSFM and FC. The correlation between ineffectiveness
of IAP, ineffective PSFM and FC in the Ghanaian economy is depicted in Figure 2.4.2B
Page | 41
below. This implies that, Figure 2.4.2B below is the reversal actions of the Figure
2.4.2A. Thus, when IAP and PSFM are ineffective FC increases
Effective
Effective IAP No FC
PSFM
Figure: 2.4.2A
Correlation between IAP, PSFM and FC
Following the above dynamics and principles of system theory, it is obvious that,
systems are duly different from one another. And their components are not limited to
ministries, departments, agencies, assemblies, procedures, processes, policies, plans,
rules, management styles, people, conditions, organizational politics, values, IAP,
PSFM tools, and techniques pertaining in the PSoG. For instance, operations of public
institutions such as MMDAs and MDAs differ from country to country. Different forms of
governments with different financial managements and administrative approaches are in
different countries. For the example, in the fight against corruption, unicameral type of
governments uses different approaches as compared to bicameral type of governments.
The procedures, people and processes transform inputs into output as performance in a
system, and in a manner that can be assessed.
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Figure 2.4.2B
Correlation between Ineffective IAP, Ineffective PSFM and FC
Ineffective IAP
Ineffective Occurance of
PSFM FC
The researcher therefore, deduced that a system is like PSFM in Ghana is influenced
by Internal Audit Performance for success or failure. In open systems theory,
organizations regulate technical flows between input, throughput, and output processes
that are connected to the organizational environment ( Katz, 2022: Scot, 2017). The
prismatic theory is another governance theory which offers good framework and well
represents in decentralization policy of government in Ghanaian and relevant to the
current research. The prismatic theory is a social system that is semi-different and
stands midway between an undifferentiated good society and highly differentiated
society (Gurian & Riggs, 1960). The theory further stresses the essence of the
environment and ecology, implementation of government policies and programs. The

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organizational participants like stakeholders of the public sector are influenced by
external factors and variables resulting in social injustice and inequity because of FC.
An important feature of Riggs model is formalism and seen as normative and
behavioral. Corruption which is also a feature of prismatic model is identified in the:
administrative, control including IAP, and PSFM system. Corruption has eaten into the
fiber of the local government system to the extent that some officials of the district
assemblies use their positions unlawfully and illegally for their personal gains through
the award of contracts to inefficient contractors (Peasah & Nsarkoh, 2010).
Considering the above views, the researcher notes that the internal control mechanism,
risk management and governance processes are to be accomplished by IAP to impact
positively and progressively on PSFM to avoid FC in Ghana. The ability to detect and
prevent errors and threats resulting in abuse of public office has also suffered as a
result (Region, 2022). Hager, Dziezyc, & Millchamp (1987) and Whittington & Nicholls
(1995) claim that, a system of procedures established to produce reliable records are
internal control mechanisms, which are the basis for all audit works and financial
management discipline. Obviously, lack of: transparency, accountability, consistency
and institutional weaknesses, provide fertile ground for growth of rent seeking activities.
The rise of an underground economy and the high social costs associated with
corruption is its adverse consequences on income distribution, consumption patterns,
investment and government budget (Rose-Ackerman,1996). The next paragraph
discusses accounting as part of governance theory.
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The Government of Ghana Chart of Accounts (COA), which is the transactions detailed
in the annual appropriations bill to be recorded, and serve as the inputs for the
preparation of reports required by the Public Financial Management Act, 2016 (Act
921), and its accompanying regulations and reporting. Basically, the COA helps users in
budget planning, budget execution, preparation of management accounts, fiscal, and
financial reporting by public institutions (Act, 921). In the field of accounting, research
initiative have been undervalued (Jerman, 2008). Obviously, accounting profession has
concentrated rather on the costs or benefits of valuing categories of goods, and
services (Clacher, 2010). And wide variances between organizational practice, abstract,
and theoretical knowledge within the accounting research setting have continued to
cause an overwhelming rift within the discipline of governance (Manzin, 2008). To
address this concern, the International Accounting Standards Board (IASB) establishes
International Financial Reporting System (IFRS) to serve as a set of accounting
standards to offer a global, and uniform framework for public companies to prepare and
disclose their financial statements to improve on financial management (IFRS, 2020).
Increasing demand for accountability by the people of Ghana shall no doubt be served
with a system that increases transparency, accountability, and aspiration of people will
be better served by full implementation of International Public Sector Accounting
Standards (IPSAS) (Grace Adroe, 2015).
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2.4.3 Review of Seminal Authors’ Works on Governance Theories
Bernard M. Jones’ Contribution on Governance Theories
Most theorizing on the relationship between corporate social performances (CSP) and
corporate financial performance (CFP) in the governance processes, assumes that the
current evidence is too fractured to draw any generalizable conclusions (Jones, 1995).
With the integrative, quantitative study and it shows there is little generalizable
knowledge about CSP. Also CFP is built on shaky grounds (Jones, 1995). Arguably, the
link between CSP and CFP is not conclusive due to inconsistency of evident and
exclusion of Internal Audit. Internal Audit Performance is to help decision makers
protect organizations, reputations, and operational sustainability (Ida Kristensen,
Manocaran, Edmond Sannini, and Usman.2021). Further research on the theories is
crucial to draw valid conclusions. Despite a research effort, the empirical findings on this
link have been mixed inconclusively. Board composition and ownership structure on
financial performance have failed to identify significant effects (Dalton & Bafna, 2003;
Deutsch, Emerson, & Thompson, 2005). This risk needs mitigation. Affirming, IIA
Malawi (2022), Dickson Chisambira (2021) and Madalitso Wills Kateta (2020) assert
that, Internal Audit helps to minimize risk
CSP appears to be more highly correlated with accounting-based measures of CFP
than with market-based indicators (M. Jones, 1995). CSP reputation indices are more
highly correlated with CFP than other indicators of CSP so far as corporate governance
(CG) is concerned (M. Jones, 1995). This meta-analysis establishes a greater degree of
certainty with respect to the CSP-CFP relationship than is currently assumed to exist by
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many business scholars (M. Jones, 1995). Agreeably, the claim is correct, as CG
focuses on effective performance. Underpinning CG aim to improve on the
effectiveness of CG by regulating managerial powers (Wardle, Parkinson, & Waller,
1993 and; Davis, 2005). CG relates to the structure of rights and responsibilities among
the parties with a stake in the firm (Aoki, 2001). Freeman (1984) recognizes the
effectiveness of CG practices which depends on firm-related actors. Also, Kotb et al.,
(2020), Matarneh (2011) and IIA France (2022) claim, internal control mechanism
improves and strengthens governance processes. The following covers review, and
contribution of Jackson (2007).
Gregory Jackson’s Contribution on Governance Theories

Gregory develops an organizational approach to corporate governance and assesses
the effectiveness of CG and implications for policy (Jackson, 2007). Most CG
researches focus on a universal link between CG practices. Neglecting of how
interdependences between the organization and diverse environments lead to variations
in the effectiveness of different governance practices (Jackson, 2007). Debatably, an
assessment of governance and its policy implications is crucial for development. It is
deduced that, there is the need for a further research on causality of variations and
effectiveness of governance to include Internal Audit Performance for detection and
prevention of threats, errors, and infractions. Attest to this, Arena and Azzone (2009)
states that, internal audit add value organization. This view is consistent with recent the
theoretical approaches to study organizational practice focusing on causality. Moreover,
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different initial conditions lead to similar effects (Ragin & Strand, 2008 ; Kogut &
Komvopoulos, 2009).
In contrast to such closed systems approaches, proposal of a framework based on open
systems approaches, organizations examine interdependencies. The three sets of
organizational factors are useful in analyzing the effectiveness of CG in diverse
organizational environments. Costs, contingencies, and complementarities impact
effectively on governance through the use of stylized cases, and implications of different
approaches to policy such as soft-law or hard law (Jackson, 2007). Observably, an idea
to examine interdependences is correct. All the factors of CG is good to enhance
effectiveness of governance to include Internal Audit Performance for value addition.
Underlining the importance of organizational factor analysis, Schmidt & et al, (1979)
analyze potential complementarities between various elements of national governance
systems. Comparative work stresses the potential for organizational diversity within
national systems, so that institutions support organizations (Williamson, 2002). For
internal auditing to be a value-added activity, it is important for internal auditors to
comply with the Standards for the Professional Practice of Internal Auditing (Albin, and
Montondon, 1995; Chambers, 1998; Witt & Moeller, 1999; IIA, 2022).
Thompson’s Contribution on Governance Theories

By contrast, the literature in organizational sociology has largely advocated an open
systems perspective, which suggests that different CG practices may be more or less
effective depending upon the contexts of different organizational environments.
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Surprisingly, very little CG research has built on the large and robust body of
organizational sociology which explicitly examines the alignment of organizations and
their broader environment (Thompson, 1967). Analytically, statement by Thompson
(1967) is a clear-cut. It is deduced this literature is inconclusive and needs to analyze
the alignment of organizations and their environments. Gurria (2013) states that,
“Integrity, transparency and the fight against corruption have to be part of the culture and
fundamental values”. Also, Lawson (2012) states that, it is not only to supports good
governance and transparency but also, responsive services delivery on which woman
and economic development rely. Upholding this, Hazaea (2021), Tabash (2020), and
Cenker (n.d), record that, public institutions rely on Internal Audit as one of the main
assurance, consulting, and value adding activities. Accountability, fairness, control
mechanism, transparency, assurance, leadership, controls, and management of
stakeholder management are critical in successfully running an entity (Kihiu, 2007).
The focus on universal aspects of organizations is necessary. Nonetheless leads
ultimately to a static conceptualization of organizations, to get leverage on a topic; that
must begin to see some of the universal elements as capable of variation. The proposal
is that CG research should adopt a more open-system approach, which draws more
robustly upon existing literature in organizational sociology (Thompson, 1967). Indeed,
conceptualization should focus on continuous improvement on organizational culture for
effectiveness, efficiency and economy. This is done by Internal Audit. Internal auditors
job is not done until defects are corrected and remain corrected (Sawyer, 1995). Recent
studies of CG have attempted to explain the dynamic and dimensions of governance
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over the company life cycle (Johnson, 1997), and diversity of CG arrangements across
countries and over time (Evans & Aguilera, 2003). Analytically, the researcher, suggests
that both systems are engaged in future research, and include IAP. Furthermore,
comparative institutional theory engages by Aoki (2001) has also focused growing
attention on how CG to add premium to IAP.
Shareholders and managers have different access to firm specific information, and
managers as agents of shareholders can engage in self-serving behavior that may be
detrimental to shareholders’ wealth maximization (Thompson, 1967). Research
identifies situations in which shareholders and manager’s interests are likely to diverge
and propose mechanisms that can mitigate manager’s self-serving behavior
(Thompson, 1967). Primarily, concerned with efficiency of the perspective shareholders,
who invest resources is to seek maximum return on their investment (Thompson, 1967).
Notably, Thompson, (1967) is right in his assertion. Shareholders with self-serving
performances should be avoided by the application of internal audit processes for
growth and success. The state interests surpasses that of the ego or self (Putnam et al.,
1993) . Similarly, Shah (2005) notes that, it is important to think through the process of
managing performance and using performance as a means of accountability in a
systematic manner (Shah, 2005). Internal audit will prevent social vices including
corruption. It further argues that, if shareholders’ and managers’ interests are possible
to deviate, both parties show conflict of interest and needs effective Internal Audit
Performance for mitigation. Backing this idea, Canker (n.d), Hazaea (2021), and Tabash
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(2020), also, postulate that, public institutions rely on anternal audit for value addition,
and value for money.
Kaufmann Et Al’s Contribution on Governance Theories

Per capita incomes and the quality of governance are strongly positively correlated
across countries (Kaufmann et al.,2009). Proposed empirical strategy that allows
separation of correlation from per capita incomes to governance (Kaufmann et
al.,2009). The first result confirms existing evidence on the importance of good
governance for economic development (Kaufmann et al.,2009). The second result is
new and suggests the absence of virtuous circles in which higher incomes lead to
further improvements in governance. This motivates our choice of title, Growth without
Governance (Kaufmann et al.,2009). Agreeably, the claim on incomes is correct, but
further research is required to address economic, financial, social, and political burdens.
Yiadom (2013), writes, features of good governance address the social ills of poverty
and corruption, which is the role of internal audit. Abeer Atallah Aloudat (2020), assert
that, the role of internal audit includes fighting of financial and administrative corruption.
Added to this, Guy Peters & Pierre (2004) claims, governance is political theory while
New Public Management is organizational theory.
The main focus of this index is on the inputs required for the government to be able to
produce and implement good policies and deliver public goods (Kaufmann et al.,2009).
The second cluster, which we call regulatory quality, is more focused on the policies
themselves. It includes measures of the incidence of market-unfriendly policies such as
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price controls or inadequate bank supervision, as well as perceptions of the burdens
imposed by excessive regulation in areas such as foreign trade and business
development (Kaufmann et al, 2009). Arguably, the dysfunction of governance is
considered the causes of social vices, and lack of internal audit functions, and waste of
inputs, and bad polices. This is attributed to a lack of citizen empowerment to hold the
government to account (A. Shah, 2007). These challenges are to be checked and
avoided. With respect to challenges like this, Crockett & Albin (1995), Ridley &
Chambers (1998), Moeller & Witt 1999) and IIA Spain (200; 2022), assert that, internal
audit crucial to detect and prevent threats, errors, and infractions to ensure rigorous
fighting social vices including financial corruption to attain value for money.
Management directs efforts towards common objectives by using available resources
(Unamka & Ewurum, 1995), and enhance effectiveness of IAP. To buttress this,
Rangwala et al.(2005), recall that, the process of planning organization to have an
integrated system for achievement of organizational objectives and business target
devoid of challenges of social vices.
Riggs’ Contribution on Governance Theories

Riggs’s model covers a wide range of research. Even though, the theory needs
refinement, it has exerted tremendous influence on the understanding of public
administration and organizational behavior (Riggs, 1960). Currently, theories of
comparative public administration cannot be practically used to study actual
administrative behavior (Riggs, 1960). Riggs’ theory, however, opens up an entirely new
field of study (Riggs, 1960). Although, Riggs (1960)’s model has large coverage and
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impacted positively on public behavior, it still needs to be enhanced to include modern
dimensions. It is argued that the refinement of model served as a catalyst to promote
better understanding of governance in prismatic and global societies. Woodside & Miller
(2006) assert that, establishing broad based free education is likely to establish the idea
that the state needs not only be an instrument of favoritism, extraction and oppression
but also to instrument for social justice and equality to induce generalized trust for the
sake of society (Woodside & Miller, 2006). It argues that, establishing a credible
standard of universalism, fairness, justice and impartiality are crucial but hard to
practice. Additionally, Lamp & Ziegler (1998) asserts that, breaking out of social trap
situation, the agents need to be convince that most of other agents are willing to change
their behavior from opportunism to collaboration, to improve on effectiveness of IAP to
fight the challenges of social vices
Riggs’ own analysis of public administrations primarily relies upon a functional structural
analytical approach (Riggs, 1960). Structure refer to a society’s pattern of activity, while
function is considered to be the outcome of a pattern of activity (Riggs, 1960). Given
this analytical approach, one discovers that traditional agrarian societies, highly
developed industrial societies, and developing societies are functionally and structurally
distinct. Such functional and structural attributes can be further examined by using a
biological approach, that is, via a spectrum (Riggs, 1960). Observably, using functional
structural approach for analysis is value addition to societies. IAP is to add value to
organization’s operations to detect and prevent FC for effectiveness, efficiency, and
economy (Coram, 2007). Arguably, better approach could be adopted for comparative
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analysis of the 3 societies. Better understanding of the nature of public administration in
developing countries is based on the role played by contextual forces (Peng et al.,
2008). Also, Dye & Stapenhurst (1998) and Karabayev et al. (2021) explain that,
internal audit includes pillars of national integrity system to fight social vices, and should
be embraced.
Riggs argues that to gain a deep and thorough understanding of public administrative
phenomena in a prismatic society requires not only the observation of superficial
attributes, but the examination of other equally significant cultural factors as well (Riggs,
1960). The reason is that the more transparent a prismatic society, the more complex its
public administrative structure. In the past, the induction method was criticized as being
too subjective and limited (Riggs, 1960). Although prismatic theory is based on logical
induction, it is not subjective and restrained for the theory’s pan-disciplinary approach
prevents it from being so (Riggs, 1960). Disagreeably, the assertion of Riggs (1960)
incorrect, it rather simplifies administrative machinery. Yiadom (2013) claims that,
accountability and transparency are the pertinent features of good governance. Also,
accountability and transparency of the public sector can make the state more
responsive to the needs of the poor (Yiadom, 2013).
If there is good governance, then a program would probably be successful, but if there
is bad governance, it is likely to fail (Sam Agere, 2000). The pillars of successful
Corporate Governance are: accountability, fairness, transparency, assurance,
leadership and stakeholder management (Kihiu, 2007). Ghana is a type of prismatic
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society that needs government commitment and political will power to improve on
Internal Audit Performance in the fight against Financial Corruption. This would enhance
Corporate Governance, and anti-corruption mechanisms. UNESCAP (2004) claims that,
good governance can be defined by a collection and fulfilment of the characteristics
shown by Figure 2.4.3 below; these characteristics should be part of good governance
in Ghana.
Figure: 2.4.3
Pillars of Good Governance
Source Adapted: UNESCAP (2004)
Teresa Daban s Contribution on Governance Theories

Countries and societies need to develop and engage in the provision of goods and
services that are public or collective and not limited to justice, peace, trust, good
governance, prosperity (Dabán, 2011). For a society to have even a good traffic in a city
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requires collective action (Dabán, 2011). To achieve these public good, there is a need
for collective action (Dabán, 2011). For instance, an action that is taken together by a
group of people with the objective of enhancing their status and achieving a common
objective is associated with a very high costs that make it implausible that any
individual can or will undertake and solve it alone (Dabán, 2011). It is argued that,
although development of countries and societies depend on collective action or
consensus building, it is largely determined by the leadership style coupled with check
and control mechanism. (NACAP, 2011) states that, corrupt leadership brings
inefficiency, non-professionalism, weak check and control system leading to social
injustice, untrustworthiness, bad governance characterized with mass corruption and
poverty. According to (Lawson, 2012), the importance of good leadership and effective
PSFM of the state has become uncreatively clear over the years. It supports not only
good governance and transparency but is also crucial for effective services delivery on
which woman and economic development rely.
When a goal is pursued as a collective action, the associated costs are shared by the
group and are more manageable (Dabán, 2011). This is because under collective
action, the strength of the group's resources, knowledge and efforts combines all parties
to more readily achieve the shared goal (Dabán, 2011). However, it has long been
recognized that individuals often fail to work together to achieve some group goal or
common good (Dabán, 2011). Arguably, effective leadership that engages collective
action, makes ventures manageable due to oneness and consensus building. Is right to
recommend further research on the relationship between collective action and
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leadership, because, the researcher thinks this issue is not comprehensive for holistic
understanding. Ostrom & Olson (2002) claims that, coercion or some other device are
at times needed for a group of individuals to act in their common interest. The gap in
identified is the cause of high cost which is not stated but being a determinant of goods
and services. Noticeably, corruption increases the cost of doing business as it involves
payment of bribe. Experience however, indicates that a finance which is the life blood of
every organization cannot be isolated from executing functions of decentralized unit
(Asibuo et al., 2008). Also, NACAP(2011) claims that, corruption is an insidious plague
that has a wide range of corrosive effects on the Ghanaian society. The issue of failure
to pay bribe results in losing is debatable because companies with strong check system
would rather gain as admonishes by NACAP (2011) that, corruption increases the cost
of doing business. This involves payment of bribe and it is an insidious plague that has
corrosive effects on the Ghanaian society.
Vanden Berghe’s Contribution on Governance Theories

Timetabling and roistering research often starts from particular real-world problems
(Berghe, 2005). The last two decennia have seen a large number of papers discussing
cases, models and approaches (Berghe, 2005). This large body of publications does not
presently constitute a structured domain that provides guidelines for addressing
particular problem instances, nor does it allow identifying gaps where new research is
needed (Berghe, 2005). In this paper instigates a structured model for timetabling and
roistering. The model can only result in a valid and efficient tool through the input of
multiple disciplines (Berghe, 2005). Observably, the real world problem is where
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solution starts from, hence, Berghe (2005) is correct, so the two elements merit
acceptance but need improvement for better performance. Acceptably, initiation of
structured models for timetabling and roistering is progressive. No check system and no
solution to the identified problems are gaps to be filled. Centrally planned economy
needs to be shored up with a combination of austerity and fiscal programs that
demands from all compliance with the prescriptions (Churchill et al., 2013). Eigen (2004)
opines that, people should be conscious that they can change a corrupt system, by
ensuring that, effective internal audit performance in place to detect and prevent social
vices including financial corruption.
Specific problems are positioned in this model and scientists from different domains
have studied a large number of instances of timetabling and roistering problems
(Berghe, 2005). Two important questions arise among the many application domains
figuring as suppliers of case studies, were school and university timetabling, sports
timetabling, employee timetabling, etc (Berghe, 2005). The question is: Which specific
input is needed and in which form should it be presented to allow industry to make
optimal use of the present and future scientific state of the art. How can we facilitate
future developments and position them in the corpus of knowledge (Berghe, 2005).
Recognizably, timetabling and roistering are for effective performance management
aims to achieve responsive service delivery through effective internal auditing. Linder &
Peters (1984) states that, performance-based accountability systems tend to measure
both the performance of policy delivery systems and the performance of the managers
of those systems. Furthermore, bases and answers for the questions should have been
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provided for clarity. Arguably, timetabling and roistering should have included
supervision, ethical values and reward system to facilitate the achievement of the policy
intent. Buttressing this point, Davis, Schoorman & Donaldson (1997) claim that, good
governance and efficient service delivery is reached by improved transparency,
accountability and efficient controls.
Dayton Hudson’s Contribution on Governance Theories

Good Governance (GG) and corporate management (CM) are two sides of the same
coin (Dayton, 1984). It is impossible to have one without the other. By GG, it means the
processes, structures, and relationships through which the board of directors oversees
what its executives do (Dayton, 1984). By CM, it means what the executives to define
and achieve the objectives of the company. If good management is the face of the coin,
GG is other side (Dayton, 1984). Rightly, GG and CM are two sides of the coin, but, the
correlation between them are not indicated. However, the researcher deduces that the
latter is a subset of the former in terms of authority but have same aim to achieve:
effectiveness, efficiency and economy to be championed by IAP to attain value for
money. Wunsch & Olowu (1996), assert that, effectiveness of institutional reforms
intended to fight poverty, and social vices depends on the integrity of a country’s
political and administrative systems. Benefit of a contextual and organizational view of
GG is a better understanding of effectiveness resulting from the coincidence and
interaction among multiple factors (Davis & Marquis, 2005). Transparency International,
and Corruption Perceptions Index (2017; 2022), Jespersen (2019), Paterson et al.,
(2019), Nerantzidis et al., (2020) and Brenk et al., (2022) records that, fighting social
vices including financial corruption in the public sector is the role of internal audit.
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Every time a business is in trouble, board of directors either unwilling or unable to fulfil
its responsibilities (Dayton, 1984). The corollary of this conviction is that if want to
improve performance of corporate organization, then first improve effectiveness of
corporate boards of directors (Dayton, 1984). First dream is that o day some investment
analyst will conclude a report (Dayton, 1984). In addition to its excellent strategic thrust
and management strength, the corporation has a premier concept of governance and a
premier board of directors, which together offer the best hope for ensuring the
corporation’s future (Dayton, 1984). Acceptably, the claim of Dayton (1984) is up-front.
It argues that, the willingness and the ability to execute processes rightly help the
organization to accomplish its strategic objectives and vice-versa. Confident and
positive expectations create a willingness to act on the basis of words, actions, and
decisions of the trustee (Cook & Wall, 1980). Observably, continuous improvement of
effectiveness and efficiency of IAP and board of directors help the corporate
organization to achieve its policy intent. The high cost of doing business, inability and
unwillingness of board of directors to fulfil their responsibilities would results in business
failure due to less or no impact of IAP on PSM, because, corruption raises cost of doing
business (NKonou & Torchio, 2017). Transparency International, and Corruption
Perceptions Index (2017; 2022), Jespersen (2019), Paterson et al., (2019), Nerantzidis
et al., (2020) and Brenk et al., (2022) noted that, fighting corruption in the public sector
is the role of IAP
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Modigliana and Millar’s Contribution on Governance Theories
Modigliani-Miller (MM) proposed that the value of the firm depends on its profitability
and not capital structure (Modigliani & Miller, 1963). Avowedly an application to the field
of finance of the doctrine that money is neutral (Modigliani & Miller, 1963). Once we
relax the assumption that all bonds have certain yields, our arbitrage operator faces the
danger of something comparable to gambler's ruin (Modigliani & Miller, 1963). There is
always the possibility that an otherwise sound concern might be forced into liquidation
as a result of a run of temporary losses (Modigliani & Miller, 1963). Arguably, the value
of a firm depends on its profitability because of effectiveness and efficiency, but capital
structure matters to a great extent. Although, money is neutral, it is a great determinant,
a measure and medium of exchange for good and services. Truly, relaxation yields
business and economic entities threats, errors, and infractions, hence, needs risk
mitigation plan and comparative analysis to know and avoid losses. Rapaport, Levi-
Faur, & Miodownik (2009) add that, the comparative approach starts from the premise
that “knowledge of general patterns is best achieved through examination of many
comparable situations, and putting in place IAP for detection, prevention, and correction
threats, errors, and infractions leading to social vices as challenges. Merlina
Manocaran, Ida Kristensen, Usman & Edmond Sannini (2021), say, these require
conscious building of the effective internal audit function to overcome future challenges.
It is shareholders bear costs of bankruptcy, should it arise (Modigliani & Miller, 1963). In
the same place, the pain to point out the passage that anticipates revisionists'
arguments (Modigliani & Miller, 1963). Certainly, it captures the spirit of what they are
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trying to say. However, this all amounts to an attempt to pass off a merely possible case
as being the norm (Modigliani & Miller, 1963). Observably, the assertion above is right
but the quantum of bankruptcy to be paid by each stakeholder and causes of
bankruptcy are not stated. The researcher deduced that, there is no IAP in plave for
check and balance. The role of Internal Audit is to combat financial and administrative
corruption to ease economic growth (IIA, 2020; Jeppesen, 2019; Paterson et al., 2019 ;
Nerantzidis et al., 2020); Brenk et al.,2022). The principal focus of internal audit is to
enhance its performance to fight social vices including corruption (IIA Global, 2022;
Gleam 2019; IIA Global, 2022; Alan Simpson, 2017). It further deduced that,
stakeholders should bear the insolvency proportionally to shares of profit, and IAP with
ethical requirements to prevent errors, and threats. The next sub-section covers the
review and contribution of Mueller (2012) on the governance theory.
Mueller’s Contribution on Governance Theories

A major concern of strand of the literature is how institutions can be designed to align
management’s incentives with those of the owners of the firm, and the consequences
when they are misaligned (Mueller, 2012). Other set thinks of state’s role in governing
regulations regarding information and corporations must reveal laws forbidding inside
trading, self-dealing and laws concerning mergers (Mueller, 2012). Hostile takeovers,
and recent regulations in some countries with regard to managerial compensation
(Mueller, 2012). Debatably, one considers GG in two settings and each of them has
specific responsibilities and objective to achieve. Effectiveness and efficiency are
complemented by transparency and accountability to achieve GG basing on Internal
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Audit as the catalyst to foil threats Affirmed by, Rahaman, Neu, and Everett (2014), that,
combination of detective and preventive techniques of IAP lessens social vices
including financial corruption. Also, impact of IAP combats corruption and other social
vices (Ferraz and Finan, 2018). Katsriku et al (1996) define GG as a set of relationships
between an organization’s management, governing body, owners, and other
stakeholders in whom power is exercised. Also, Wright & Mcmahan (1992), suggest
that, the sustainable development, and strategic human resource management is to
steer employee behavior. It further argues that, improvement on the effectiveness of
IAP can overcome the challenges.
The procedure employed, compares changes in profitability of merging firms from
before and after the mergers to the changes of non-merging companies (Mueller, 2012).
A study identified three studies and reported significant increases in profitability for the
merging firms (Mueller, 2012). The first one had some positive changes, others
insignificantly different from zero, and five with profit changes either significantly
negative or insignificantly different from zero (Mueller, 2012). Observably, managers
influence the profitability of merging firm depends on: efficiency, effectiveness and good
leadership not necessary merger. Recruitment of qualified and innovative managers can
influences the profitability, and performance level is a matter to be considered. In same
vein, Shah (2007) claims that, performance management can be conceptualized to
convert accountability systems into continuous assessment of what happens in
government for success and avoidance of personal interest. Also, current level of
performance depends holistically on: context, level of knowledge, levels of skills, level of
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identity, personal factors (Elger, 2003). In support, Evans et al.(2003), notes that,
inability to experience positive patriotism, where the state’s interests supersedes that of
the self is unfair, hence, calls for IA roles. The next sub-section covers the review and
contribution of Millichamp (2000) on the governance theory.
Millichamp’s Contribution on Governance Theories

Internal control system is defined as the whole system of controls, financial and
otherwise, established by the management in order to carry on the business of the
enterprise in an orderly and efficient manner, ensure adherence and management
policies, safeguard the assets and secure as far as possible the completeness and
accuracy of the records (Millichamp, 2000). Arguably, internal control system is
established by management to detect, prevent, and correct errors and threats as well as
infractions. Internal Audit tasks in public organization play an important role to promote
and improve on GG (IIA China, 2020: 2022, Christopher, 2019). Moreover, it is one of
the internal control mechanisms to improve and strengthen governance (Kotb et
al., 2020; Matarneh, 2011, IIA, 2022), to combat social vices in the PSFM. In support,
OECD (2021) points out a trend’ of strengthening internal auditing through legislation
and other measures. Also, widely spread of the recognition of Internal audit contribution
to control corruption is a must (OECD, 2021). Furthermore, Pagano & Schwartz (2003)
claim that, Internal Audit holds potential role to play significantly with integrity and
compliance, because of its semi-autonomous standpoint. It functions as overseer and
reviewer of internal control mechanisms to overcome challenges of SVIFC (Pagano &
Schwartz, 2003). Internal Auditing has the role to fight SVIFC in the public sector, and
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internal auditors are to be at forefront for public interest (IIA, 2020: Jeppesen, 2019;
Paterson et al., 2019; Nerantzidis et al., 2020; Brenk et al., 2022). This practical
approach helps public institutions solve administrative and financial corruption (IIA,
2021, Diab Abulaila, Waheeb Gadour, Khalid Yousif, Sukinah, 2020). Sub-section 2.5
below summarizes, the reviews on the seminal authors’ works on governance theory.
2.5 Summary and Gaps on Seminal Authors’ Works
Meta-analysis of CSP-CFP indicates stakeholders influence on CG. Theorizing on the
link between CSP, and CFP is inconclusive. The diversity of CG arrangements a
crosses countries, and over time. Riggs’ model covers large research arena, and it
impacts on public institutions, yet needs improvement. The more transparent a prismatic
society, the more complex its public administrative structure is not factual, transparency
rather facilitates administrative machinery, and GG. Coercion is at times needed for an
entity to act in the common interest (Olson, 1965). Governance is the structures, and
processes designed to ensure accountability, transparency, responsiveness, rule of law,
stability, equity, and inclusiveness, empowerment, and broad-based participation.
Notably, corruption raises the cost of doing business. Unclear assumptions needs
further analysis for clarity. It is good to consider GG in two settings for effectiveness,
efficiency, transparency, control, and accountability. Internal Audit should be
strengthened legislatively to achieve integrity, compliance, and effectiveness.
Indecisiveness, inconsistency, incompleteness, and exclusiveness Internal Audit
Performance are the gaps identified in the literature on. The next chapter discusses
seminal authors’ works on theories on corruption.
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THEORIES ON CORRUPTION
2.6 Theories on Corruption
2.6.1 Historical Background of Corruption
The root of corruption can be traced back to the era of Can and Abel in the Holy Bible,
when the former killed the latter due to jealousy of his brother’s sacrifice accepted by
God. Also, in the same Bible, Esau and Jacob with their mother, when the former with
his mother deceived their father Jacob who was blind and aged to take the blessing
meant for Jacob. From this, the researcher opines that corruption had been in existence
in the world over thousands of years and it is the characteristic of people who are
morally bankrupted and selfish. According to (Weber, 1986), corruption as a word was
first used in the 14thcentury and Ant-Corruption was also used in 1841. It is deduced
that, corruption exists in different forms, and is not determined by politics or geography.
Analytically, it exists in both rich and poor countries which affects individuals, states and
organizations. Obviously, the costs of SVIFC are borne by the citizens, affirms by
Thornes & Pope (2014) that, corruption is paid by the poor. FC type of corruption:
affects the proper running of governments, distorts the correct functioning of economic
and political institutions, hampers transparency, exploits the human for selfish interests,
impair respect for rules and is a manifestation of structural sin (Mutuku & Makinde,
2014). The theory of corruption is discussed in the section below.
2.6.2 Theory on Corruption
Corruption theories focus on causes, effects, types, and preventive strategies in the
global society. The more we know about it, the better we can decide which policy
instrument is to be used to combat it (Gjalt De Graaf, 2007). According to Macrae

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(1982), countries where corruption is rife, it would be difficult to enforce control
measures for multiple reasons. But while the opportunities exist everywhere, the degree
of corruption varies widely among individuals, public agencies, administrative cultures,
and geographic regions (Caiden et al., 2001). According to Rose-Ackerman (1996),
public officials are corrupt for a simple reason: they perceive that the potential benefits
of corruption exceed the potential costs and great attention has been paid to the
question of what corruption is.
Klitgaard (1998) states that if the benefits of corruption minus the probability of being
caught, times its penalties are greater than the benefits of not being caught, and then an
Individual will rationally choose to be corrupt. When the state cannot be trusted to
manage property transfers, corruption might become more appealing (Gambetta,1988).
Seligson (2002) shows that a public awareness campaign in Nicaragua was a success;
it helped raise concern about the negative consequences of corruption and had a
measurable impact in reducing its incidence. In the same vein, the assessment of
Internal Audit Performance and its impact on the PSFM can help in the fight against
corruption in the Ghanaian Economy.
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Figure: 2.6.2A
Correlation Between IAP and FC
Incresae in the level
Decrease in the levlel of

IAP FC
of IAP
FC
From the Figure 2.6.2A above, it depicts that, there is correlation between IAP, PSFM,
and FC. Internal Audit Performance and PSFM are positively correlated, by implication,
when IAP increases the effectiveness of PSFM is enhanced to minimize FC. This
portrays that, IAP and PSFM are positively correlated but both of them are negatively
correlated with FC. In some cases, it is perhaps better to speak of studies trying to
‘understand’ corruption rather than explaining it (Kroeger & Weber, 2014). Figure 2.6.2A
above shows how IAP, and FC correlate in the PSFM system within the Ghanaian
economy. According to Williams (2002), when discussing corruption in the police force,
there are three levels of factors. At the micro level are those deal with individuals and
their work, At the meso level are characteristics of the organization, which are
distributed among leadership, organizational structure, personal policy (Williams, 2002).
And at the third level, there is a whole range of factors on the macro level, including
changes in criminality, rules and laws (Williams, 2002). Admittedly, FC in the public
sector of Ghana is: a governance issue, a failure of institutions and a lack of capacity to
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manage society by means of a framework of social, legal, political and economic checks
and balances. Moreover, Gray & Kaufmann (1998) notes that, bribery, embezzlement,
fraud, intimidation, extortions, abuse of power, conflict of interest, insider trading,
receiving an unlawful gratuity, favoritism, nepotism, illegal contributions, money
laundering, identity theft and white-collar crime are all acts of corruption and all
supposed to be checked and prevented by Internal Audit Performance. Abeer Atallah
Aloudat (2020) notes, the role of IAP is to fight against financial and administrative
corruption in the public sector
Corruption is symbolically, an insidious plague that has a wide range of corrosive effects
on the Ghanaian society (NACAP, 2011). It undermines democracy and the rule of law,
leads to violations of human rights, distorts markets, erodes the quality of life and allows
organized crime, and other threats to human security to flourish (NACAP, 2011).
Further, it hampers efforts to alleviate poverty, undermines political stability, economic
growth and diminishes the country’s attractiveness for investment (NACAP, 2011).
According to Backwell (2017), the four pillars of corruption which are corruptor, corrupt,
tolerance and impunity. The researcher, deduces that, these pillars are palpable in
Ghana and should be avoided. Works of seminal authors who contributed significantly
to the theories on corruption are reviewed in section 2.6.3 below to better understand
and explain the subject matter. Figure 2.6.2B below illustrates that IAP impacts on
PSFM and PSFM impacts on FC.
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Figure: 2.6.2B
Relationship Between IAP, PSFM,1 and FC
Internal Audit Performance
Public Sestor Financial Management
Financial Corruption
As depicted on the Figure 2.6.2B, the researcher opines that, enhancement of IAP
impacts progressively on PSFM to be more effective and prudent enough to detect,
prevent, and correct threats, and errors that lead to FC. However, when the level of IAP
falls, it affects the effectiveness of PSFM, threats, and irregularities could not be
detected, prevented, and corrected, hence leads to more orchestration of FC in the
public sector of Ghana. Review of seminal authors’ works on corruption theory are
discussed in the subsection.
2.6.3 Review of Seminal Authors’ Works on Corruption Theories
Fumiko Nagano’s Contribution on Corruption Theories.

One reason why petty corruption is so difficult to tackle is that, it makes sense for
people to engage in it than not (Nangano,2009). Unlike measures such as smoking
bans, seatbelt laws, and drinking and driving laws where there is a clear individual
benefit to those who do the right thing (Nangano,2009). Corruption bans are hard to
enforce, because there are not easily discernible individual benefits to those who obey
them (Nangano,2009). Rather, in countries where corruption is systemic, people who do
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what is right and follow whatever anti-corruption law might be in place will find
themselves losing out to those who do not (Nangano,2009). Analytically, Nangano
(2009)’s allusion is right. It argues that ant-corruption strategy using IAP could be very
successful but difficult.
Gjalt de (2007), also, argues that corruption might not be easy to classify orderly but if
its complicity is demystified through continuous literature reviews for advancement in
knowledge, possibility is assured. Number of scholars, including: Ida Kristensen,
Merlina Manocaran, Edmond Sannini, and Haris Usman (2021) assert that, the primary
role of internal-audit functions is to help decision makers to protect assets and
reputations, and support operational sustainability. Also, Abeer Atallah Aloudat (2020)
indicate, that the role of internal audit includes the fight against financial and
administrative corruption. When the parties involved are oriented, checked, managed to
have strong moral fiber, and EIA, GG, and deterrent punitive system in place, it can be
fought successfully. Hence, the current research proposes Anti-Corruption Equation
(ACE) as solution to the problem of social vices, which include corruption. ACE = Good
Conscience with Strong Moral Fiber (GCWSMF) + Effective Internal Audit (EIA) + Good
Governance (GG) + Deterrent Punitive System (DPS), thus, ACE=GCWSMF +EIA+
GG+DPS. Improvement on the effectiveness of each component of the ACE will avoid
or minimize the level of financial corruption.
Although, Internal audit focuses on provision of assurance and consulting services,
financial management, risk management, and controls processes, when, risks become
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complex and multiplied, IA is required to provide its services, at a short notice
(Kristensen, Merlina Manocaran, Edmond Sannini, and Haris Usman, 2022). In bid to
resolve the challenge of corruption, IIA Malawi (2022), Dickson Chisambira (2021) and
Madalitso Kateta (2020), express the view, that, internal audit performance helps to
minimize risks, that, can lead to social vices. Additionally, Rahaman, Neu, and Everett
(2014), cite that, combination of detective and preventive techniques of IAP lessens
social vices including financial corruption.
Avoiding corruption in a setting can lead to inefficient outcomes and a disadvantaged
situation (Nangano,2009). Corruption hinders economic development by introducing
inefficiencies in the system (Nangano,2009). Unfortunately for those fighting corruption
it is difficult to confront it, because, it is actually quite logical for people to succumb to
the temptation to bribe or be bribed (Nangano., 2009). Clearly, the assertion is factual. If
the societal norms, working ethics, organization culture and values, GG, legally and
technically protected IA, deterrent punitive system, political will and commitment in
place, corruption can be forbidden. Corruption is worse than prostitution, the latter might
endanger the morals of an individual; the former invariably endangers the morals of an
entire country (Weh & Kraus, 2007). Therefore, it must be fought vigorously using IA
approaches, to free humanity from vicious circle of poverty, nations from lack of socio-
economic development and external debts, communities from insecurity, and institutions
from collapsing. Hence, Torres and Cabeza (2022), demonstrate that, public sector
internal audit is to be backed by legal, technical and management supports for effective
effectiveness to minimize corruption. Because, state’s interests supersedes that of the
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ego or self (Argyris et al., 1985; Gnawali et al., 2004). However, corruption remains a
problem, despite legal and institutional frameworks to counter it, and anti-corruption
initiatives (Freedom House, 2018), and its scandals have weakened the legitimacy of
democratic institutions (Bertelsmann Stiftung, 2018), which, need protection. The
principal focus of IA is to enhance its performance to fight financial weaknesses, and
threats ( IIA Global, 2022; Gleam 2019; IIA Global, 2022; Alan Simpson, 2017).
Klitgaard’s Contribution and review on Corruption Theory is discussed below.
Robert Klitgaard’s Contribution on Corruption Theory
Combating corruption is such a difficult and sensitive issue that many national political
leaders who support such efforts in principle are hesitant to undertake them in practice
(Klitgaard,1998). How can international cooperation help build support for fighting
corruption, both nationally and globally (Klitgaard,1998). Although, anti-corruption is a
difficult and delicate issue but it could be managed through effective anti-corruption
strategy backs by political will, political commitment, and well-resourced, and legally
protected IA system. IIA (2022), Dye & Stapenhurst (1998), and Karabayev et al. (2021)
explain that, Internal Audit includes pillars of national integrity system to fight social
vices. So, internal audit should strengthened, and legally protected to fight corruption. In
reality, Internal Auditing needs to meet the global standard to be able to fight social
vices including financial corruption (Alan Simpson, 2017). Wolfensohn (2007)
acknowledges the ubiquity of corruption, the lasting damage it can cause and the
responsibility of powerful institutions to take action and suggests mental revolution
through sensitization of individual conscience. International cooperation can help in the
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fight against FC by using embargoes on the corrupted nations. Corruption in Africa has
a diversity, vibrancy, and dynamism that can defeat even dedicated attempts at reform
(Murphy & Riley, 1962). Researcher, opines that, punishment for corruption should
exceed benefit of corruption at least 25 times to deter parties from such destructive
behavior.
Klitgaard (998) opines, countries have trouble fighting corruption, because, they lack
sufficient will or sufficient local capacities, such as proper strategies and structures to
prevent corruption. In some instances, local capacities are constrained by costs in
others by a lack of know-how, and in still others by insufficient efforts to devise
strategies to combat corruption (Klitgaard,1998). International cooperation can help
individual countries to develop the necessary will and capacities (Klitgaard, 1998). In
reality, all disallow all forms of corruption as noted by Klitgaard (1998) but they lack
pragmatic measures to fight it due to absence of political commitment and willpower.
According to Rose-Ackerman (1996), public officials are corrupt for a simple reason:
they perceive that the potential benefits of corruption exceed the potential costs and
great attention has been paid to the question of what corruption is. Global Corruption
Barometer Report on Ghana by the TI (2012) indicates that more than 50% of the
respondents perceived that corruption has increased and 35% think it is extreme. TI
(2012) further states, among different institutions, percentage of respondents perceived
the following institutions as extremely corrupt; Ghana Police Service (92%), Judicial
Service (71%), Political Parties of Ghana (76%) and Public Service of Ghana (59%)
indicating that political or grand corruption is not the only type of corruption that has
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engulfed the nation (TI, 2012). So, the role of Internal Audit is to combat financial and
administrative corruption to ease economic growth (IIA, 2020; Jeppesen, 2019;
Paterson et al., 2019 ; Nerantzidis et al., 2020); Brenk et al.,2022
Corruption is the misuse of office for unofficial ends. The catalogue of corrupt acts
includes but is not limited to bribery, extortion, influence peddling, nepotism, fraud, the
use of speed money and embezzlement (Klitgaard, 1998). Although people tend to think
of corruption as a sin of government, it also exists in the private sector. Indeed, the
private sector is involved in most government corruption (Klitgaard, 1998). Analytically,
the researcher agrees with Klitgaard (1998). Corruption is an action taken to instigate,
aid, abet, attempt, conspire or cooperate in a fraudulent or corrupt act (Klitgaard, 1998).
Abuse of authority or trust for private benefit (Gürgen & Wolf, 2014), and public office for
private gains (World Bank, 1997 & 2004). International Standards for Professional
Practice of Internal Auditing ensures and results in quality of effective performance of
internal audit as the gold standard to fight corruption (Albin and Montondon, 1995;
Chambers, 1998; Witt & Moeller, 1999; IIA, 2022). Clearly, internal audit has the role in
fighting corruption in the public sector, and internal auditors supposed to be at the
forefront for public interest (IIA, 2020: Jeppesen, 2019; Paterson et al., 2019;
Nerantzidis et al., 2020; Brenk et al., 2022) IIA, 2020: Jeppesen, 2019; Paterson et al.,
2019; Nerantzidis et al., 2020; Brenk et al., 2022). Ghana as nation, need to used
strengthened, protect, resourced, and motivate, internal auditors to detect, and prevent
financial corruption, though, World Bank (2016) accord the Ghana with scores in
percentile rank in context of control of corruption in 2006 and 2007 as 51.9% and 49.0%
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respectively. The next paragraph considers the review and contribution of (Klitgaard,
1998) on corruption formula.
According to (Klitgaard, 1998), Corruption(C) equals Monopoly (M) plus discretion (D)
minus Accountability (A), thus, C = M + D – A. Corruption is a crime of calculation, not
passion. Combating corruption, therefore, begins with designing better systems
(Klitgaard, 1998). Monopolies must be reduced or regulated. Official discretion must be
clarified and be fair and the level of transparency must be enhanced. Arguably, equation
of corruption by (Klitgaard, 1998) is correct but not exhaustive, because, check,
detective, preventive, corrective and moral elements were excluded. The researcher
proposes the following Financial Corruption Equation Formula (FCEF)= Monopoly (M) +
Discretion(D) + Weak Moral Fiber (WMF)- Political Will and Political Commitment
(PWPC)-Accountability (A) - Transparency (T) - Effective Internal Audit Performance
(EIAP) - Deterrent Punitive System (DPS). This would serve as practical curative tool to
combat corruption. That is: FCEF=M+D+WMF-PCPW-A-T-E1AP-DPS. Frankly, the
most important cause of corruption which is non-lucrative salaries for public sector
employees, making them to look for other sources of income (Brennan, John & Stanton
and Vincent,1961). The assertion by (Klitgaard, 1998) that, corruption is a crime of
calculation and not passion, the researcher agreed with Klitgaard (1998) and such crime
needs to be fought severely to redeem individuals, societies, nations and the global
society by using internal audit aproaches. Curbing FC should comprise of factors
recommended by both Klitgaard (1998) and the researcher, inter alia:
 Minimizing or eliminating potency of monopoly and encourage competition.

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 Official discretion must be clarified and fair to all without discrimination as
prescribed in 1992-Constitution of Ghana.
 Level of Transparency should be enhanced and encouraged in all stages.
 Moral Fiber of people should be strengthened through metal revolution.
 Level of Probity and Accountability should be improved.
 Internal Audit should be protected, resourced, motivated, legally protected, and
empowered to be independent without any influence and victimization to
compromise and
 Deterrent Punishment in the form of cost should be more than the incentive of
being corrupt by surcharging of officers involve in corruption not less than three
times the value of corruption.
Klitgaard (998) again suggest, successful strategies should begin with frying a big
fishes, when there is a culture of engaging in corrupt acts with impunity, the only way to
begin breaking it up is for a number of major corrupt figures to be convicted and refund
the amount involve with abnormal interest (Klitgaard, 1998). For internal auditing to be a
value-added activity, it is important for internal auditors to comply with the Standards for
the Professional Practice of Internal Auditing (Crockett, Albin, and Montondon, 1995,
Moeller & Witt, 1999; IIA; 2022)
Gjalt De Graaf’s Contribution to Corruption Theories

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Discussing the causes of corruption should include heeding the words of Caiden et al.
(2001) which states that just as there are many varieties of corrupt behavior, so there
are multitudinous factors contributing to corruption. So many explanations are offered
that it is difficult to classify them in any systematic manner (Gjalt de, 2007). It argues
that corruption might not be easy to classify orderly but if its complicity is demystified
through continuous literature reviews for advancement in knowledge, possibility is
assured. Heywood & Wei (1997), also, claim that the complexity of the phenomenon
makes it impossible to provide a comprehensive account of the causes of political
corruption. According to Gjalt de (2007), corruption is wrong; it is always a deviation
from right moral conduct. People disagree with norms that determine whether someone
is corrupt, but they agree with the comprehensiveness of corruption and notice that
when labelled corrupt it is morally judged in a negative way (Gjalt de, 2007). Corruption
is a morally loaded term. Just like ‘integrity’ is a morally positive label and everyone
seeks it, corruption is a negative label (Gjalt de, 2007). Since our views about morality
differ in many respects, corruption is also a contested label (Gjalt de, 2007). It argues
that corruption is actually a loaded term as it has many definitions, and causalities. It is
deemed wrong because of its negative impacts on the individuals, institutions, societies
and countries. According to NACA (2019), corruption is an insidious plague that has a
wide range of corrosive effects on the Ghanaian society. NACA (2019) states that,
corruption undermines democracy and the rule of law, leads to violations of human
rights, distorts markets, erodes the quality of life and allows organized crime, and other
threats to human security to flourish. It hampers efforts to alleviate poverty, undermines
political stability, economic growth and diminishes the country’s attractiveness for
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investment (NACA, 2019). Furthermore, all people should make a target to fight FC to
avoid the immoral label.
Bad apple theory primarily looks at the level of the individual corrupt agent for the
causes of corruption and studies seek the cause of corruption in the existence of people
with faulty moral character, the so called ‘bad apples (Gjalt de, 2007). There is a causal
chain from bad character to corrupt acts (Gjalt de, 2007). When the focus is on the
faulty character of an official, morality is assumed to determine behavior, people are
assumed to act on the basis of moral values. Wrong values are therefore the cause of
corruption (Gjalt de, 2007). Affirmatively, the assertion of Gjalt de (2007) is perfect but
the dynamics are not indicated. Logically, the dynamics include internal audit as
mechanism to detect, prevent and correct causal chain to avoid FC. Difficult economic
and social conditions with the growing influence on the community due to the reduction
in the concept of: integrity, righteousness and uprightness with repressive dictatorships
in loyalty to the regime contribute to FC (Stanton & Stanton, 2002). It further argues
that, mental revolution can change faulty moral values, human weaknesses and faulty
character. Banks et al. (1975) states the corruption is a global phenomenon all countries
complain of them because of its threat to social security and economic growth and
administrative performance, although it differs from one place to another. Abeer Atallah
Aloudat (2020) notes, that the role of internal audit includes the fight against financial
and administrative corruption in the public sector. The primary role of internal-audit
functions is to help decision makers protect organizational assets and reputations, as
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well as to support operational sustainability (Ida Kristensen, Merlina
Manocaran, Edmond Sannini, and Haris Usman.2021) to avoid or lessen corruption.
Organizational culture theory is not interested in the background or motives of the
corrupt official. However, the culture and structure of the organization within which the
agent is working, does not look at the micro level of individual corrupt agents, but the
meso level of their respective organizations (Gjalt de, 2007). The underlying assumption
seems to be that a causal path from a certain culture or group culture leads to a certain
mental state that leads to corrupt behavior. These types of theory are interest in the
contextual features for the setting of corruption (Gjalt de, 2007).
Arguably, the literature is not exhaustive, so it should include all aspects of: corrupt
individuals, groups and organizations considering both micro and meso levels in other
to speed up anti-corruption activities. Organizational corruption delays in the
performance rights with the ability to perform (Tuma & Pratt, 1982). Observably, culture
and behavior of individuals and organizations can be worsen by inactions of the
leadership to provide mechanism to check, detect, prevent and combat corruption.
Höffling & Höffling (2002) claim that, micro morality has to do with connections to people
in our social circles. It is about values, norms and moral obligations in our daily personal
and social (Höffling & Höffling, 2002). According to Goel & Nelson (2011), macro
morality, by contrast, emphasizes the universal, it is the product of the process of
universalizing morality. In bid to fight corruption, IIA Spain (2022), Crockett & Albin
(1995), Ridley & Chambers (1998), Moeller & Witt 1999) and IIA Spain (200; 2022),
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emphasize that, internal audit performance is to detect and prevent threats, errors, and
infractions to ensure rigorous fighting corruption for value addition.
Clashing Moral Values Theory makes a distinction between the public role and private
obligations of corrupt officials. Corruption is considered on a macro level, the level of
society. Since the culture of an organization is also influenced by society at large, there
is an overlap between this group and organizational culture theories. The causal chain
in these theories starts with certain values and norms of society that directly influence
the values and norms of individuals (Gjalt de, 2007). Questionably, private appropriation
of the spoils of office is not regarded as morally reprehensible or illegitimate. In many of
these theories, values are assumed to determine behavior. Because of a clash of
values connected to one’s private and one’s public role, choices have to be made (Gjalt
de, 2007). The claims of Gjalt de (2007) are correct but failed to establish the
relationship between public roles and private obligations. Arguably, bad values and bad
norms can influence the individual officials whose moral fibers are weak to be corrupt.
Alatas (2003) and Williams (2002) note that corruption is often seen as deep-rooted,
common, and permanent in social systems, organizations, age and gender groups
(Alatas, 2003; Williams, 2002), but, Internal Auditing needs to meet the global standard
to be able to fight social vices including financial corruption (IIA, 2021, & Alan Simpson,
2017). This calls for political commitment, political will, technical, and legal supports for
IA to carry out its mandatory role of fighting corruption. Corruption theories focus on
causes, effects, types, and preventive strategies in the global society. The more we
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know about it, the better we can decide which policy instrument is to be used to combat
it (Gjalt De Graaf, 2007).
Caiden’s Contribution on Corruption

Source of corruption are: psychological, ideological, external, economic, political, socio-
cultural and technological. Factors that contribute to corruption, however, are of course
not the same as causes of corruption. In sum, corruption can be attributed to almost
anything. But while the opportunities exist everywhere, the degree of corruption varies
widely among individuals, public agencies, administrative cultures, and geographic
regions and concentrates on the causes of corruption in high income countries, where
corruption is much the exception (Caiden, 2001). The sources of corruptions Caiden
(2001)) stated is precise, and if anti-corruption mechanisms consider the sources then
fighting FC would be a success. Internal audits review items such as the effectiveness
of an organization, safeguards assets, and fight corruption (Arena and Azzone, 2009;
IIA. 2022; United Nations Office on Drug and Crime, 2022). Political leaders would
consequently be able to make the issue much more attractive politically (Klitgaard,1998)
having known the need for anti-corruption. Leaders must see that it is possible to make
systemic improvements without committing political suicide (Klitgaard,1998). According
to Freedom House (2018), political corruption remains a problem, despite legal and
institutional frameworks to counter it, active media coverage and government anti-
corruption initiatives. Effectiveness of IAP needs to be enhanced to fight this social vice,
because, internal audit is considered one of the eight pillars of a national integrity
system to fight corruption (Jeppesen, 2019; Thomas Dye, 1998). These are practical
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approaches, which public organizations can use to fight corruption (IIA, 2021, Diab
Abulaila, Waheeb Gadour, Khalid Yousif, Sukinah, 2020)
Corruption is then studied in an abstract sense, looking for the governing laws of
corruption at a Meso or Macro level, in individual corruption cases, it is quite tricky to
identify causal links. By combining macro and micro factors and everything in between,
it would be well suited as a theoretical model for corruption case studies. Just as there
are many varieties of corrupt behavior, so there are multitudinous factors contributing to
corruption. Many explanations are offered that it is difficult to classify them in any
systematic manner (Caiden, 2001). Debatably, corruption is not only studied in an
abstract but also studied in practical sense because its effects affect both macro and
micro levels and felt practically. Increased interest in research in corruption is related to
“institutional revolution that stressed that being able to create a certain type of rules and
regulations determined the well-being of societies’’ (North, 1990; Acemoğlu & Robinson,
2012). Analytically, classifying corruption in a systematic manner is difficult, but does
not mean fighting corruption is impossible, if effectiveness of IAP improves possibility
assured. Certainly, IA is to fight corruption in the public sector, and internal auditors are
to lead for public interest (IIA, 2020: Jeppesen, 2019; Paterson et al., 2019; Nerantzidis
et al., 2020; Brenk et al., 2022). Because, corruption is a global phenomenon all
countries complain, it is a threat to social security and economic growth, and
administrative performance, although it differs from one place to another in the forms
and the size of its spread and its impact on various aspects (Banks et al., 1975). If
corruption is avoided by IAP, it will be very helpful to all nations, hence, IA is to combat
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financial and administrative corruption (IIA, 2020; Jeppesen, 2019; Paterson et al., 2019
; Nerantzidis et al., 2020); Brenk et al.,2022). Need to enhance and use IA effectively in
bid to resolve the challenges of social vices.
Schinkel’s Contribution on Corruption Theories

In the philosophy of causality, an epistemological and an ontological tradition can be
distinguished(Schinkel, 2004). In the six theory groups that were discussed, this kind of
causality was not found because no cause was identified that always coincided with the
consequence corruption (Schinkel, 2004). Causes identified in corruption research are
never assumed to always lead to corruption. In the ontological tradition, causality is
seen as something that actually happened. Since in social science this is often hard to
identify, this is also unhelpful in corruption research (Schinkel, 2004). Agreeably,
Schinkel claim is correct, because, the three elements are different in the fields.
Diversity of operation and origination in causality of corruption depend on beliefs and
procedure. To Hume (2004), in the first tradition as practice, a cause is the coinciding of
phenomena where, because, the cause always precedes the consequence, a belief
exists that there is a cause includes absence of effective IAP. Hard work never brings
fatigue, but satisfaction”(Modi, 2016), and International Standards for Professional
Practice of Internal Auditing ensures quality of IAP effectiveness as the gold standard to
fight corruption (Albin and Montondon, 1995; Chambers, 1998; Witt & Moeller, 1999;
IIA, 2022). So, IA should be legally, and technically protected, well resourced, and
backed by political will, and political commitment to be able to detect, and prevent social
vices.
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A general problem for corruption research, as noted before, is that there are rare
studies on individual corruption cases (Schinkel, 2004). Therefore, the identified causes
are not the triggering causes in a particular situation, but most often the predisposing
causes (Schinkel, 2004). This makes it difficult to explain corruption. Then it is often
claimed that these factors are somehow causes of corruption. Usually this is done on
the basis of percentages or explained variance (Schinkel, 2004). It is viewed that, fight
against FC needs to be a country specific and intensive. Asante & Ayee (2010) state
that, corruption is considered as the biggest problem in all countries. Observably,
identified causes as the result of well-done corruption research are the remote causes
of particular situation. In the light of the author’s standpoint, the explanation of
corruption should not be difficult since there are many definitions, explanation,
classification and effects of corruptions by scholars. Stapenhurst & Kpundeh (1998)
recall that, the main effect of the corruption is the economic instability. The warning
about on general causes should be adhered to, because, general causes cannot help
countries in the fighting corruption, although, corruption is a global phenomenon all
countries complain of it (Banks et al.,1975). However, anti-corruption approaches to be
employed should depend on the causes of corruption type (Doig & Riley,1998). It
deduced that, level of IAP effectiveness should be enhanced to fight social vices
including financial corruption. Analytically, the principal focus of effective internal audit is
to enhance its performance to prevent financial corruption (IIA Global, 2022; Gleam
2019; IIA Global, 2022; Alan Simpson, 2017). . Next is the review and contribution of
Collier (2002) on corruption theory.
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Collier’s Contribution on Corruption Theories
In some theories, rational choice is combined with game theory (Collier, 2002). Also, the
ideas that agent choice is bounded by both the decision-making capacities of individual
agents and a surrounding structure of political, economic and cultural rules, leads to a
so-called institutional choice framework (Collier, 2002). In organization sciences, this is
closely related to decision theories. The reason is that just how choices cause actions
must be made clear (Collier, 2002). Arguably, the literature create vacuum rendering it
incomplete, because it failed to indicate reason for combined a theory with game theory.
Downing (1997), claims that fighting FC is a notoriously and difficult task, but possible.
Agreeably, identification of causes and remedies to corruption would redeem societies
and nations from complex phenomenon and Engel et al. (2018) claim that people’s
indifference is the best breeding ground for corruption to grow. In bid to overcome
challenges, Merlina Manocaran, Ida Kristensen, Usman & Edmond Sannini (2021),
state that, conscious building of effective internal audit function overcome future
challenges of corruption
Collier (2002) notes that, there are numerous theoretical advantages to treating the
explanation of future corruption studies, thus, both theoretical and empirical as a
property of the structure of interactions among several actors rather than as an attribute
of acts (Collier, 2002). To begin with, it puts premium on corruption’s endemic nature in
most parts of the world (Collier, 2002). The researcher agrees with the Collier (2002)
because, the future research on corruption would have a reference point to start with
and understanding of corruption and antidote. Eigen (2004) and Exley et al. (2008) also
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assert that corruption is a cancer, a cancer that eats away at a citizen’s faith in
democracy, diminishes the instinct for innovation and creativity. In view of this, people
should be conscious that they can change a corrupt system by using IA approaches to
detect and prevent corrupt acts. Notably, Internal Audit is to meet the global standard to
be able to fight social vices ((IIA, 2021 & Alan Simpson, 2017). This calls for
improvement, and repackaging, and repositioning IA, The control of corruption in Ghana
should be the responsibility of each citizenry and be given the opportunity to join hands
to fight corruption to secure and sustain the nation’s development (NACAP, 2011). Also,
Engel et al. (2018) claim that people’s indifference is the best breeding ground for
corruption to grow. Arguably, corruption is global problem attested by Jabbra & Jabbra
(2002) and Caiden et al.,(2001), that, corruption is a major problem and worldwide,
hence it must be avoided.
Dolmen’s Contribution on Corruption Theories

There are notices on corruption in a Netherlands province that none of those convicted
by law showed any kind of regret (Dolmen, 1997). Statements like everyone was doing
it or it was a favor for a friend. Also, among the befriended elite who were not convicted,
there was not much understanding for the hanging of someone for a small foreign trip
(Dolmen, 1997). Observably, the agents of corruption are acclimatized with corruption
and their conscious do not find anything wrong with the act of corruption. In reality the
ethical probity and values of the agents are below standard. However, nothing is to stop
or check them from the corruption because they find corruption more beneficial (Susan
Rose-Ackerman, 1996) and Leaders must see that it is possible to make systemic
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improvements without committing political suicide (Klitgaard,1998). Corruption can only
be established based on norms, which are by definition local and contextual. Therefore,
studies on the causes of corruption in Western countries should include specific context
of corruption cases (Dolmen, 1997). Speaking of qualitative research, the concentration
should be on the validity as a trust in the results of the study rather than looking for
absolute certainty (Dolmen, 1997).
Acceptably, assertion by Dolmen, (1997) is precise and such norms should be protected
and adhered to. The researcher deduces that knowledge obtains from research should
help in the anti-corruption. These studies should include the effects of corruption on
humanity, so that combating it would be: all inclusive, serious and achievable. Research
shows that conglomerate of: social, economic, political, organizational and individual
causal factors are important to explain cases of public corruption (Fijnaut and Huberts,
2002). Comparatively, Seligson (2002) shows that public awareness campaign in
Nicaragua was a success; it helped raise concern about the negative consequences of
corruption and had a measurable impact in reducing its incidence. Conspicuously, TI,
and CPI (2017; 2022), Jespersen (2019), Paterson et al., (2019), Nerantzidis et al.,
(2020), IIA (2020) and Brenk et al., (2022), record, fighting corruption in the public
sector is the role of internal audit, to help prevent social vices.
Hubert’s Contribution on Corruption Theories

Hubert Savenije (1996) detects that, theories lead to a discourse on corruption control in
which the emphasis is on influencing the culture of an organization, the cultural
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instruments. For example, altering the organization’s leadership (Hubert Savenije,1996).
Agreeably, the assertion of Hubert Savenije (1996) is correct and should be taken
seriously. To achieve this, ethical behavior and moral character should be included in
the anti-corruption drives. It further argues that, mental revolution and good leadership
coupled with commitment should also be in place to achieve EIAP and EPSFM for
detection and prevention of corrupt activities. Buck (1933) said that to serve is beautiful,
but only if it is done with joy and a whole heart and a free mind. Observably, there is the
need to fight corruption globally, because, corruption is considered as the biggest
problem in all countries (Asante & Ayee, 2010). Fighting corruption including FC type
IAP should be taken seriously as catalyst of anti-corruption, in all stages of financial
management. In support, Merlina Manocaran, Ida Kristensen, Usman & Edmond
Sannini (2021), cite that, conscious building of effective internal audit function overcome
future challenges of corruption, because, it creates unsuitable social environment for
talented African elites, making them to seek better paid jobs abroad (Muthungu, Nduku,
Ontita, & Chitere (1991).
Diego Gambetta’s Contribution on Corruption Theories

Theory on corruption can be expanded when conditions that influence the cost benefit
calculations are taken into account (Gambetta,1993). When the state cannot be trusted
to manage private property transfers, corruption might become more appealing
(Gambetta, 1993). Gambetta (1993) further observes that, trust within close personal
relationships increases the chance of getting the benefits from the delivered corrupt
services or reduces the chance of getting caught (Gambetta, 1993). Observably, the
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assertion for Gambetta (1993) is possible. This can be simplified and demystified to
serve as a leverage to anti-corruption initiatives. Agreeably, trust can play an important
role when levels of transparency, discipline, personal integrity, ethical probity and moral
fiber of individuals are in place. Klitgaard (998) states that if the benefits of corruption
minus the probability of being caught times its penalties are greater than the benefits of
not being caught, then individual would rationally choose to be corrupt. Practically,
corruption has ‘helped’ unseat governments in Brazil, Italy, Ecuador and India and led to
a coup d’état in Thailand in 2006 (Mutuku & Makinde, 2014). Analytically, corruption
needs to be avoided at all course and levels of humanity. In the fighting social vices,
quality assurance promote internal audit performance to achieve effective and
successful anti-corruption (IAA, 2020).
In this kind of theory, actions of corrupt officials are caused by a rational, conscious and
deliberate weighing process of an individual. In its purest form, autonomous agents are
assumed to make more or less rational means-end calculations (Gambetta, 1993). This
contrasts with most of the other theories considered, where behavior is explained by
causes beyond individual control. In organization sciences, this is closely related to
decision theories (Gambetta,1993). Arguably, the statements made by Gambetta (1993)
are real due to absence of: deterrent punitive system, transparency and accountability,
EIAP and political will and commitment. There is inconsistency in the theoretical arena
of corruption due to inadequacy of theoretical explanation for better understanding.
According to Hellmann (2007), a new approach has emerged in the literature on
corruption in the developing world that breaks the assumption that corruption is driven
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by individualistic self-interest, instead of conceptualizes corruptions, informal system of
norms and practices are preferred. Internal Auditing is to meet the global standard to
fight social vices (IIA, 2021 & Alan Simpson, 2017). Section below, covers the review
and contributions of Gregory (1999) on corruption theory.
Gregory’s Contribution on Corruption Theories
Empirical research in this group seems non-existent, probably because the causal link,
like in the previous group of theories, is so indirect that the claim, as true as it may be, is
hard to support empirically (Gregory,1999). To discuss corruption in this way is complex
and multifaceted. Theoretically the claim is powerfully supported by many
(Gregory,1999). Arguably, it deduces that, empirical research is inconclusive, but, it is
very useful for determination of corruption. Demystification is vital due to discussion and
description of antidotes for corruption. Corruption erodes trust. It does not only
undermines democracy and the rule of law but is corrosive to formal economies and the
lives of individuals, while simultaneously promoting crime and the illicit economy
(Michael, 2004). On the other hand, corruption covers a wide range of suspicious and
dubious political, economic and administrative practices and includes a large area of the
business and the illegal actions (Asante & Ayee, 2010). It is a complex phenomenon of
diverge causes with varied effects and include many different types of patterns of
aberrant behavior (NACAP, 2011). Scholars include; IIA Spain (2022), Crockett & Albin
(1995), Ridley & Chambers (1998), Moeller & Witt (1999) and IIA Spain (200; 2022),
assert that, IAP is mainly to detect and prevent threats, errors, and infractions to prevent
corruption
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Where reforms have been largely underpinned by the new institutional economics and
public choice theory, they may tend to counter more piecemeal efforts to maintain
standards of ethical integrity in the bureaucracy (Gregory,1999). These efforts may
need to be reinforced by new approaches to the rebuilding of institutionalized public
service (Gregory,1999). Based on a fuller understanding of the important distinctions
between public and corporate management (Gregory,1999). Analytically, Gregory
(1999)’s arguments are correct and educative. However, it is not matter of maintaining
but improving standards of ethical integrity that reduce corrupt activities (Huntington,
1968). Corruption may be beneficial in a second-best world because of the distortions
caused by ill-functioning institutions (Huntington,1968). Additionally, NACAP (2011)
claims that, corruption fosters public sector incompetence and ineptitude; debases
public morality, promotes and sustains inefficient service delivery, perpetuates poverty
and ultimately, entrenches underdevelopment. Hence, there is the need for rebuilding
the public service through mental revolution and ethical probity with value addition.
However, Hazaea (2021), Tabash (2020), IIA (2022), and Cenker (n.d), postulate that,
public institutions rely on Internal Audit as the function of consulting activity that adds
value to organizations.
Hulten’s Contribution on Corruption Theories

When having a richer theory on the causes of corruption, the hope is that we know
better what medicine to prescribe for a particular patient (Hulten, 2003). In that sense, it
could help fill the gap noticed by almost no empirical studies offer conclusions about
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which anti-corruption methods work under what circumstances (Hulten, 2003).
Currently, there is much confusion in the literature (Hulten, 2003). Arguably, the richer
the theory, the better anti-corruption tool. Indeed, ant-corruption technique is crucial,
and should be application of effective IAP approach. For all those that have to fight for
the respect that everyone else is given without question (Jemisin, 2013). Debatably,
Kilchrist & Block (2006), assert that corruption “is a contradiction of solidarity, because,
it gives rise to injustice and poverty, and a contradiction of subsidiary because it does
not respect the different social and institutional roles but corrupts them (Kilchrist & Block
(2006). Trusting in the application of IA approaches, IIA Malawi (2022), Dickson
Chisambira (2021) and Madalitso Wills Kateta (2020) demonstrate, that, IAP helps to
minimize risk of financial corruption.
The right mix of corruption controls will undoubtedly differ from governmental unit and
from agency to agency within the same governmental unit (Hulten, 2003). It is safe to
say we know next to nothing about which corruption controls are most efficient under
different circumstances (Hulten, 2003). Taking instalment of something like integrity
systems and bring it to a related group of theories of corruption that should be grouped
here, those that see corruption as contagious (Hulten, 2003). Agreeably, Hulten
(2003)’s claim is perfect, because, institutional culture differences due to different
leadership styles, and policy intent of public institutions remain same. Integrity,
transparency, and anti-corruption are to be part of culture and treated as fundamental
values (Gurria, 2013). The researcher opines that, corruption is a copycat not
contagious, but, a thoughtful act. Banks et al. (1975) noted that, corruption is a global
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phenomenon, all countries complain of it. Avoiding corruption, Rahaman, Neu, and
Everett (2014), depict that, combination of detective and preventive techniques of IAP
lessens social vices including financial corruption and impacts of IAP combat corruption
(Ferraz and Finan, 2018), attest to the fact that, IAP is the best approach, and its
effectiveness should be improved on.
Punch’s Contribution on Corruption Theories

The corruption theories state that once an organizational culture is corrupt, every
person who comes in contact with it also runs a big risk of becoming corrupt (Punch,
2000). Therefore, corruption itself seems to be the cause of corruption (Punch, 2000).
These theories sometimes use the metaphor of the slippery slope. Not becoming
corrupt in certain organizational cultures means betraying the group (Punch, 2000).
Punch (2000)’s claim is debatable, because, incorruptible staff can revert the bad
culture. Arguably, incorruptibility depends on the moral fiber and integrity of individuals.
Morally bankrupted people run the risk of becoming corrupt. Observably, the rules
governing and internal watchdog bodies can promote public sector for effectiveness and
GG to fight financial corruption (World Bank, 2000). It is now widely agreed that
corruption, wherever in the world it is occurring, is one of the greatest challenges
societies face and enter the third millennium (Mhlongo & Maduna, 2014). The main
effect of the corruption is the economic instability, in this effect, corruption in the private
sector leads to increased (Stapenhurst & Kpundeh, 1998). Curbing this menace of
social vice, IIA Global (2020), Kotb et al.,(2020), Matarneh (2011), and IIA France
(2019; 2022), show that, internal control mechanism improves on and strengthens
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governance processes to fight challenges of social vices including financial corruption.
Hence, public sector internal audit is to be supported legally, technically, and
resourcefully well for effectiveness to minimize financial corruption (IIA, 2021;
Torres and Cabeza, 2022), to help fight SVIFC globally.
Huntington’s Contribution on Corruption Theories

In seeking to avoid overly broad conceptions of corruption, modern conceptions have
identified the objects of corruption, public office, with the state (Huntington,1968). There
are relationship between economic changes, institutional structures, cultural vagaries,
and discourses of corruption (Huntington,1968). Facts on corruption known are not
known resulting in inconclusiveness. Conceptual decisions allow for an examination of
the relations between corruption and development (Nye,1967). Assertions by
Huntington (1968) is good, but, not holistic, hence, needs to enhance for effectiveness if
IAP to impact on PSFM to fight corruption. Suitably, Boon & Draijer (1993), realize,
inability to experience positive patriotism, where the state’s interests supersedes
individuality bleed corruption, so, public funds and assets to be safeguarded by
application of IA approaches. Hopefully, IA add value and improve an organization’s
operations (Unice Ku, 2023; IIA, 2021). Also, helps an organization accomplish its
objectives using disciplined approach to evaluate and improve the effectiveness of risk
management, control, and governance processes (Unice Ku, 2023; IIA, 2021), aims to
fight social vices including financial corruption. Affirming, Emilie King (2018), indicate
that, fighting corruption rests on detection and prevention by internal audit, but internal
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auditors, who speak out are at risk (TI, and CPI, 2017), and they need to be protected in
the fight against financial corruption. .
Hypothesis suggests that corruption may be beneficial in a second-best world because
of the distortions caused by ill-functioning institutions (Huntington,1968). That argument
is that an inefficient bureaucracy constitutes an impediment to investment that some
speed or grease money may help circumvent (Huntington,1968). Assertion above is
debatable and it calls for review, and conclusiveness. Rose-Ackerman (1996), notes
that, increasing benefits of incorruptibility and costs of corruptibility should consider a
sensible combination of reward and punishment as the driving force to reforms. It is
further argues that organizations should have deterrent punitive system to avoid FC by
improving on IAP as the most effective ant-corruption approach.
Similarly, Pichai (2018) asserts that, companies are increasingly considering anti-
corruption assessments to evaluate adherence to existing policies or benchmark
policies with established best practices. Fighting social vices, specific vehicles and
policies are needed to align with the concept of comprehensiveness and
multidimensional approaches involving both public and private sectors (Pichai, 2018).
For internal auditing to be a value-added activity, it is important for internal auditors to
comply with the Standards for the Professional Practice ( Albin and Montondon, 1995;
Chambers, 1998; Witt & Moeller, 1999; IIA, 2022). Knowingly, internal auditor’s job is not
done until defects are corrected and remain corrected (Sawyer, 1995). Political
commitment, and political will need to promote IA for successful ant-corruption.
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2.7 Summary and Literature Gaps on Corruption Theories.
Global Corruption Barometer ranks corrupt institutions as: Police Service 36%, Elected
representative 36%, Government official 35%, Business executives 34%, Local
Government 33%, President 32%, Tax Officials 30% and Religious leaders 18%. Indeed
FC fosters public sector incompetence, and ineptitude, and causal chain of corruption
starts from bad character to corrupt acts. Public officials are corrupt due to the benefits
of corruption exceed its costs. Effective IAP is crucial to fight FC. FC is one of the
greatest challenges societies face, and needs to be fought using IAP. Gaps identified
are: inconsistency, inconclusiveness, and indecisiveness of procedure, processes, and
absence IAP. These result in system of, among others: bad leadership, corrupt
governance, and social injustice, lack of effective internal audit, and weak anti-
corruption institutions, and lack of socio-economic development.
LITERATURE REVIEW-THEORIES ON SOCIAL JUSTICE

2.8 Theories on Social Justice
2.8.1 Justification to Include Social Justice Theory
Social Justice included in the scholarship domain, because of the following
explanations; social Justice is understood as fair, and compassionate distribution of the
fruits of economic growth (United Nations, 2020). In this case, the rights and freedoms
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are exercised within a framework of duties, and responsibilities that guide perception
and understanding of what is ‘corruption (Denise Sumpf, 2015). Supporting the concept
of social justice is to argue for a reconciliation of priorities within the context of a broader
social perspective in which individuals endowed with rights and freedoms operate within
the framework of the duties, and responsibilities attached to living in society (United
Nations, 2017).
Corruption is the abuse of public office or private position for personal gain, which
violates obligations of fairness, and betrays social trust (World Bank, 2020; United
Nations, 2014; United States, 2021), hence, institutionalization of social audit in various
states to take progressive steps to improve on public management system, and
empower the people. Many social and political thinkers have decided on idea of social
justice, and provided theories on how social justice can be achieved. It is important to
note that, a tool of social audit brings transparency, and accountability in the
government system, and empower the poor, and serves as effective way to access
justice (Mill, 1971; John Rolls, 2016; Dharktode, 2020; Ambedkar, 2016). Furthermore,
social audit analyzes public officials’ decisions and actions, looking for administrative,
legal, and financial irregularities (Mohamoud Faraq, 2018). The reasons why social audit
is an important tool in fighting SVIFC suggests by Mohamoud Faraq (2018) are:
 Social audit is an entry point for citizen engagement in fight corruption.
 Social audit is a powerful tool to uncover irregularities and malpractices in the
public secto (Mohamoud Faraq, 2018).
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 Social audit pushes for transparency, and accountability in the public sector, and
 Social audit complements role of oversight institutions (Mahamoud Faraq, 2018).
The above reasons according to Mohamoud Faraq (2018) necessitated inclusion of
social justice theory in the scholarship domain, because of most of these studies
analyze the effectiveness of Internal Audit by referring to the applicable Internal Audit
practice, and standards, which are inadequate. And there is an excess of research on
the effectiveness of internal auditing, but in general, these studies are not based on a
strong theoretical framework (Dejnaronk et al., 2015; Nurdiono & Gamayuni., 2018;
Setyaningrum & Kuntadi, 2017).
2.8.2 Historical Background of Social Justice
Social Justice, and injustice can be traced as far back as the time of Joseph in the
Bible, he faced injustice when his brothers maltreated and sold him to a foreigner for
twenty pieces of silver (Wilson, 2007). But Joseph himself-exhibited what is social
justice, when his boss’ wife asked him several times to sleep with her, and he
consistently rejected the evil offer of Potiphar’s wife (Owens, 1983). Affirming this,
Burke (2010), records that, social justice has been a religious conception, because, it
originated in religious circles, underwent a large part of its conceptual development in
official statements of religious authorities, and adopted by religious organizations. Since
1931, it has been part of the official teaching of the Roman Catholic Church, and
according to Jackson (2005), social justice was absent from classical political thought.
Fleischacker (2006), argues that the modern ideal of justice first took shape in the late
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eighteenth century and dates the emergence of social justice to a century earlier than
Miller or Raphael and supports by Gareth Stedman Jones’s literature.
2.8.3 Seminal Authors who contributed to the Theory of social Justice.
Theory of social Justice is a work of political philosophy and ethics (Rawls, 1999b), in
which, Rawls (1999b) attempts to solve the problem of distributive justice by utilizing a
variant of the familiar device of the social contract. Assessment of Internal Audit
Performance in Ghana’s PSFM system would be fair and satisfactory to the citizenry,
because, the insight of theories on social justice is the judgment of fairness and
satisfaction, conversely, unfairness, and dissatisfaction are often derived not on the
basis of some abstract or absolute standard (Bottjer et al., 2004; Huckle, Sterling,
1996). According to Woodside & Miller (2006), principle of equality and merit is
compatible in certain ways and that social justice may require integration of the two.
Social justice bases on the concepts of human rights, and equality, which can be
defined as, the way in which human rights are manifested in the everyday lives of
people at every level of society (Woodside & Miller, 2006). Added to this, Corning
(2015), cites, there are three pillars of social justice which are: equality, equity, and
reciprocity. Corning (2015), further, proposes a new vision of social justice based on the
three biologically-grounded fairness principles which, should be maintained, combined
and balanced in order to achieve a society that is fair to everyone, institutions, societies,
and nations. The subsection 2.8.4 below covers the reviews and contributions of
seminal authors, who contributed significantly to theories on Social Justice.
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2.8.4 Review of Seminal Authors’ Works on Social Justice Theories
Franken’s Contribution on Social Justice Theories

Aristotle points out that one can conceive of justice as covering the whole area of
morality, of moral virtue, or at least of moral rightness (Frankena,1973); The terms
"ethical" and "moral" are often used as equivalent by philosophers and pertain to
concepts such as "good" and "right" (Frankena,1973). There are other things that
morality requires of individuals besides justice and all that can be required of a society
or state is that it should be just (Frankena,1973). Although, the claim by Frankena
(1973), is right and educative, failed to state the difference between justice and morality.
Also, Corning (2015), asserts that, there are three pillars of social justice; equality,
equity, and reciprocity. Observably, it is better to follow the principles of justice, and
ensure objectivity of IA and its performance to fight social vices, financial corruption is a
component. Internal auditors job is not done until defects are corrected (Sawyer, 1995).
Usage of ethical and moral in the concepts of “good “and “right” is upright to avoid bad
and wrong doings like acts of social vices, detest by moral rightness. It argues that,
principles of social justice will enhance IAP in management, and planning plays an
important role to uphold and improve on GG (IIA China, 2020: 2022, Christopher, 2019),
and to fight SVIFC.
Leventhal’s Contribution on Social Justice Theories

Issues of justice and injustice are ubiquitous in groups of all sizes. Sociological
concerns with social justice pertain to differences and disadvantages characterizing
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groups like income inequality, racism, sexism as well as individual‐level processes
regarding perceptions of and responses to injustice (Leventhal,1980). Arguably, Justice
and injustice are universal issues in all levels, which need to be addressed so that
former prevails rather than the later. In this regard, Schmitt et al., (2005) emphasize that
one cannot say whether things would get better to change; what can be said is that,
must change if they are to get better for the sake of fairness and avoidance of social
justice. Corruption paralyzes efforts for the promotion of justice and sustainable peace
in Africa (Muthungu et al.,1991). To the researcher, corruption should be fought to avoid
social injustice by means IAP to detect, prevent, and correct threats, errors, and
infractions that result in financial corruption. In other words, Greenberg & Cropanzano
(2002) assert that, social justice research has expanded to include analyses of several
different areas of social life. Analytically, IA protects, add value to organizational,
safeguards assets, support operational sustainability by evaluating risk management,
and control processes (IIA, 2020; 2022; Ida Kristensen, Merlina Manocaran, Edmond
Sannini, and Haris Usman.2021). Social justice issues can occur in relation to practical
aspect of society, where inequality can arise as a result of unjust and prejudices policies
can by resolve, and affects performance when efficiency and productivity are involved
(Cohen-Charash & Spector, 2001), in fighting SVIFC.
Divide Miller’s Contribution on Social Justice Theories

Social justice has been the animating ideal of democratic governments throughout the
twentieth century and even those who oppose it recognize its potency (Miller, 2008). Yet
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the meaning of social justice remains obscure, and existing theories put forward by
political philosophers to explain it have failed to capture the way people in general think
about issues of social justice (Miller, 2008). The principles of justice must be understood
contextually for humanity to follow (Miller, 2008). The three primary components in
(Miller, 2008)’s scheme are the principles of desert, need, and equality. However, it is
observed that due to high level of social injustice which is the prevailing factor in our
societies and global community quest for the needs to revert it, and include, and
improve on effectiveness of IAP to fight FC. In supporting this, IIA (2021); Rahaman,
Neu, and Everett (2014), indicate, that combination of detective and preventive
techniques of IAP figts social vices including financial corruption and impacts of IAP
combat corruption (Ferraz and Finan, 2018). Mutuku & Makinde (2014), state that,
corruption creates many forms of injustice which affect every aspect of daily life of
citizens and no sector of the population is immune, hence, fighting social injustice
should be led by IAP.
Principle of equality and merit are compatible in certain ways and that social justice may
require integration of the two (Miller, 2008). Social justice is based on the concepts of
human rights and equality, and can be defined as, the way in which human rights are
manifested in the everyday lives of people at every level of society (Miller, 2008).
Superlatively, the claim by Miller (2008) is accurate but necessity of justice must be
known to the societies to avoid confusion which can result in social vices. Arguably,
equality is construed as “equal opportunity,” but sometimes refers to equal rights. In the
former sense, equal opportunity simple means equal freedom and it falls under what
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Besnier, Bastiat, Goddard, & Bastiat (2006) called the “law of justice“. The law of liberty
or organizational justice refers to perceptions of fairness in decision-making and
resource allocation environments (Pyszczynski & Greenberg, 1987). Fairness should
inclusive in decision making to fight corruption in the Ghanaian economy. Winthrop
(1978) says that, justice under investigation is only a part of virtue, and Eagleton (2011),
also, of the view that, sincerely, equality means not treating everyone the same, but
attending equally to everyone’s different needs. Objectivity in decision making is an
element of IA, social justice can enhance IAP in the fight against FC, Similarly, internal
audit is to be supported legally, technically, and politically for effectiveness to minimize
corruption (IIA, 2021; Torres and Cabeza, 2022)
Rawls’ Contribution on Social Justice Theories

The ways in which major social institutions distribute fundamental rights and duties
determine the division of advantages from social cooperation (Rawls, 1999). The
distributive justice proposed is underpinned by two fundamental principles and first
principle, which is prioritized over the second item, is the idea that people’s liberties
should be preserved in distribution (Rawls, 1999). The second principle is the idea that
any inequality that is permitted should only be permitted on the basis that it benefits the
least favored in society (Rawls, 1999). Comparatively, the theory of the principles of
social justice is significant and should be adapted for the benefit of the societies.
Debatably, in social justice, distributive justice should be perceived as fairness of how
rewards are shared without prejudice. Social justice emerged in its modern
conceptualizations out of the inequities heaped in the mid-nineteenth century (Gerhart &
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Fang, 2005). To determine whether distributive justice has taken place, individuals often
turn to the distribution as norms of their group (Forsyth,1980), Gallager & Mann (1986)
states that, being free and autonomous are concepts which do not often occur to the
people of this land that it is their birth right. So social justice should be upheld and
practiced at all levels, including resourcing and enhancement of IAP to resolve the
challenges of social corruption.
Differences in principle taken from the stance of the original position provide a
promising framework for the distribution of advantages in society, but it is lacking in
certain areas, of which this essay focuses on three (Rawls,1999). Firstly, it does not
deal with the free-rider problem, where those who do less work can benefit from the
extra work done by others (Rawls,1999). Secondly, it leaves the possibility that the least
advantaged are motivated by envy, which is not a just reason for benefitting from the
hard work of others and lastly, by ruling out the concept of desert, it provides a view of
personal autonomy that is contradictory to its principles (Rawls,1999). Analytically, it is
deduced that the literature is inconsistent and inconclusive. This suggests further
research to fill the knowledge gap to complement ideas. Nathanson (2012), realizes
that, distinguishing between justices and "other obligations of morality" like "charity or
beneficence” must be done, to improve on IAP to combat social vices including FC, and
improving perceptions of justice increases performance (Karriker & Williams, 2009). The
performance of IA should be improved to fight corruption. Fighting corruption, and other
vices should be the practice of public officials. A norm is the standard of behavior that is
required, desired or designated as normal within a particular group (Farlex, 2012). Here,
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when rewards and costs are allocated according to the designated distributive norms of
the group, distributive justice has occurred (M. Deutsch,1975).
Robert Nozick’s Contribution on Social Justice Theories

Though, to take away all-natural characteristics of a person is to denigrate a person’s
autonomy (Nozick,1968). People adopt and use their skills in a variety of circumstances
and often regardless of their social backgrounds. Individuality should be celebrated, as
each person’s own skill and talent is an advantage (Nozick,1968). Acceptably, all the
three claims by Nozick (1968) are educative and should be taken seriously. The
literature is silence on natural characteristics of person and how to take them away.
This is a gap, hence calls for views to make the first statement holistic. Whitcomb
(2010) claims that, a social justice approach to education begins with the idea that a
central purpose of education is to redress social, economic, and political inequities. Its
intellectual roots lie within a radical progressive tradition (Whitcomb, 2010). These will
surely lead to the fight against FC and other types of social vices by the application, and
improvement of IA approach. It argues that, social audit brings transparency, and
accountability in the government system, and empower the poor, and serves as
effective way to access justice (Mill, 1971; John Rolls, 2016; Dharktode, 2020;
Ambedkar, 2016). All need to contribute to improvement of IAP to fight SVIFC. To allow
the less advantaged in the society to benefit from the work of the rich is essentially
claims of the poor on the goods of the rich (Nozick,1968). While the presence of a little
inequality provides some incentive to work, some of these incentives are taken away by
the idea that it would be easier to work less and still achieve some gains at the expense
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of others’ hard work (Nozick,1968). This is the essence of the free rider problem and
people can choose not work and be satisfied by reaping the benefits, even whether
very little, of the more advantaged (Nozick,1968). Observably, in a society where the
poor people depend on rich people is based on a compassion and religious faith but not
justice. Certainly, the justice system requires payment for work done not free-ride
because, it would demotivate hard work as a result retard socio-economic development.
Being free and autonomous are concepts which do not often occur to the people of this
land that it is their birth right (Mann, 2017). Noticeably, sharing free money is distributive
justice but payment for work done it is absolutely injustice. Opposite of poverty is not
wealth and the opposite of poverty is justice (Stevenson, 2012). Poverty, and wealth
should be well understood in the human institution. To check all vices, and ensure
justice system calls for IAP in all levels and places. Jan McArthur’s contribution and
review on Social Justice Theories are discussed below;
Jan McArthur’s Contribution on Social Justice Theories

Focus is not only about social justice, but includes aims to make an active contribution
towards greater social justice (Nozick,1968). Key to my argument is that, the ways in
which one conceptualizes a theory of social justice, including the nature of difference,
has implications for the ways in which one then approaches research into higher
education and social justice (McArthur, 2010). Arguably, McArthur (2010)’s aim to add
value to social justice theory is doable, and excellent idea. Apparently, the procedure for
value addition and disparities in theorizing of social justice not provided. Social justice
emerged in its modern conceptualizations out of the inequities heaped (Shapiro, 2012).
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To the researcher, there is the need to fill the gap, and enhance in the knowledge to
fight financial corruption by application of IAP approaches. Sen (2006), relays that,
shared humanity gets savagely challenged when differences are narrowed into one and
devise system of uniquely powerful categorization. Moreover, Abeer Atallah Aloudat
(2020), and Edmond Sannini, and Haris Usman (2021), indicate that, the role of IAP is
to fight financial and administrative corruption in the public sector.
Rejecting the standardization of experience and identity as exemplified in official
discourse on difference, is essential to gain a perspective beyond the status-quo
(Nozick,1968). Such a perspective is the only useful place to truly engage with work
towards greater social justice (McArthur, 2010). There is danger in social justice
research of assuming, simply to know, by some sort of common sense, what is meant
by social justice, and indeed assume that this meaning is understood and shared
(McArthur, 2010). Analytically, the idea of (McArthur, 2010) to exceed status-quo and
achieve social justice is the right direction. Also, social justice practical for people,
society, and nations to experience its reality, which is to improve on IAP to detect, and
prevent threats, errors, and infractions. Apparently, quality assurance, management
support, organizational setting; and nudities' attributes could have a significant impact
on the internal audit effectiveness (Kang et al., 2010; Mihret, 2007) to fight FC.
Nevertheless, Scholars including: Bambacas, Patrickson, Golen, and Schneider (2008),
recall the importance of the IAP, the need to improve on to prevent Financial Corruption,
and other social vices.
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Charles W. Mills’ Contribution on Social Justice Theories
There are distinctions between idealizing and non-idealizing approaches to ethical
theory (Mills,1997). Normative strategy has the virtue of being potentially universalist in
its application, and it is able to address many, if not all of the concerns not only of
women (Mills,1997). Also, those men as well as women, subordinated by class, race,
and the under development of the distinctive experience of the oppressed but to avoid
particularism and relativism (Mills,1997). Moreover, in certain respects, it engages with
mainstream ethics on what are nominally its own terms, thereby making it somewhat
harder to ignore and marginalize (Mills,1997).
Though, the normative strategy has a virtue of being universal tool to solve almost
related problems, the intentions for and how society could be helped justly were not
averred. Fraser (2007), frames theory of justice in the context of globalization and states
that, globalization is changing the way we argue about justice (Fraser, 2007).
Noticeably, universal solution to problems should suit globalization and avoidance of
particularism and relativism should be supported to nurture social justice or equity into
full potential. People's perceptions of justice and their reactions to injustice in work
organizations have been one of the main areas of social justice research from the very
beginnings of equity theory (Greenberg & Cropanzano, 2002). The ideas obtained from
social justice theory should be use to improves on IAP to fight corruption.
Morally, idealization involves the modelling of what people should be like, how they
should treat each other, and how society should be structured in its basic institutions for
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justice (Mills,1997). Different theorists will diverge on what these ideals are and
correspondingly on their views of what is ideal character, the relation between the right
and the good and what the nature of a just society consist (Mills,1997). What
distinguishes ideal theory is the reliance on idealization to the exclusion or at least
marginalization of the actual (Mills,1997). Acceptably, Mills (1997)’s assertion on
idealization is factual and educative, because, idealization demonstrates, what people
like and how to be treated to meet demands of justice. Also, how society is structured
for justice. With these justice could be nurtured to eschew distributive injustice.
Organizational justice refers to perceptions of fairness in decision making and resource
allocation environments (Greenberg,1987). It is argued further that, though, theorists
differ in views and approaches needs to settle on relation between right and good, and
justice type for conclusiveness. Internal control mechanisms improves and strengthen
governance (Kotb et al., 2020; Matarneh, 2011, IIA, 2022) to combat social vices, which
financial corruption is inclusive.
Parfait’s Contribution on Social Justice Theories

In the egalitarianism, the view that equality matters, attracts a great deal of attention
amongst contemporary political theorists (Parfit,1998). Yet it has turned out to be
surprisingly difficult to provide a fully satisfactory egalitarian theory (Parfit,1998). The
cutting-edge articles in Egalitarianism written by some of the leading political
philosophers in the field move the debate forward (Parfit,1998). Noticeably, points on
egalitarianism is vital, and idea is welcoming, but, attention on social and economic
theorists is neglected. Arguably, the militating factors that rendered egalitarian theory
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incomplete are not stated in the literature, hence, invites future research for
completeness. Leventhal (1980) states that, perceived fairness of decision-making
procedures and procedures are evaluated by level of consistency, bias suppression,
accuracy, ability, ethics, and the degree to which allow voice and input are allowed
(Leventhal,1980), and Ibrahi & Dauda (2014) point out that, strong, legal, regulatory
frameworks, and a competent and productive civil service is the cornerstones of efficient
regime. It further argues that, internal audit improves on, and strengthens governance
(Kotb et al., 2020; Matarneh, 2011, IIA, 2022), to detect, and prevent social vices.
Hence, IAP is to impact on all social vices prone areas.
Rules and norms are characteristics of institutions. Where a group has power over
another group lead to social inequality. Each person’s role is instantly identifiable by
what they are wearing, with people in positions of power often denoted by a uniform that
bears the symbols of their status and authority (Parfit,1998). Observably, rules and
norms are the main driving force of equality and inequality institutionally, depending on
the leadership style. The factor to determine the legitimacy of leaders, governments,
and institutions is amount of confidence citizens have in them (Michael, 2004). Also,
Brown & Ross (1991) found out that, cooperative decision making, personal rights and
obligations. Apparently, Internal audit caries out; value-adding, detective, and
preventive activity (Montondon, 1995; Chambers, 1998; Witt & Moeller, 1999; IIA,
2022), and needs to be enhanced for effectiveness to prevent FC.
Toynbee’s Contribution on Social Justice Theories
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Toynbee (1976) explains that religion holds the solution to all problems of human
relationship, whether they are between parents and children or nation and nation.
Sooner or later, man has always had to decide whether he worships his own power or
the power of God (Toynbee,1976). Certainly, the claims by Toynbee (1976) is
debatable, because, it depends on the party’s relationship with God based on religious
values: faithfulness, commitment, dedication, responsiveness, obedience and
sacredness to God. These situations coherent to fairness concept of a shared equality
employing a social contract where one “could expect the willing cooperation of others
when some workable scheme is a necessary condition of the welfare of all” (Rieger,
2008), and this is a wakeup call to fight SVIFC. So, IA approach is a must fight social
vices, because, it is an independent, objective assurance and consulting activity
designed to add value and improve an organization’s operations (Unice Ku, 2023; IIA,
2021), and helps organization accomplish objectives (Unice Ku, 2023; IIA, 2021).
Toynbee (1976) realizes that, the nature of the breakdowns of civilizations can be
summed up in three points: a failure of creative power in the minority, an answering
withdrawal of mimesis on the part of the majority, and a consequent loss of social unity
in the society as a whole Toynbee (1976). Human nature presents human minds with a
puzzle which they have not yet solved and may never succeed in solving, for all that we
can tell (Toynbee,1976). It argues that, the 3 causes are within premises of: minority,
majority and society, but, no disclosure of remedy, which is a necessity and revertible to
avoid injustice. Acceptably, the assertion by Toynbee (1976), is perfect. However, Tuma
& Pratt (1982) note that, “any state, small is in fact divided into two, one poor state,
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other rich state and always at war with one another. There is the need for IAP to detect,
and prevent issues of inequality which lead to social vices. Affirming, Internal auditors
job is not done until defects are corrected, and remained corrected (Sawyer, 1995).
Again, Kazemi & Tornblom (2008), points out that, the complex linkages between social
justices and the production, possession, and provision of transacted social resources
generate new research avenues.
Kenneth N. Waltz’s Contribution on Social Justice Theories

What is new in the proclaimed new world order is that the old limitations and restraints
now apply weakly (Waltz,1983). Yet foreign policy behavior can be explained only by a
conjunction of external and internal conditions (Waltz,1983). One may hope that internal
pre-occupations will produce not an isolationist policy, which has become impossible,
but a forbearance that will give countries at long last the chance to deal with their own
problems and to make their own mistakes, but would not bet on it (Waltz,1983).
Arguably, old limitations weekly application did not imply for no progress. Integration of
external and internal policies explains inconsistency level. “All social conflicts may be
interpreted as justice conflicts,” and “the aim of conflict settlement is a just peace”
(Montada et al., 2007).
It further argues that, without social justice peace cannot prevail for countries to
determine own fate in fighting social vices including FC. Noddings (2006), and
Leukefeld et al.,(2005), note that, social justice is just one modern interpretation of the
concept of fairness. Roosevelt (1933), also, states that, the path of social justice, the
path of faith, the path of hope, and the path of love toward a fellow shall be chosen. IA
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approach is the best path, and must be improved upon to fight social vices. Also,
Hassard (1991) and (Shane, 2003), show that, process for achievement is
characterized by adjusting structures, and processes of organization’s internal
components, Actually, IA adds value, and improve organization’s operations (Unice Ku,
2023; IIA, 2021), hence, effectiveness of IAP needs to be enhanced to detect, and
prevent FC nationally.
Albert Bandura’s Contributions on Social Justice Theories

Bandura (1977) claims of most behavioral theories can be accused of being
deterministic as it suggests that a child passively absorbs and observes behavior and
imitates it without logical thought of its implications. It considered that in a real-life
situation, the children’s behavior may not be quite as predictable as in the artificial
situation that Bandura created. The children may respond to demand characteristics as
brought to the location of the experiment aware of taking part in something special
(Bandura,1977).
Though, theory of Bandura (1977) as contribution to social justice theory, is
inconclusive, its proposition on behavior is factual and be adhered to. Arguably, children
are most valuable resource (Meenar & Hoover, 2012), and need protection from
imitation of acts social vices. Added to this, McDonald (2005), points out that, programs
explicitly committed to teach for social justice were more effective in helping candidates
develop conceptual tools. Apparently, social audit as a tool, brings transparency, and
accountability in the government system, and empower the poor, and provides way to
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access justice (Mill, 1971; John Rolls, 2016; Dharktode, 2020; Ambedkar, 2016), and
fight social vices including financial corruption. Researcher opines that, institutions need
to apply IA approaches to prevent social vices including financial corruption and treat all
fairly, because, “all are created equal, and are endowed by the creator with certain
inalienable rights” (Higginbotham & Maier, 1998).
2.9 Summary and Literature Gaps on Social Justice Theories

Distributive justice affects performance involving efficiency, and productivity. Social
justice is rousing ideal of democratic governance, and a norm is a standard of behavior.
Achieving justice system of social distribution for fairness is to avoid prejudice, and build
consensus. Virtue in approach is social contract but excludes disability, nationality, and
membership. Theory of justice on globalization is changing as justice is treated.
Institutional justice refers to fair decision making, and resource allocation which includes
internal audit performance to champion checks and balances. Concepts are facets of
trustworthiness attributes of trustee. Equality matters political theorists’ attention on
input transformation. The main gaps identify include: inconsistency, inconclusiveness,
incompleteness and absence of engagement of internal audit approaches/
QUASI-ACADEMIC MATERIALS
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2.10 Quasi-Academic Materials
2.10.1 Overview
Inability of Internal Audit to detect and prevent corruption has been of great cost to
Ghana, and to the detriment of its citizenry. The World Bank Group (WBG) committed
$52.6 billion in loans, grants, equity investments, and guarantees to promote: economic
growth, effective poverty alleviation, and economic enterprise in the developing
countries (WBG, 2011). As developing countries face strong economic hardship due to
corruption. The WBG supported an estimated 884 operations to outcome this challenge.
The WBG are made of:
 International Bank for Reconstruction and Development (IBRD), which provides
financing, risk management products, and other financial services to members,
 International Development Association (IDA), which provides interest-free loans,
and grants to the poorest countries,
 International Finance Corporation (IFC), which makes equity investments, and
provides loans, guarantees, and advisory services to private-sector business in
developing countries, and
 World Bank Group’s political risk insurance agency, Multilateral Investment
Guarantee Agency (WBG, 2011).
Zoellick (2012), show that, the WBG expanded financing for the poor countries following
the food, fuel, and financial crises. Further, Zoellick (2012), made the bank more
accountable, flexible, fast-moving, transparent, and focused on good governance with
anti-corruption. Poorly functioning public sector institutions, and weak governance are
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major constraints to economic growth and equitable development in many developing
countries including Ghana, Nigeria, Tanzania, Kenya and Singapore which is due to
inability of IA to detect, and prevent social voices including corruption in the public
sector (Bank, 2020). IA systems, independence of the judiciary, the central bank, public
service, budgetary rules, and regulations governing internal watchdog bodies can
promote public sector effectiveness, and good governance (Bank, 2020). IA evaluates
and improve the effectiveness of risk management, control, and governance processes
(Unice Ku, 2023; IIA, 2021)
Corruption should be explicitly taken into account in a country’s risk mitigation, lending
decisions, and program portfolio supervision as it sets back development, and country’s
performance but the government’s commitment to deal with it is in question (Doig &
Riley,1998). Accountability involves both political justification of decisions with actions,
and managerial answerability for implementation of agreed tasks according to agreed
criteria of performance (Day & Klein, 2006). According to Musa (2001), African Public
Service Charter indicates that public sector management in Africa has faced a number
of challenges that have limited the scope, speed, and quality of services rendered.
Moreover, Agere (1986) claims that, values such as integrity, honesty, dependability,
helpfulness, impartiality, courteousness, and fairness are gradually dying in the public
services, these are due to social vices as the challenges facing the public sector.
According to Hope (2001), the two major contributions to bureaucratic corruption in
Africa are the erosion, and compression of salary scales of public servants.
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Transparency International (1997), records a number of corrupt practices to testify to
this dimension. Wolfensohn (2007), also, acknowledges the ubiquity of corruption, the
lasting damage it can cause, and responsibility of powerful institutions to take action.
The United Nations Convention against Corruption (UNCAC) has applied the same
attributes to a wider focus. Explicitly, incorporating the implementation of prevention of
vices policies, and mechanisms have encouraged wave of activity focused on the
challenge of reducing incidence of corruption particularly in the public sector (Rose-
Ackerman,1996). The preferred goal is the instrumental one of increasing the integrity of
government so that it can perform its intrinsic roles efficiently, and fairly (Rose-
Ackerman,1996). The historical background of quasi-academic material is discussed in
sub-section 2.10.2 below.
2.10.2 Historical Background- Quasi-Academic Materials
Historically, the institutional culture of public administration has been a form of
protection against corruption (Theobald, 1999). Prevention efforts within the control of
the public administration are often directed at supporting professional integrity of public
officials (UNODC, 2011). UNCAC relationship with Millennium Development Goals
( MDGs) directed to the same issues is equally symbiotic with corruption-prevention and
reinforces the importance of achieving them (UNDP, 2006). The WBG (2011) asserts
that, both grand and petty corruption are classified as administrative or political (UNDP,
2008), incidental, systemic or systematic (Kpundeh, 1998), passive or active (UNODC,
2011), a way of life or a fact of life (Quah, 2011), well organized or chaotic
(Mauro,1998), and administrative corruption or state capture (Hellman & Kaufmann,
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2001). According to Bank of Ghana (2011), the establishment of Bank of Ghana on 4th
March, 1957 was indeed a significant landmark in the history of the financial system in
Ghana. The Bank of Ghana has since 1957 undergone various legislative changes to
enhance financial management in Ghana. However, Ghana Integrated Financial
Management Information System (GIFMIS) was launched in May 2009 as a follow up to
the Budget, and Public Expenditure Management System (BPEMS) Project. Which was
implemented between 1999, and 2008. Ibrahim & Dauda (2014) indicate that, GIFMIS is
a sound systems that is strong, legal, and regulatory frameworks.
Financial Corruption can be detected and prevented by improving on IAP, if IAA, and its
directorates / units are strengthened and empowered devoid of undue influence (IAA,
2003). It opines that the literature review on the theories on: governance, corruption and
social justice, alongside quasi-academic materials technically in nature will provide
better understanding of IA as a catalyst for anti-corruption in Ghana. Figure 2.10.2
below depicts how the literature review contributes to anti-corruption. The next-
subsection reviews contributions of quasi-academic materials on anti-corruption,
starting with IBRD.
Figure: 2.10.2
Scholarship Domains Contributing to Anti-Corruption
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Social
JusticeTheories
Technical Corruption
Anti-
Quasi- Fcorruption Theories
Academic
Governance
Theories
2.10.3 Review of Contributions of Quasi-Academic Materials on Anti-Corruption
IBRD’s Contribution on Ant-Corruption

In the context of bank operations, corruption has been defined as fraudulent or corrupt
practices that include the solicitation, payment or receipt of bribes, gratuities or
kickbacks, manipulation of loans, and bank group-financed contracts through any form
of misrepresentation (IBRD, 2000). Corrupt practices also include any situation in which
staff members have abused their position or misused public funds for private gain
(IBRD, 2000). Corruption manifests itself in different ways (IBRD, 2000). Observably,
the research sees corruption as illegal, and unethical practices between two parties.
Earnestly, fraud is the only type and subset of corruption that leaves traces during.
IBRD is to ensure enhancement of the level of effective of IAP is in place to prevent FC.
Corruption in Sub-Saharan Africa impairs political, economic, and social development
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(Mutuku & Makinde, 2014). It retards development efforts, hinders administrative
development in bureaucracy, and undermines political institutions by weakening the
legitimacy of accountability of governments (Mutuku & Makinde, 2014).
Most frequent bribes may be used to influence award of public contracts, acquire
various benefits from government, lower tax liabilities, obtain licenses, expedite
processes, and affect judicial decisions (IBRD, 2000). Common forms of corruption are
theft, misuse of public assets, falsification of accounts to cover diversion of public funds
to personal accounts, abuse of official discretion, and disclosure of privileged
information to help friends, and relatives (IBRD, 2000). Claim of (IBRD, 2000) is factual
but, difficult to detect and prevent social vices including FC. Also, public office can be
abused, through patronages and nepotism in the form of theft of state assets or
diversion of revenue (Bello- Iman, 2004 & 2005). Solutions, and determining factors of
corruption are not stated. However, it should be fought applying IA approaches.
Hellman, Jones, & Kaufmann (2000), identify, among others as acts of corruption:
bribery, embezzlement, fraud, intimidation, extortions, favoritism, nepotism, and money
laundering. Indeed, improvement of IA is crucial to curb social vices. Fighting FC rests
on detective, and preventive mechanism of IA (Emilie King, 2018; IIA, 2018 & 2022),
and Internal auditors job is not done until defects are corrected (Sawyer,1995). Review
and contribution of Ant-Corruption Agency (ACA) is discussed below;
ACA’s Contribution on Anti-Corruption
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The most important role is to earn the trust of the public. The major challenge that is
seen in the country is that, the people do not trust the anti-corruption commission so
have to reach out to the public (ACA, 2005). People were told about the menace of
corrupt practices in the government services delivery system, and what to do to tackle
these practices. By doing so, people would trust and believe that corruption can be
curbed (ACAs, 2005). Undoubtedly, ACA is right, winning the trust of the public is very
vital. Institutions that supposed to lead the anti-corruption wars are themselves corrupt.
According to Pring (2015), the TI indicates that more than 50% of Ghanaians perceived
that corruption has increased while 35% think it is extreme. Among the different
institutions in Ghana, the following percentage of respondents perceived them as
extremely corrupt; Ghana Police Service (92%), Judicial Service (71%), Political Parties
of Ghana (76%) and Public Service of Ghana (59%) (Pring (2015). Arguably, this can
inform public entities, the need to fight the social vices including corruption by
application of IA approaches used in other part of the world to overcome the challenges.
Aside earning the public trust in general, the biggest challenge is to catch the big fishes,
those who are very powerful. Among very powerful and influential people, it is a real
challenge to go after the corrupt ones. We are not able to go for them so that is why the
public don’t have full confidence and trust in us. But we do try to build trust by going for
the big plunderers of public money (ACAs, 2005). Arguably, catching the big fish is not a
big challenge at all, if the control system is effective and protected, and ant-corruption
institutions are have freehand to operate without influence. This system is to detect and
prevent the powerful and influential people from corrupt activities. In the other hand,
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Kagame et al.,(2012) states that, there is no doubt that corruption is very costly to both
governments and businesses. Further, Kagame et al.,(2012), claims that, corruption
impacts negatively on institutional efforts, it therefore makes economic sense, and good
politics to fight FC. Political will and commitment, well resourcing of IA bodies, legal and
technical protection of Internal auditors can help fight the social vices, because, FC
destroys the moral integrity, and ethics of societies and communities, local or foreign
(Mosisili, 2012). Also, It creates a society in which ‘anything goes’ or promotes a society
that does not care for its vulnerable (Mosisili, 2012). To the researcher, IA should be
made effective enough to be able to detect, and prevent fight FC, as well as other social
vices. For internal auditing to be a value-added activity, it is important for internal
auditors to comply with the Standards for the Professional Practice of Internal Auditing
(Crockett, Albin, and Montondon, 1995, Moeller & Witt, 1999; IIA; 2022). So, IA staff
should be motivated to be professional competent, and comply with principle of
international standard.
TI’s Contribution on Anti-Corruption

TI is lead the fight against corruption. It brings people together in a powerful worldwide
coalition to end the devastating impact of corruption around the world. The organization
defines corruption as the abuse of entrusted power for private gain which eventually
hurts everyone who depends on the integrity of people in a position of authority (TI,
2012). In reality, TI as a leader in anti-corruption, has done a lot in the fields, for
instance, Butt (2011) claims that, TI has developed tools for fighting corruption and
works with other civil societies, organizations, companies and governments to
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implement them. TI publishes a Global Corruption Report, a Global Corruption
Barometer, and a Bribe Payers Index in line with its policy intent to combat corruption
globally. It views that, the work of TI is very helpful but incomplete because IA is not
much focused for detection and prevention of threats, errors, and infractions that result
in social vices including corruption. According to Association of Certified Fraud
Examiners (ACFEs, 2008), internal auditors play important role in detection corruption
schemes. IAP approaches should be embraced as the catalyst of anti-corruption.
Affirming, IIA (2022), Dye & Stapenhurst (1998), and Karabayev et al. (2021), point out
that, Internal Audit includes 8 pillars of national integrity system to fight corruption.
Perception matter in their own right, since firms, and individuals take actions based on
perceptions. TI establishes independent organizations to addresses corruption issues in
the respective countries (TI, 2012). This work ranges from visiting rural communities to
provide free legal support to advise respective government on policy reform. As known
corruption does not stop at national borders (TI, 2012). Arguably, the work of TI (2012)
on corruption is appreciable. Quantifying costs is difficult due to the methodological
challenges. Arguably, CPI should be taken seriously to inspire the fight against
corruption, because, more than a trillion dollars lost in every year needed for the MDG
(Ban Ki-moon, 2011). Also, corruption is often seen as a virus or a cancer that eats
away the core contemporary of a society (Wolfensohn, 2007). The researcher thinks,
Anti-corruption should be a serious target to avoid all social vices including financial
corruption.
World Bank Group (WBG)’s Contribution on Anti-Corruption
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The WBG considers corruption as a major challenge to its twin goals of ending extreme
poverty by 2030, and boosting shared prosperity for the poorest 40 percent of people in
developing countries (WBG, 2011). Reducing corruption is at the heart of the
Sustainable Development Goals and achieving the ambitious targets set for financing
development. Businesses and individuals pay an estimated $1.5 trillion in bribes each
year. This is about 2% of global GDP and 10 times the value of overseas development
assistance (WBG, 2011). Arguably, to achieve the ambitious target, calls for the
developed countries to include strategically approach to create corruption free global
environment, because, corruption does not end on a boarder (TI, 2012), but spreads.
According to Yiadom (2013), corruption is widespread in Ghana even among the
religious sector. Also, Igbuzor (2006) notes that corruption has been identified as a
cankerworm and the major obstacle to the development. Moreover, it argues that the
anti-corruption strategy adopted should include IAP fully. IAP approaches used for
detection and prevention of corrupt activities. Also, political will and commitment with
deterrent punitive system should not be excluded in the bid to fight FC thoroughly.
Notably, Linder & Peters (1984) exemplify that, failure or success may stem from
program design, inadequate funding or other causes. So, IA is needed to be improved
upon to fight corruption through detection, prevention, and correction of threats, errors,
and infractions. Confirming this, Abeer Atallah Aloudat (2020), records that, the role of
internal audit includes fighting of corruption in the public sector.
Addressing corruption require the concerted attention of governments, businesses, and
usage of advanced technology to capture, analyze, and share information. Much of the
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world's highest value corruption could happen without institutions in wealthy nations.
Data on international financial flows shows that money is moving from poor to wealthy
countries in ways that fundamentally undermine development. Corruption is a global
problem that requires global solutions (WBG, 2011). Possibly, all stakeholders are
needed for the fight against social vices including corruption. The researcher, argues
that to achieve this, requires full complement of: GG, EIAP, EPSFM and deterrent
punitive system, Justice System, and others to detect, and prevent corrupt activities.
UNMIS (2006) claims that corruption is a highly complex phenomenon, the parties
involved leave very little tell-tale in the form of irrefutable hard evidence. Also, Yiadom
(2013) claims that, dysfunctional leadership could be replaced by transparent, and
skilled leadership and out of control situation could be replaced by a controlled one. The
following paragraphs cover the review and contribution of United State Agency for
International Development (USAID) on the ant-corruption.
USAID-Anti-Corruption Strategy
The work of USAID reduces opportunities and incentives for corruption. It supports
stronger and more independent judiciaries, legislatures, and oversight bodies. Also, it
promotes independent media, civil society, and public (USAID, 2005). However, efforts
to reduce corruption need to be fully integrated into its programs across all sectors. Anti-
corruption efforts focus on what is sometimes the most immediately visible dimension of
the problem. Administrative corruption mostly smaller transactions involve mid and low-
level government officials (USAID, 2005). Although, USAID reduces corrupt activities,
corruption spreads universally. This calls for intensity of effort to include, political will,
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government commitment of respective countries, EIA and EPSFM, else the effort of
USAID to combat corruption remains incomplete. However, Doig (2005), indicates that,
corruption is a major problem worldwide. Also, Wolfensohn (2007), claims that, having
looked at some of the ways in which corruption damages the social and institutional
fabric of country, that, turns to be reform options open to governments to reduce
corruption and mitigate its effects. Corruption ought be fought seriously, successfully,
and regularly using IA approaches, because, it is a problem exclusive to developing
countries (Gaetner, 1994), and IAP help decision makers protect assets including funds,
reputations, and support operational sustainability (Ida Kristensen, Merlina
Manocaran, Edmond Sannini, and Haris Usman.2021). Arguably, there is the need to
embark on fight against FC holistically and effectively, because, it is not easy,
individualistic, and impossible.
Corruption undermines social cohesion and broad participation in economic and political
life by distorting the allocation of resources and the delivery of public services, usually in
ways that particularly damage the poor. It damages prospects for economic growth by
reducing foreign direct investment, skewing public investment, encouraging firms to
operate in the informal sector, distorting the terms of trade, and weakening the rule of
law and protection of property rights. In doing all this, corruption fundamentally weakens
the legitimacy and effectiveness of new democracies (USAID, 2005). The researcher
argues that the anti-corruption by USAID (2005) is ambitious, and all-inclusive.
Much confusion exists on which anti-corruption methods work best, and under which
circumstances (Everett, Neu, & Rahaman (2007). And, GoK (2009), notes that,
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important features of the reform include; process, re-engineering, automation,
introduction of multiyear budgeting, revised revenue patterns, and taxes as well as
creation of new cadres of professionals including internal auditors. Internal auditors
should be empowered for the task for fight social vices including corruption. Proposed
corruption control mechanisms based not on the logic of the theory, but on what works
best for the required result (Everett, Neu, & Rahaman, 2007). The paragraph below
covers the review and contribution of UNDP (2009) on integrity and good governance.
UNDP’s Contribution to Anti-Corruption

Any fraud in UNDP’s operations depletes funds, and other resources intended for
supporting UNDP’s mission. In other organizations, fraud can undermine its effective
functioning, and diverts scarce and valuable resources from its mission (UNDP, 2009).
Moreover, fraudulent, and corrupt behavior can seriously damage UNDP’s reputation
and diminish donors’ trust in its ability to deliver results in an accountable and
transparent manner (UNDP, 2009). It is observed that UNDP’s enemy is corruption,
likely to destroy its reputation and integrity. Collier (2002) provides persuasive evidence
on the negative impact of ineffective systems of budget control. Countries where
citizens are able to scrutinize government activities and debate the merits of various
public policies, and makes a difference to mitigate the risk of social vices including
corruption. And, Dickson Chisambira (2021) and Madalitso Wills Kateta (2020), prove,
that, IAP helps to minimize risk. Whether the country has an active civil society, with a
culture of participation could be an important ingredient supporting various strategies
aimed at reducing corruption (Collier, 2002). Arguably, UNDP should prohibit, and fight
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against FC. Hence, there is the need for a degree of empowerment, and accountability
for line managers throughout the public service with increased responsibilities and skills
requirements (Kettle et al., 2004), and calls for application, and use of IA approaches for
effective anti-corruption to avoid social vices including financial corruption.
Corrupt practices are generally understood as the offering, giving, receiving, or
soliciting, directly or indirectly, anything of value to influence improperly the actions of
another party. In policy, fraud is defined in a broader sense and includes; theft,
embezzlement, forgery and corrupt practices, forging documents, preparing false
entries in systems and making false statements to obtain a financial or other benefit to
which a person is not entitled, offering or receiving something of value to improperly
influence a procurement process (UNDP, 2009). Observably, UNDP fails to differentiate
between fraud, and corruption. Yiadom (2013), explains that, corruption is manifested
through bribery, loan default, evasion of taxes, and customers’ duties, nepotism,
negligence of duties, and politicization of administration. Yiadom (2013), further, states
causes of corruption include; low wages, centralized decision making, inefficient rule
application, misuse of power by the political and administrative elites, and non-
transparent administration. OECD (2001) claims that, corruption is distinct from fraud as
it does not leave any tell-tale in the records, and the auditors, find it difficult to play an
effective role in fighting it. It argues that, fraud is a type of, and a subset of corruption.
AUCPCC’s Contribution on Anti-Corruption

Within fifteen years, corruption retains its grip on the continent and has taken so many
facets. It undermines Africa’s security, generates huge economic damage, and violates
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human rights. Agenda 2063 recognizes that good governance is one of the necessary
preconditions for a prosperous and peaceful Africa (AUCPCC, 2004). This gives a
sense of urgency to the fight corruption, if Africa is to silence the guns by 2020. Failing
to address corruption inhibits sustainable long-term growth and undermines human
development (AUCPCC, 2004). Arguably, AUCPCC as anti-corruption agency has not
been effective. Though, 2063-Agenda realizes the need for good governance for peace
in Africa, it is not a guarantee. Failure to address corrupt activities prevents economic
growth, and human development. Hence. African leaders are to be serious, and remain
committed. The Leaders must ensure it is possible to make systemic improvements
without committing political suicide (Klitgaard,1998). Effective ant-corruption needs
mental revolution and commitment of all to support IAP for avoidance of corruption. The
system ensures secure equity, and transparency in the use of public funds and put
efficient measures in place (GoK, 2009). In reality, equity, and accountability are
needed to inspire IA approaches to fight social vices.
IFC’s Contribution on Anti-Corruption

Corruption is a corrosive drain on public trust, and the legitimacy of public and private
sector institutions. Its toll can be devastating to a national economy, when open global
markets can rapidly reverse investment and capital flows if confidence and trust are
compromised by revelations of systemic corruption (IFC, 2010). Corruption affects all
types and sizes of business firms. This further dehumanizes and undermines the
reputation of the private sector as a positive force for economic growth and
development in poor countries (IFC, 2010). Undoubtedly, the claims by IFC (2010) is
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perfect, and wake up call. It argues that, corruption has the potential to thwart the socio-
economic development, and progress of humanity, so, political will and commitment are
crucial to buttress AIP to fight it. In bid to fight corruption, Bambacas, Patrickson, Golen,
and Schneider (2008), evoke that, IAP is needed to prevent Corruption. This would
revert negative effects of FC. Also, all stakeholders of anti-corruption, and the general
public have to pressure politicians, and public officers for reform (Pusey, 1991). Review,
and OECD’s contribution on Anti-Corruption is discussed below;
OECD’s Contribution on Anti-Corruption

Ethics measure in member countries reveals a wide variety of mechanisms within and
amongst jurisdictions. The range of mechanisms in each of four compliance measures
categories: internal controls; disciplinary measures; investigations; external controls
(OECD, 2002). The opportunities, and risks of six prominent integrity accountability
institutions (IAIs) are: internal audit; inspector-generals, supreme audit institutions; anti-
corruption agencies, magistrates, and commissions of inquiry (OECD, 2002). Types of
mechanisms revealed by OECD indicate that, approaches are in place to fight
corruption, yet, it is still a universal problem due to lack of: recognition, application, and
improvement of IAP to be backed by political commitment and political will to detect,
and prevent It. Deterrent sanction of corruptible officers and politicians is not be left out.
Control of corruption in Ghana should be the responsibility of each citizen and be given
the opportunity to join hands to tackle it, in order to secure and sustain the nation’s
development (NACAP, 2011). Clearly, corruption is seen as a threat to human existence
to the extent that some commentators have called for it to be recognized as a ‘crime
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against humanity (Bantekas (2006). Fiscal stress has weaken many governments and
unable to provide efficiency, responsive service delivery, and protect integrity and
accountability institutions (Jones, Munson, & Thompson (1999), supporting the need for
engagement of IA approach to lead the fight against FC.
The moral underpinnings of the decision-making processes can be observed not only in
a large company from an OECD country. Also in a small business from a developing
country engaged in regional trade. Still, while ethic underlies much of what to do, the
actual ethical performance of individuals and the companies differs among and between
countries, often significantly; and these variations can in large part be explained by the
differences in political, economic, and social institutions (OECD, 2002). Undoubtedly,
moral values to be adhered to, in fighting corruption. According to Mathews (2002),
criticizing government performance has surfaced across the world in all political
spectrum. Corruption in Africa has a diversity, vibrancy, and dynamism that can defeat
even dedicated attempts at reform (Murphy & Riley, 1962). So, undemocratic, self-
serving, illegal and unethical deeds should be avoided by effective anti-corruption.
Effective IAP needs to be in place to prevent corruption consistently. Socially and
economy, audit brings transparency, and accountability in the government system, and
empower the poor, and serves as effective way to access justice (Mill, 1971; John Rolls,
2016; Dharktode, 2020; Ambedkar, 2016).
IMF’s Contribution on Anti-Corruption

The IMF has unveiled a new blueprint for tackling the global scourge of corruption,
conceding that its approach to the issue has been uneven in the past. The new policy is
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not perfect, but if implemented, it could represent an important step in throwing the
IMF’s weight behind global fight against corruption (IMF, 2010). The IMF published how
it has dealt with corruption over the past two decades. The new paper dispels any doubt
that corruption is an important economic issue that is well within the IMF’s mandate
(IMF, 2010). Analytically, the new plan of IMF to combat corruption is the right approach
but political influence needs to be forbidden, because, political will and commitment are
crucial to anti-corruption to include and improve of IAP for success. IA is recognized as
an important function in the fight against corruption (Gansberghe & Nordin, 2005).
Again, it argues that, Internal audit is to add value to institutional operations inclufding
anti-corruption, and internal auditors to comply with the international standards of
Internal Auditing (Crockett, Albin, and Montondon, 1995, Moeller & Witt, 1999; IIA;
2022). It is viewed that, in the approach of IMF needs to include IAP approach for
effective all anti-corruption to achieve its policy intent.
On how to expose Corruption, Rothkopf (2014), and Lagarde (2018), draws attention on
the economic and social cost of corruption and highlights the important role that fiscal
transparency can play in global efforts to combat the misuse of public funds. IMF is to
move beyond a purely voluntary approach by embedding the principles of transparency
and integrity in IMF surveillance of member’s economies and public finances (IMF,
2010). Debatably, corruption level has increased, despite all efforts to revert its
economic and social costs, and prevent social vices. It still the bane to humanity. So, TI
(2012), develops tools for fighting corruption, and works with other civil society
organizations for implementation. Okonjo-Iweala (2013), claims that, social cost of
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corruption indicates that corruption affect the entire population. It suggests, IMF
collaborate with IA bodies in the fight against social vices including corruption. Also,
UNECA (2015), indicates that, corruption remains the most daunting challenge to good
governance, sustainable economic growth, peace, stability, and development in Africa.
To succeed in combating corruption, IA approach should be the main fighting tool,
because, it helps protect assets, reputations, and support operational sustainability (Ida
Kristensen, Merlina Manocaran, Edmond Sannini, and Haris Usman.2021), and IAP
combats corruption (Ferraz and Finan, 2018). Also, corruption has remained a major
obstacle to the attainment of the continent’s development goals (UNECA, 2015). IMF
should assist the various countries by ensuring that all IA bodies are strengthened,
protected legally, and empowered with special focus to fight SVIFC.
Analytically, the researcher identified drivers of corruption, which are depicted in Figure
2.10.3 below; the blue shaded triangle represent level of corruption. Logically, the
spaces covered within the blue shaded triangle by the four stated system of drivers,
depict proportions or percentages of contribution to FC. Critically, the researcher opines
that, the proportion of: Social injustice is1:10 (10%), Weak ant-corruption institutions is
2:10 (20%), Ineffective and inefficient leadership is 3:10 (30%), and Bad and corrupt
governance is 4:10 (40%). These drivers need to be avoided or minimized by the
application of IAP approach, because, corruption have a multiplicity, vibrancy, and
dynamism that can defeat even dedicated attempts at reform (Murphy & Riley, 1962).
Also, punishment for corruption should exceed benefit of corruption, at least 3-times to
deter parties from such unhelpful activities.
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Figure: 2.10.3
Main Drivers of FC
System of Social
Injustice
System of Weak Anti-

Corruption Institutions
System of Ineffective
and Inefficient
Leadership
System of Bad and

Corrupt Governance
2.10.4 Literature Triangulation, Level of Analysis, and Purpose of the Research
Among others, the following three important components of the current research are to
be taken seriously for further recapitulation as a refresh point of departure.
Literature Triangulation: The literature review contained two main parts consisting of
triangulation of the main academic domains made of three theories, and quasi-
academic materials from professional sources. It considered the theories and seminar
authors work on: Theories on Governance, Theories on Corruption and Theories on
Social Justice. Added to this, the literature triangulation provided overview of the fight
against FC. Making the literature triangulation well informed, quasi-academic materials
from the professional arena which are more technical in nature was included. Figure
2.10.4A below illustrates literature triangulation informed by quasi-academic materials.
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Figure 2.10.4A
Literature Triangulation
Theories on
Social Justice
Literature
Triangulation and
Theories on Technical Focus Theories on
Corruption Integration
Governance
Quasi-Academic
Materials
Source Adapted : UGSM-Monarch Business School
Level of Analysis: The levels of analysis available for the research to provide basic
analytical framework are: Macro, Meso and Micro. The research focuses mainly on
MDAs and MMDAs Levels (Meso) and the governmental (Macro) levels of analysis. At
the Meso level, the research investigates the effectiveness of IAP, and its impacts on
PSFM in the fight against FC in Ghana. At the macro level, the standpoint is to revisit
elements of the Meso levels and focus on the governmental aspects with issues
hindering PSFM. Limitation of the research resulted in the micro-level as secondary
concern analyzed indirectly from the responses of interviewees, but limited to those who
at the governmental level (Macro) and departmental level (Meso). Figure 2.10.4B below
provides the level of analysis and partial stakeholders’ scheme

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Figure 2.10.4B
Levels of Analysis & Partial Stakeholders Schema
LEVEL AREA FOCUS
Prevent FC, Provides funds, assess, and

MACRO Government, IAA and IIA
improve on IAP and PSFM
PSFM tools, budgetary documents and

MESO MMDAs and MDAs reports. Senior staff of PSFM and correlation
between IAP, PSFM and FC.
MICRO Individual PSFM Staff, Citizens and communities
Purpose of the Research: The research is to answer the main research question,
assess IAP and its impacts on PSFM in fighting FC to avert its repercussions, develop a
conceptual model that would better explain, and improve on the effectiveness, and
correlation between IAP, IAF, and PSFM to improve on the anti-corruption strategies in
the Ghanaian economy. Furthermore, the research aims to: fill the knowledge gaps
identified in the literature, and assists the policymakers and implementers to avert FC.
Also, to ascertain the factors militating against IAP, and why IAP impacts on the PSFM,
yet public funds are not effectively protected. Next sub-section summarizes the review
of quasi-academic materials.
2.11 Summary and Literature Gaps on Quasi-Academic Materials

This chapter discusses the review and contributions of quasi-academic materials to anti-
corruption. 10 quasi-academic materials point out the causes, types, and effects of
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corruption, and why there are the need to fight social vices including the financial
corruption. However, the approaches do not lay much emphasis on internal audit, and
its performance. Also, the approaches were found to be inconsistent, inconclusive,
incomplete, no deterrent punishment, However, it has been deduced that internal audit
should be embraced, well resourced, protected legally, backed by political will and
commitment to fight the menace to humanity, and societies, and nations.
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CHAPTER TWO-PART FOUR
CRITIQUE OF LITERATURE ON THE
FIGHT AGAINST FINANCIAL
CORRUPTION
CRITIQUE OF FIGHT AGAINST FINANCIAL CORRUPTION
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2.12 Overview
IAP is an anti-corruption initiative that falls under the national, and international levels of
PSFM devoid of FC and financial intervention. There has been limited studies in the
area of financial management. The integration of the IAP, PSFM, FC, and socio-
economic development have quested for the interest of many researchers in the recent
years. The Anti-corruption has attracted the interest of researchers who have sought to
interrogate the progress made globally or nationally. This section analyzes the findings
of these authors while considering the gaps that the current research cross-examines.
In addition, the section discusses the achievements, challenges and proposed
recommendations by scholars regarding the fight against FC in the public sector.
Methodological, and literature gaps are presented in the next section. Financial
corruption remains a problem, despite legal and institutional framework to counter it,
active media coverage and government anti-corruption initiatives (Freedom House,
2018). However, Ghana Integrity (2018), notes that, corruption level in Ghana poses an
obstacle for business operating, and investment in the Ghanaian economy.
2.12.1 Achievements of the fight against FC
The general public sees corruption as a problem of social justice, but, the scholarly
literature realizes it as a problem of economic development. Hence, attempts to develop
normative theory of corruption as a form of injustice (Jonq-Sung You, 2006). Corruption
is breach of formal justice for private gain, involving betrayal of public thrust, and it
cannot be justified on the ground of efficiency gain, unless it is for the benefit of the
least advantaged. This gain from corruption typically widens existing inequality, and is
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accompanied by negative externalities such as loss for honest players, and erosion of
social trust (Jonq-Sung You, 2006). In spite of the challenges, the Agency had chalked
various successes, including the facilitation of the creation of internal audit units in
Ministries, Departments and Agencies (MDAs) and Metropolitan, Municipal and District
Assemblies (MMDAs), training, and capacity building for internal auditors, and
publication of internal audit manuals among others (Obese-Jecty, 2015).
Social audit analyzes public officials’ decisions and actions, looking for administrative,
legal, and financial irregularities. These take different names and forms, ranging from
social audits in Guatemala, and anti-corruption brigades in Peru, to social auditing in
Ghana (Mohamoud Faraq, 2018). Moreover, Mahamoud Faraq (2018) notes that, there
are four reasons why social audit is an important tool in fighting corruption, which are as
follow:
 Social audit is an entry point for citizen engagement in the fight against
corruption. Social audit gives citizens insights about the inner workings of public
institutions and gets them into the habit of holding government to account.
 Second, social audit is a powerful tool to uncover irregularities and malpractices in
the public sector. Social audit has led to public officials being convicted for
violating the right to information law in Guatemala, a 50 per cent reduction in the
costs of public construction works in Peru and the abolition of an illegal education
fee in Ghana.
 Social audit pushes for more transparency and accountability in the public
sector. Without access to public information, social audit will fail as there will be
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nothing to audit. Submitting information requests or signing agreements to access
public documents facilitates transparency of the public sector and asserts citizens
right to access information, and
 Social audit complements the role of oversight institutions. This could take the
form of following up with local assemblies to ensure the implementation of the
Office of the Auditor General’s recommendations, as happens in Ghana.
The tool of social audit as an ant-corruption brings transparency, and accountability in
the government system, empower the poor, and serves as effective way to access
justice (Millm1971; John Rolls (2016); Dharktode (2020); and Ambedkar (2016},). These
scholars note that, the institutionalization of the social audit in various states is one of
the progressive steps taken by the government of India to improve the public
management system, and empower the people. Various social and political thinkers
including: Mill (1971), John Rolls (2016), Dharktode (2020), and Ambedkar (2016}, have
discussed theoretically the idea of social justice, and provided theories on how justice
can be achieved as the means to fight social vices including FC. Competence,
communication, and audit work have positive effects on the effectiveness of Internal
Audit, which have been achieved for effectiveness of IAP (Setyaningrum and Kuntadi,
2017). Also, Shamki and Alhajri (2017), cite a significant relationship between the
effectiveness of Internal Audit and the auditors’ experience in fighting FC. Various
scholars indicate the importance of coordination between Internal Audit and Audit
Committee (Khelil et al., 2016; Mahdawi et al., 2018; Sarens et al., 2009). Also, Khelil
et al. Also, (2016), emphasizes that, the coordination of Internal Auditing and Audit
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Committee increases the morale of the chief audit executive to act more ethically to
enhance the effectiveness of IAP to impact on PSFM in the fight against FC. In
conclusion, thought ant-corruption has been somehow difficult, some achievements
have been chalked. Effectiveness worked for helped to minimized FC to some extent.
Social audit as part of internal audit, has achieved significant number of success in the
fight against FC. Co-ordination between competence, and communication result in
positive effect on ant-corruption. The challenges of anti-corruption is discussed below;
2.13 Challenges of Fight against Financial Corruption

2.13.1 Financial Corruption
Financial corruption is identified as deterrents to the implementation initiatives of the
PSFM procedures and policies. Aloo (2017), cites that, corrupt acts in tariff policies of
states as hindrances to the free movement of goods and services as mechanism to
promote FC. Bribery of foreign public officials has huge costs and consequences for
countries across the globe, and those costs have become more severe. With so many
cases of foreign bribery occurring in health care, we cannot afford for corruption to cost
any additional lives (TI, 2020). Attesting, Transparency International (2020), reports on
exporting corruption, rates performance of 47 leading global exporters, including 43
countries that are signatories to OECD for Anti-Bribery Convention, in cracking down on
bribery of foreign public officials.. The report shows how well or poorly countries follow
the rules. More than 20 years after the convention was adopted, most countries still
have a long way to go in meeting their obligations, and active enforcement has
significantly decreased (TI, 2020).
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Researchers including: Nurdiono and Gamayuni (2018), Setyaningrum and Kuntadi
(2017), Shamki and Alhajri (2017), Dejnaronk et al. (2015), Cohen and Sayag (2010),
mention that, the effectiveness of IAP in fighting FC in developing countries is mostly
caused by institutional factors, and lack of theoretical framework with regards to
effectiveness of Internal Audit. Dejnaronk et al. (2015), opines that, factors influencing
Internal Audit effectiveness to fight FC include compliance with IIA standards, use of a
risk-based audit plan, presence of a quality assurance, and improvement or programs.
Nurdiono and Gamayuni (2018), confirms that, internal auditor competency affects
Internal Audit quality, and reduces or prevents FC. The reps of civil society in Ghana
raised concern on the abuse of state resources (Freedom House, 2018). Also, political
corruption remains a problem, despite legal, and institutional framework to counter it
plus active media outrage and governance anti-corruption initiatives (Freedom House,
2018). Global Integrity (2018), agrees with that, corruption level in Ghana poses an
obstacle for business operating and investment in the country, because, Ghana’s
aggregate score on the financial corruption were high than those of the West African
region, and the content (Global Integrity, 2016).
2.13.2 Internal Audit Performance
Ghana’s public sector will be able to fight corruption if the internal audit agency is
independent (National Internal Auditors Association, and Micheal Ayivi, 2020). Scholars
including Dejnaronk et al. (2015; Nurdiono & Gamayuni. (2018); Setyaningrum, and
Kuntadi (2017), prove that, there is a plethora of research studies on the effectiveness
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of internal auditing, but in general, these studies are not based on a strong theoretical
framework. They, re-emphasize, that, research hypotheses of these studies have been
built based only on the pragmatic context in which the research has been conducted.
Effectiveness of Internal Audit needs to be analyzed, because, IAP needs to be
improved on by providing the internal audit entities with legal and technical support to
fight FC as expected (Shamki and Alhajri, 2017; Endaya and Hanefah, 2019). Most of
these studies analyze the effectiveness of Internal Audit by referring to the applicable
internal audit practice standards (Dejnaronk et al., 2015; Nurdiono & Gamayuni., 2018;
Setyaningrum & Kuntadi, 2017), these is not effective enough to fight FC.
Internal Audit independence influences the effectiveness of IAP, enhance impacts on
the PSFM to detect and prevent FC (George et al., 2015). The effectiveness of IA in
developing countries is mostly caused by institutional factors. Research in developing
countries contexts has been carried out by Nurdiono and Gamayuni (2018),
Setyaningrum and Kuntadi (2017), Shamki and Alhajri (2017), Dejnaronk et al. (2015),
Cohen and Sayag (2010) to prove that IAP needs to effective to serve as catalyst for FC
within the public sector. Setyaningrum and Kuntadi (2017) show that competence,
communication, and audit work have positive effects on the effectiveness of Internal
Audit. Shamki and Alhajri (2017), find relationship between the effectiveness of Internal
Audit and the auditors’ experience. Fighting corruption requires a multi-faceted
approach with all hands on deck, and called on citizens, public servants, the private and
public sector to be engaged and committed to ensure the success of the national efforts
(Jonny Osei, 2015). Domelove (2020), asserts that, fighting corruption, will result in
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corruption fighting in turn in any form. Considering the demands for accountability and
transparency in management of resources, internal auditors are to abide by the code of
ethics to be accepted by institutions and society at large (Sewornuku Norgbey, 2015).
https://mab-online.nl
7
period. (ISA 701.9). The
description of a KAM shall in-
clude an explanation of (1) why
the matter is considered
as strongly signicant in the audit,
(2) how the matter was
addressed in the audit, (3) and a
reference to the related
disclosures in the nancial
statements (ISA 701.13). ISA
701 is eective for audits of
nancial statements of listed
Page | 146
entities for periods ending on or
after 15 December 2016.
The European Commission
aspires to improve auditor
reporting in a similar way.
According EU-Regulation No
537/2014 the auditor’s report shall
provide: (1) a descrip-
tion of the most signicant
assessed risks of material mis-
statement, (2) a summary of the
auditor’s response to those
risks, and (3) where relevant, key
observations arising with
respect to those risks. The EU-
Regulation is directly appli-
cable in all Member States and is
eective for audits of pu-
Page | 147
blic interest entities from 17 June
2016 (European Parlia-
ment and European Council of the
European Union 2014)
The auditor’s report is the primary
mean of communi-
cation between auditors and
nancial statement users
(PCAOB 2017). However, the
traditional reporting mo-
del is highly standardized and
therefore frequently per-
ceived as insuciently useful,
informative, and transpa-
rent (Asare and Wright 2012;
Church et al. 2008; IAASB
2011). In particular, in the
aftermath of the nancial crisis
Page | 148
of 2008, regulators, standard
setters and the investment
community started seriously
questioning the informative
value of the auditor’s report.
Similarly, academic rese-
arch in the last decade has also
repeatedly emphasized
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that there may be a need for
change, motivating audit re

mean of communi-
Page | 150
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mean of communi-
Page | 152
mean of communi-
Page | 153
change, motivating audit
2.13.3 Public Sector Financial Management
The notion that auditing could reduce FC has received considerable attention of both
business and academia (Ebrahim Assakaf, Rose Samsian Samsuodin, and Zaleha
Othman (2018). Although, evident suggest that public sector auditing helps to combat
corruption, there is still a gap in this area especially concerning the assessment of IAP.
It comprises the whole budget cycle, public procurement, audit practices, and revenue
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collection (Joshua Roger, 2022). Weak PSFM system leaves the door open for FC. It
damages: public finances, public confidence in the government, delivery of services,
and provision of public goods, and reduces: political competition, democratic, and
economic development, social equality, and the rule of law, and diverts public funds
to unlawful ends (Joshua Rogers, 2022).
Corruption in PSFM involves a particular set of actors: members of government,
parliament, and other state entities. It goes against principles of transparency,
meritocracy, and public sector ethics (Joshua Rogers, 2022). Technical measures
and institutional reforms have a limited effect on public sector corruption, and
reduces bureaucratic, and petty corruption, but will not reduce political corruption
(Joshua Rogers, 2022). Corruption in PFM is a question of political will, and
commitments. The democratic principles of checks and balances, separation of
powers, transparency, and accountability are possible mitigation strategies to curb
corruption, and other social vices. Participatory anti-corruption approaches include
public service users are also important (Ebrahim Assakaf, Rose Samsian Samsuodin,
and Zaleha Othman, 2018)
2.13.4 Social Justice
Social Justice is understands as the fair and compassionate distribution of the fruits of
economic growth (United Nations, 2006). It is deduced that, social justice plays vital role
in the fight against corruption, by ensuring the fairness, and firmness of internal auditors
but not compromise. Denise Sumpf (2015), notes that, social justice’ requires
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qualification by a geographical, sociological, political, and cultural framework affecting
all areas of political, economic, environmental, social, and human development. The
idea that individuals’ rights and freedoms are exercised within a framework of duties
and responsibilities guides perception and understanding of what is ‘corruption (Denise
Sumpf, 2015). Also, United Nations (2006), supports of concept of social justice is to
argue for a reconciliation of these priorities within the context of a broader social
perspective. Individuals are endowed with rights and freedoms operate within the
framework of the duties and responsibilities attached to living in society.
2.13,5 Ghana Integrated Financial Management Information System (GIFMIS)
GIFMIS is Financial Information Technology System that is now replacing the manual
system of governmental financial transactions. It involves using an Enterprise
Resources Plan. Which is essentially a centralized electronic platform, with various
components designed to facilitate the flow of information amongst national institutions to
facilitate decision making (Stephen Sharang, 2018). The lack of effective cooperation,
delays in getting information required for the setups of the GIFMIS, as well as delays in
submitting a backlog of transactions, and key issues ought to be addressed for the
efficient operation of the policy (Ato Arthur, 2018). According to Stephen Sharang
(2018), the main challenges confronting GIFMIS in the process of anti-corruption
implementations include;
 Most of the features are not recognized in law due to the absence of legal
framework
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 Payment made on GIFMIS are directly, sometime, there is problem of collection
of receipt from the payees often occur
 Difficult in retrieving payment made to a wrong account, and
 The initial cost outlay in setting up the system may be quite huge (Stephen
Sharang, 2018)
IA functional role is pre-corruption, and preventive task that must be empowered not to
waist resources in chasing funds that had already stolen (Director General of IAA,
2021), In view of this, GIFMIS managers were asked to re-configure the system to allow
internal auditors to have access to the platform to be able to stop irregular transactions
on the platform, than allowing them to view when transactions have ended, Government
must pay more attention on IA in bid to fight FC (Director General of IAA, 2021).
2.13.6 Good Governance
Ghana was faced with a number of governance challenges, including adherence to
laws, regulations, procedures, and enforcement of sanctions (Jonny Osei, 2015). The
laws, regulations, policies, and procedures of our public financial management system
are designed to mitigate the specific risks (Jonny Osei, 2015). Also, define appropriate
processes to ensure effective and efficient management of public resources. Internal
auditors have a duty to constantly remind stakeholders where, and when fallen short
and to help to detect, prevent, correct these shortfalls (Jonny Osei, 2015). Government
would ensure that the IA is well positioned to effectively help in the fight against
corruption, identify, and address shortfalls in Ghana’s governance system (Jonny Osei,
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2015). There is the need for more effective public sector governance and resource to
encourage effectiveness, efficiency, and economy (IFAC, 2019; Kim, 2018).
If, GG doesn’t exist, many governments fail to deliver public services effectively, health,
and education services are often substandard, financial corruption persists in rich and
poor countries alike, choking opportunity, and growth (Kim, 2018). Kim (2018),
emphasizes that, fundamental importance for public sector entities to behave with
integrity, demonstrate strong commitment to ethical values, and respect the rule of law.
The framework, and its supplement includes application guidance, implementation tips
(Vicent Tooboot, 2019). The review aims to assess implementation of governance
framework, based on the candidness, effectiveness and evenhandedness of
engagement and policy advice (IMF, 2021). The fight against corruption offers an
assessment of the challenges governments face in tackling corruption, what instruments
tend to work, and why, and how incremental progress is being achieved in specific
country contexts (WBR, 2020). To foster accountability, governments need to clearly
articulate actions, enforce rules, address violations, and remedy problems as quickly as
possible in a transparent manner (WBR, 2020). Lack of political will and commitment to
enforce agreed policies, observe obligations undertaken, and sufficiently use the
instruments provided (Ouma, 2021)
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2.13.7 Internal Audit Function
The measurement of IAF involves a balances scorecard approach. And are evaluated
based on the quality of counsel and information provided to the audit committee, and
top management (Erigo Mark, 2915). Auditors are seen as active players influencing
events in the business rather than criticizing all degrees of errors and mistakes. Some
researchers foresaw a more desirable auditor future involving a stronger relationship
with members of audit committee and the board and a divorce from direct reporting to
the chief financial officer (Sawyer, 2018). Changes aimed to increase the
communicative value of the internal audit reports. However, several studies have shown
that, there have not reduced the gaps (Chong and Pflugrath, 2018; Mock et al., 2016).
On the other hand, some studies have demonstrated that the content and form of the
reports can influence the perceived gaps on the IAF (Mock et al., 2016; Vanstraelen et
al., 2016). Scholars including: Vanstraelen et al. (2017), Litjens et al., (2015), and Mock
et al., (2013), detect that, users preferred substance over form in reports, with
conclusions on the fairness of the statements towards the beginning, and information on
findings, and challenges. IA function focuses on offering assurance, financial
management, risk management, and controls processes, and when risks become
complex and multiplied, it provides a wider range of services, at a short notice
(Kristensen, Merlina Manocaran, Edmond Sannini & Haris Usman.2022; IIA, 2022;
Dickson Chisambira, 2021; Madalitso Kateta, 2020)
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2.13.8 Anti-Corruption
Once a report on corruption is submitted by whistle-blowers, citizens, companies or
journalists, handling it properly is vital for the effective combating of corruption (United
Nations Office on Drug and Crime (UNODC), 2017). According to UNODC (2017), how
entities handle incoming reports of corruption is crucial, because it affects the
immediate case, and establishes impressions about whether complaints are taken
seriously, thereby determining if others will come forward in the future. According to
people who have been asked to pay bribes in the country, the main reason for not
reporting to the authorities was the perception that the reports would remain
unaddressed (United Nations Office on Drug and Crime, 2017). It is very authoritative to
fight social vices including corruption, because, the incidence of corruption in African
countries ranges from rare in Botswana, to widespread in Ghana, to systemic in Nigeria,
many states clearly fall in the ‘widespread to systemic’ category (Zeff et al., 2006).
Analytically, the most effective tool for anti-corruption is internal audit. Buttressing, the
role of internal audit performance is to help decision makers protect organizational
assets, reputations, and support operational sustainability, and fight corruption (Ida
Kristensen, Merlina Manocaran, Edmond Sannini, and Haris Usman.2021)
2.14 Solutions to the Challenges of the Fight against FC

Researchers state several solutions to the challenges of the fight against FC. Whereas
resolving these challenges, Ebrahim Assakaf, Rose Samsian Samsuodin, Zaleha
Othman (2018), and Urbanus (2020), opine that, controls by civil society, media, and
independent oversight, and anti-corruption bodies to play a crucial role to fight FC. It
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is believable that the effectiveness of IAP framework will be a potent tool for public
sector entities seeking to enhance governance arrangements, win the battle against
social vices including financial corruption, and reinforce transparency and accountability
(Vicent Tooboot, 2019). Added to this, (WBR, 2020), notes that, the core tools of fiscal
transparency, citizen engagement, and social accountability should become more
important. However, Kim (2018) realizes spread of information technology and
convergence with grassroots movements for transparency, accountability, citizen
empowerment, and promoting good governance in both developed, and developing
countries to share experiences of anti-corruption (Vicent Tooboth, 2019).
There is the need for MMDAs, and MDAs to realign operations to absorb the GIFMIS
policy (Ato Arthur, 2018). Government must pay more attention to Internal Audit for
effective performance, empowers, provides internal auditor with legal and technical
support in bid to fight FC (DG, 2021). Further, Director General of IAA (2021), advises
that, internal auditors must be included on the GIFMIS platform to executive its
mandatory roles of detection, prevention, and correction of threats, errors, and
infractions that may lead to corruption and could be avoided. Fighting corruption is risky,
because, corruption will fight back in all forms and anywhere (Demolovo, 2020; Kofi
Bentil, 2021). Combating corruption, it is important that the responsible authorities, both
internal, and external to organizations, develop clear, and transparent systems to
receive, and handle reports of corruption. Without these systems, the process of
investigating corruption will be haphazard at best. When assessing or creating such
systems, there are several considerations (UNODC, 2017).
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2.15 Summary
The critique highlights achievements, challenges, and solutions according to scholars.
The review presents the main variables under current study as: Financial Corruption,
Internal Audit Performance, Public Sector Financial Management, Good Governance,
Social Justice, Internal Audit Function, Anti-Corruption, and Ghana Integrated Financial
Management Information System. Discussions of these variables have been cited by
scholars as vital elements with respect to Anti-Corruption drive. It has been discovered
that fighting corruption is very risky for the fighters of corruption since it shall fight back
in any form in any place. The literature and methodological gaps mentioned are
discussed further in the next sections.
CHAPTER TWO-PART FIVE

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METHODOLOGICAL AND LITERAURE
GAPS IN THE FIGHT AGAINST FC
METHODOLOGICAL AND LITERATURE GAPS

2.16 Overview
2.16.1 Literature Gaps
Table 2.16.1 below shows the literature gaps and researcher’s contribution.
Table 2.16.1
Literature Gaps and Research Contribution
Literature Gaps Seminal Authors Researcher’s Contribution
Concentrates on an idea Nangano (2009), Klitgaard (1998), The researcher focuses on effectiveness of
that corruption is so difficult Gjalt de (2007), Collier (2002), IAP, and PSFM and Punitive system,
to tackle, it makes sense to Hulten (2002), Caiden and Dwivedi government commitment, and political will to
engage in it and.it is difficult (2004), Schinkel (2004), Graaf as tools to fight corruption. Also the
to fight but failed deal with (2003), Punch (2000), IFC(2010), researcher provides a model for effective
how to fight FC IMF(2010), and TI (2010) anti-corruption
The earlier researches did Hubert Savenije (1996), (Gjalt de, The current research includes IAP to
not include IAP, and 2007), Hulten (2003), Caiden (2001), achieve effectiveness, efficiency, and
strengthen the anti- Fijnaut and Hebert (2002), economy to prevent FC. The research
corruption institutions for Huntington (1989), Gambetta (1993), further deduces that ethical behavior should
detective, preventive, and Kitgaard (1988), Caiden and Dhivehi be inclusive to avoid poor and corrupt
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corrective measures to (2004), Collier (2002), Schinkel leadership in anti-corruption efforts, and
combat FC. However, (2004), Graaf (2003), Punch (2000), also institutions involve in combating are
condemns corruption, UNDP(2009),WBG (2011), made strong given the freehand to operate
because, it retard national AUCP(2004), and Ningana (2009). without undue influence.
development.
In the procedure to fight Punch (2000), Kaufmann and Kraay Current research addresses issues of anti-
Financial Corruption, (2007), Gregory (2005), Fijnaut and corruption including deterrent punitive
punitive system, and IAP Hebert (2002), Huntington (1989), system to be discourage and make FC
were excluded, and deals Gambetta (1993), Kitgaard (1988), more risk, and hard venture. IAP as catalyst
with democracy, good Hulten (2002), Caiden and Dwivedi of anti-corruption to detect, prevent, and
governance, human right (2004), Collier (2002), Schinkel correct threats and errors that lead to
should be protected (2004), and Graaf (2003). corruption.
Provides principles, and Gregory (1999). Punch (2000), The research came out with Anti-Corruption
methods to fight FC, but Hubert Savenije (1996), (Gjalt de, equation to buttress the model for success,
excludes Anti-Corruption 2007), Hulten (2003). Nangano and protection of public purse to make anti-
Equation, and IAP to (2009), Klitgaard (1998), (Gjalt de, corruption ventures conclusive, consistent,
render fighting FC 2007), Collier (2002). USAID(2005), and complete
inconclusive, inconsistent, Nangano (2009), Klitgaard (1998),
and incomplete
Focuses on scholarly Punch (2000), Hubert S. (1996), The current research used theories and
domain theories for Gjalt de (2007), Hulten (2003). were well informed by quasi-academic
literature review, without Nangano (2009), Klitgaard (1998), materials from the professional arena. Also,
inclusion theories on Social (Gjalt de (2007), Collier (2002). includes social justice theory to widen the
Justice on fight against Caiden (2001), Fijnaut and Hebert horizon of the fight against FC. To ensure
corruption in the PSFM but (2002), Huntington (1989), Gambetta effective Anti-corruption to protect the public
address human right (1993), and Schinkel (2004). purse for socio-economic development.
issues.
This section of the research discusses the gaps of the literature, and methodology in the
assessment of IAP in the fight against FC in Public sector financial management
researches and links them to the methodological gap in PSFM inquiry. In spite of the
contributions of scholarly studies to the discourse on PSFM in the Ghana, Africa, and
beyond, the present research filled the gaps identified in the literature. These issues are
linked to employment of IAP approaches, and procedures within the enclave of PSFM,
which are necessary to the current research. The problems are ineffective IAP,
ineffective PSFM, Bad governance, social injustice, exclusion of internal auditors on
GiIFMIS platform, ineffective execution of internal auditors, and alarming nature of
financial corruption.
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However, the research filled the gaps identified by the scholarly domain, which included
the failure of some authors to study, to point out the main causes of financial corruption,
ineffective PSFM, and ineffective IAP implementation, and procedures to focus on
consistency, completeness, and conclusiveness of: policies, procedures, methods,
recommendations, and there like, relating to the PSFM. Most of the studies focus on
one-sided of the PSFM, without considering IAP as a catalyst of Anti-corruption. The
research focuses on the PSFM implementation, processes, and procedures as the
problem absence of effective mechanism to check, and prevent financial corruption.
Some researchers examine none of the PSFM implementation issues, while others
indicated a few of the issues. Comparatively, this research, none of the authors
reviewed addresses all of these issues associated with IAP, and PSFM weaknesses
which are inconsistency, incompleteness, inclusiveness, due to absence of Internal
Audit Performance to play the role of detection, prevention, and correction of threats,
and errors that lead to financial corruption. The research also considers the
implementation of the PSFM engineered by IAP in the entire public sector of Ghana,
and Africa rather than in one institution as compared to some authors.
2.16.2 Methodological gap
This section outline the methodological gaps in the assessment of IAP in the fight
against FC in PSFM researches, and compares with gaps in PSFM analysis. The table
2.16.2 below indicates, gaps ascertained and filled by the researcher. The numerous of
studies done by scholars on the PSFM use various methodologies to collect data and
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analyze findings accordingly. Most of the researchers used literature review limiting
findings to what other scholars discuss about as the result.
The disadvantages of a literature review are that it depends on secondary, and outdated
more than first-hand and fresh but relevant data, hinders creativity, and intuition tends to
overlook old literature like reports, and other financial management document. This
depends on source availability, and accessibility, which may be limited (Nakano &
Muniz, 2018). Furthermore, a majority of scholars employed a single method research
design, which has been criticized by many scholars indicating minimisation of rigour in
research.
Table 2.16.2
Methodological Gaps
Methodological Gaps How the Present Research Fills the Gap
Most of the researchers used theories in a The researcher reviewed 45 seminal authors’
management research without considering works, who contributed significantly on at
and Internal Audit. These theories state that least three theories to add value to
once an organizational culture is corrupt, knowledge on Internal Audit Performance in
every person who comes in contact with it Public Sector Financial Management in the
runs a big risk of becoming corrupt (Punch, fight against FC. Further, the research is
2000). Internal controls are to be an integral focused on protection of the organization
part of an organization’s financial business from FC by emphasizing on IAP as the best
policies, and procedures (Millichamp, 2000) anti-corruption tool.
Most of these studies analyze the Beside IA standards and practices, the
effectiveness of Internal Audit by referring to researcher analyzes effectiveness of IAP
the applicable Internal Audit practice, and using responses from survey and interview,
standards (Dejnaronk et al., 2015; Nurdiono content analysis, literature review, and
& Gamayuni., 2018; Setyaningrum & Kuntadi, implementation of the core principles of IAF
2017).
There is a plethora of research on the The current research is based on theoretical
effectiveness of IA, but in general, these framework informed by quasi-academic
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studies are not based on a strong theoretical materials from professional arena. In addition
framework (Dejnaronk et al., 2015; the researcher employed mixed methods
Millichamp, 2000; Nurdiono & Gamayuni., approach and data triangulation this for
2018; Setyaningrum & Kuntadi, 2017). research.
Corporate Financial Performance is built on IAP and PSFM for effectiveness are built on
shaky grounds, and it is in conclusive, and solid theoretical framework to help achieve
inconsistent (Jones, 1995).The reason is that effectiveness, efficiency, and economy.
just how choices cause actions must be Theories were informed by quasi-academic
made clear (Collier, 2002). materials for reliability, and consistency.
Neglecting of how interdependences between The researcher deduces the need for a
organization and diverse environments lead further research on causality of variations and
to variations in effectiveness of governance effectiveness of governments to include IAP
practices (Jackson,2007) & Jones (1995), for consulting, assurance, and control
services to avoid FC
Source: MacCharles Tamakloe (2021).
Most scholars use descriptive research approach. The frauds here is that, the method
can only describe but can not asssess or investigate research problem statistically and
liable for bias. Most descriptive studies are observational, and not replicable (Sedgwick,
2014). Mixed methods was adopted, and engaged in the present research which seeks
to solicit many responses, check the causes, and effects of the PSFM implementation
problems for the achievements of effective anti-corruption drives. This calls for possible
solutions, and measure statistically to arrive at findings and conclusions that will benefit
the PSoG. So researchers analyzed their data using content analysis. Its limitations are
that, it does not save time, liable to error, based on inferences drawn from a study
rather than theory, and too reductive and simplistic (Krippendorff, 2004). Tthe present
research used a mixed-methods research design in order to avoid ang backdraw.
Choosing survey approach by two scholars has shortcomings of unsuitable for large
areas, and hard-to-reach populations, time-consuming, not economical, requires a lot of
manpower to produces data that becomes outdated after it has been collected
( Zikmund et al., 2010). The currnt research concentrates on Ghana, and beyond and it
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is impossible to conduct a survey due to the expanse of area of coverage. Another
limitations of a census study is that the findings might be outdated because of time and
cost, and yield no meaning the subject matter. Case research concentres on only
PSoG, and generalizing the findings to the rest of the international communities, which
has received many criticisms from scholars as being limited in scope.
2.17 Summary
Scholars decide that Anti-Corruption review lacks thoroughness, and uses basic
methodologies. In this regard, triangulation is proposed as a creditable approach. The
findings in this section define the methodology chosen by the researcher as explained
earlier.
CHAPTER TWO-PART SIX

Page | 168
SUMMARY AND LITERATURE GAPS
SUMMARY AND LITERATURE GAPS

2.18 Summary and Literature Gaps
Meta-analysis of CSP-CFP indicates influence on CG, and theorizing between CSP,
and CFP has different level of information. Available model covers large research
arena, and impacts on public institutions. The more transparent a prismatic society, the
more complex its public administrative structure is untrue, Coercion is needed for:
entity’s interest, assumptions for analysis, and CG for effectiveness, efficiency,
transparency, control, and accountability. IA should be strengthened to achieve
integrity, compliance, and effective anti-corruption. .
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Global Corruption Barometer ranks corrupt institutions in Ghana as: Police Service
36%, Elected representative 36%, Government official 35%, Business executives 34%,
Local Government 33%, President 32%, Tax Officials 30% and Religious leaders 18%..
FC fosters public sector incompetence, and ineptitude, and causal chain starts from bad
character to corrupt acts. Public officials are corrupt due to the benefits of corruption
exceed its costs, due to absence of deterrent punitive system. IAP is to impact on
PSFM to the fight corruption, which is correlated with several variables, and laws and
programs breeding corruption are to be abolished.
Distributive justice affects performance involving efficiency, and productivity. Social
justice is rousing ideal of democratic governance, and a norm is a standard of behavior.
Achieving justice system for fairness is to avoid prejudice, and build consensus. Virtue
in approach is social contract, but, excludes disability, nationality, and membership.
Theory of justice on globalization is changing as justice is treated seriously. Institutional
justice refers to fair decision making, and resource allocation. Concepts are facets of
trustworthiness attributes of trustee, and equality merits political theorists’ attention on
input transformation.
Corruption hampers efforts to alleviate poverty, undermines political stability, economic
growth and prevent investment. Corruption costs Africa more than $150 billion dollars
yearly, and should be fought using IAP approaches. Public organizations aim to fight
corruption relies on Internal Auditors, but are not protected, and recognized. More than
a trillion dollars stolen annually needed to achieve MDGs. Global organizations’ efforts
to anti-corruption are incomplete, inconsistent, and need to cover all types. Fighting
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corruption is importance as a development priority for Africa, and is hardly a problem
exclusive to developing countries.
Gaps identified in the literature are needed to be fill. The literature gaps are but not
limited to: inconsistency, inconclusiveness, indecisiveness, and lack of effective IAP,
political commitment, and political will, bad leadership, corrupt governance, social
injustice system, and weak anti-corruption institutions. These gaps are with respect to:
principles, procedures, methodology, models, rules, ideas, and paradigms to fight social
vices including financial corruption using IAP as a catalyst of anti-corruption. The level
of IAP needs to be enhanced to detect, prevent, and correct threats, errors, and
infractions.
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CHAPTER TWO-PART SEVEN
PRACTICAL APPROACHES OF IA IN
OTHER PARTS OF THE WORLD
PRACTICAL APPROACH IN OTHER PARTS OF THE WORLD
2.19 Practical Approaches of IA

2.19.1 Overview
To meet the global standard, the researcher further reviewed the practical approaches
of Internal Audit Performance in the fight against Financial Corruption (FC) within the
Public Sector in other parts of the world. The review of the practical approaches cover
sixteen (16) countries translates into 10.9% of 154 countries in the Word. These
countries are made up of Francophone, Anglophone, Arab, and other countries, which
are: Guatemala, Peru, United Kingdom, South Africa, Canada, and United State of
America, China, Kenya, India, Brazil, France, Spain, Japan, and Germany. These
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approaches are used to detect, and prevent similar challenges faced in the Ghanaian
economy. Below are the reviews.
2.19.2 Practical Approach of Internal Audit in Guatemala and Peru
In Guatemala and Peru, social audit (SA) complement, and strengthen IA to fight social
vices including financial corruption. The Social Audit identifies the goal of anti-corruption,
form alliance with public authorities, develop strategies, and review public documents to
prevent financial corruption (Mahmoud Fraq, 2018). Social Audit scrutinizes public
officials’ decisions, and actions, looks for administrative, legal, and financial irregularities
for preventive, and corrective measures. Social Audit serves as: entry point for citizen
engagement in the fight against FC, gives citizens insights of public works and holds
government accountable. It is a powerful tool to uncover irregularities and malpractices
in the public sector. Also, it pushes for transparency, and accountability to encourage
access to public information (Mahmoud Fraq, 2018). This shows political commitment
and political will. Candidly, social audit is good but needs complement of internal audit
for effectiveness, and wholeness. Auditing has the role to fight corruption in the public
sector, and be at the forefront for public interest (Brenk et al., 2022; Paterson et al.,
2019; Jespersen, 2019). It is important for internal audit to protect public funds (IIA,
2022). This is affirmed by Nwannebuike and Nwadialor (2016), that, checks and
balances ought to be implemented to ensure that public funds are actually used for
intended purposes.
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2.19.3 Practical Approach of Internal Audit in United Kingdom
IIA United Kingdom (2023) discloses the role of IA in anti-corruption efforts and
organizational maturity. The authority tasks IA to identify: the need to fight FC, how to
manage risks, and strengthen internal controls. Jeppesen (2019), says IA gains the role
in both private, and public sectors. Internal auditors in United Kingdom cooperate, and
exchange information and techniques with external auditors to detect and prevent social
vices including corruption. In United Kingdom, auditors are legally protected for public
interest. Also, monitor and report on non-compliance for solution. IA is well positioned
and protected to participate in the fighting financial corruption (Browning, 2015;
Jeppesen, 2019). Social Audit should be inclusive in the auditing to fight FC holistically.
The occasional detection of corruption by auditors is important, because the perceived
risk of getting caught is an important factor in deterring people from fraudulent behavior
(Wells, 2002). Auditors have been showing a willingness to act more in preventing
corruption, rather than detecting it (Jeppesen, 2019). IA is considered one of the eight
pillars of a national integrity system to fight against corruption (Thomas Dye &
Stapenhurst, 1998). Internal auditors should be legally protected, technically supported,
recognized, and well-resourced to protect public funds.
2.19.4 Practical Approach of Internal Audit in South Africa
Edelman Trust Barometer (2017) realizes that, authorities can fight corruption in South
Africa by forensic audit, and IA approaches. Processes of IA are effective, and efficient
to fight financial corruption. These processes are backed by legislation and powerful
people with integrity for enforcement. Furthermore, managers, bureaucrats and public
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servants are prepared to hold people in position accountable. IIA South Africa (2022),
notes that, IA creates understanding strategies, and operations of public organizations.
Added to this, IA is to: evaluate; control mechanisms, risk management, governance
processes, financial management, and operations. And advise management on what to
do. Internal auditors are legally required to report on any suspicious activity (UNODC,
2015). Although, internal auditors are protected legally, technical and management
supports should be inclusive to help in achievement of IA mandated responsibilities.
Supporting this idea, Sawyer (1995), also states that, IA job is not done until defects are
corrected, this to fill the gap of non-compliance, lack of resources, and ineffectiveness.
Arena and Azzone (2009) state that, internal auditing as a value adding function to an
organization as this function now incorporates a new link to internal controls.
2.19.5 Practical Approach of Internal Audit in the United State of America
Jeppesen (2018) asserts that, private and public sectors internal auditors cooperate
with eternal auditors to fight corruption. The IA embraces preventive measures for
effective anti-corruption. Efficiency of internal auditors and good working condition have
positive impacts on professional standards and credibility of IA. IA confirms compliance
with approved budgets, and identify errors and variations for mitigation (OECD, 2016;
Jeppesen, 2018). However, Karabayev and Jeppesen (2019), note performance audit
assesses policy of public expenditure. Nonetheless, Jeppesen (2019) opines that the
auditors ought to be independent to conduct audit without undue influence. IA provides
checks and balances. Moreover, ensures that public funds are used judiciously to attain
value for money, political will and commitment are demonstrated. The researcher
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opines that, Internal audit should be able to detect and prevent threats, errors, and
infractions in the public sector. Jointly, internal auditors cooperating with external
auditors should result in effective anti-corruption to combat financial corruption in United
State of America. Many studies demonstrate that IA is still viewed as an undiscovered
black box (Lenz et al., 2018). Proving this, Patience Lunder (2022) and IIA, USA (2021),
divulge that, internal auditors ensure that, system controls are strong enough to help
internal audit achieve effectiveness, efficiency, and economy in preventing financial
corruption, and other types of social vices.
2.19.6 Practical Approach of Internal Audit in Canada
In Canada, IA promotes effectiveness, and efficiency of government operations,
transparency, and decision making. IA approach provides assurance service and review
governance processes, risk management, and control mechanisms to provide value for
money and accountability (IIA Canada, 2020). The work of IA has expanded from
detection to electronic risk assessment, investigate organizational culture, evaluate
performance, and ensure compliance of regulations and procedures. IA analyzes
dynamics, and report to protect financial data (Deloitte, 2018). However, IA identifies
issues, and recommend to the authorities. Comptroller General Office of Canada
supports performance, and obligation of IA, because, it is pivotal to government’s efforts
to improve on, and professionalize IA. The directive outlines the mandatory procedures
for IA (IIA Canada, 2020). Best practices to fight corruption available due to political will
and political commitment from the government. Canada: selects programs, government
of Canada has implementing measures including; legislation, and best practices to
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support the efforts of United Nations Convention against Corruption (UNCAC, 2021).
Mihret, and Grant (2017), indicate that, IA’s role in governance is related to implement
previous economic activities and consulting services, considering the relationship
between them. Nevertheless, internal auditors have been showing a willingness to act
more in preventing corruption, rather than detecting it (Jeppesen, 2019). These will help
fill the gap of lack of technical, and managerial support and legal protection of IA stsff.
2.19.7 Practical Approach of Internal Audit in China
Eunice Ku (2013) and IIA China (2022), deduce internal control and IA efforts in China
are criticized for only meeting compliance requirements, and has evolving regulatory
framework for IA. Established framework of a standard of IA promulgates guidelines,
and codes of practice for IA practitioners. One key difference in China’s IA framework,
compared to its international counterpart, is a narrower (IIA China, 2003). Internal
auditors are expected to evaluate risk management, governance process, and internal
control system. These help to review operations, compliance of legislation, processes
and procedures at the top of every program (Eunice Ku, 2013, and IIA China, 2022). IA
is relied on as one of the main consulting activity that adds value to public institutions
(Hazaea, 2020: IIA China, 2022). As noted, current IA lacks complete independence,
transparency, and accountability, affecting the reports’ reliability (Macve, 2020; IIA
China, 2022). Confirmed by Hazaea, Zhu, et al. (2020), report that China began to use
IA to evaluate performance in addition to its traditional functions. Added to this, Cooper
et al. (2002) explain that the standards issued by Chinese enterprises are largely similar
to international auditing standards but are unique in line with China’s transformation into
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a market economy. Commitment and will of government inspire IA drive to began with
the aim of combating financial corruption (Ramamoorti, 2003; Asiedu & Deffor, 2017).
IIA China, 2020: 2022, and Christopher (2019), conclude that, IA in management, and
planning play a fundamental and important role in promoting good governance to
prevent social vices
2.19.8 Practical Approach of Internal Audit in Kenya
IA maintains efficiency, effectiveness and financial reliability as well as safeguards
public assets. It provides independent assurance and ensures risks are well mitigated,
governance processes and internal controls operate effectively. The IA in Kenya is for
value addition, compliance with regulations, accurate and timely financial reporting as
well as data collection (IIA Kenya, 2022). IA includes the key pillars of good
governance. It provides board of directors, audit committee, principal account holder,
principal spending officer, and stakeholders with findings, and recommendations. IA
provides assurance services, consulting services, and value–adding services (IIA
Kenya, 2022). Researcher realizes that, the issue of political will and political
commitment, legal protection, technical, and management supports for internal auditors
with IA bodies are a great concern, and are gaps to be filled. Ayadi (2013), adds that,
the quality of the IA depends on its ability to discover anomalies. The quality of public IA
reflects the capacity of internal audit to understand and assess the formal quality of
internal control processes (Brenneis et al., 2015). And, IIA (1997; 2022), sees the need
for a greater understanding of the status of IA around the globe. According to IIA (2022),
nurturing the profession of IA in developing nations is a priority.
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2.19.9 Practical Approach of Internal Audit in Malawi
Patience Lunda, (2020), and IIA Malawi (2022), rely on the need for public and private
institutions to engage IA approaches to create strong internal controls that raises an
alarm to fight against FC. Promises of good governance haven’t stopped officials from
raiding the public purse. According to Patience Lunda (2020), and IIA Malawi (2022),
Internal Audit Service determines the effectiveness of: internal controls, governance
processes, financial management, and risk management. IA in the public institutions
ensures that, it adds value to the overall operations of the public sector. Indeed, the IA
reviews management of public: finance, operations, risk, control mechanisms, and
governance processes. This is to achieve effectiveness, efficiency and economy devoid
of threats to combat social vices including financial corruption effectively. IIA Malawi
(2022), Dickson Chisambira (2021) and Madalitso Wills Kateta (2020), confirm that, IA
is to identify risk prone areas for effective mitigation. Researcher deduces that, Internal
Audit Service and Internal Auditors are to be legally, protected, technically supported,
and well-resourced to detect, and prevent social vices. The gaps of lack of protection,
resources, and management supports for IA are to be reverted immediately. This calls
for political will and political commitment, religious, and community Heads to participate
in the fight against social vices including financial corruption.
2.19.10 Practical Approach of Internal Audit in Saudi Arabia
Filfilan (2020), Brierley, David Gwilliam (2021), and IIA Saudi Arabia (2022), state that,
IA bodies evaluate of process, competence, and independence of internal auditors to be
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effective. The state encourages public organizations to establish IA departments to fight
irregularities. Political will and political commitment help in the bid of to enhance IAP
Abdulrahman, Shalamova, A.A (2020), and IIA Saudi Arabia (2020), indicate that, IA
improve governance, risk management and control systems. IA supports in analyzing
and understanding risks exposure (Drogalas, 2017), but it lacks resources (Jones,
2017). Internal auditors are in conducive working environment, yet need to improve on:
legal protection, technical and management supports, resourcing, reduction of political
interference, and capacity building to revert gaps identified. Browning (2015) and IIA
(2022), state that, the role of IA in the fighting corruption has not been effective. Internal
Audit is to detect and prevent corruption has potential to be new service for audit
profession (Jeppesen, 2019). IA adds value to organization's capacity applying
resources available to provide the highest quality of services (Endaya & Hanefah,
2016). Supporting this, Assaf Filfilan (2022), also states that, Saudi public sector has
effective internal audit organization, competent, and independent IA, to help fight
financial challenges.
2.19.11 Practical Approach of Internal Audit in India
PriceWaterCoopers (PwC) (2022) and IIA India (2020), avow that, IA is a critical
element in the assurance of public organizations for going concern. It is a valuable tool
and a contributor to risk management. It is a key attribute of good governance, and
provides board of directors, audit committee, chief executives, and stakeholders with an
independent view on financial management and operations of an entity. PwC (2022)
approach of IA is to have the best personnel and equipped for capability of fighting
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financial corruption PwC (2022). Combination of smart: people, approach, and
technology has transformed IA objective from value protection to value enhancement
PwC (2022). Furthermore, IIA India, and PwC (2020; 2022), deduces that India
authorities continuous to embark on improvement of IA activities to achieve total quality
standards. The bid to use IAP to fight social vice including corruption is motivated by the
political will and political commitment. In reality, IA approaches offers the right mix of
audit experience, industry-specific knowledge, and technical skill sets to supplement or
support IA Function (PwC, 2020). Public institutions rely on IA as one of the main
functions of the consulting activity addinng value (Cenker, 2002; Hazaea,
Tabash. , 2020). Also, Rahaman, Neu, Everett, (2014), meant to fight financial
corruption. It is deduced that, a combination of preventive and detective techniques is
the best way to reduce corruption, and other types of vices in the public sector.
2.19.12 Practical Approach of Internal Audit in Brazil
The Federal Government of Controladoria Geral da União (CGU) established IA to
address corruption randomly. The CGU gathers information on federal funds, issues
randomized audit orders. Ferraz and Finan (2018), fine that, corruption has been
subjected to an IA impacts on PSFM to fight corruption. An important tool to fight social
vices including financial corruption is IA (IIA Brazil, 2021). The Brazilian Institute of
Independent Auditors issues technical notice to provide guidelines on the approach, and
impacts on financial statements of entities relate to non-compliance with regulations
(Ibracon, 2021; IIA Brazil, 2021: Valdir Coscodai, 2023). Federal Court of Auditors is
responsible for auditing the accounts of public entities to uncover corruption, because,
internal auditors are legally protected, and have backing from government. According
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to PwC (2022), and Andre line (2021), interface between political, and economic
interests and functioning of audit organizations, needs to be promoted through political
commitment, and political will (Andre line, 2021). Both internal, and external audits can
play a substantial role in detection and prevention of corruption. Dong this through
auditing has the potential to be even more effective with the development of new
technologies (Jeppesen, 2018; IIA Brazil, 2021). Furthermore, the researcher thinks that
non-compliance of legal tools should be dealt with, and internal auditors protected, well-
resourced, and recognized in order to use the approaches of IAP to fight financial
corruption in the public sector. This is because, IAF aids to maximize organization's
capacity to pick out the preferred methods to apply the resources available to produce
the highest quality of goods and services (Endaya & Hanefah, 2016). For IA to add
value to operation internal auditors are to comply with the international standards
(Crockett, Albin, and Montondon, 1995, Moeller & Witt, 1999; IIA; 2022)
2.19.13 Practical Approach of Internal Audit in France
French Institute of Internal Auditors (FIIA) (2021) and Charles Duchaine (2020) note
that, IA is to evaluate, and improve on effectiveness of governance, risk management
and control processes. Code of ethics is necessary for IA and its principles are
expected to apply, and uphold: integrity, objectivity, confidentiality, and competency
(Charles Duchaine, 2020, and FIIA, 2021). France has a sanction committee that,
assess deficiencies found by IA approaches, and imposes sanctions accordingly.
Political influence, and conflict of interest impair IAP (Charles Duchaine, 2020; FIIA,
2021). The types of audit carried out in France includes; audit under terms of deferred
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prosecution, and audit after AFAs’ initiative (AFA, 2017; 2020). Public Life and Central
Government Internal Audit Harmonization Committee disseminates the key tools to fight
corruption. Gaps of political influence, and conflict of interest impairing IA works should
be avoided by ensuring political commitment, political will, and management support,
technical and legal protection for Internal Auditors are in place. IA is a control
mechanism to improve and strengthen governance (Kotb et al., 2020; Matarneh, 2011,
and IIA France 2019; 2022). To buttress this, Charter of Audit Rights and Obligations
(2018), sets out the scope of audits and describes potential procedures for organizing
audits to achieve its goals.
1.19.14 Practical Approach of Internal Audit in Spain
Internal controller bodies of the Autonomous Communities and the Local Entities carry
out the internal audit on three levels of the Spanish public sector in the fight against
corruption. Public sector audit in Spain is fragmented into three types namely: legality
compliance audits, accounting and finance audits and performance audits (Torres and
Cabeza, 2022). Furthermore, Torres and Cabeza (2022), note that, a well-designed
and effective internal audit system provides verification, and support policies,
procedures and internal controls. An appropriate system of internal controls require
organization to protect itself from the risk of corruption. To develop, improve and
monitor and evaluate internal audit function, the researcher accepts that, financial
management, operations management, risk management, governance processes, and
internal control mechanisms should be effective to detect and prevent threats,
irregularities, and errors for value addition (IIA Spain, 2022). Confirming this, Crockett &
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Albin (1995), Ridley & Chambers (1998), Moeller & Witt 1999) and IIA Spain (200;
2022), stress that, to add value to institutional operations, internal auditors should
comply with the Standards for the Professional Practice of Internal Auditing.
2.10.15 Practical Approach of Internal Audit in Japan
In Japan, strategies, processes, technology, and human resource are critical for
conducting IA to meet expectations. Introduction of internal audit, development and
training of personnel result in efficiency and effectiveness (PwC Japan Group, and IIA
Japan, 2022). Japan Internal Audit Service (2022), state that, the two key service areas
IA are; conduct of sophisticated, and practical internal audits consisting of: support
establishment and enhancement of IA infrastructure, support internal audits, and
outside evaluation of IA activities. Efficient internal audit utilizes information technology
and other tools. Also, IA uses Computer Assisted Audit Technology to help achieve high
level of Internal Audit Performance. Researcher of the view that, the public sector still
need value addition, and IA independence, though, Japan authorities are managing. IIA
Japan (2023), divulges that, corruption leaves no material errors, and no evidence for
internal auditors to trace. However, IA is considered one of the eight pillars of a national
integrity system to fight social vice including corruption. Dye & Stapenhurst (1998), and
Karabayev et al. (2021), indicate that, organizational independence permits auditors to
conduct audits without interference. It is established that, IA approach protects
organization’s operations, and ensures control processes are effective, and adequate,
and functioning (IIA, 2020; 2022; Edmond Sannini, and Haris Usman.2021)
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2.19.16 Practical Approach of Internal Audit in Germany
IIA Germany (2022) reveals outsourcing of internal audit controls quality, and cost
effectiveness in Germany. The German Accounting Law requires management boards,
and supervisory boards to set up IA body and departments to detect, prevent, and
correct threats, errors, and infractions (Germany Business Judgment Rule and IIA
Germany, 2022). The critical view of internal auditing is to uncover weaknesses, and
enhance processes of financial management and operations of the public sector
institutions. It is to monitor compliance with the rules and statutory requirements, identify
operational and managerial gaps, and hence advise management on the deficiencies
(Germany Business Judgment Rule and IIA Germany, 2022). Institutions choose a mix
of internal audit and specialists to achieve the needed target and national objectives.
Risk, governance processes, and control mechanisms are effectively managed
(Germany Business Judgment Rule and IIA Germany, 2022). Indeed auditors are on the
front line, being vulnerable and confronted with pressures, risks and influence as
potential whistleblowers. Moreover, Emilie King (2018), notes that, fighting corruption
rests on detecting wrongdoing by internal audit, but, auditors, who speak out are at risk
(Transparency International, and Corruption Perceptions Index 2017; 2022). Butresing
this, Jeppesen (2019); Paterson et al., (2019), Nerantzidis et al., (2020); Brenk et al.,
2022), affirm that, audit has the role in fighting corruption in the public sector, and
Internal auditors job is not done until defects are corrected (Sawyer, 1995).
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2.20 Gold Standard of Internal Audit Approach in Ghana.
The adopted International Standards for the Professional Practice of Internal Auditing
(ISFPPIA) by Institute of Internal Auditors (IIA) for usage since inception of internal audit
agency (IAA) (IAA, Act, 2003) is the gold standard of internal audit in Ghana. The IAA is
legally required to provide quality assurance, and promote the practice of internal
auditing in the public service (IAA, 2020). It is the mandatory requirement to carry out
Internal Auditing to meet the global standard (Alan Simpson, 2017). The gold standard
helps to identify, analyze, evaluate, and document sufficient information to achieve the
engagements objectives (IIA Global, 2022 & Gleam, 2019). According to IIA Global
(2022), Alan Simpson (2017), Institute of Charted Accountant Scotland (ICAS) (2022),
gold standard is a principle-focused, and provides a framework for performing, and
promoting internal auditing. Gold standard is mandatory requirements of internal
auditing, consisting of: statements of basic requirements for the ISFPPIA to evaluate
effectiveness of performance, Interpretations, which clarify terms or concepts within the
statements, and Glossary of terms (IIA Global, 2022; Alan Simpson, 2017; ICAS, 2022).
The gold standard consists of two attribute, which are: Attribute standard, addresses the
attributes of organizations and individuals performing internal auditing, and performance
standard, describes the nature of internal auditing, and provides quality criteria against
which the performance of these services can be measured. Both standards apply to all
internal audit services (IIA Global, 2022; Alan Simpson, 2017; ICAS, 2022). IIA Global
(2022), Alan Simpson (2017), and Gleam (2019), stipulate that, gold standards, together
with the Code of Ethics, encompass all mandatory elements of the IPPF. To understand
and apply standard correctly, it is necessary to consider the specific meanings from the
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Glossary (IIA Global, 2022; Alan Simpson, 2017; Gleam (2019). Added to these,
the standards use the word “must” to specify an unconditional requirement, and the
word “should” where conformance is expected unless, when applying professional
judgment, circumstances justify deviation. Not only does this audit standard provides
assurance, and consulting of the standard's thoroughness, but it also provides extra
internal measures to maintain the same level of rigor as the standard evolves. The
process is audited annually to ensure standards remain high to fight threats, errors, and
irregularities (IIA Global, 2022; Alan Simpson, 2017; ICAS, 2022).
2.21 Comparative Analysis

To meet the global standard, the researcher compares, IA approaches used in 17
countries in terms of achievement, challenges, and solutions in the fight against social
vices including FC. Ghana within which the research was conducted is not exclusive. All
the 17 countries including Ghana, use the internal audit process which is shown in
Table 2.21A below as internal audit process flow chart. However, the 17 countries
employ similar IA steps, including; Planning, Field Work, Reporting, and Follow-Up.
Each of these steps of IA process has sub-steps for effectiveness, and completeness.
Table 2.21A
Internal Audit Process Flow Chart
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Source Adopted: Goggle Scholar (2022)
To do the needful, Ismael, Hazem Ramadan, Kamel, Hany (2020), call for enhancement
of internal audit quality and approaches in order to fight financial corruption effectively.
Appendix HH compares the 17 countries using IA approaches on their achievements,
challenges face in using internal audit performance. As well as the solutions of the
challenges, and the way forward in bid to fight SVIFC as the subject matter.
2.22 Summary of Content Analysis of Practical Approaches

The research reviewed practical approaches of IA in 16 countries to ascertain how the
challenges of social vice including corruption are avoided or minimized. Out of the 16
countries, only Peru and Guatemala focus much on social audit as an audit tool to
complement, and strengthen IA to detect and prevent corruption. Random auditing is
adopted and engaged to prevent social vices including FC. Moreover, sanction
committee in place to punish corruptible officials. For the way forward, IA should be
featured in Bill of Appropriation, and Chart of Accounts under Programed Based Budget
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Estimates to be adequately resourced. Although, IA in these countries lack factors not
limited to: Legal protection, technical supports, and management supports, the IA has
the following strength, among others: political will, political commitment, well-resourced
IA staff, effective capacity building, motivated remunerations and backing to fight
corruption fearlessly. However, African countries among 17 countries have almost the
same challenges as Ghana. Hence, these countries though, adopted ISFPPIA as gold
standard to fight FC, need among others; political will, and political commitment, legal
protection, motivation, and well resourcing, better remunerations to achieve the
intended purposes of IA in Ghana, and beyond. The comparative analysis shows that
the advanced countries have less challenges, because, their IA approaches are
effective, and reliable.
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CHAPTER THREE
RESEARCH METHODOLOGY
CHAPTER THREE- RESEARCH METHODOLOGY

3.0 Overview
This chapter discusses the research methodology utilized to answer the research main
question, and to achieve the research objectives. Bobbie & Mouton (2002), note that,
research methodology consists of: methods, skills, procedures, plans, and techniques
used in execution the phases of the research plan, research design, assumptions, and
principles that underlie their uses. The research aimed to evaluate the effectiveness of
IAP, its impacts on the PSFM, and answer the research question appropriately,
developed conceptual model to improve on IAP, and PSFM, determine the relationship
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between the due, and FC. Qualitative research method was employed for the data
collection and analysis. The qualitative research method paradigm was used due to its
ability to chalk many advantages, which are but not limited to: accuracy, least time
consumption, validity, reliability, and meeting of global standard. This research utilized:
semi-structured interviews, and follow-up interviews with primary stakeholders from the
public institutions, survey administration in the PSoG (field research), and existing
seminal literature (desk research), and content analysis of existing corporate data (desk
research) to obtain the relevant data. The next section discusses the appropriateness of
the research method preferred for the research.
3.1 Appropriateness
Assessment of IAP in the fight against FC motivated the choice of qualitative research
methodology to underpin the research work in order to collect the correct, sufficient,
relevant, and reliable data for presentation, and analysis. Qualitative research approach
was chosen because, it connects all points across the broad continuum making
critiques of the literature review more constructive, and filling of knowledge gaps
possible. Moreover, the critiques of the literature influenced the usage of this method for
accurate data collection, and analysis. It helps the research to achieve its objectives,
and to meet global standard, attain the validity or trustworthiness, and generalizability of
the findings of the research, and achieved the intended purposes. The qualitative
method facilitated, and made the research findings logically sounded, and avoided
contestable, and doubtful results. The chosen method established credibility of results
of the research, and conformed to acceptable scientific standards, and general
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acceptability. Furthermore, the method employed, provided the researcher with the
ability to investigate, the relationship between and among: Anti-C, GIFMIS, IAP, IAF,
FC, GG, SJ, and PSFM.
This method led to value creation by helping researcher to redress the literature review
critiques on the causes, and repercussion of FC in the public sector, and presented a
more convincing evidence for considering the research problem. The nature of data,
and the research problem determine the type of methodology appropriate for particular
research (Tashakkori & Creswell (2007). Also, it makes the achievement of evidence
triangulation, and complementation possible (Creswell & Pioano Clark, 2007). The
researcher gained breadth, and depth of understanding, and corroboration needed to
answer the research question, and to achieve the purpose of the research. .
3.1.1 Rational for the choice of methodology
The researcher employed the studies and gaps presented in the methodological section
as the basis for the methodology. The findings from scholars in PSFM studies show
similar knowledge gaps in methodology which the research fills. Earlier studies in PSFM
research demand for increase in the sampled space. In this research the samples
consists of 25 participants for semi-structured interview, 9 participants for the follow-up
interviews, and 500 participants for the questionnaires. The usage of data solicited from
many sources enhanced validity, and reliability of the research to improve on
generalizability of its findings. The sample constitutes Ministries, Departments,
Agencies (MDAs) and Metropolitan Municipal District Assemblies (MMDAs) meaning
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this research adds to scholarship in assessment of IAP in the fight against FC in the
PSFM, which remains inadequately researched.
With regard to the interviews the selected institutions are anonymous, and that of
questionnaires participants were anonymous, because, it is risky to fight corruption in
Ghana, hence, the individuals and entities need to be protected. Buttressing this, some
scholars, and professional stated, fighting corruption, corruption shall fight back in any
form (Global Anti-Corruption Blog, 2022; Ejiogu, 2021; IMANAI Africa, Akpan, and
Demolovo, 2020). The research used face to face interviews, telephone interviews, and
self-administered questionnaires for the data collection. The researcher ensured
avoidance of bias, and therefore employed qualitative research method which is simple,
less cost, and direct. This section provided the basis for the choice of qualitative
research approach that was explored to achieve the intended purpose of the research.
3.2 Research Design

The research design used abducting approach. This mean that, ideas were taken or
adopted from both deductive, and inductive instruments to boost the success of the
research. It is a research plan that, describes how, when, and where data are to be
collected, and analyzed (Parahoo, 2014). Considering the problem, objectives, and
purpose of this research, it was obvious that, the data triangulation was needful,
comprising of literature review of seminal authors’ works, content analysis, semi-
structured interviews, and survey questionnaires were adopted, and utilized. According
to Creswell (2008), and Zikmund et al. (2010), data triangulation helps in collection data
from multiple sources to get diverse views of the phenomenon under study, enhance
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validity and reduce the possibility of prejudice. Survey questionnaires were to identify
problem, gather information from a specific group of people, analyze such information,
and draw a conclusion based on the findings (Leavy, 2017). Findings of the research
were used to better understand the research problem, and answer research question
adequately. Figure 3.2 below depicts the triangulation between the literature review the
content analysis, and field work. The data for this research was categorized into:
primary data and secondary data. Whereas, primary data was solicited from survey
questionnaires, semi-structured interviews, follow-up interviews, secondary data was
obtained from content analysis (reports, financial statements and budgetary
documents).
Figure 3.2
Methodological Triangulation
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Source Adopted: UGSM-Monarch Business
Doctor of Business School Switzerland
Administration Thesis
Content Analysis
The literature review of seminal authors’ works in Chapter two forms the base for
content analysis. Documents of MDAs and MMDAs selected for the research were
qualitatively analyzed. The websites of MDAs, and MMDAs were scrutinized for the
needful data. A review of literature from scholars and others who have studied the
financial management phenomena around the world were interrogated. Annual audit
reports of public institutions covering the period 2006 to 2019, and budget document
were qualitatively analyzed.
Field Research: Questionnaires, Semi-structured Interviews, and Follow-up interviews

The field research covered semi-structured interview, follow-up interviews, and
questionnaires. The researcher sent emails to identified key stakeholders who
represented the respective public organizations and arranged for an interview. The
researcher used phone calls to schedule appointments in situations where emails were
not applicable. The respondents and the researcher continue communication through:
emails and telephone calls.
Semi-Structured Interview
The respondents are all Ghanaians, public servants, and live in Ghana. The target
population for the interviews was 25 respondents from the Macro and Meso levels.
Each of participant was asked the same question, and the actual interviews lasted
approximately between 30 to 40 minutes on average. The interviewees were public
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servants who have not less fifteen years of experiences in application of IAP to FC in
the PSoG. The participants were selected to share practical lived experiences and
perceptions of the anti-corruption, on challenges, achievements, and solutions in the
Ghanaian economy. The follow-up interview was conducted with nine interviewees
obtained from the sample to reveal deeply held personal understandings of the subject
area that highlighted important aspects in responding to the research question.
As one-on-one method is more impersonal, the participants would respond happily,
willingly and impartially to confidential questions (Peterson & Zikmund, 2004). The initial
interview was designed to have two different parts as indicated in (Appendix F). Prior to
the interview, an interview guide was pre-tested on five experts in the subject matter.
Some fine-tuning of the interview guide was done after this pilot test phase. The
researcher used the recording device to record proceedings of the interview.
Interviewees who were not convenient with the recording hand writing note were taken
by the researcher. The researcher transcribed the conversation and saved it in
verbatim. The respondents' files were then sent back to them to confirm that the
information provided is true or not, and gives the true reflection of what were said. The
researcher conducted follow up interviews in the course of data collection and analysis.
Administration of Questionnaire
Questionnaires consists of both open-ended and close-ended questions were
administered. The survey questionnaire utilized an original questionnaires made up of
twenty-five (25) major questions. The questionnaire was constructed, pretested, and
distributed to the population sample of five hundred (500) of management staff, senior
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staff who are not part of management but staff of MMDAs, and MDAs. The open-ended
format was employed in order to allow respondents to answer in their own words to
portray their backgrounds and cultural diversities. This method was most appropriate to
capture delicate meanings and personally held beliefs; it also avoids imposing external
thought complexes on the participants (Peterson & Zikmund, 2004). Collection,
analysis, and interpretation of data were made successfully.
3.2.2 Adoption of Monarch Research Process Flow
The qualitative method was most appropriate, and fit for the assessment of IAP in the
fight against FC in the Ghanaian economy. The research utilized the Monarch Research
Standard tool spelt out below as an adapted process flow:
Step 1: Preliminary Literature Review. Research began with a survey of the relevant
seminal authors within the three academic scholarship domains identified in Section 1.7.
This review provided a solid understanding of the landscape of the scholarship within
each domain, the identification of their importance over time, and a better appreciation
and understanding of the nexus of the domains and their integration.
Step 2: In-Depth Literature Review Part 1. An in-depth review of the seminal authors
and theories within the three academic scholarship domains identified in Section 1.8
and quasi-academic professional sources was completed to provide a solid academic
foundation for the research. Identification of the Gabs in the Literature were made and
clearly identified in relation to the research question and contribution of the research.
Step 4: Questionnaire Design & Testing: The development of questionnaires
informed and synthesized using the understandings gleaned from the review of the
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academic literature, quasi-academic technical documents and content analysis sources.
Based on the understanding of the existing theories and gaps present in the academic
and professional literature, the questionnaire of twenty-five (25) questions was
developed, and tested with the assistance of volunteers. Attention was paid to
perfecting the administration of the questionnaires made up of five hundred (500)
questions from a flow and timing standpoint to ensure questions were clear and concise
and had a direct bearing on the focus of the current research.
Step 5: Two-Step Semi-Structured Interview Process
Preliminary Interviews: There was development of preliminary interview of the literature
and content analysis. The participants interviewed were officers from the public sector
organizations (MMDAs, and MDAs) who are practitioners, professional, and are
knowledgeable in the research domain. A sample of twenty-four (24) participants were
interviewed. The interview was conducted in person at a location amenable to the
subjects in approximately 30 minutes in length. The telephone interview was used
where physical interview was impossible due to Covid-19 pandemic, resource or time
constraints, and unavailability of participants. Where the recording of interviews were
objected by some participants, manual notes were taken. These interviews seek to
uncover personal beliefs held by participants that might further reveal important aspects
necessary in responding to the research question.
Step 6: In-Depth Literature Review-Part 2: A second more in-depth literature research
review was conducted to further refine the scope and consideration of the existing
knowledge within the academic field to add more expertise and specificity to the
research analysis.
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Step 7: Follow-Up Interviews. To achieve a more specific view informed by the first
round of interviews, along with the second more in-depth literature review, a smaller
sub-sets of nine (9) respondents from stakeholder group, selected from the first-round
sample, took part in more in-depth follow-up interviews. These interviews seek to
uncover deeply-held personal beliefs and understandings regarding the research.
Step 8 & 9 - Triangulation of the Data & Gap Analysis: A triangulation of the data
was considered and analyzed to determine whether or not the existing academic
knowledge was congruent with the practical application of the field on a formal basis.
The result of this analysis dictated whether or not a “Knowledge Gap” exists between
the academic and the practical domains.
Step 10: Development of New Framework: Building on the Gap Analysis, a thorough
analysis of the existing model within the academic domain was made to determine
whether or not the existing model sufficiently address the requirement for practical
application of IAP and IAF within the PSFM in the fight against FC in the Ghanaian
economy. Figure 3.2.2 below is the UGSM standard Mixed Research Method adopted.
Figure 3.2.2
UGSM Standard Mixed Research Method
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Source Adopted: UGSM-Monarch Business School, Switzerland
3.3 Validity and Reliability

Validity, and reliability must be addressed by all studies” because “the accuracy,
dependability, and credibility of the information depend on it” (Simon & Goes, 2011).
The degree at which the measurement of a test remains dependable over repetitive
tests of the same subject under matching conditions is reliability (Crano et al., 2014;
Halcomb & Hickman, 2015; Jackson, 2010; Zikmund et al., 2010). Moreover, validity is
the degree to which an instrument measures what it supposed to measure and

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accomplishes its designed purpose (Cooper & Schindler, 2013; Moustakas, 1994;
Schoonenboom & Johnson, 2017; Tojib & Sugianto, 2006; Zikmund et al., 2010). With
the intention to achieve reliability, the researcher used Cronbach’s alpha as a guide
according to Zikmund et al., (2010) in testing the reliability of the questionnaire. This is
to determine whether the target population was able to understand and give the
information needed by the current research. Also, validity is checked through pilot
testing of the research instruments (Ayre & Scally, 2014; Hunte, 2008; Koller et al.,
2017; Lawshe, 1975; Tojib & Sugianto, 2006).
With regards to the current research interview guide and questionnaire were checked
for validity through pilot testing by applying the Lawshe content validity test to ascertain
whether the questionnaire items are relevant or not, in order to make the necessary
corrections. The researcher further checked for content validity by sending the
questionnaire to ten PSFM experts to for professional inputs for value addition. The
Lawshe test considers the input of subject matter experts (Lawshe, 1975). Content
Validity ratio of 0.78 or more deems a scale valid (Frey, 2018), and Lawshe (1975)
proposes that 0.5 or 50% of the experts consider items as appropriate as an assurance
of content validity. The formulae for Lawshe content validity is as below;
CVR stands for Content Validity Ratio, ne is the number of experts who answered
"essential " while N is the total number of experts (Ayre & Scally, 2014). Validity and
reliability in this study helped in explaining and ascertaining the quality of the research
instruments to employ. Ensuring validity and reliability of the research the researcher
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held informal conversations with experts dealing with the PSFM to better understand the
scope of using IAP to fight financial corruption. The data collected using questionnaire
and interview guide from the field were edited and checked for consistency, relevancy
and accuracy. The researcher adopting methodological triangulation implied that, data
from multiple sources were used for the purposes of understanding the issue under
investigation (Guion, Diehl, & Mcdonald, 2002).
3.4 Sampling Method

It was superlative to use the entire population of Ministries, Departments, and Agencies
(MDAs) and Metropolitan, Municipal, District Assemblies (MMDAs) with all senior
management staff, but it was not possible to include every subject. The population was
very large, and could delay the research with high cost. This was the rationale behind
researcher’s aim to use sampling technique particularly, convenience sampling, as the
choice to determine the population sample. Researchers neither have time nor
resources to analyze the entire population (Taherdoost, 2018). Hence, the application of
sampling technique to reduce the number of cases. Convenience sampling is a type of
nonprobability or non-random sampling, where members of the target population that
meet certain practical criteria, such as, easy accessibility, geographical proximity,
availability at a given time, and the willingness to participate were included for the
purpose of the research (Cheng & Dörnyei, 2007). The convenience sampling technique
was suitable for qualitative studies, hence, conformed to qualitative method approach
selected for the research. Moreover, qualitative method was intended to achieve the
depth of understanding (Patton, 2002). Whether, the technique employed was
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convenience sampling or purposive sampling, validity, and efficiency was utmost
important (Öhlén, 2011).
However, the research utilized convenience sampling, because participants were mostly
senior management staff, were willing, and easily available for interviews but only
needed to be protected by withholding the names of participant and organizations. So
selected institutions are anonymous for interview, and anonymous for the survey
questionnaire. FC is a matter of concern to all public servants in Ghana, but fighting
corruption, corruption shall fight back in any form (Global Anti-Corruption Blog, 2022;
Ejiogu, 2021; IMANAI Africa, Akpan, and Demolovo, 2020). Typically, convenience
sampling tends to be a favored sampling technique among students as it is inexpensive,
and an easy (Price, 1954). Though convenience sampling is a method of nonprobability
type, many researchers including Migram (1963) prefer this technique because it is fast,
inexpensive, easy to deliver results, and subjects are readily available. The target
population consists of public servants selected from MDAs/MMAs by way of convenient
sampling. This target population was chosen because the management staff of the
public sector are the most important, and performers in the financial management and
operations in the Ghanaian economy. The process of sampling was not limited to the
following:
 Target Population: comprise of management personnel within various public
sector institutions in Ghana made up of MDAs and MMDAs in Ghana. Members
of the target population were asked to devote 30 minutes of their time to
participate in the interview.
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 Sample size and units: The sample size of this research consists of 24 senior
staff involved in PSoG. As stated earlier, an introductory email / WhatsApp was
sent detailing the aim, and nature of the research to the target group. The
selection of the sample from non-random sampling search from MDAs/MMDAs in
Ghana. Upon receiving, consent forms were emailed directly to the
departmental/unit head as soon as possible, and confirmation received from the
participating organization. Most participants self-selected themselves to represent
their department or unit, because of their expertise, experience, and interest in
the fight against FC in Ghana.
3.4.1 Sampling for Content Analysis
The researcher used 100% of the population sample of content analysis. The
documents analyzed for secondary data were: Audit General Reports (AGR), Bill of
Appropriation (BOA), Chart of Account (COA), and Public Financial Management (PFM)
Act, 2016. The public sector institutions submit these documents to their stakeholders
for analysis, policy formulation, and implementation. PFM Act, 2016 too is used to
strengthen the PSFM in order to achieve efficiency, effectiveness, and economy. This is
to detect and prevent FC in the Ghanaian economy.
3.4.2 Sampling for Semi-structured Interview
Constraints of time, and information generally restrict statistical sampling (Mays & Pope,
1995), hence, the researcher used a convenient sampling technique, which was non-
probability to select a semi-structured interview with follow-up interview. This was
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because the aim of the research was not to achieve statistical representativeness, but
rather understanding of social phenomena, processes, and effectiveness of IAP, and its
impacts on PSFM in the fight against FC. Analytically, the effectiveness of PSFM
depends on IAP as a catalyst for the detection and prevention roles. Also it was mostly
depended on the characteristics of IAF and institutional recognition, and support for IA.
3.5 Data Collection

Achieving the purposes, and objectives of the research necessitated in collection of
both primary, and secondary data during the field work. Whereas, primary data was
collected using questionnaires, and interviews, secondary data was also collected from
content analysis, in the form of the audit reports, financial statements, and financial
management tools. It is prudent for researchers to consider specific data collection
types along with their procedures. He further indicated that there are certain stages in
the data collection process that are combined to form an acceptable data collection
method in any research (Creswell (2003). Appendix B, shows the stages of data
collection involving the qualitative approach engaged by the research for better results.
The subsection below discusses data collection from reports and financial management
tools.
3.5.1 Data Collection from Reports and Financial Management Tools
Numerous researchers have tried to describe differences in the level of disclosed
information from annual reports since the 1960s (Guthrie & Guthrie, 2004). Although it
was difficult to develop the right approach, Guthrie & Petty (2000) conducted similar
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studies over the years for affirmative. The researcher noted that the efforts of Guthrie &
Petty (2000) motivated all researchers to continue to develop an approach that simplify,
and enrich the data collection process from the annual reports, and other relevant
documents for analysis. The current research used annual audit, financial reports, bill of
appropriation, and budget chart of accounts as the main source of secondary data.
Guthrie & Guthrie (2004) emphasized that, annual reports as a valuable source of
investigating the financial communication level with stakeholders. To buttress this point,
Ray & Lahaye (1995), pointed out that annual reports can be reliably accessed, audited,
and compared. Content analysis in the contemplated research aimed at analyzing 2006
to 2019 AGR, BOA, COA, and PFM Act, 2016 of the selected public institutions that
were downloaded in PDF format from the website. However, the downloaded
documents were converted into MS Word 2007 format using “ABBYY Fine-Reader the
new edition. The 2006-2019 financial documents of public institutions were analyzed to
deduce the correlation between IAP, PSFM, and FC as variables for the population
sample.
3.5.2 Validity and Reliability of Data Collection from Content Analysis
The content analysis method depends a lot on the coder’s integrity. Mitigating the
threats of integrity, a high level of caution was applied throughout the coding process to
control the risk of the researcher’s subjectivity (Abeysekera, 2008). The researcher’s
questions guided the reference frame; every financial management constituent studied
before proceeding with the analysis. The process made it possible to examine the
researcher’s underpinning expectations in analyzing the content, and to enhance the
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quality of the data generated from the field. The risk of: sample-size, established
information, coding information process, data recording, and interpretation were
carefully mitigated to guarantee validity and reliability of the content analysis.
3.5.3 Directing and Designing
The researcher prepared an interview guide list such that the interview questions
framed from the perspective of interviewees, as suggested by Bryman (2004). The
interview guide was designed based on the research question, and the understanding
garnered from the literature. This was to encourage interviewees to comfortably share
their experience while exploring their meaning. Furthermore, the researcher structured
the interview questions to allow the researcher to vary the order, and nature of
questions to skip specific questions based on participants’ answers during interviews.
The semi-structured interview was followed with a follow-up interview process of nine
participants to affirm the data reliability, validity and credibility. During the phase of
directing and designing the interview, qualitative and quantitative approaches were
integrated in order to prevent the threat of prejudice on the interviewees’ experience,
held beliefs and views. The questionnaires were administered appropriately to meet
conditions of validity, reliability, and credibility
3.5.4 Access to Participants
The in-depth interview targeted senior staff of MDAs and MMDAs in the PSFM as the
sampling unit. The first contact with interviewees was made during the period of
October-December, 2020. The data of research was classified as vital information that
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interviewees viewed as confidential, sensitive, and helpful to Ghana, and other
countries. The researcher applied the following three strategies to identify suitable
participants:
 Primarily, an introduction to the research and the purpose of the research.
 Secondly, a second email that contains the researcher's credentials, a letter of
consent, and a human approval form etc. were sent to participants. A photocopy
of the researcher’s credentials and identification were included.
 Finally, participants were asked to select a thirty-minute time frame at their
convenience for a volunteer interview.
It was important to note that the interview questions were not given to participants
beforehand to generate spontaneous, and free-flowing conversation with the
interviewees. A general summary of the interview was discussed with participants at the
date of their scheduled appointment times, which was decided by both researcher and
participants amicably for easiness, frankness and without prejudice. The adopted
technique was to prevent participants from preparing ahead of time, because the
research’s aim was not to test knowledge, but rather to ascertain the degree of the
effectiveness IAP, and its impacts on PSFM in the fight against FC in the Ghanaian
Economy. The preparation of the interview process began with a consideration of
annual, and casual leaves, business trips, and workloads in the workplaces, which
might obstruct timely response. Hence, the participants were given fifteen days to
respond to avoid being eliminated from the process, because of time constraints.
Participants, were therefore, assured of the confidentiality and protection of their image.
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3.5.5 Interview and Transcription
In order to gain a better insight into the possibilities of assessment of IAP, and its
impacts on PSFM, semi-structured interviews and follow-up interviews were conducted
at different periods. The following methodological steps were taken to conduct the
interviews meant for the current research.
 The instrument was pre-tested with ten participants who were not part of the
population sample to help examine, and ascertain any deficiency of the
instrument for enhancement. The instrument was adjusted accordingly to ensure
the language proficiency, and the interview questions were self-explanatory.
 The interview questions were structured to be open-ended, and suitable for the
participants’ work, diverse experiences, and expertise in their workplaces in the
PSoG. During the interview process, any imprecise response provided was
probed further for explanation, frankness, and consistency.
All participants were made known that, no answer would be correct or incorrect to the
interview questions, because the focus of the interview was mainly on the opinions and
experiences. Twenty-four (24) semi-structured interviews were conducted on a one-on-
one basis. In addition, nine (9) follow-up interviews were also carried out on the
selected participants who agreed for second-round interviews. Interviews were
conducted in participants’ offices on a one-on-one basis, and lasted for approximately
thirty (30) minutes each. Responses were recorded using audio recording device with
permission from the participants. However, those who were not comfortable with the
recordings, hand written notes were taken, read to them for confirmations, and
correction of their responses provided. The hand written notes were typed accordingly,
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and printed. The audio recording device was connected to a laptop computer to
download the content. The latest MacScribe software was used to generate an audio
file from the recorded interviews, and used ATLAS, Sonix-ai software, and manual
technique, listen to audio records carefully to transcribe into word document format.
This method allowed for verification of the information transcribed. The researcher
listened to the audio file, and tested accuracy of the software, and transcribed the audio
file into word text. Furthermore, the transcribed information was then made available to
the participants for confirmation. This was to allow the participants to modify their
responses on the subject matter. Finally, the transcribed were printed alongside with the
typed hand written notes, and combined to be used for reference and verification during
the analysis. The coding of the interview responses for clarity, better understanding, and
for easy analysis is discussed below.
3.5.6 Coding of Interview Responses
Unlike data obtained from BOA, COA, and AGR, which can be presented, and analyzed
with ease, the response of the interviewees were coded, presented, and analyzed in
chapters four and five respectively. This was to determine the correlation between IAP,
PSFM, and FC in the fight against FC. The researcher ensured that content validity was
established, items checked for construct validity, and examine whether the item had
close relation to the underlying construct it claimed to measure or not. Categories of
variables were also suitable for this research, because each components of PSFM was
studied before proceeding with the content analysis to enhance the reliability of the
annual reports. Furthermore, the researcher carried out a critical examination of the
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annual audit reports after a time of interval of two weeks to ascertain stable
identification of annual audit reports contents, and ultimately the quality of the data
generated for the coding. In the coding process, words, phrases and sentences of the
participants’ responses were used as basis. The vital issues, and content provided by
the interviewees were transcribed and then proofread by the researcher for consistency,
meticulousness, and quality. Thereafter, the transcription was returned to the
participants in order to confirm if there were any discrepancies in the transcribed
responses and the proposed meaning. Finally, the modified transcript confirm by both
the researcher and the participants. The participants sent a final copy of the transcript
for their own records for correction and future verification. How the survey questionnaire
is self-administered by the researcher is discussed in the next sub-section.
3.5.7 Administration of Research Questionnaire
Questionnaires were used to collect information from the staff of PSFM in Ghana. The
questionnaires used to collect data from the finance officers, internal auditors, budget
officers, and administrative officers were designed by the researcher based on the
literature reviewed in the chapter two. The questionnaire was employed, because it was
a convenient, and fast tool for collecting data from the large sample of the research
(Creswell & Creswell, 2017). As the result, five hundred (500) questionnaires were
designed, and administered after its pretesting. Four hundred and fifty (450)
questionnaires were successfully collected from anonymous participants. The
administered questionnaire was made up of twenty-five (25) closed-ended, and opened-
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ended questions on PSFM, IAP, FC, and others. The questionnaire (Appendix H) is
found in the appendix column. Data analysis is covered in the nest section.
3.6 Data Analysis

In pursuance with the literature review in Chapter two a deductive analytical technique
was used for qualitative analyses which focused on answering of Sub Research
Questions. The deductive approach starts with the general, and ends with the specific
(Soiferman, 2010). This approach include data collection, patterns analysis, and
theorizing of the data (Soiferman, 2010; Creswell, 2013). The research identified that
qualitative data that guided in developing a conceptual model to enhance IAP, and
PSFM in the fight against FC. The research used qualitative rudiments to ensure
successful completion of its data analysis. These sections below provided details of
qualitative data and how to analyze them concurrently. Coding and transcription of the
collected data were discussed. The researcher had in mind the need to achieve validity,
and reliability when carrying out the data analysis. These were to determine whether FC
depends on the effectiveness of IAP and PSFM in the Ghanaian economy or not. The
next sub-section covers qualitative data analysis.
3.6.1 Qualitative Data Analysis
Qualitative data obtained using the open-ended items on the questionnaire as well as
interviews were analyzed using qualitative analysis software. Qualitative data collected
were grouped into themes to analyze them effectively. One of the essential steps before
analysis of data is the identification of themes (Ryan & Bernard, 2003). Nevertheless,
the themes used were identified by way of looking at the available data set, and finding
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a repeated pattern of the responses given by the research participants. Atlas-ti 8
software was used for mapping, and coding of respondents’ responses. The software
organizes, and structures data, creating a better conceptualization of the issues under
study eventually leading to the identification of repeated patterns, thematic dimensions,
and analytical groupings. In some cases, comments from respondents were quoted
directly to support the findings. Discussion below covers the quantitative data analysis.
3.6.2 Research Data to be Distillated
From the methodological triangulation, the following data were collected for distillation in
the chapter four, and analysis in Chapter five are as follow:
1. Data from Semi-structured Interview, Follow-Up Interview, and Survey
 Responses from 24 semi-structured interviews conducted,
 Responses from 9 follow-up interviews conducted, and
 Responses from 450 survey questionnaires administered, and retrieved
2. Data from Content Analysis includes:
 Causes of financial weaknesses, and irregularities from 2005-2019
Auditor General Reports,
 Quantity, and monetary value of financial weaknesses, and irregularities
from 2005-2019 Auditor General Report, and
 COA, and BOA from Programmed Based Budget Estimates (PBBE) for
the period 2006-2019
3. Data from Literature Review are not limited to gaps/issues in connection with:
processes, methods, policies, directives, procedures, and interventions on seminal

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authors’ works on theories of: Governance, Social Justice, and Corruption informed by
quasi-academic materials technical in nature and from professional arena. These gaps
are: Inconsistency, Inconclusiveness, Incompleteness, Indecisiveness, Absence Internal
Audit Performance, No political commitment, No political will, Poor leadership, Social
injustice, Bad, and corrupt governance, Weak anti-corruption institutions, and No
deterrent punitive system. Next paragraph discusses the result of the field research.
5.6.3 Evaluation of Results
The research results were evaluated, as soon as the data collection, coding of data, and
analysis of the data were completed. The evaluation was done by comparing and
contrasting the research results/findings to other existing researches carried out by
different scholars with diversity of backgrounds on the field of public sector. The results
obtained for each thematic area under study were compared directly to the findings of
works of other researchers in the same field to either confirm or contradict the findings
of previous studies. Themes were allowed to emerge from the primary data. This leads
to the creation of a new conceptual model for effective Internal Audit Performance, and
prudent Public Sector Financial Management. This result in in effective anti-corruption
to combat financial corruption as well as prevent continuous rise in the national debt
stock in the Ghanaian economy. The summary of the chapter three is provided below.
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3.7 Summary of Chapter Three
The research utilized qualitative method to find answers to the research questions, as
well as to achieve the purpose, and objectives of the current research. The research
instruments employed included questionnaires, and interviews with follow-up interviews
In this chapter, Section 3.1 and 3.2 discussed the overview, and appropriateness of the
methodologies, respectively. However, the discussion of appropriateness covers the
details of qualitative approach used in this research. Section 3.3 discussed the research
design in detailed, with emphasis on the importance of research validity, and reliability.
The sampling method employed in this research was discussed in Section 3.5, while
Data collection, Data analyses procedure, and Analysis of SRQs, Transcribing, and
Coding of Semi-Structured Interviews responses, Validity, and Reliability of Data Coding
and Evaluation of research findings were discussed in section 3.6. Chapter four
discusses the presentation of data and research findings, and Chapter five covers
analysis of data. Chapter six concludes with a summary of the research, achievement,
recommendations, and future research to boost anti-corruption drives in the Ghanaian
Economy.
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CHAPTER FOUR
PRESENTATION OF DATA AND
FINDINGS
CHAPTER FOUR-PRESENTATION OF DATA AND FINDINGS

4.0 Overview
Data presentation forms an integral part of this research, utilizing the professional
practices to obtain the required skills, and better understand the data obtained. The
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chapter presents the data collected from responses of 450 survey questionnaires out of
500 questionnaires distributed, this translate into 90% response rate. 24 semi-structured
interviews conducted instead of the initial number of 25 targeted participants, accounts
for 96%. 9 follow-up interviews was finally conducted bringing the total interview
conducted to 33. The data presented were qualitatively analyzed to ascertain findings to
help answer the main research question, achieve the objectives, and purpose of the
research.
Main Research Question is as follows:
What are the characteristics of a new conceptual model that better
explains the effectiveness of the internal audit function in the public sector
of Ghana?
The following are the SRQs to help answer the main research question adequately, and
achieve the purposes of the research;
SRQ1. What is relationship between Good Governance and Financial
SRQ2. What is relationship between Internal Audit Performance and
Financial Corruption in the Public Sector of Ghana?
SRQ3. What is the relationship between Social Justice and Governance in
the Public Sector of Ghana?
SRQ4. What is the relationship between Social Justice and Financial
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SRQ5. What is relationship between Internal Audit Performance and Good
Governance in the Public Sector of Ghana?
Function in the Public Sector of Ghana?
SRQ7. What is relationship between Anti-Corruption, and Financial
Corruption in the Ghana?
During the data collection, and procession, the researcher used tools including audio
recording device, Atlas-ti, and Sonix-ai software for recording the interview responses,
and transcribing of the audio recordings. The data were presented by using tables,
histograms, and pie chart. The format, and data presentation techniques employed to
achieve the intended objectives of the research include:
a. The original format of data was changed to the desired format.
b. Data was sorted through grouping, discarding the incomplete data, and decision
taken on the required form to make the data comprehensible,
c. Tables, pie charts, and histograms were developed to summarize the data and
add visual part for qualitative analysis, and
d. The tendencies, and related information were analyzed qualitatively to achieve
the objectives, and purpose of the research.
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4.1 Review of Purpose of the Research
The purpose of the research was to: answer the stated main research question, assess
IAP, and its impacts on PSFM in the fight against FC to avoid its repercussions in the
Ghanaian economy. Moreover, the research was to develop a conceptual model that
better explains, and improves on the effectiveness of IAP with a special focus on
improvement on the anti-corruption strategies in the Ghanaian economy. Furthermore,
the research aimed to: fill knowledge gaps, help policymakers, and implementers on
issues with regard to fighting FC, assist the government to protect the public purse, and
improve on effectiveness of anti-corruption venture. Finally, investigate, and ascertain
the factors militating against IAP, and why it impacts on the PSFM, yet there are FC,
financial loss to the state, and continuous rise in the national debt.
4.2 Reliability and Validity

The researcher ensured that content validity was checked using the Lawshe Content
Validity. Content Validity Ratio was computed for all questions, and the summary shown
in Appendix H5. Content validity indicates the degree to which the items on a
questionnaire are equal representatives of the entire area the questionnaire intended to
measure. The researcher sent the questionnaire to 10 experts in the field of PSFM
seeking their inputs on the content for clarity, representativeness of the each statement
in the questionnaire, and how well each fits in the variables. The experts included 6
lecturers from the four public universities, and two private universities in Ghana, four
directors, and professional in financial management in the public sector of Ghana. The
researcher carried out content validity in the current research to ensure accuracy, and
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consistency in the measurement of the variables. The experts’ interpretations and
opinions indicated as appropriate or needs revision. Three out of 25 opened and closed
questions checked, three of them were marked as need revision.
The researcher revised the three questions accordingly, and then continued to check for
the reliability of the questionnaire. However, several authors have recommended
strategies a researcher can adopt to enhance validity and reliability of research findings,
one popular way of establishing validity and reliability is by the method of triangulation
(Corbin & Strauss, 1990; Crabtree & Miller, 1999; Morse, 1994; Neuman & Robson,
2014; Patton et al., 2017; Turner, Cardinal, & Burton, 2017), The researcher adopted
methodological triangulation which means, data from multiple sources were used for the
intended purposes of understanding the issue under investigation (Guion, Diehl, &
Mcdonald, 2002). Following completion of the assessment validity and reliability, the
researcher then proceeded to collect needed data.
4.3 Review of Design and Data Collection

Prior to the primary data collection, introductory letter, and request message were
conveyed to public servants from twenty-five (25) anonymous public institutions in
Ghana. Emails, WhatsApp messages, and telephone calls were used requesting and
appealing to them to take part in the research. Further telephone calls were made
seven days later to ascertain the readiness of each institution to partake in the research.
Hopefully, twenty-four (24) public servants from twenty-four (24) public institutions
translates into 96% of public servants agreed, and participated in the interview. Four
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percent (4%) did not take part, because of institutional lockdown, and restrictions
following second wave of the COVID 19 pandemic. Researcher maintained anonymity
for participants and institutions in the questionnaire, and interview respectively.
The alarming nature of social vices including FC in Ghana, individual, and institutional
interests to combat the menace motivated the participants, although, COVID 19 was a
threat to their lives. Following the conducting of twenty-four (24) preliminary interviews,
Nine (9) follow-up interviews were conducted. The total number of interviews conducted
was 33, preliminary interviews translate into 72.7% and the follow-up interview
represent 27.3%. Also, five hundred (500) survey questionnaires were also
administered, and four hundred and fifty (450) responded questionnaires were received
represents ninety percent (90%) as response rate. Survey questionnaire, and Interviews
with follow-up interviews were adopted, and utilized as the primary data collection
techniques to solicit for the relevant data from the staff of anonymous MDAs, and
MMDAs in Ghana.
4.3.1 Data on Interviews, Questionnaires, and Profile of Participants
Twenty-four (24) preliminary interviews, and nine (9) follow-ups were conducted to
obtain the needed primary data used together with the secondary data for the current
research. The preliminary interviews conducted were made up of four (4) telephone
interviews, represents 16.67%, and twenty (20) face-to-face interviews, which translates
into 83.33%. The target groups were management staff from Finance Department who
are professional and are conversant with PSFM, and known the importance of IA.
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Internal Auditors, who are at management level, and have the acumen, experience,
skills, and proficiency in auditing, Administrative heads, who are at the helm of affairs of
administration of public entities, and who have been responding to audit
findings/observations from both Internal and External Auditors, and Budget officers.
Appendices I and J show the interview probability trees.
Moreover, during the preliminary interview on the field work twenty (20) interviews
represents 83.33% were recorded following the permission of the participants to use
audio recording device, and four (4) participants, represents 16.67% were not
comfortable with the audio recording, so hand written notes were taken. Average
duration of both preliminary and follow-up interviews was almost thirty (30) minutes.
Participants were made to response to the same questions, because, all of them have
crucial and almost same objective in the PSFM and understand each other’s role. The
data collected were presented in figures, and tables. A follow-up of nine interviews were
conducted, in which seven were recorded represent 77.8% and two hand writing notes
were taken translate into 22.2%.
Furthermore, to obtain the full complement of the required data, five hundred (500)
survey questionnaires were also administered by researcher to staff within the 24
selected anonymous public institutions on IAP, and PSFM in the fight against FC. As a
result four hundred and fifty (450) responded questionnaires were successfully
retrieved, which represents ninety percent (90%) response rate, and ten percent (10%)
non-response rate. The research focused on four (4) major stakeholder groups in the
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public sector, who are in management positions, and at helm of affairs in public sector.
Answering the main research question, requested for a general understanding of the
procedures, and processes adopted for effectiveness of IAP approaches to impact on
the PSFM in the fight against FC.
4.3.2 Coding and Organization
Convenience, and protection of participants inspired the researcher to provide each
interviewee with a unique code according the order of institutions dealt with, for usage.
Code PS1, PS2, PS3…PS24 represented 24 preliminary interviewees from 24
anonymous public intuitions. Also, PSFI, PSF2, PSF3…PSF9 represented the 9 follow-
up interviewees. Data collected from the 450 questionnaires was organized for analysis,
and the interview audio transcribed into word file, checked for completeness and
accuracy. Furthermore, the researcher coded the transcribed word file in Thematic
Codes using words, phrases, and sentences of interview responses. With respect to the
variables under interrogations were abbreviated for easy handling.
4.3.3 Descriptive Factors
Tables 4.3.3A and 4.3.3B below describe participant profile of entire sample of the
interview, and questionnaire respondents respectively. The tables discuss interview
participant profile and questionnaire participant profiles separately. The gender, age,
years of experience, level of education, nationality, management level and official status
are highlighted in the two tables below;
Table 4.3.3A
Participant Profile Of Entire Sample Interview Respondents
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TERMS FREQUENCY PERCENTAGE
Interview Participants Targeted
Responded targeted participant 24 96%
Non-responded targeted participant 1 4%
Total 25 100%
Participants
Finance Officers 7 29.17%
Internal Auditors 9 37.5%
Administrators 7 29.17%
Budget officer 1 4.16%
Total 24 100%
Gender Of Participants
Female 6 33.33%
Male 18 66.67%
Total 24 100%
Age of Participant
20-29 1 4.17%
30-39 2 8.33%
40-49 7 29.17%
50-59 11 45.83%
60 and Above 3 12.50%
Total 24 100%
Level of Education
Secondary 1 4.17%
First Degree 6 25%
Second Degree 17 70.83%
Total 24 100%
Years of Working Experience
Less than10 Years 2 8.33%
10-20 Years 8 33.33%
21-30 Years 9 37.50%
31-40 Years 5 20.83%
Level of Management
Top level 11 45.83%
Senior Level 13 54.17%
Total 24 100%
Nationality
Ghanaian 24 100%
Table 4.3.3B
Profile of the Entire Sample of Questionnaire Respondents
TERMS FREQUENCY PERCENTAGE
Questionnaire Participants Targeted
Responded targeted participant 450 90%
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Non-responded targeted participant 10 10%
Finance 144 28.8%
Internal Audit 180 36%
Administration 144 28.8%
Budget 32 6.4%
Total Number of Participants Targeted 500 100%
Response, and Non-Response Rates
Responded Participants 450 90%
Non-responded participant 50 10%
Total 500 100%
Gender of Respondents
Male 288 64%
Female 160 35.6%
Total Number of Participants 450 99.6%
Age of Participants
20-29 2 0.44
30-39 105 23.33
40-49 240 53.34
50-59 100 22.22
60 and Above 3 0.67
Total Number of Participants 450 100.00%
Level of Education
Secondary 36 8%
Tertiary 414 92%
Total Number of Participants 450 100%
Years of Working Experience
Less than 10 Years 9 2.00%
10-20 Years 80 17.78%
21-30 Years 259 57.55%
31-40 Years 102 22.67%
4.3.4 Performance of Internal Audit in the Public Sector
To have better and general understanding of IAP, PFSM, and FC in the Public Sector of
Ghana, interview participants were made to answer questions on issues not limited to;
 The roles, and militating factors of IAP and PSFM,
 IAP in the fight against social vices including financial corruption,
 Impacts of IAP on PSFM in fighting Financial Corruption,
 Characteristics between IAP and Internal Audit Function,
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 Correlation between IAP, Social justice, PSFM, GG, IAF, GIFMIS, Anti-C, and
FC,
 Factors militating against the fight against Financial Corruption,
 How to enhance IAP and PSFM in fighting social vices including FC
 Level of IAP in the fight against FC, and other social vices
 How to improve on anti-corruption institutions, and IAP to be effective enough
After the interview, participants were provided with transcribed version of their interview
responses for them to review, and validate, and analyzed by researcher. Words,
phrases, and sentences from the interview responses were coded for presentation and
analysis.
4.3.5 Presentation of Pre-study Data
The research aimed to answer the following specific research question, and analyze the
seven SRQs stated in section 4.0. The main research question stated beneath.
Main Research Question:
What are the characteristics of a new conceptual model that better
explains the effectiveness of internal audit function in the public sector of
Ghana?
The seven SRQs developed in chapter one provided qualitative benchmarks, and data
points as point of departure. For further consideration within the qualitative analysis of
the research subject matter, the SRQs were analysed for cause-and-effect relationships
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using the responses from both questionnaire and structured interview. Data from the
interview and survey were presented and discussed in the next sections for the
research findings.
4.4 Presentation of Data from Public Sector Interview

Leading words, and terminologies were identified, examined, and generated into units of
meanings to capture respondents’ expressions on the assessment of IAP, and its
impacts on PSFM. Tables, histogram and charts were chosen for data presentation,
because of their simplicity, clarity and convenience. Colors were applied in order to
enhance the data presentation. The recorded interview responses were transcribed,
added to the hand written responses, and finally combined for usage as reference book
to facilitate data presentation of the interviews conducted. The researcher aimed to
determine the result of IAP assessment and its impacts on the PSFM in the fight against
social vices including FC. Appendices I and J depict the architecture of Interview
probability trees.
4.4.1 Factors to improve on IAP
To curb FC in the Ghanaian economy, there was the need to identify all factors that can
improve on the IAP in the public sector of Ghana. This is because IAP is a catalyst of
anti-corruption. So, the participants were first asked: What are the factors that can
improve on the IAP? The responses provided are shown in Table 4.4.1
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Table 4.4.1
Factors to Improve on the Effectiveness of IAP
What are the factors that can improve on the IAP?
Participants’ Response Frequency Percentage
Fully resourcing of IAUs and IAA 24 100%
Change of status of IAA to absorb internal auditors 24 100%
Legal protection for internal auditors 24 100%
Provision of professional and skill trainings 24 100%
Resolving promotional challenges facing internal auditors 24 100%
Motivation of internal auditor 24 100%
Revoke the signing of Annual Audit report by PAH 20 83.33%
Effective Audit Committee 23 95.83%
Stop intimidation of internal auditors 21 87.50%
Integrity and commitments of internal auditors 20 83.33%
Review sections 86, 87 and 88 of PFM Act, 2016 23 95.83%
Provision of technical support for internal auditor 24 100%
Recognition of Internal audit work 24 100%
Submission of Internal audit reports to the PAC 21 87.50%
Revoking signing of quarterly internal audit report by PSO 24 100%
Audit Committee members appointed by their institutions 24 100%
Enhancement of confident level of internal auditors 22 91.67%
Protection of internal auditors from victimization 22 91.67%
Internal auditors’ independence should be enhanced 24 100%
Good corporate governance 20 83.00
Sensitizing all public institutions on internal audit work 20 83.33%
Heads of public institutions should be appointed by PSC 23 95.83%
Incorruptible governance 24 100%
Effective justice system 24 100%
Hooking of HIA on the GIFMIS platform for audit review 24 100%
Featuring of internal audit fully in BOA and COA 24 100%
Management support 24 100%
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4.4.2 Correlation between IAP and PSFM
Participants were asked to answer several questions which included, what is the
correlation between IAP, and PSFM in the fight against FC? The answers were collated,
examined, sorted accordingly, and captured for presentation. Tables 4.4.2
below contains the summarized responses of the participants.
Table 4.4.2
How IAP and PSFM Correlated in Fighting FC
What is the correlation between IAP and PSFM in the fight against FC?
Positively 23 95.835
Negatively 1 4.17%
Total 24 100%
4.4.3 Number Three: Factors Reducing IAP
Improvement on the IAP is crucial for it to impact on PSFM in the fight against FC. To
know the factors militating against IAP so that remedial actions could be taken. In view
of this, the interviewees were asked, what factors reduce the level of IAP in the fight
against FC? Table 4.4.3 below shows the responses of the participants.
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Table 4.4.3
Factors Reducing the Level of IAP
What factors reduce the level of IAP in the fight against FC?
Lack of Profession training 20 83.33%
Absence of legal protection for internal auditors 23 95.83%
Lack of management support 24 100%
Signing of Annual Audit report by PAH 21 87.5%
Ineffective Audit Committee 18 75%
Intimidation of internal auditors 23 95.83%
Delay and No promotion of internal auditors 24 100%
Sections of PFM Act, 2016 23 95.83%
Lack of resources 24 100%
None recognition of Internal audit work 24 100%
Sidelining of internal auditors 23 95.83%
Lack of motivation 24 100%
Impairment of Internal auditors’ independence 22 91.67%
Lack of technical support 24 100%
Signing of quarterly internal audit report by PSO 22 91.67%
Appointment of AC members by PAH 24 100%
Low confident level of IA staff due to low grade 20 83.33%
Victimization 20 83.33%
Fear of dismissal or transfer 15 62.5%
Bad corporate governance 24 100%
Perceiving internal audit as fault finding and witch hunting 24 100%
4.4.4 Effectiveness of PSFM to curb FC
Appendix H2 of the current research shows the participants’ responses to the question,
what factors promote effectiveness of PSFM in the fight against FC? The leading words
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and terminologies were identified, examined, and generated into units of meaning to
capture respondents’ expressions on the effectiveness of PSFM to fight FC.
4.4.5 Objectives of IAP
Participants were asked several questions with respect to PSFM activities to avert FC
employing IAP. The questions covered the objectives of IAP, and PSFM as well as the
correction between them. Participants answered the questions, what are the objectives
of IAP in the PSFM? Table 4.4.5 above summarized participants’ responses.
Table 4.4.5
Objective of IAP in the PSFM
What are the objectives of IAP in the PSFM?
Participants’ response Frequency Percentage
Achievement of efficiency 24 100%
Achievement of effectiveness 24 100%
Achievement of economy 24 100%
4.4.6 The Roles of Anti-Corruption Institutions
On the issues of anti-corruption, respondents were asked, what are the roles of the
various ant-corruption institutions in Ghana? Using 1-10 to represent the roles.
Appendix H3 indicates participants’ responses, and meanings of figures 1-1. The
responses from the interview participants will help the researcher to know and ascertain
the anti-corruption institutions which are/is catalyst of anti-corruption in Ghana.
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4.4.7 Effectiveness of IAF and IAP on IAP, and IAF.
The questions included, what activities determine the characteristics of effectiveness of
IAF, and IAP and what is the level of IAP in your organizations? Important words, and
terms were identified, examined, and generated into units of meaning to capture the
opinion of respondents on the issues to be resolved. Table 4.4.7A and 4.4.7B below
depict participants’ responses.
Table 4.4.7A
Characteristic that Determine the Effectiveness of IAP and IAF
What determines the characteristic of effectiveness of IAF and IAP?
Detective activities 24 100%
Preventive activities 24 100%
Corrective activities 22 91.67%
Directive activities 23 95.83%
Assurance activities 24 100%
Consulting activities 22 91.67%
Oversight activities 23 95.83%
Post Event activities 20 83.33%
Risk mitigation activities 24 100%
Control activities 24 100%
Governance activities 24 100%
Table 4.4.7 B
The Level of IAP in Your Organization
What is the Level of IAP in Your Organization?
Above Standard 1 4.167%
Standard 6 25%
Below Standard 17 70.83%
Total No of Participants 24 100%
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4.4.8 Impacts of IAP on PSFM
Respondents were questioned on the impacts of IAP on PSFM in the context of anti-
corruption. The set of questions includes, Can IAP influence financial management, and
how does it impact on PSFM. Tables 4.4.8A and 4.4.8B below show their responses.
Table 4.4.8 A
IAP Influences on Financial Management
Can IAP influence financial management?
Yes 23 95.83%
No 1 4.17%
Total 24 100%
Table 4.4.8 B
IAP Impacts on PSFM
How does IAP impact on PSFM?
Positively 23 95.83%
No Impact 0 0%
Negatively 1 4.17%
I don’t Know 0 0%
Total 24 100%
4.4.9 Influence of IAP on FC
The set of questions included; what are the impacts of IAP on FC, when its level
improves? Do you agree that, IAP, and FC are negatively correlated? Appendix H4
shows participants’ responses.
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4.4.10 Impacts of Good Governance on IAP, PSFM and FC
Likewise the earlier categories of questions, the respondents were asked, what are the
impacts of good governance on IAP, PSFM, and FC? Table 4.4.10 below contains the
responses of the interviewees.
Table 4.4.10
Impacts of Good Governance on IAP, PSFM, and FC
What are the impacts of good governance on IAP, PSFM and FC?
Participants’ Response IAP PSFM FC LEVEL Frequency Percentage
Positive Impact Improves Improves Minimizes 24 100%
Negative Impact Falls Ineffective Maximizes 24 100%
4.4.11. Good Governance, IAP, PSFM, and Anti-Corruption
As compared to the other categories of questions, participants were asked the
questions, what are the effects of good governance on IAP, PSFM, and Anti-
Corruption? The responses of participants gathered are indicated in table 4.4.11 below;
Table 4.4.11
Effects of Governance on IAP, PSFM and Anti-Corruption
What are the effects of corporate governance on IAP, PSFM and Anti-Corruption?
Participants Response Frequency Percentage
If GG, IAP improves and vice versa 24 100%
If GG, PSFM improves and vice versa 24 100%
If GG, Anti-Corruption improves and vice versa 24 100%
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4.4.12 Impacts of Social Justice on IAP, PSFM, and FC
As compared to the previous category of questions, respondents were asked, how does
social justice impact on IAP, PSFM, and FC. Responses provided by the participants
are indicated in table below; 4.4.12
Table 4.4.12
Influence of Social Justice on IAP, PSFM, and Anti-Corruption
What are the effects of Social Justice on IAP, PSFM and Anti-Corruption?
Participants Response Frequency Percentage
Improves on IAP detects, and prevents FC 23 95.83%
Improves on PSFM detects, and prevents FC 22 91.67%
Improves of Anti-Corruption reduces FC 24 100%
4.3.13 Audit Committee
Determining the availability of Audit Committee, and its effectiveness in the public sector
institutions, participants were asked, do you have audit committee? The table 4.4.13
below depicts the responses of the interviewees
Table 4.4.13
Audit committee
Do you have Audit Committee?
Yes, we have been meeting to review reports 9 37.5%
Yes, we have, but have not been meeting regularly 11 45.83%
Yes, we have, but have not met before 4 16.67%
Total Number of participants 24 100%
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4.4.14 Signing of Annual Audit Statement
To determine the effect of finalization of annual audit statement for submission to
stakeholders, participants were asked: Does the signing of Annual Audit Statement by
PAH promote IAP? Table 4.4.14 summarizes the responses of participants.
Table 4.4.14
Signing of Annual Audit Statement
Does the signing of Annual Audit Statement by PAH promote IAP?
Yes 2 8.23%
No, it delays or no submission 22 91.67%
4.4.15 Review of PFM Act, 2016
Participants were asked, do you agree that certain sections of PFM Act, 2016 should
be reviewed. Responses of participants are summarized in the Table 4.4.15 below.
Table 4.4.15
Review of PFM Act, 2016
Do you agree that certain sections of the PFM Act, 2016 should be reviewed?
Yes, I do agree 23 95.83%
No, I don’t agree 1 4.17%
4.4.16 Submission of Annual Audit Statement
Knowing the effects of recipients of the annual audit statement or report was one of the
important issues to consider. In this light, participants were questioned on submission of
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annual audit statement. Among the questions asked was, how does the submission of
Annual Audit Statement to Presidency, and Ministry of Finance impact on IAP? The
responses of participants are shown in Table 4.4.16 below;
Table 4.4.16
Submission of Annual Audit Statement
How does the submission of Annual Audit Statement to Presidency and Ministry of
Finance impact on IAP?
It reduces the level of IAP, it serves as cover-up 20 87.5%
It improves on IAP 1 4.17%
No impact on IAP 2 8.33%
4.4.17 Demand for PSO to sign Quarterly Reports
Among the several questions asked, and, participant were not denied of the following
question. What are the effects of PSO Signing Internal audit Quarterly Report? The
responses of participants were summarized and depicted on Table 4.4.17 below.
Table 4.4.17
Demand for PSO to sign Quarterly Reports
What are the effects of PSO Signing Internal audit Quarterly Report?
It delays submission of reports 24 100%
Results in submission of manipulated reports 20 83,33%
Failure to submit reports 20 83.33%
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4.4.18 Promotional Challenges
To ascertain factor militating against Internal Audit Performance, participants were
asked, do you have promotional challenges, and how does it impact on your
performance? Table 4.4.18 below shows the responses.
Table 4.4.18
Promotional Challenges
Do you have Promotional Challenge and how does it impact on your performance?
Yes, it demotivate or demoralizes me 23 95;83%
Yes, but does not demotivates me 1 4.17%
No, it motivates me 0 0%
Source: MacCharles Tamakloe ( 2021)
4.4.19 Grades of HIA and PSO
The confidence level of internal auditors is very crucial to boost IAP. To ensure the HIA
do not compromise with the authorities to weaken the control mechanism. Interviewees
were asked, in your candid opinion, what is the effect of IA having grade lower than
PSO. The response of participants are shown in Table 4.4.19 below
Table 4.4.19
Grades of HIA and PSO
In your candid opinion what are the effect of HIA with a grade lower than PSO?
Low confidence level of HIA and being intimidated 22 91.67%
High confidence level of HIA 2 8.33%
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4.4. 20 Relationship between Superior and Junior Officer
It was very important to determine how administrative reporting to the PSO affect IAP.
Therefore, participants were asked, you and PSO, who is superior in grade? Responses
of the interviewees are shown in Table 4.4.20 below;
Table 4.4.20
Relationship between Superior and Junior Officer
You and your PSO who is superior in Grade?
PSO 24 100%
I am 0 0%
4.4.21 Internal Audit Performance and Anti-Corruption
To ascertain whether or not IAP impacts on PSFM are influenced by any factor/issue
within or outside the public institutions in the fight against FC in the Ghanaian economy.
The responses of interviewees to the questions were not limited to; what are the main
impacts of IAP on the PSFM in the Fight against FC? And do the signing of Annual
Audit Report or annual audit statement by PAH and PSO promote IAP, and PSFM. The
participants’ responses to the respective questions are captured in Appendices J1 and
J2 respectively.
4.5 Findings to the Research Question

Analytically it has been deduced that, internal audit is the best, and most effective anti-
corruption tool, because of its functional characteristics, rendering it as the catalyst of
anti-corruption, but it has not been accepted, recognized, and embraced yet. Most
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leaders, managers, and directors have mistaken internal audit out of content, thinking
that, it is for fault finding, and witch hunting. In reality, internal audit is for value addition,
efficiency, effectiveness, and economy. Analytically, the operational characteristics of
IAF, and IAP in the fight against FC are: Detection of threats and errors, Prevention of
threats and errors, Correction of threats and errors, Provision of assurance services,
Provision of consulting services, Risk Mitigation processes, Corporate governance
processes, Oversight responsibility, and Internal control mechanisms (Appendix M). .
4.6 Identification of Themes

To better understand the results of the interviews conducted, codes were generated
from the derived: words, phrases, and sentences of transcribed responses’ of
interviewees. Seventeen codes were generated from the responses of the twenty-four
initial interviewees, and nine follow-up interviewees. The codes are: IAP Inhibitors, IAP
Determiners, Public Expectations, Desired Outputs, FC Drivers, Impact Inhibitors,
PSFM Determiners, PSFM Inhibitors, Right Principles, Wrong Principles, SJ Promoters,
SJ Inhibitors, Public Challenges, Role Definitions, FC Cost-Neutralizers, Governance
Factors, and FC Inhibitors. These codes, and their interpretations are shown in
Appendix R. Words, sentences, and phrases used as bases for coding are also shown
in Appendix S.
4.7 Presentation of Data from Public Sector Survey

It was recalled earlier in section 4.4 that, five hundred (500) survey questionnaires were
distributed by researcher to staff within the 24 selected anonymous public institutions on
IAP, and PSFM. As a result four hundred and fifty (450) responded questionnaires were
Page | 240
successfully retrieved representing ninety percent (90%) response rate, and ten percent
(10%) non-response rate respectively, which was demonstrated in Table 4.4.2B. The
research focused on four (4) major stakeholder groups in the public sector, who are in
management positions, and at helm of affairs in PSFM.
4.7.1 Demographics of Responded Questionnaire Participants
A total of thirty-six (36) of participants have up to the senior high school level, while four
hundred, and fourteen (414) have had a university education. These also interprets into
8% and 92% respectively. However, those aged between 20 and 29 were two (2) in
number, accounting for 0.44%. Those aged between 30 and 39 were one hundred and
five (105) in number, accounting for 23.33%. Those aged between 40 and 49 were two
hundred and forty-two (240) in number, the most populous, and accounts for 53.34%.
Persons between 50 and 59 were one hundred (100) in number, represents 22.22%,
and while, participants aged between 60 and 69 were 3 with the rate of 0.67%. The
demographic statistics of participants is shown in Table 4.4.2B in section 4.4.2
4.7.2 Awareness of the impact of IAP on the PSFM to avert FC
During the assessment of IAP, and its impacts on the PSFM in the Ghanaian economy,
participants were sampled from the public sector institutions for survey. Participants
were asked if they were aware of the Internal Audit Activities undertaken to determine
real IAP in their organizations to improve on the effectiveness PSFM in fighting FC. The
outcome of the questionnaire administration indicated a high rate of awareness of the IA
activities, and IAP among the staff of public sector. Out of a total of four hundred, and
Page | 241
fifty (450) participants of the various public institutions, four hundred and forty-eight
(448) represents 99.56% of the participants claimed to know about the IA activities that
had been undertaken or being undertaken to achieve IAP to Impact on PSFM to fight
FC. This is to improve on the effectiveness of PSFM. Table 4.7.2 below indicates the
outcome of the field work on awareness of IAP.
Table 4.7.2
Awareness of IAP in the Public Institutions
Target Population; Selected Public Servants
Category of Participants Frequency Percentage
Awareness of IAP 448 99.56%
Unawareness of IAP 2 0.44%
Total No of Participants 450 100.00%
4.7.3 Establishment of Anti-Corruption Institutions in Ghana
The 450 participants’ responses to the question; there are established anti-corruption
institutions in Ghana. The Table 4.7.3 below indicates the participants’ responses. The
participants were provided with [True or False] to choose from as their candid opinions.
Table 4.7.3
Established Anti-Corruption Institutions in Ghana
Target Population: Selected Public Servants
There are established Anti-Corruption Institution in Ghana
True 450 100%
False 0 0%
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4.7.4 Public Expectation of IAP in Anti-Corruption Venture
On the public expectation of IAP, participants were asked: what is the public expectation
of IAP in the anti-corruption attempts. This is because public society want the funds of
the state are utilized judiciously, and protect of the national purse. They chose their
responses from [Low, Average, and High].Table 4.7.4 depicts the responses of the
respondents.
Table 4.7.4
Public Expectation of IAP in Anti-Corruption Programs
What is public expectation of IAP in the anti-corruption processes?
Participants’ Responses Frequency Percentage
Low 180 40%
Average 144 32%
High 126 28%
4.7.5 Effectiveness of Anti-Corruption Institutions
Are the Anti-Corruption institutions in Ghana effective enough to achieve intended
purposes? Responses of participants are shown in the Table 4.7.5 below
Table 4.7.5
Effectiveness of Anti-Corruption in Ghana
Are the Anti-Corruption institutions effective enough to achieve its intended purposes?
Participants’ Responses Frequency Percentage
No 252 56%
Yes, on condition 90 20%
No, on condition 108 24%
Total No Of Participants 450 100%
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4.7.6 The Level of IAP in the Fight against FC
What is the level of IAP in the fight against FC? The respondents had to choose from:
Low Level (Below Standard); Medium Level (Standard); High Level (Above Standard)].
Out of 450, who are aware of IAP, 270 participants chose Low Level, 180 participants
chose Medium Level, and none of them selected High Level. The candidates’
responses are shown in Table 4.7.6
Table 4.7.6
Level of Internal Audit Performance
What is the level of IAP in the fight against FC in the public sector?
High Level (Above Standard) 10 2.22%
Medium Level (Standard) 102 22.67%
Low Level (Below Standard) 338 75.11%
4.7.7 Incapacity of Anti-Corruption Institutions in Ghana
The participants were made to choose between Yes, and No for the survey question:
Anti-Corruption Institutions in Ghana are incapacitated to be effective. The participants’
responses, were collated, sorted, and refined in the Table 4.7.7 below
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Table 4.7.7
Incapacity of Anti-Corruption Institutions in Ghana
Anti-Corruption Institutions in Ghana are incapacitated to be effective
Yes 378 84%
No 72 26%
4.7.8 Weaknesses of Anti-Corruption Institutions
On the issues on weakness of ant-corruptions, the participants answered the question,

What are the weaknesses of anti-corruptions institutions in bid to combat financial
corruption in the Ghanaian economy? The responses of the participants were collated,
sorted, and summarized in the table 4.7.8 below
Table 4.7.8
Weakness of Anti-Corruption Institutions
State the weaknesses of Anti-corruptions
Unable to fight FC 405 90%
Not fully independent 387 86%
Can’t withstand undue influence 450 100%
Lack of resources 431 95.78%
Others 445 98.89%
4.7.9 The PSFM in the fight against FC and Financial Loss
The question: Can Public Sector Financial Management helps in the fight against
Financial Corruption to prevent financial loss? Was among the survey questions to be
answered by participants. These participants chose between [Yes] or [No] to close the
question. Table 4.7.9 below shows the summarized responses of the participants.
Table 4.7.9
Can PSFM help to Fight FC and prevent Financial Loss
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Can PSFM help in the fight against FC to prevent financial loss?
Yes 414 92%
No 36 8%
Total No Of Participant 450 100%
Source: Tamakloe MacCharles (2021)
4.7.10 Impact of IAP on the PSFM in the Fight against FC
The participants selected between the two options: positively or negatively for their
choice of answers. Among the survey question posed was: How does Internal Audit
Performance impact on the Public Sector Financial Management in the fight against
Financial Corruption. Table 4.7.10 below depicts the responses of respondents.
Table 4.7.10
Impacts of IAP on PSFM help in the fight against FC
How does Impacts of IAP on PSFM help in the fight against FC?
Negatively 90 20%
Positively 360 80%
4.7.11 Governance and Social Justice enhance IAP to minimize FC.
Among the many questions contained in the questionnaire, participants responded to
the statement: Governance, and Social Justice promote IAP to minimize FC. [True or
False] was chosen by participants as their responses shown in Table 4.7.11 below.
Table 4.7.11
Governance, Social Justice, IAP, and FC
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Governance and Social Justice enhance IAP to minimize FC
True 450 90%
False 45 10%
4.7.12 Factors Militating Against IAP in the Public Sector
Participants were asked of several questions which included: what are the factors
militating against IAP in the fight against FC. The responses were summarized and
provided in the Table 4.7.12 below for analysis. Participants chose among (All, Almost
all, and None) of the factors: Bad governance, corrupt leadership, intimidation, lack of
resource, no motivation, promotional challenges, social injustice, non-recognition, no
legal protection, absence of technical support and others.
Table 4.7.12
Factors Militating Against IAP
What are the factors militating against IAP in the fight against FC
All of the stated factors 411 91.33%
None of the stated factors 0 0.0%
Almost all the stated factors 39 8.67%
4.7.13 Correlation between IAP and PSFM in the fight against FC
In case of the positive relationship between the IAP, and PSFM, participants answered
the survey question. Do you agree that when IAP is enhanced PSFM becomes more
effective, and the level of FC decreases? This question was to help determine whether
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IAP, and PSFM are positively or negatively correlated. Participants chose between [Yes
or No] for their responses. Table 4.7.13 below depicts the responses of the participants.
Table 4.7.13
Correlation between IAP, and PSFM
IAP and PSFM are positively correlated?
Yes 420 93.33%
No 30 6.67%
4.7.14 Correlation between IAP and FC
With respect to the correlation between IAP and FC, participants answered the survey
question: What is the Correlation between IAP, and FC? Candidates chose between
Table 4.6.14
Correlation between IAP, and FC
What is the Correlation between IAP and FC?
Negative 360 80%
Positive 90 20%
[Positive and Negative]. Table 4.7.14 below depicts responses of the participants.
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4.7.15 Relationship between IAF and IAP
In view of the functional relationship between IAP, and IAF. Candidates attempted, and
answered the question: What is the correlation between IAP, and IAF. Participants
chose their responses between: [Positive or Negative] as shown in Table 4.7.15 below
Table 4.7.15
The Correlation between IAP and IAF
What is the Correlation between IAP and FC?
Positive 432 96%
Negative 18 4%
4.7.16. The Level of Internal Audit Performance
Table 4.7.16
Level of IAP in the Fight Against FC
In your opinion and assessment what is the level of IAP?
Below Standard 315 70.00%
Standard 124 27.56%
Above Standard 11 2.44%
Table 4.7.16 below indicate the summarized responses of participants. Among the
several survey questions, participants attempted, and answered the question. In your
candid opinion, and assessment what is the level of IAP? Participants chose their
responses from: [Standard], [Below standard] and [Above Standard].
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4.7.17 Characteristics of IAP that explain Effectiveness of IAF
Among the questions contained in the questionnaire, participants of the research were
asked to provide the characteristics that indicate the roles of IAP that better explain the
effectiveness of IAF in the public sector of Ghana. The responses of the participants are
indicated in Table 4.7.17 below
Table 4.7.17
Characteristics of IAP that explain Effectiveness of IAF
The Characteristics of IAP that better explains Effectiveness of IAF
Directive role 430 95.56%
Oversight role 421 93.56%
Fault finding and witch hunting 55 12.22%
Assurance service 450 100.00%
Consulting services 450 100’00%
Detective role 447 99.11%
Preventive role 450 100.00%
Corrective role 447 99.11%
4.7.18 Mandate of Internal Audit Agency
Table 4.7.18
IAA Mandated to Support IAP in the PSoG
IAA is mandated to provide Technical Support to enhance IAP
True 432 96%
False 18 4%
It became crucial to ascertain whether Internal Audit Agency (IAA) is authentically
mandated to provide technical support, and to regulate Internal Audit activities in the
public sector of Ghana. Hence, participants were motivated to respond to the question:
IAA is mandated to provide technical support to enhance IAP in the Public Sector
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Institutions. Participants were made to choose their answers from: [True and False].
Table 4.7.18 below provides the summarized participants’ responses.
4.7.19 Treatment of Internal Auditors by IAA to fight FC
Participants responded to the survey questions on issues that bothers on IAP. Also,
participants answered the question: How is the technical support by IAA to Internal
Auditors in terms of promotion, capacity building, legal protection, and others? Each
participant selected an answer from the options: Good, Satisfactory, and Poor. The
next table 4.7.19 demonstrates summarized responses of the participants.
Table 4.7.19
Technical Support By IAA to Internal Auditors
How is the Technical Support by IAA to Internal Auditors in terms of promotion,
capacity building, protection and others in the public sector?
Good 61 13.56%
Satisfactory 180 40.00%
Poor 209 46.44%
4.7.20 Needed Support to Improve Effectiveness of IAP and PSFM
Emphasizing on the IAP, the researcher included the needed support and effectiveness
of internal auditors. Participants answered the question: If Internal Auditors are provided
with all the needed support, IAP and PSFM will be more effective to fight FC. Table
4.7.20 below depicts the summarized responses of participants.
Page | 251
Table 4.7.20
Needed support for IAP and PSFM to be more effective
If Internal Auditors are supported IAP and PSFM will be more effective to fight FC.
True 432 96%
False 18 4%
4.7.21 Status of Audit Committee
Do you have Audit Committee (AC) functioning in the public sector? Was included the
survey questions, participants responded by choosing from: [Yes and No]. The
candidates’ responses are shown in the Table 4.7.21 below:
Table 4.6.21
Audit Committee in the Public Sector
Do you have Audit Committee functioning in the Public Sector?
Yes 450 100%
No 0 0%
4.7.22 Frequency of Audit Committee Meetings.
How many times do your audit committee meet annually? Respondent chose from their
answers from [More than 4 times, exactly 4 times, Less than 4 times, At least 4 times.
Table 4.7.22 shows the responses of the participants.
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Table 4.7.22
Audit Committee Meetings
How many times does Your Audit Committee meet Annually?
More than 4 Times 90 20%
Exactly 4 Times 180 40%
Less than 4 Times 90 20%
At least 4 Times 90 20%
4.7.23 Effectiveness of Audit Committee
Participants’ responses to the question: Is the AC effective enough to enhance IAP in
the public sector to fight FC, was summarized accordingly. Table 4.7.23 above shows
the participants’ responses on effectiveness of Audit Committee.
Table 4.7. 23
Effectiveness of AC to enhance IAP
Is your AC effective enough to enhance IAP?
Yes, it is effective 288 64%
No, it is not effective 162 36%
4.7.24 GIFMIS Platform
Table 4.7.24 below indicates the participants’ responses to the question. Do you have
your Head of Internal Audit Unit hooked onto the GIFMIS platform to carry out the
mandatory control role for: detection, prevention and correction of threats and errors?
The responses were selected from: [Yes] or [No].
Table 4.7.24 :
GIFMIS in the PSoG
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Head of Internal Audit Unit hooked onto GIFMIS platform to carry out mandatory roles of
detection, prevention and correction of threats and errors?
Yes 5 1.11 %
No 445 98.89%
Total No Of Participants 450 100.00%
4.7.25 Evaluation and Strength of Internal Control Mechanism
The last question was answered by the participants by choosing from the options:
[Finance officers, [Internal Auditors, Administrators]. The question was, who evaluates,
and helps to strengthen the control mechanisms and Table 4.7.25 below shows the
responses of the participants.
Table 4.7.25
Evaluation of Control Mechanisms
Who evaluates and strengthen the Control Mechanisms?
Finance Officers 33 7.33%
Internal Auditors 400 88.89 %
Administrators 17 3.78%
4.7.26 Recognition of Internal Audit
Likewise the various questions, the participants responded to the last question, Internal
Auditors are recognized, and their reports are taken seriously as compared to that of
External Auditors [Agree] or [Disagree]. Table 4.7.26 below depicts the responses.
Table 4.7.26
Recognition of Internal Auditors
Internal Auditors are recognized and their reports are taken seriously as compared
to that of External Auditors
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Agree 72 16 %
Disagree 378 84%
4.8 Presentation of Data from Content Analysis

4.8.1 Audit Reports
Pursuant to Article 187(2) of the 1992-Constitution of Ghana, Auditor General (AG)
conducts an audit of the accounts of all MDAs and MMDAs annually ended in 31
December. The report is presented to Public Account Committee (PAC) of Parliament
for further redress. For the purpose of this research, 2005 to 2019 Auditor General
Report (AGR) were considered. The AGR revealed the following financial weaknesses,
irregularities, and other occurrences due to the inability of IAP to detect, and prevent
them. The main ones are depicted in Table 4.8.1A below;
Table 4.8.1A
Financial Weaknesses and Irregularities
Tax Irregularities
Cash Irregularities
Debts/loans irregularities
Payroll Irregularities
Contract Irregularities
Rent payment Irregularities
Stores/Procurement Irregularities
Other occurrences
4.8.2 The causes of Financial Weaknesses and Irregularities
The causes of financial weaknesses, and irregularities are demonstrated in the following
Tables 4.8.2: C, D, E, F, G, H, and I
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1. Payroll irregularities
Payroll irregularities are mainly caused by the following but not limited to under-listed
occurrences shown in the Table 4.8.2 C below;
Table 4.8.2C
Causes of Payment Irregularity
Causes of Payroll Irregularity Causes of Payroll Irregularity
-Payment of unearned salaries -Payment for ghost names,
to separated staff, -Overpayment of salaries,
-Pension payments, and
-Failure to delete pensioners -Underpayment of salaries.
names,
2. Tax irregularities
Tax irregularities also cut across MDAs/MMDAs in the public sector were attributed to
the listed occurrences in table 4.8.2 D below.
Table 4.8.2 D
Causes of Tax Irregularities
Causes of Tax Irregularities Cause of Tax regularities
 Non-deduction and remittance of  Lack of comprehensive database on tax
deducted tax, payers,
 Delay in remittance of deducted tax,  Usage of tax law to avoid tax payments,
 Tax exemption without parliamentary  Tax transfer,
approval,  Not buying from VAT registered
 Tax evasion, companies,
 Under deduction of tax,  Failure to obtain VAT invoices, and
 Over deduction of tax,
3. Rent Irregularities
Table 4.8.2 E above demonstrates the main causes of rent irregularities
Table 4.8.2 E
Causes of Rent Irregularities
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Cause of Irregularity Causes of Irregularity
 Failure to inform CAG  Failure to deduct rent
for rent deduction, from salaries
 Problems in payroll  Ex-employees on
administration government
accommodation
4. Cash Irregularities
The main causes of cash irregularities in the public sector are not limited to under-listed
occurrences depicted in the Table 4.8.2F below;
Table 4.8.2 F
Causes of Cash Irregularity
Causes of Cash Irregularity Causes of Cash Irregularities
 Unapproved disbursement,  Misapplication of funds,
 Unaccounted revenue,  Misapplication of funds,
 Unsupported payment vouchers,  Unauthorized use of Internal Generated
 Unauthorized transfers, Fund,
 Funds to bank not credited,  Misappropriation of revenue,
 Un-presented payment vouchers,  Unacquital of payment vouchers,
 Paying public funds into personal bank  Payment without pre-audit ,
accounts,  Failure to recover funds from dishonored
 Belated/non-lodgment of public funds, cheques,
 Unauthorized expenditure,  Imprests not accounted for,
 Non-availability of records on revenue  Failure to present value books
for inspection
5. Store and Procurement irregularities

Table 4.8. 2G
Causes of Store and Procurement Irregularities
Drivers of Irregularity Drivers of Irregularity
 Purchases not taken on ledger  Failure to adhere to the
charge, Public Procurement Act, and
 Contract variations, Store Regulations,
 Payments for uncompleted  Poor supervision of
works, subordinate officers,
 Fuel coupons not properly  Procurement not routed
accounted for through stores.
 Non application of sanctions,
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The incidences of store and procurement irregularities occurred mainly through the
listed factors and not limited to what are demonstrated in Table 4.8.2G below;
6. Contract Irregularities
Unlike other irregularities, loan irregularities are attributed to the incidents but not limited
to the factors revealed in Table 4.8.2H below;
Table 4.4.8.2H
Causes of Contract Irregularities
Cause of Contract Irregularity Causes of Contract Irregularity
 Contract management lapses,  Using of inferior materials,
 Weak monitoring and evaluation,  Inflating of contract sum,
 Contract without agreement,  No competitive tendering
 Payment for incomplete project,
7. Loan Irregularities
The causes of loan irregularities are shown in the Table 4.8.2I below
Table 4.8.2I
Causes of Loan Irregularities
Causes of Loan Irregularity Causes of Loan Irregularity
 Granted loans without terms of  Granting of loans
recovery, without approval, and
 Failure to monitor performance  Loans without guarantor
 Failure to repay loans or collateral.
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4.8.3 Data from Program Base Budget Estimates (PBBE)
Table 4.8.3 below shows the authorizations and featuring of institutions in Chart of
Account (COA) and Bill of Appropriation (BOA) under PBBE. The government
authorizes public institutions for spending of funds earmarked, and allotted for use.
Therefore, all MDAs are fixed in the PBBE with COA and BOA to validate institutional
expenditure to be incurred for annually from January 01 to December 31.
Table 4.8.3
Authorization and Featuring in COA and BOA under PBBE
DIRECTORATE BOA COA
Human Resource Fully featured and funded Fully featured and funded
Administration Fully featured and funded Fully featured and funded
Finance Fully featured and funded Fully featured and funded
Internal Audit Partially featured and funded Partially featured and funded
PPME Fully featured and funded Fully featured and funded
RSIM Fully featured and funded Fully featured and funded
Others Fully featured and funded Fully featured and funded
Source: MacCharles Tamakole (2021)
4.8.4 Data from the Literature Review
The gaps identified in the literature are presented in the Table 4.8.4 below
Table 4.8.4
Data from Literature Review
9. Lack of resources
8.No political will & commitment
7.Weak Anti-Corruption Institutions
6.Ineffective and Inefficient Leadership
5.Bad and Corrupt Governance
4. Inconclusive methods
3.Absence of Internal Audit Performance
2. Incomplete procedures/resources
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1.Inconsistent ideas/policies
4.9 Presentation of Pre-study Data

The research intends to establish the characteristics of a new conceptual model that
better explains effectiveness of internal audit function. Seven SRQs were developed to
provide benchmarks and data points for additional consideration within the larger
analysis of the subject matter. Therefore, the research sought to apply qualitative tool to
analyse SRQs indicated in chapter one section 1.5. Respondents completed a
questionnaire according to how it was required. The questions were presented in line
with the variables: Audit Performance (IAP), Public Sector Financial Management
(PSFM), Good Governance (GG), and Social Justice (SJ). Anti-Corruption (Anti-C),
Internal Audit Function (IAF), and Ghana Integrated Financial Management Information
System (GIFMIS) as determinants of the level of the financial corruption in the
Ghanaian economy. However, it has been deduced that, IAP is the main, and effective
fighter of FC as well as other social vices. The questions were arranged in such a way
that all of them were closed-ended questions, so the respondents chose from the
answers provided to reveal all held believes, and ideas. The relationship between the
dependent and independent variables were discussed below;
4.9.1 The Relationship between Good Governance and Financial Corruption
100% of respondents of the interview provided the same answers on the relationship
between good governance, and social justice. With respect to Financial Corruption,
good governance promotes social justice, and social justice also enhances IAP in the
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fight against financial corruption in the Ghanaian economy. As stated earlier, all the
respondents’ assertions suggested that both Good Governance, and Social Justice are
positively related. IAP also has positive and significant relationship with Good
Governance, and Social Justice in the fight against FC in the Public Sector of Ghana
(Table 4.4.10). With these indications Good Governance should be taken seriously in
the fight against financial Corruption, because the Good Governance and Financial
Corruption are negatively correlated. When, Good Governance improves the level of
Financial Corruption reduces. Hence, what are needed are political will and political
commitment for the respective countries to fight the challenges of corruption.
4.9.2 The Relationship between Internal Audit Performance and Financial Corruption.
20% of the respondents indicated that, items under Internal Audit Performance
displayed the impact of IAP on the PSFM in the fight against financial corruption.
Therefore the significant relationship between Internal Audit Performance and Financial
Corruption is negative. When Effectiveness of Internal Audit Performance increases, the
level of social vices including financial corruption also reduces. Nevertheless, 80% of
the remnant respondents displayed that, impacts of IAP on the PSFM is positive to fight
FC. These portray that IAP, and financial corruption are positively related (Table 4.4.8A,
Table 4.7.10, and Table 4.7.14).
4.9.3 The Relationship between Social Justice, and Good Governance
Social Justices had average responses ranging from 0 to 100%, and 100% of the
respondents chose “True” for the answer to the question, Governance, and Social
Page | 261
Justice promote IAP to minimize FC. Nevertheless, none (0%) respondent specified 0%
to show that the statement in question is factual. (Table 4.7.11). According to Table
4.7.11, the significant relationship between Social Justice and Good Governance is
positive. The duo are positive related, when the level of effectiveness of one increases,
the other also increases. The researcher of the view that, effectiveness of both Social
Justice, and Good Governance should be improved consistently to fight Financial
Corruption as expected.
4.9.4 The Relationship between Social Justice and Financial Corruption
Table 4.4.12, and Table 4.7.11, show the demonstration of both respondents of
questionnaire, and interview that, Social Justice and Financial Corruption are negatively
correlated. Thus, when the level of Social Justice enhances, the level of Financial
Corruption minimizes. Analytically, Social Justice fight social vices. Social Justice
promotes Good Governance, Internal Audit Performance, ant Anti-Corruption in the fight
against Financial Corruption in the Ghanaian economy.
4.9.5 The Relationship between Internal Audit Function and Internal Audit Performance
There is functional relationship between Internal Audit Performance, and Internal Audit
Function. 432 (96%) of questionnaire participants answered the question, demonstrated
that the correlation between IAF, and IAP is positive and has significant relationship
between them. However, 18 respondents translates into 4% also indicated that, the
correlation between the two variables is negative (Table 4.7.15). When the core
principles of IAF are fully implemented the effectiveness of IAP is enhanced to fight
Page | 262
against FC in the Ghanaian economy. The relationship between Internal Audit
Performance and Internal Audit Function is positive.
4.9.6 The Relationship between Public Sector Financial Management and FC
The fight against financial corruption is important, and crucial in the Ghanaian economy.
Furthermore, 360 out of 450 being the majority of the respondents indicated that, Public
Sector Financial Management reduces financial corruption within the enclave of the
Public Sector. Public Sector Financial Management is what normally helps in reducing
the level of Financial Corruption to protect the public purse. PSFM is to ensure that all
the necessary controls are working effectively, in place, and are adequate enough to
provide respective managements with reasonable assurance. The relationship between
them is negative. When Public Sector Financial Management improves, the level of
Financial Corruption minimizes and vice versa (Table 4.7.9)
4.9.7 The Relationship between Anti-Corruption, and Financial Corruption
Analyzing the survey question: Are the Anti-Corruption institutions in Ghana are
effective enough to achieve their intended purposes in fight against Financial
Corruption? 252 represents (56%) respondents displayed that No, it is not effective,
thus cannot achieve the intended purposes. However, 20% of the respondents also
indicated that, Yes, on condition, and 24% too indicated that No, on condition.
Analytically, the responses collated showed that the Anti-corruption institutions in
Ghana are not effective to achieve its intended objective. In reality 44% were not sure
the state of the Anti-Corruption Institutions in fighting Financial Corruption (Table 4.7.9).
This portrays that, Anti-Corruption and Financial Corruption has negative relationship
Page | 263
between them. To enhance the research, the Ghana Integrated Financial Management
Information System, and Determinants of Internal Audit Performance were discussed
below to reveal all dependent and independent variables.
4.9.8 Ghana Integrate Financial Management Information System
Under the GIFMIS 1.11 % respondents of questionnaire displayed that, their head of
Internal Audit Unit is included on the GIFMIS platform to carry mandatory responsibility
of detection, prevention, and correction of threats, infractions, and errors that lead to
FC. However, 98.89% also indicated that, they do not have their heads of internal audit
unit on the GIFMIS Platform (Table 4.7.24). So they could not help minimize or prevent
SVIFC. GIFMIS is to ensure effective, efficiency, and value for money, so if those to
ensure that these are achieved are excluded on GIFMIS platform, it results in negative
relationship between FC and GIFMIS. This does not protect the public funds. With
reference to analysis of the transformed responses,
4.9.9 Determinants of the Level of IAP
The predicators or independent variables are: Public Sector Financial Management,
Good Governance, Social Justice, Anti-Corruption, Ghana Integrated Financial
Management Information System, and IAF. The two sets of variables are significantly
related in the Ghanaian economy. Also, among all the variables of independent
variables, IAP impacts on the various predicators to enhance PSFM, GG, SJ, Anti-C,
GIFMIS, and IAF to combat Financial Corruption. This portrays that IAP is the catalyst
of all to fight SVIFC, and should be taken seriously in all aspects.
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4.10 Pre-study Data Analysis
The researcher carried out qualitative analysis to determine the effect of independent
variables in fighting corruption. These independent variable are: Audi Performance,
Public Sector Financial Management, Good Governance, Social Justice, Anti-
Corruption, Internal Audit Function, and Ghana Integrated Financial Management
Information System in determining the occurrence of Financial Corruption in the Public
Sector Financial Management.
4.11 Qualitative Analysis

The researcher conducted interviews to find out what participants consider to be the
achievements, challenges and solutions of the fight against FC in the public sector of
Ghana. Respondents had experience and were involved directly in financial decisions,
and institutional leadership positions that relate to the PSFM. 24 experience and
professionals agreed to take part in the interviews. These officials have over twelve
years of experience working expect one participant who had seven years of working
experience. These were key staff in the public sector. In all 33 interviews were
conducted consists of 24 preliminary interviews and 9 follow-interviews. The interview
participants from Finance, Internal Audit, Administration and Budget directorates. Table
4.11A and Table 4.11B below demonstrate the distribution of the interview and
questionnaire participants respectively.
Page | 265
Table 4.11A
Distribution of Interview Participants
Frequency
Budget Table 4.11B
Distribution of Questionnaire Participants
Administration
Budget
Frequency
Internal Audit
Administration
finance
Internal Audit
0 20 40 60 80 100 120 140 160 180 200
finance
Source: Mac Charles Tamakloe (2021)
0 20 40 60 80 100 120 140 160 180 200
29.17% of interview respondents are experts in finance working with public
organizations that directly deal with matters related to the financial management in
Ghana. Also, 4.16% of interview respondents are expects in budget preparation,
implementation and analysis. 37.5% respondents are experts in internal auditors and
are mandated by PFM Act, 2016, to ensure effectiveness, efficiency, and economy and
to ensure public funds are judiciously used to achieve effectiveness, efficiency, and
value for money. 29.17% of the participants were experience administrators, and mostly
the spending of officers, and ensure that, audit observations are responded to, for
finalization of audit reports. However, Figure 4.11C below demonstrates the public
expectation of Internal Audit Performance by participants’ responses.
Page | 266
Figure 4.11C
Public Expectation of Internal Audit Performance
FREQUENCY
BELOW STANDARD
STANDARD
ABOVE STANDARD
ABOVE STANDARD
STANDARD
BELOW STANDARD
LOW
MEDIUM
HIGH
0 50 100 150 200 250 300 350 400
Actually, 75% of the participants were males and 25% of the rest were female. To
protect all the participants, the researcher ensured that representative institutions
remained anonymous, and the names of participants, kept anonymous. This is because
corruption fights back anyone that fight corruption in any form and anywhere (Global
Anti-Corruption Blog, 2022; Ejiogu, 2021; IMANAI Africa, Akpan, and Demolovo, 2020).
Analysis from the both responded questionnaires, and interview responses, revealed
that, performance of internal audit is Low or Below Standard as demonstrated in Table
4.11D below demonstrate the Level of Effectiveness of Internal Audit Performance
Page | 267
Figure 4.11D
The Level of Effectiveness of Internal Audit Performance
FREQUENCY
BELOW STANDARD
STANDARD
ABOVE STANDARD
ABOVE STANDARD
STANDARD
BELOW STANDARD
LOW
MEDIUM
HIGH
0 50 100 150 200 250 300 350 400
Determinants of Internal Audit Performance in the Fight against SVIFC
Whereas militating factors (MFs) shown in Table 4.11E below lessen the level of
effectiveness of IAP, promoting factors (PFs) from the same table 4.11E enhance the
level of effectiveness of IAP through the improvement of independents variables in the
fight against social vices including financial corruption. To be able to resolve the
problem of SVIFC, the researcher proposes for policy and procedures for IA practical
approaches to consider reverting of the MFs and maintaining or improving on the PMs.
This will enhance the effectiveness of GG, SJ, IAF, Anti-C, PSFM, and GIFMIS to
improve on effectiveness of IAP in solving the menace of SVIFC by impacting on all the
stages of financial management and operations of the public sector in circular form.
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To avoid of MFs and upholding of PFs will enhance the independent variables (GG. SJ,
IAF, Anti-C, and PSFM) to improve on effectiveness of IAP to detect, and prevent
SVIFC and revert the main drivers of FC.
Table 4.1E
Determinants of Internal Audit Performance
+ PROMOTING FACTOR (PF)

- MILITATING FACTOR (MF)
Provide full technical support
Lack of Technical support
INTERNAL AUDIT PERFORMANCE

Good governance
Bad governance
Including HIA in GIFMIS
Excluding HIA in GIFMIS
Injustice system Justice system
No political commitment Political commitment
Promotional challenges Smooth promotion
Lack of legal protection Legal protection
Recognition of IAs
No recognition of IAs
No management support Management support

High confident level
Low confident level
Appointment of Heads of
Appointment of Heads of
Institutions by PSC
Institutions by president
Provision of resources
Lack of resources
Political will
Lack of political will
IA not in BOA & COA Feature IA in BOA & COA
Others PFs
Others MFs
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4.12 Findings of the Research.
After findings of the pre-study and the analysis, the basis of the qualitative interrogating
was outlined to make the analysis. The interviews sought to bring out critical issues
relating to using of IAP approaches to fight social vices including FC in the public sector.
These critical issues cause challenges within the PSFM in the fight against FC,
achievements, and solutions to the FC. The achievement identified by the research
includes: establishment of GIFMIS system to replace manual type of financial
management, yearly preparation of PBBE for the MDAs, and MMDAs. Having in place
PFM Act, 2016, Internal Audit Unit in the Public Sector, Anti-corruption institutions, Audit
Committee, Auditor General yearly audit reports, and Internal Auditors.
Despite the stated achievements, the researcher identified some challenges which
include: exclusion of the head of internal audit on the GIFMIS platform to carry out
detection, and prevention roles, Internal Audit unit/Department is partially or not at all
featured in the BOA and COA under the PBBE, Some sections of the PFM Act, 2016
serves as the recipe of corruption because the control system are weakened by these
elements. The internal audit Unit/Department lack resources, and logistics, internal
auditors are faced with promotional challenges, inadequate support from management,
internal audit reports are not taken seriously by management, no motivation for internal
auditors. Weak anti-corruption institutions, no political will and commitment, and Weak
audit committee. Internal auditors are not provided with legal protection and technical
support (Table 4.4.3, and Table 4.7.12)
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The solutions to stated challenges are to enhance effectiveness of IAP to fight FC within
the PSFM are but not limited to: Inclusion of Head Internal Audit Unit on the GIFMIS
platform for detection and prevention of threats and infractions, Fully featuring of Head
of Internal Audit Unit or directorate in the BOA and COA under the PBBE, The sections
of PFM Act, 2016. Authorizing the Principal Account Holder to appoint Audit committee
members, and the chairperson should be reviewed, and they are to be nominated and
appointed by their respective organizations, HIA and chairperson of Audit Committee
should sign the annual audit statement, and submit it with copies to PAH. The
chairperson of Audit committee. Internal Audit unit/Department should be resourced
adequately, and be motivated, and promotional challenges be resolved by removing the
impediments to pave easy way for promotion. Internal auditor should be assisted to
attend professional and refresher courses. Heads of Anti-Corruption Institutions should
appointed by Public Services Commission to have free hands to operate, and Audit
Committee members should be appointed by the institutions they represent (Appendix
H2). The government political will and commitment should aim at effective ant-
corruption, and financial type of corruption will be easily combated.
From the analysis of all the data collected, the answer to the research question “What
are the characteristics of a new conceptual model that better explains the effectiveness
of the Internal Audit Function in the public sector of Ghana” are : detection of threats
and errors, prevention of threats and errors, correction of threats and errors, carrying
oversight responsibilities, assist in risk mitigation, governance processes, and control
mechanisms, provision of assurance service to management, and provision of
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consulting service to management (Table 4.4.7A). The IAP, and IAF are positively
correlated, when IAP improves, IAF also enhances ((Table 4.4.1). When, Internal Audit
carries out the above stated roles including mitigation of risk, provision of assurance,
and consulting services successfully, IAF is well executed to achieve effectiveness,
efficiency and economy, IAP becomes effective to impact on PSFM to fight FC in the
Ghanaian economy (Table 4.4.1).
Furthermore, new conceptual model to improve on the IAP was developed to enhance
effectiveness of Anti-Corruption Model. This is named MacCharles Tamakloe Model
(MTM) of Ant-Corruption, which is circular in shape to allow internal audit performance
to impact on all the corruption prone areas in the public sector to detect, prevent, and
correct threats, infractions, and errors in all stages of financial management and
operations. Effectiveness of PSFM is enhance to combat financial corruption in the
Ghanaian economy. Finally, the major finding of the research is the Low level of IAP in
the public sector (Research, Tables 4.7.16 & 4.4.7B), although the internal audit units
put in their best, these efforts are thwarted by militated factors not limited to and
summarized below:
 Internal Audit work not taken seriously,
 Promotional Challenges facing internal auditors,
 Signing and Recipients of Quarterly Audit, and Annual Audit Reports,
 Exclusion of Head of Internal Audit on the GIFMIS Platform,
 Partial or no featuring of Internal Audit in the COA and BOA under the PBBE,
 Appointment of AC Members and Its Chairperson by Principal Account Holder,

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 Appointment of Heads of Public Institutions by the President of the republic,
 Lack of management support for the Internal Audit Units,
 Weak PSFM System due to all militating factors to the directorate,
 No political commitment,
 No political will to support internal audit to fight FC,
 Lack of resources for the internal audit units in the public sector,
 Absence of Legal Protection,
 Lack of Technical Support for Internal Auditors, and
 Some sections of PFM Act, 2016 do not promote Internal Audit. Table 4.4.3, and
Table 4.7.12
The following show how respondents on the level of IAP in the fight against financial
corruption in the Ghanaian economy. According to Table (4.7.16), 315 out of 450
respondents of the survey questionnaire accounts for (70%) stated that the level of IAP
is low. 124 represents 27.56% claimed level of IAP is medium. And the 11 respondents
accounting for 2.44% said level of IAP is high. Analytically majority of respondents of
the questionnaire claimed that, the Level of Internal Audit Performance is Low.
Furthermore, on the standard of IAP, 10 respondents represents 2.22% claimed that the
level of IAP is High (Above Standard), whereas, 102, and 338 of the respondents also
demonstrated that the Level of IAP are Medium (Standard), and Low (Below Standard)
respectively (Table 4.7.6, and Table 4.7.6.)
With regard to the semi-structured interview this is how the participants responded. 1
respondent of the interviewee said IAP is Above Standard, 6 of them said it is Standard,
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and 17 out of 24 respondents indicated that IAP is Below Standard (Table 4.3.7B). The
analysis of the interview and survey responses together shows that IAP is Low to
impacts on PSFM in the fight against FC.
Table 4.12
Achievements, Challenges and Solution of the Research Findings
Item Research Findings
 Availability of GIFMIS infrastructure

 Existence of Internal Audit Units, IIA and IAA in place
Achievemen  Having of Ant-Corruption Institutions
t  Availability of PFM Act, 2016, PFM Regulation 2019, and others
 Having of Anti-Corruption programs
 Annual preparation of PBBE,
 Lack of professional training and resources for internal Audit Directorates
 Absence of legal and technical support for Internal Auditors
 Promotional challenges facing Internal Auditor
 Partial or no featuring of Internal Audit in COA and BOA under PBBE
Challenges  Appointment of heads of public institutions by the president
 Appointment of Audit committee members and chairperson by the Principal Account
Holder
 Principal Spending Officer and Principal Account Holder signing Annual Audit Statement
 Head of Internal Audit report to Principal Spending Officer (PSO) administratively
 Some section of the PFM Act, 2016
 Lack of recognition and management support for Internal Auditors
 Inclusion of head of Internal Audit on the GIFMIS platform for detection, and prevention
role
 Review some sections of PFM Act 2016
 Internal Auditors should be provided with legal and technical supports
 Internal Auditors Should trained on GIFMIS
Solutions  Internal Auditors should be promoted or allowed to progressed regularly’
 Internal Audit should be fully feature in the COA, and BOA under PBBE
 Heads of public institutions should be appointed by Public Services Commission
 Audit Committee members should be nominated by their respective institutions and
appointed by IAA and IIA.
 Annual Audit Statement should be signed by HIAU and Chairperson of Audit Committee,
confirm by PSO in the AC at a meeting.
 All factors militating against IAP should be reverted to enhance IAP
 Some sections of PFM Act 2016 should be reviewed
Table 4.12 above shows the major achievements, challenges and solutions of the
current research findings. Most of the interview respondents also claimed that, the Level
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of Internal Audit Performance in the fight against financial corruption is below standard,
meaning it is actually low.
4.13 Findings of Follow-Up Interviews

For clarity of achievements, challenges, and solutions to the fight against FC within
PSFM, the researcher conducted follow-up interviews. The literature on the, challenges,
achievements and solutions on fight against FC within PSFM is limited. Nine
respondents took part in the follow-p interview. Table 4.7 below illustrations the
additional responses from the follow-up highlighting on achievements, challenges and
solutions extracted from Appendices M, N, O, and P.
Table : 4.13
Findings from Follow-Up Interviews
Achievements Challenges Solutions
 Excluding of head  Excluding of head of  Inclusion of head of
of internal Audit on internal Audit on Internal on the GIFMIS
GIFMIS platform to GIFMIS platform to platform for detection,
detect, and prevent detect, and prevent and prevention role
FC FC  Review some sections of
 PFM Act, 2016  PFM Act, 2016 PFM Act 2016
provides to PSFM provides to PSFM  Internal Auditors Should
 Lack of training for  Lack of training for IA trained on GIFMIS
IA in GIFMIS in GIFMIS  Internal Audit should be
 Internal Audit not  Internal Audit not fully fully featured COA &
fully featured COA featured COA & BOA BOA
& BOA
4.14 Conclusion
The key finding of the research is the Low Level of IAP in the fight against financial
corruption in the Ghanaian economy. This is attributed to the militating factors illustrated
by Table 4.4.3, and Table 4.7.12, and Figure 4.14A below demonstrates the level of IAP
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by participants in the public sector of Ghana. Analytically, Level of IAP is found to be
‘’Low or Below Standard’’ deduced from multiples and different responses from both
interview and questionnaire participants.
Figure 4. 14 A
The Level of IAP in the Public Sector of Ghana
Frequency
Low Level (Below Standard)
Medium Level (Standard)
High Level (Above Standard)
Participants’ Response 1
Above Standard
Standard
Below Standard
Participants’ Response 2
Below Standard
Standard
Above Standard
0 50 100 150 200 250 300 350 400
The answer to main research question, what are characteristics that better explains the
effectiveness of Internal Audit Function in the Ghanaian economy? Figure 4.14B below
demonstrates the characteristics that better explains the effectiveness of Internal Audit
Function in the Ghanaian economy. This adequately answer the main research
question. Analysis of the 7 SRQs reveals that, all the independent variables are
negatively related with FC, the same correlate positively with FC. Hence, enhancement
of independent variables will result in effectiveness of IAP and falling of SVIFC.
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Figure 4.14B
Characteristics that Determine the Effectiveness IAF
26 Frequency
24
22
20
18
4.15 Summary of Chapter Four

This chapter discusses the overview of the data presentation, sources of the data, and
analysis. The chapter further reviewed the purposes, methodologies, research design,
and data collection to meet the global standard. Research question and SRQs were
critically analyzed. Findings to the research questions were not left out. Distillation of
data from: 24 interviews with 9 follow-ups, 450 successful questionnaires administered,
Content analysis. The AGR brought to light all categories of financial impacts of
weaknesses and irregularities. This helped drew valid conclusion as the answer to main
research question and also, to provide conceptual model to improve on anti-corruption
using IAP as a catalyst for detection, and prevention FC
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CHAPTER FIVE
SYNTHESIS AND INTEGRATION
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CHAPTER FIVE- SYNTHESIS AND INTEGRATION
5.0 Overview
The key objective of the current research was to answer the main research question:
effectiveness of Internal Audit Function in the public sector of Ghana?
The responses of participants from both initial, follow-up interviews, and survey
questionnaires administered were analysed to achieve research validity, and reliability.
Because of integration of data to answer the main research question, and achieve the
objectives of the research, the data from content analysis were not excluded in this
analytical stage. Theories, concepts, and insights derived from the literature review
were compared to the outcomes of the research and content analysis in order to answer
to the research question adequately. Relevant, sufficient, accurate, and adequate
information were obtained from the responses of Internal Auditors, Finance Officers,
Budget officer, and Administrative officers who took part in the survey, and interviews.
These officials formed the main constituents of PSFM in the Ghanaian economy. The
chapter concluded with a conceptual model derived from the synthesis, integration, and
presentation of the research findings, to enhance the effectiveness of IAP and PSFM to
combat Financial Corruption and protect the public funds in the Ghanaian economy.
5.1 Distillation of Data

The following sections discuss the research method, challenges achievements, and
solutions presented detailed in Chapter 4.
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5.2 Review of the Research Method
The current research utilized abducting approach that, adopted views from both
deductive, and inductive research instrumentation for data collection. The intended aim
of the research was to obtain the: correct, relevant, reliable, and sufficient data from
both research field, and content analysis using qualitative-research method. All data
garnered from the Public Sector of Ghana were triangulated, and examined for
presentation, and analysis to answer the research question. Identification of literature
gaps, and value addition were clearly made during the field work. Following successful
data collection, transcription, and coding of data was carried out to achieve validity, and
reliability in the data management. The cardinal point was to achieve effective analysis
to determine the relationship between IAP, PSFM, and FC in fighting corruption in the
Ghanaian Economy. The researcher ensured establishment of content validity and
reliability were achieved. The following sections of this chapter discussed the results of
the survey, interviews with follow-ups compared with findings in the scholarship domain,
and content analysis. Integration of the research findings with related findings from
preceding research, helped to identify new knowledge, and to allow the development of
a model as very important element to answer the research question.
5.3 Findings from Survey, Interview, Literature, and Content Analysis

5.3.1 Analysis of IAP in fighting FC
Analytically IAP is the catalyst of ant-corruption. It depends on its impacts on PSFM to
achieve: accountability, probity, fairness, compliance with financial management
instruments, and transparency. Factors to promote the level of IAP in fighting FC should
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be sustained to protect public purse. Buttressing this point, the Controller and
Accountant General, Grace Adroe (2015) asserts that, the increasing demand for
accountability by the people of Ghana shall no doubt be served with a system that
increases transparency, and accountability. The aspiration of the people will be better
served (Grace Adroe, 2015). Acceptably, one of the key tools used to assess
performance of PFM in Ghana is Public Expenditure, and Financial Accountability
(PEFA). To perform is to take a complex series of actions that integrate skills, and
knowledge to produce a valuable result (Edger, n.d). Current level of performance
depends holistically on six components which are: context, level of knowledge, levels of
skills, level of identity, personal factors (Edger, n.d). Mihret (2017) acknowledges that
some factors could have a significant impacts on the effectiveness IAP. These factors
are not limited to: internal audit quality, management support, the organizational setting,
and auditees' attributes (Mihret, 2017). Both internal audit quality, and management
support have a strong influence on the effectiveness of IAP (Mihret, 2017). In deed
corruption has been identified as the main obstacle to the realization of good
governance, sustainable development, and Millennium Development Goals (IIA,
International Standards for Proffessional Practice, 2021). To demystify corruption for
mitigation, Global Coalition for Africa (2013) claims that, fighting corruption is a
notoriously difficult task to perform, but it is not impossible. However, a number of
countries have succeeded in moving from rampant corruption to a situation in which
corruption still exists but is no longer widespread, and pervasive (Global Coalition,
2013).
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Also, Olowu (2022) shows that, the effectiveness of a large number of institutional
reforms intended to fight poverty because of corruption depends on the integrity of a
country’s political, administrative systems. Applied to corruption research, it means that
a comparison across different units of analysis is carried out with the aim of identifying
the causal mechanisms that explain the differing degrees of success in controlling
corruption (Richards, n.d). Some economic reforms originally intended to reduce
corruption like the privatization of state-owned enterprises have to be handled with
extreme care, as they are vulnerable to manipulation (Bank, 2014). This can even lead
to a temporary increase in corruption, if they are badly designed, and lack the adequate
regulatory and commercial legal frameworks (Bank, 2014). This regulatory and care call
for IAP in the administration, and financial management system to detect, prevent, and
correct corrupt activities in form of financial weaknesses, and irregularities (Bank, 2014).
The public sector management in Africa has faced a number of challenges that have
limited the scope, speed, and quality of services rendered. Internal accounting, and
auditing systems, independence of the judiciary, and the central bank, civil service with
budgeting rules, and rules governing other internal watchdog bodies can promote public
sector effectiveness, and good governance (Bank, 2021). As the result, this strategy will
reform public Institutions, and strengthen the Governance and risk management
processes couple with control mechanisms. Bank (2021) reveals, because of poorly
functioning public sector institutions, and weak governance1 are major constraints to
growth, and equitable development in many developing countries, in which Ghana is no
exception.
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5.3.2 Analysis of Impacts of IAP on PSFM in fighting FC
In accordance with Article 187(2) of 1992 Fourth Republican Constitution of Ghana,
Audit Service, under the leadership of Auditor General conducts audit of the accounts of
all MDAs and MMDAs in Ghana for each financial year ended December 31, and
presents the reports to the Public Account Committee (PAC) of Parliament of Ghana.
For the purposes of this research, the data concentration was based on 2006 -2019
financial years. The Audit General Reports were submitted to the PAC for redress, and
implementation of recommendations contained the reports. Without prejudice, the audits
for the years under review, were conducted in accordance with international auditing
standards, and best practice, noting that, the public financial management system of
Ghana is underpinned by relevant legislative, and administrative guidelines which are
not limited to: Financial Administration Act 2003 (Act 654), Financial Administration
Regulations 2004, Public Procurement Act 2003 (Act 663), Audit Service Act 2000 (Act
584), Internal Audit Agency Act, 2003, and Stores Regulations of 1984. However, the
accounting instructions of Department and Agencies were approved by the Controller
and Accountant General in consultation with the Auditor-General.
The diaspora of Ghanaian academics, professionals, and weakening of institutions were
to have serious consequences when economic reforms were finally initiated (Tsikata &
Yaro, 2014). Because of FC results in annual loss of public funds, Auditor General
Recommendations that, Principal Spending Officers of the MDAs should establish
effective internal control systems including effective Internal Audit Unit, proper
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supervisory control over the accounts sections for early detection and rectification of
such irregularities (AGR, 2019). Emphasizing on the need to improve on IAP, and
PSFM, the Auditor General in his 2019 annual audit report further recommends
strengthening, and recognition of Internal Audit Units established within the MDAs and
the facilitation of their role which can help to reduce the incidence of irregularities, and
financial weaknesses that are reported annually (AGR, 2019). The overall financial
impact of the weaknesses and irregularities identified, could have been prevented by
IAP during the period 2005-2019,which amounted to GH GHC13, 890,662,503.82
(AGR, 2019). The noted irregularities, and their causes are indicated below:
Tax Irregularities, Cash Irregularities, Debts/loans irregularities, Payroll Irregularities,
Contract Irregularities, Rent payment Irregularities, and Stores/Procurement
Irregularities (AGR, 2019). In pursuance with the roles of Internal Audit of the MDAs,
and MMDAs and content analysis of audit reports, impacts of IAP on PSFM could have
detected, prevented, and corrected the avoidable threats, and errors to minimize the
level of financial weaknesses, and irregularities occurred during the period under review
(IIA, 2022).
5.3.4 Analysis of Factors to Improve on the Effectiveness of: IAP and IAF
Internal auditors must be objective when carrying out their duties (IIA, 2019), internal
auditing activities should be free from any interference (IIA, 2019). To achieve the
objectives of efficiency, effectiveness and economy, internal auditors must have an
impartial, and unbiased attitude to avoid any conflict of interest (IIA, 2019). This is
because conflict of interest may impair the objectivity, and independence which may
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affect the IAP. It is imperative for the government to provide quality, accessible,
affordable, and timely services to citizens, and to align with the private sector
management style. It must foster an innovation, collaborative, transparent and
accountable workforce that meets and exceeds citizen and private sector expectations
(Robinson, 2015). Analytically, IAP is positively related to internal audit effectiveness.
Organization members’ support refers to both senior management support, and the
existence of effective audit, needed to enhance IAP. Internal auditing is most effective
when it has support from management, and when an audit committee exists (Martinov-
Bennie, 2011), and management support and existence of audit committee as
independent variables or dimensions for other factors (Mihret D. G., 2017), and (Zhang,
2007)
5.3.5 Analysis of Correlation between IAP, PSFM, and FC
Corruption is presently one of the major challenges facing the human race, and has
been identified as the main obstacle to the realization of good governance, sustainable
development, and Millennium Development Goals (TI, 2021). It is difficult to
demonstrate accountability, and make improvements without performance measures
(Ellen, 2018), because, measurement is the key to making the change a success (Ellen,
2018). Effective delivery of the procurement business case depends on the continuous
measurement of the key benefits (Krau, 2019). Corruption is worse than prostitution
(Krau, 2019). The latter might endanger the morals of an individual; the former
invariably endangers the morals of an entire country (Krau, 2019). In the ultimate
analysis, there is a need to adopt an integrated approach, so that all the views are
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incorporated into the scope of PSFM (Krau, 2019). Analytically, the following aspects
emerge as the core areas of PSFM: Financial planning, Budgeting, Resource
mobilization, Investment decisions, Expenditure Management/ GIFMIS, Accounting and
Reporting, Auditing, and Monitoring and Evaluation
Therefore, political will result in the provision of the necessary resources, effective laws,
effective adjudication, and effective prosecution. It enables the top political leadership in
the country to subject themselves to self-scrutiny, and self-policing (Tan, 2010). AGR
(2019) calls for the strengthening, and recognition of Internal Audit Units established
within the MDAs, and the facilitation of their role which can help to reduce the incidence
of irregularities and financial weaknesses that are reported annually by the Auditor-
General, Internal auditors must be objective when carrying out their duties (IIA, 2019).
Also, internal auditing activities should be free from any interference (IIA, 2019), and
internal auditors must have an impartial, unbiased attitude, and avoid any conflict of
interest (IIA, 2019). Poorly functioning public sector institutions, and weak governance
are major constraints to growth, and equitable development in many developing
countries including Ghana (Bank and World Development Report 2000). Internal
accounting, and auditing systems, independence of the judiciary and the central bank,
civil service, and budgeting rules, and rules governing other internal watchdog bodies
can promote public sector effectiveness, and good governance (Bank, World
Development Report, 2000). Corruption should be explicitly taken into account in
country risk analysis, lending decisions, and portfolio supervision, if it affects project or
country performance and the government’s commitment to deal with it is in question
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(Mutebi, 2008). It is obvious that, when IAP and PSFM improve the level of FC
minimizes and vice versa. Nevertheless, when the IAP improves, the PSFM also
improves fight FC and vice versa.
5.3.6 Analysis of Factors Militating against IAP
2017 AGR revealed that, the internal control procedures which have been established
by the management of the various institutions were satisfactory (AGR, 2017). However,
some irregularities, lapses, and losses which were the result of non- adherence to
internal controls, and financial administration regulations (AGR, 2017). The cataloguing
of financial irregularities from the report on MDAs have become an annual ritual that
seems to have no effect, because, affected MDAs are not seen to be taking any
effective action to address the basic problems of lack of: monitoring, supervision, and
non-adherence to legislation put in place to provide effective financial management of
public resources (AGR, 2017; 2018). 2009-AGR also recounted that, whatever efforts
have been made by MDAs in the past has not been effective enough to deal with the
issues of non-compliance, and outright disregard for established order in the conduct of
public financial business (AGR, 2019). Seven threats to internal auditors’ objectivity,
which included: self-review; economic interest; personal relationships; familiarity;
cultural, racial and gender biases; and cognitive biases (Mutcler, 2003). IIA requires
internal auditors to possess the knowledge, skills, and other competencies needed to
perform their individual responsibilities (IIA, 2019). Observably, the way for internal
auditors to continue education is professional conduct by undergoing proper training,
and development programs. However, the researcher opines that, lack of; legal
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protection, technical support, management support, resources, promotion, recognition
of internal audit report, motivation, and others militate against the IAP.
5.3.7 Analysis of Characteristics that better explain IAF
Internal Auditors’ characteristics refer to the objectivity, effective communication,
proficiency, due professional care, training, and development (IIA, 2020). The
integration of the relationship among internal auditors’ characteristics is clear. Internal
auditors must possess the knowledge, skills, and other competencies that are needed
to achieve their individual responsibilities due to proficiency and due professional care
(IIA, 2020). The only way, internal auditors to continue this professional conduct is by
capacity building for professional value addition. Analitically, these can enhance the
effectiveness of internal audit execute the internal audit functions. It is imperative for the
government to provide quality, accessible, affordable, and timely services to citizens,
and to align with the private sector management style. It must foster an innovation,
collaborative, transparent, and accountable workforce that meets and exceeds citizen,
and private sector expectations (Robinson, 2015). Notwithstanding, no single factor can
dominate under all conditions (Krishnamurthy, 2002). Corollary, internal auditors’
characteristics, and their dimensions will influence internal audit effectiveness, and
therefore better explain the effectiveness of internal audit function in the fight against
5.3.8 Analysis of Knowledge Gaps identified in the Literature review
Review of seminal authors’ works on the theories on: governance, corruption, and social
justice carried out for identification of knowledge gaps. This was informed by further
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review of quasi-academic materials from professional arena, and technical in nature. As
the result, the following knowledge gaps were identified to be analyzed, and to fill by this
research:
 Lack of commitment, and political will to fight FC,
 Inconclusiveness, incompleteness, and inconsistency of factors not limited to:
approaches, procedures, policies, ideas and processes,
 Absence of IAP to detect, prevent, and correct threats and errors that lead to
financial weaknesses, and irregularities as the recipe of FC.
 System of social injustice, and absence of social audit
 System of bad and corrupt governance
 System of ineffective, and inefficient leadership, and
 System of weak anti-corruption institutions
To fight the FC in the public sector, IAP was not identified, and recognized as the
catalyst of good governance, social justice, and effective ant-corruption tool to enhance
in risk mitigation, governance, and control processes, protection of the public funds. IAP
makes orchestration of FC impossible or difficult, and high risk venture. Also, demand
for both external, and internal audits is sourced in the need to have some means of
independent verification to reduce record-keeping errors, asset misappropriation, and
fraud within business, and non-business organizations (Mautz, 1993). (Lee, 2018)
insists that, in due course, the internal audit functions will become responsible for
careful collection, and interpretive reporting of selected business facts to enable
management to keep track of significant business developments, activities, and results
from diverse and voluminous transactions to fight FC in the public sector.

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Acceptably, institutions recognized the value of internal audit services, going far beyond
financial statement audit, and devoted to furnishing reliable operating reports containing
non-financial data such as quantities of parts in short supply, adherence to schedules,
and quality of the product (Pany, 2001). Recently, much evidence testifies that,
reporting relationship is being widely viewed as a best practice in the most progressive
entities committed to enhance governance structure, and processes that will result in
minimization of FC (Pany, 2001). Also, considering proficiency, and competence as a
significant element of internal audit for effective IAP is crucial (Dixon, 2005). In view of
this, IIA as the international professional organization of internal auditors has demanded
all its members to have continuous professional development programs (IIA & ISPP,
2021). This will enhance the level of IAP to achieve its objectives. The utmost solution is
that, IMF is making every effort to strengthen surveillance of the global economy, so
that, it should help to strengthen, protect, and redefine the functions of Internal Audit
Unit of every public institution (IMF, 2016). From the stand point of the researcher, all
these is to resolve the problems or gaps of inconclusiveness, incompleteness,
consistency, social injustice, and menace of risk mitigation, governance, and controls
processes reckoned in the literature review.
5.3.9 Analysis of the Main Causes of FC
Analytically, FC has monumental effects on the political, economic, social and cultural
well-being of societies. In Africa, for instance, the Commission for Africa identified
corruption as a central concern which negatively affects governance, and development
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on the continent (Franks, 2005). Corruption is the bane of Africa (Lumumba-Kasongo,
2010). The effects of corruption have been more evident in Africa more than any other
continent, few would quarrel with the assertion that corruption in Africa has damaged
development objectives, undermined long term economic growth, increased poverty,
and contributed to the continent’s declining position in world trade (Kend, 2018).
Corruption is presently one of the major challenges facing the human race (Kend,
2018). Therefore, political will result in the provision of the necessary resources,
effective laws, effective adjudication, and effective prosecution. It enables the top
political leadership in the country to subject themselves to self-scrutiny and self-policing
(Mohd-Any, 2014).
In deed corruption has been identified as the main obstacle to the realization of good
governance, sustainable development and (UNDESA, 2005). In spelling out corruption,
(Mung'ala, 2010) states that, corruption is a threat to justice, and sustainable peace in
Africa, and also an injustice in itself. Since Justice relates to peace by way of a logical
conjunction then the prevalence of corruption in any state affirms a lack of peace even
in the absence of violence (Mung'ala, 2010). The systemic nature of corruption in many
African states actually compounds the structural violence that citizens suffer. Corruption
is a contradiction of solidarity because it gives rise to injustice and poverty, and does
not respect the different social and institutional roles but corrupts them (Mung'ala,
2010).
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The 2009-AGR cataloguing of financial irregularities in its report on MDAs, and other
Agencies has become an annual ritual that seems to have no effect, because affected
MDAs are not seen to be taking any effective action to address the basic problems of
lack of monitoring, supervision, and non-adherence to legislation put in place to provide
effective financial management of public resources (AGR, 2009). Whatever efforts have
been made by MDAs in the past has not been effective enough to deal with the issues
of non-compliance and outright disregard for established order in the conduct of public
financial business (Bailey, 2013). The non-existence of universally accepted
performance measurements for the procurement function has led to irregular and
biased decisions (Bailey, 2013). The need to have coherent methods of measuring
performance of the procurement function in public entities, particularly in developing
countries, has not been followed with sound and objective measures (OECD, 2022).
The situation has deteriorated to the extent that whichever way one views corruption, it
involves a violation of public duty or deviation from high moral standards in exchange
for personal pecuniary gains. Although the direct costs of corruption may be high in
terms of lost revenue or funds diverted from their intended use, the indirect costs of the
economic distortions, inefficiencies and waste (Chetwynd, 2003). Performance
measurement is the process by which procurement establishes criteria, based on
strategic planning goals, for determining the results and quality of its activities (Vaidya,
2002). From the procurement management sense, performance measures are needed
to determine effective procurement policies, and practices contribute to meeting the
organizational objectives (Poetsch, 2003).
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5.3.10 Analysis of Characteristics of IAF that better explain IAP in Anti-Corruption
Krishnamurthy (2002) recounts that, situations where the systems, and procedures
provide an opportunity for corruption are relatively easy for the auditors to handle, and
make recommendations. Auditors may come across situations where the systems, and
procedures are satisfactory as were designed to prevent or minimize corruption
Krishnamurthy (2002). Moreover, corrupt persons find out ways to by-pass these
systems and procedures. It is usually done through collusion. No single factor can
dominate under all conditions. Therefore, it is observed that internal auditors’
characteristics, and their dimensions will influence internal audit effectiveness. Each
dimension of internal auditor’s characteristics is positively related to internal audit
effectiveness. The effectiveness of internal audit determines its performance. IAP refers
to the planning, supervision, fieldwork, recording, reporting findings, recommendations,
and following-up of implementation of recommendations contained in the audit reports
(Krishnamurthy, 2002). Internal auditors’ characteristics are positively related to internal
audit effectiveness, and each characteristics is positively related to internal audit
effectiveness. The non-existence of universally accepted performance measurements
for the procurement function has led to irregular, and biased decisions (D. Grimsey,
2007). The need to have coherent methods of measuring performance of the
procurement function in public entities, particularly in developing countries, has not
been followed with sound, and objective measures (OECD, International Migration
Outlook 2007, 2017)
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The Public Financial Management reform is instrumental in the fight against wasteful
spending, and corruption as it improves access to financial data, audit related to risk
and results, open and competitive procurement processes and commitment in control
system, such as Integrated Financial Management Information System (IFMIS) (Wan
Zahari, 2013). This need implementation of IAF for effective IAP. Corruption requires a
multifaceted attack. It requires, for example, a set of regulations against corrupt
practices, a code of conduct for employees, and vendors, awareness raising
campaigns, training of staff, internal controls, sanctions and incentives, protection of
whistleblowers, and an open approach towards information reporting. Audit is only one
such mechanism (Wan Zahari, 2013). Seven threats to internal auditors’ objectivity,
which included: self-review, economic interest, personal relationships, familiarity,
cultural, racial and gender biases, and cognitive biases (Mutcher, 2003). Also, internal
audit is most effective when it has support from management, and existence of an audit
committee (Martinov-Bennie, 2011), because, Internal auditors can succeed only if the
enabling environment exists for fighting corruption.
It is difficult to demonstrate accountability, and make improvements without
performance measures (REISS, 1991). Hence, effective corruption control requires
commitment, and involvement of all agencies, employees, customers, external service
providers, in brief, all citizens of the society (REISS,1991). The scope of auditors’
contribution has a close relationship with the ‘tone at the top. If the top management, in
particular, the chief executive of a company or a minister of a department or a prime
minister of a country engages in corrupt practices, the auditors cannot make much
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contribution as these very persons would not let the auditors get closer to anything as
auditing against their corruption (REISS, 1991). Approaches to determine fraud are
different. However, each of these definitions suggests that fraud can be committed by
all employees in the company, regardless of their hierarchical level, as well as persons
outside the company (Maricic, 2016). Analytically, auditors must be aware of the
limitations of their professional work.
Observably, in case of corruption, auditors can hardly detect or investigate into the
actual event of corruption, since the culprits, generally, do not leave any documented
evidence. It is, therefore, important to know that the auditors cannot quantify corruption
nor can they report the actual event of corruption (Ayittey, 2010). Nearly as numerous
as corruption scandals are the public announcements of actions intended to stem the
seemingly endless flow of corrupt energy. These counter measures have included
stricter anti-corruption laws, training judges (Ayittey, 2010), parliamentarians,
journalists, strengthening civil society, civil service reform, improving budget and tender
processes, the creation of anti-corruption commissions and even the occasional
execution of offenders convicted of large-scale corruption by firing squad (Ayittey,
2010). Such a report can become basis for corrective action by the government to
forestall corruption in future or minimize the opportunities for corruption. High-quality
financial information in the public sector enables an accurate, and complete assessment
of the impact of policy decisions, supports external reporting by governments to
electorates, taxpayers, and investors, and aids internal decisions on resource allocation,
monitoring, and accountability. In some countries, greater efforts are required to support
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public sector accountancy, and the broader topic of public financial management
(Bejarano, 2018). Many observers believe that the IMF is mainly a "firefighter" which
provides emergency financial assistance to countries during financial crises (Shime,
2007). The next subsection convers the analysis of internal auditors’ role in the fighting
FC.
5.3.11 Analysis of the Roles of Internal Audit in the fight Against FC
Performance of IA mandate is derived from, Section 83(3c) of the Public Financial
Management (Act, 2016), which states that, internal auditor of a covered entity shall
provide assurance on: efficiency, effectiveness, and economy in administration of the
programs and operations of a covered entity. Section 3 (3) of the IAA (Act,568), 2003
affirms that, the IA Agency shall promote economy, efficiency and effectiveness in
administration of government programs and operations. Internal audit Agency (IAA) was
established by IAA (Act,568), 2003 to coordinate, facilitate, and provide quality
assurance for audit activities within MDAs, and MMDAs (Ali, 2013). However, several
studies conducted by scholars not limited D.Quinn (2004). In same vain, IAP can be
achieved by effective communication of IAF in order to combat all types of corruptions
including financial type in the PSoG, through team work, professionalism, and
competence.
IIA requires internal auditors to possess the knowledge, skills, and other competencies
needed to perform their individual responsibilities (IIA, 2019). This is to help achieve the
mandatory and desired IAP. Preceding researchers such as Schneider (2003),
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Marghem (1986) and Malleta (1993), considered proficiency, and due professional care
as a significant element of internal audit. In recognition of internal audit’s importance
and essence, the government and private sectors in many countries consider the
establishment of internal audit unit and empowerment of Internal Auditors as imperative.
The global perspective is that internal audit is a necessity, and adds value to the
organization’s operations for effective: IAP, PSFM, and effective anti-corruption. As it is
widely known, internal audit is an integral function that assists organizations in
achieving their objectives, and prevent asset loss (Abuazza, 2015). This presupposes
that, IAP is an integral part of the overall performance of the public organizations. The
IAU has the authority to audit all parts of MDAs and MMDAs, and shall have full access
to all records, physical properties, and personnel relevant to IAP. There have been calls
from many civil society organizations, and governance experts on the need to reform
internal audit in the public service to protect the public purse and public assets. The
Auditor-General, Daniel Dormelevo in 2017, reiterates that, Internal Auditors need
autonomy to end corruption in the public sector. The report on corruption cited that, IA
detected 15% of corruption, and external auditors detected only 4%. So, where were the
Internal Auditors in the 85% of corruption cases that were not detected? It was re-
emphasized that, Internal Auditors were the custodians of accountability, yet were
weakened by employer dominance, and political interference (Examiners A. O., 2018).
This implies that, the level of IAP was low and ineffective, hence could not detect,
prevent, and correct threats that led to 85% of corruption. The inability of internal audit
to prevent, and detect corruption costs Ghana. The World Bank Group (WBG)
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committed $52.6 billion in loans, grants, equity investments, and guarantees to help
promote economic growth, overcome poverty, and promote economic enterprise in
developing countries (WBG, 20121). The incapability of IA to detect, prevent, and
correct financial weaknesses, and irregularities results in: corruption being high on the
governance reform agenda for decades. It constrains development, exacerbates, and
causes conflict, and is one of the biggest obstacles to achieving the Millennium
Development Goals (MDGs). Added to this, all societies suffer from corruption's
weakening of the efficiency, effectiveness, and probity of the public sector, Moreover,
corruption has well-known differential impacts on social groups with poor people among
its greatest victims. Really, corruption reduces resources for poverty reduction and
development, and deprives poor people of advancement opportunities (UNDP, 2021). It
is an establish fact that, corruption occurs with impunity in places where the systems
that hold those in power accountable for their actions or that enforce sanctions against
wrongdoing are weak, either because duty-bearers are inaccessible or the state has
withdrawn altogether (UNDP, 2021). Hence, all public institutions and policy formulators
need to strengthen the IAU and also, provide legal backing and protection for internal
auditors to execute their mandated roles effectively, and efficiently to achieve value for
money. The analysis of hypotheses developed in chapter one are carried out below;
5.4 Data Distillation from Follow-up Interview

The follow up interview were conducted to seek more in-depth and understanding of
achievements, challenges and solutions of the fight against FC in the PSoG. The
researcher did this to supplement the achievements, and challenges documented from
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the first round of the semi-structured interview and what was found in the literature.
Whereas, some of the issues that emerged were also part of the original findings, Table
4.8F, 4.8G, and 4.8H captured everything including what were not part of the earlier
engagements. Table 4.8F depicts the achievements of GIFMIS that the achievements
mainly focused on the progress made on PSFM by GIFMIS. This confirms the pre-study
regression results that showed that the p-value for GIFMIS was insignificant as one of
the challenges to the fight against FC. It emerged strongly that if institutions in the
Public Sector are allowed to function with no political interference and provision of
adequate resources substantial progress could be made on PSFM to fight FC. Similarly,
the solutions indicated in table 4.8I to supplement the ones that came up from the initial
round of data collection. The solutions highlighted such as inclusion of the HIA on the
GIFMIS platform, and featuring of IA in COA and BOA under PBBE to enhance the IAP
and PSFM to combat FC. Further, the findings support the idea that if the Public Sector
challenges could be resolved by revision of PFM Act, 2016 to improve on IAP, PSFM,
GG system, Justice System, GIFMIS system FC could be minimized. These findings are
reflected in the new model for the enhancement of the fight against financial corruption
(Anti-Corruption Model) by IAP impacting on all steps or components of the PSFM to
combat corruption effectively.
5.4.1 Data Triangulation
In all thirty-three interviews were conducted consisting of twenty-four candidates from
the public sector participated in the preliminary interviews, and nine follow-up interviews
were held. The approach concerning the analysis of data collected was exploratory with
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the aim of gaining insight into the practice of IA, and PSFM by public servants in Ghana.
Respondent’s opinions, and perceptions relating to the research were highlighted. Also,
recurring and insightful opinions, and perceptions were carefully extracted to generate
common themes to capture all relevant aspects of the data from the interviews for
analysis. As a result, themes were derived from the field data garnered. The analysis of
the interview data, and complementary data from the: literature, survey, and content
analysis revealed seventeen sub-themes which are essential for public sector to
consider in bid to achieve effective IAP, and PSFM in the fight against FC. The
seventeen sub-themes formed the basis for the follow-up interviews. Nine participants
from the public sector took part in the follow-up interviews. The nature of the sub-
themes allowed further re-classification into four main themes, which were termed:
Public Dilemma, Public Guide, Institutional Dilemma, and Institutional Guide. The sub-
sections below discuss the major themes with their sub-themes.
5.4.2 The Public Dilemma Theme
Theme Public Dilemma refers to the type of subthemes that calls for a series of critical
questions or issues of dire consequence regarding IAP, and PSFM that, Public
Institutions may not be able to efficiently address unless the Governance Instruments
including 1992-Constitution of Ghana, and PFM Act, 2016 are reviewed to nullify certain
sections of these instruments that gave birth to cardinal problematic issues therein. As a
result, Ghana is placed in a state of ‘dilemma’ and needs to holistically come out with
appropriate strategies to resolve the dicey issues during the National Planning,
Budgeting, Revenue mobilization, Expenditure management, Auditing, Reporting,
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Monitoring, and Evaluation to effectively address the public challenges confronting the
public sector in fighting financial corruption. Five sub-themes comes under the Public
Dilemma theme which are; FC Drivers, IAP Inhibitors, FC Cost-Redeemers, Impact
Inhibitors, and PSFM Inhibitors. The various subthemes are discussed below.
5.4.3 FC Drivers
The FC Driver is the first category, and a subtheme of Public Dilemma theme. As
obviously depicts by the research (Appendix S), it is mainly concerned with issues or
factors that are within or outside the powers of the public institutions in Ghana, but has
the potential to impede the efforts of these institutions in the fight against FC. Also,
these factors consequently affect the performance of IAP, and PSFM in the fight against
FC in the PSoG. With this notwithstanding, these factors promote or facilitate the
orchestration of FC, because IAP, and PSFM have been subverted by these factors,
because of their undue influences, and sidelining of officers of the Internal Audit
Department/Unit and Financial managers of the public sector. Furthermore, IAP and
PSFM are tools to fight FC, so if one or two of them are weaken, and being ineffective
to become drivers of FC. This is because IAP, and PSFM are positively correlated and
negatively correlated with FC. Corrupt or bad governance, social injustice, absence of
deterrent punishment, political influence, weak anti-corruption, and political will and
political commitment motivate the instrumentation of FC in the public sector. Internal
audit Agency, and Internal Audit Department/Unit which execute almost all the roles
(detective, preventive, corrective, assurance, consulting, post event-audit, risk
mitigation, oversight, assisting control, and governance process and investigative) of the
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anti-corruption institutions have not been recognized as such for effective treatment,
recognition, and empowerment. Also, internal audit is not fully featured in the BOA, and
COA, hence, lessons ability of IAP to fight FC in the public sector.
5.4.4 IAP Inhibitors
IAP Inhibitor is another subtheme that also falls under the Public Dilemma theme. As
evident by the research (Appendix S), IAP Inhibitors are factors that militate against IAP
to impact positively on the PSFM, in the fight against financial corruption in the public
sector of Ghana. The factors reckoned by the research are not limited to and are
discussed below: lack of resources to internal audit staff to enable them perform
effectively, and efficiently has been hindrance to AIP. Also, intimidation of internal
auditors put them into the state of dilemma to work, and achieve effectiveness,
efficiency, and economy. Added to these, non-recognition of internal audit, and
recommendations of the internal audit reports which are not seriously implemented
goes a long way to demotivate internal auditors to perform effectively. Moreover, lack of
management support for internal auditors, and no interest in internal audit work militate
against the IAP in the fight against FC and not able protect the public purse. Lack funds,
and professional and skill training for internal auditors form part of factors that lessen
the IAP, hence, serving as demotivation to achieve effective ant-corruption. Another,
IAP Inhibitor is the delay in or no regular promotion for internal auditors as compared to
other classes in the civil service. This actually lowers the confidence levels of internal
auditors, and also, remains subordinates to the heads of directorates. Appointment of
Audit Committee members, and the chairperson by the Principal Account Holder
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actually undermines the performance of the Audit Committee members to work
independently, and objectively improve on IAP in the public sector to fight FC.
Logically, the reporting line of the head of internal audit, thus reporting administratively
to the Principal Spending Officer (PSO) who is the chief auditee of the entity lessens the
efforts of internal auditors, and therefore reduces the level of IAP. One crucial factor
noted for IAP inhibitor is the signing of quarterly internal audit report by PSO which
delays submission and the report is liable for manipulation. Moreover, signing of the
annual audit statement or status of audit implementation of recommendations contained
in the audit report by the PAH, and PSO is another factor retarding IAP in fight against
FC (Appendix S). These factors contribute to low level of IAP, and serve as the recipe of
ineffectiveness of PSFM, and motivation of FC. The persistent, and yearly increasing of
financial loss, and FC attest to the fact that, IAP cannot detect, prevent and correct
threats and errors that lead to FC in the PSFM. Additional evident is the continuous
rises of the monetary value of financial weaknesses and irregularities (Table 4.10A).
PSFM framework according to PFM Act, 2016, that prescribes the mode of appointment
of AC members and its chairperson for public entities, signing of audit annual statement
by PAH and PSO in addition to chairperson of the audit committee. This provides weak
system of control and also does not promoted effectiveness of IAP to impact positively
on PSFM to minimize or avoid threats in form of irregularities. Lack of resource because
of absence of budget line for audit committees making it difficult for the committees to
meet at least four times annually. The committee is to deliberate on internal audit,
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external audit, and monitoring and evaluation reports, and purse management to
implement recommendations contained in audit reports.
5.4.5 FC Cost- Neutralizers
FC Cost- Neutralizer theme is one of the classification of under Public Dilemma. It
relates to factors that can facilitate the public institutions to enhance IAP, PSFM, and
Anti-Corruption to prevent financial loss to the state. According to Franklin (2016), FC
costs Ghana three (3) billion US dollars annually. The cost of FC in PSoG includes: lack
of socio-economic development, economic hardship, bad governance, social injustice,
vicious cycle of poverty, ineffective IAP m because of weak IAU, and increase in social
vices. The following elements neutralize the cost of FC: Availability of internal audit
departments/units in the public sector to detect, prevent, and correct financial
weaknesses and irregularities that might lead to FC. Also, internal audit work assists in
risk mitigation, governance processes, and control mechanism. The availability of
financial management tools serve as a guide to internal auditors, and staff of financial
managers to comply with in order to detect and prevent threats and errors. Moreover,
management interest in the internal supports internal audit work. Availability of
professional training helps to upgrade skills of internal auditors for value addition, so
that FC could be fought. Internal auditors understanding of their roles motivate them to
help in the effective financial management devoid of orchestration of corrupt activities.
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5.4.6 Impact Inhibitors
The current research brought to light factors that, were not within the powers of public
sector institutions that can impair a successful anti-corruption activities of the state,
notwithstanding, good intentions the public institutions might have about IAP, and PSFM
in fight against FC. Some of the participants’ responses cast doubts on PSFM on how
the financial resources are misused because of low level of IAP (Appendix S). These
include, what impact inhibitors stand for, since it has the potential effect to advance or
hinder the impacts of IAP on the PSFM in combating FC in the Ghanaian economy.
When IAP is improves, it enhances effectiveness of PSFM to minimize or avoid FC. The
intention of the enhancement is not realized until the improvement of the IAP, and
PSFM have reflected in the effectiveness of anti-corruption. This is to be done by
detection, prevention, and correction of threats and errors that, lead to FC in the
Ghanaian society. When the promoters of IAP, and PSFM fail in the improvement
processes to protect the public funds, the desired output which is the improvement of
anti-corruption will not be achieved to fight FC. This is because of inefficiencies, social
injustice, carelessness, non-political will, political influence, bad governance, and
ineptitude of other players outside the public sector. To achieve effective anti-corruption,
IAP should impact positively and progressively on the PSFM for detection, prevention,
and correction of all financial weaknesses and irregularities
5.4.7 PSFM Inhibitors
PSFM Inhibitor is the last subtheme classified under the Public Dilemma. This
subtheme relates to the factors that are setbacks to the effectiveness of the PSFM in
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the fight against FC. According the responses of the interviewees (Appendix S), factors
that affect the effectiveness of PSFM include: Ineffective Internal Audit Unit, which result
in unexpected situations like inability to impact positively on the PSFM to reduce FC.
Bad governance characterized with social injustice, misallocation of resources,
misappropriation of public funds, corrupt activities, financial loss to state, and waste of
resource, human right abuse, and low level of socio-economic development.
The rest of PSFM inhibitors are the following factors: Lack of probity, accountability, and
transparency are among factors that discourage Ghana society to build trust in the
PSFM staff, hence, militate against effectiveness, efficiency, and economy needed in
the public sector for prudent financial management. Because of these people do not feel
belongingness of the PSFM, so, it does not receive support from management, and
other stakeholders to help fight FC. Non-compliance with lack of financial management
tools to minimize financial weaknesses, and irregularities also worsen the
ineffectiveness of PSFM. The other factors that do not promote effective PSFM are
discussed in the next paragraph. PSFM framework according to PFM Act, 2016, that
prescribes the mode of appointment of AC members, and chairperson for public entities,
signing of audit annual statement by PAH, and PSO. This provides weak system of
control, and does not promote effectiveness of IAP to impact on progressively on PSFM
to minimize or avoid threats in form of irregularities. Excluding of head of internal audit
on GIFMIS platform weakens ineffectiveness of PSFM. This is because of absence of
internal auditor on the platform to for detection, prevention, and correction of threats in
form of payment, and other irregularities. Lack of motivation for IA militate is a factor
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that do not promote effectiveness of PSFM to fight FC to redeem Ghana from the
clutches social vices including financial corruption.
5.4.8 Public Guide
Public Guide refers to the category of subthemes that outlines certain criteria or
principles or professional behaviors concerning IAP, and PSFM that put the public
institutions on their toes to achieve effectiveness, efficiency, and economy and ensure
judicious use of the public funds. These are kinds of criteria or principles contained in
the public financial management tools, when comply with will enhance the achievement
of the prudent financial management devoid of FC, and reduces the FC to minimal.
This prevent financial loss to the state, and escalation of national debt. The four
subthemes that fall under the theme Public Guide are; IAP Determiners, FC Inhibitor,
and PSFM Determiners.
5.4.9 AP Determiners
IAP Determinant is first subtheme under Public Guide Theme. IAP Determiner relates to
factors that determine how public institutions ought to manage, and protect national
resources. Also, fight against FC and prevent all types of corrupt practices to achieve
effectiveness, efficiency, and value for money from judicious usage of public funds.
According to the current research (Appendix S), and the PFM Act, 2016, Audit
committee is one of the factors that determines the level of effectiveness of IAP. The
Audit Committee receives the quarterly reports from IAU for deliberation, and pursue
management to implement the recommendations therein. This helps to improve on the
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effectiveness of IAP, and PSFM. Establishment of IAU by the PFM Act, 2016 is one of
the instruments to improve on the level or effectiveness of IAP in the fight against FC.
The existence of IAU, mandates internal auditors to review financial management, risk
mitigation, control, and governance processes in order to enhance operational
performance of the public institutions. Internal audit by its roles detect, prevent, and
correct threats and errors or financial weaknesses, and irregularities that may lead to
FC. The effectiveness of IAP is crucial to enhance PSFM to fight FC in the public sector.
This implies that, the presence of IAU is one of the determinants of effectiveness of IAP.
For instance if unit is effective, IAP is enhanced, and thereby improves the effectiveness
of PSFM to combat FC, and vice-versa. The rest of IAP Determiners are: availability of
internal audit working manual provided by IAA, financial management instruments,
Annual human development plan, Management support, and provision of logistics and
support for the internal audit unit. FC inhibitor is discussed below to through more light
on the public guide theme.
5.4.10 FC inhibitors
FC Inhibitors have to do with issues or dynamics that are within or outside the control of
the public institutions. These factors have the potential to promote efforts of IAP, and
consequently impact on PSFM to impede FC. Provision of logistics by the government,
reconditions, and repositions IAP, and PSFM to fight FC as inhibitors, although, much
depends on the staff of PSFM. These logistics includes: laptops, computers,
photocopiers, office accommodations, and furniture. These motivate IAP, and PSFM to
combat FC, which is the recipe of: retardation of socio-economic development, poverty,
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economic hardship, social vices, corrupt activities, and others. The next FC Inhibitor is
availability, and usage of GIFMIS infrastructure in the public sector. Though, head of
internal audit unit is not hooked onto the GIFMIS platform for detective, preventive, and
corrective roles, the GIFMIS has eliminated human interface, and as result has
minimized the risk of orchestration of FC. However, if the head of IAU is hooked, he/she
is only to view the transactions, but not to effect any preventive, and corrective measure
on the platform (Appendix S). Moreover, compliance of financial management tools
helps internal auditors, and accountants to do things right to improve on the
effectiveness of IAP, and PSFM to achieve the policy intent of corruption. When staff of
PSFM including internal auditors comply with the Financial Administration, and
Regulations, effectiveness, efficiency, and economy are achieved to prevent FC in the
public sector.
Management support is also important element in inhibiting FC. That is when
management support internal audit and accountants, IAP, and PSFM are improved to
combat FC. Those institutions taking Internal Audit quarterly reports, and directive of
Audit committee seriously are able to fight FC to protect public purse, and thereby
prevent financial loss to the state. Added to these, the establishment of IAU in the public
sector serves as blocked for FC. This is because internal auditors are recruited to carry
out the roles of detection, prevention, and correction of threats and errors. Assurance,
and consulting services in the fight against financial corruption (Appendix S).
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5.4.11 PSFM Determiners
PSFM Determiner is a subtheme of Public Guide theme. It relates to the factors that
promote the effectiveness of the IAP to impact on PSFM to enhance its effectiveness to
detect, and prevent FC. Interest and recognition of financial department by outsiders
and insiders of public institutions motivate the accountants execute the roles of PSFM.
Unlike Internal auditors, people have more interest in and recognized accountants
because of their roles in payments. These same people mistaken internal auditors as
fault finders, and witch hunters so recognized them as threats to their progress without
knowing that internal audit is for value addition, and value for money. However, interest
and recognition energize accountants to improve on PSFM. Availability of professional
training as part of human development is one of the factors that makes prudent financial
management a reality and effective in the public sector of Ghana. Professional training
in form of capacity training helps both accountants and internal auditors to sharpen their
skills, and expertise to work effectively and efficiently to enhance PSFM.
Unquestionably, moral integrity is also a factor that help to promote effectiveness of
IAP, and PSFM to avoid FC. Staff with rational moral integrity ensure the prevalence of
accountability, and transparency in the performance of their duties to enhance PSFM to
protect, and ensure judicious use of the financial resource. With accountability and
transparency, public confidence in the PSFM improves on the belongingness in fighting
FC. Also, to provide logistics to facilitate management of the public funds.
Another factor promoting PSFM is GIFMIS platform, which elimination of human
interface to minimize FC, and financial loss to the Ghanaian society (Appendix S). This
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avoid collusion of PSFM staff to steal or deviate public funds for personal or group
benefit. In addition, compliance with the available financial management tools
strengthens the financial management control system to avoid irregularities, which are
threats to PSFM, and safeguard public funds. Moreover, the support from management
of the public institutions aid the achievement of PSFM effectiveness. Though, some
institutions do not take internal quarterly audit reports seriously as compared AG’s
report. Those take the reports seriously and go by tem achieve the intended objectives
of PSFM to foil orchestration of corrupt activities. Finally, code of conducts of public
institutions helps accountants, financial managers, and auditors to behave in the
prescribed manner to restrain them from corrupt activities. This serves as a tool to guide
staff’s conduct in the performance of their duties, in order to build on the effectiveness
of PSFM.
5.4.12 Institutional Dilemma
Institutional Dilemma Theme refers to series of life-threatening questions or issues with
dire consequence in connection with: IAP, Anti-corruption, Justice system, and PSFM
that, Institutions may not be able to address themselves unless the governance
instruments are reviewed to repeal certain sections of the financial management
instruments that gives birth to issues of dilemma. This as a result the public institutions
are placed in a state of dilemma, hence, needs appropriate strategies to resolve the
dicey issues within the PSFM system to be able to fight corruption. The Institution
Dilemma theme is classified into four subthemes which are; SJ Inhibitor, Institutional
challenges, Governance factors, and Public expectations.
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5.4.13 SJ Inhibitors
SJ Inhibitor is a subtheme of Institutional Dilemma. SJ Inhibitor is a factor that lies
outside the control of the public sector institutions, but has the potential effect to militate
against: governance processes, IAP, PSFM, and Anti-corruption efforts. It consequently
reduces level of: equity, fairness, and rationality in allocation of public funds to public
institutions. These factors prevent the achievement of effectiveness, efficiency, and
economy as mandatory requirement of the PSoG. The first militating factor to discuss is
the non-compliance of governance tool, consisting of financial management tools,
and1992-Constitution of Ghana. When these governance tools are not comply with by
the staff of PSFM, it weakens the control system thereby militate IAP, and PSFM to
impact positively on the corporate governance, which breeds social justice. Also, corrupt
activities is excluded in the weak corporate governance. The next factor is the level of
FC, when the level of FC increases because of non-compliance with financial
management tools, and ineffectiveness of IAP and PSFM result in impairment of social
justice. Moreover, undue influences from the appointing authorities are also factors that
impede the attainment of social justice. This is because the system of operation is
characterized with nepotism, impunity, and injustice system in the public sector of
Ghana.
Furthermore, corrupt, and weak judicial system are also factors serving as SJ Inhibitors
to prevent good justice system in the Ghanaian society. According to Afesorgbor (2017),
among the different institutions, percentage of respondents perceived public institutions
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as extremely corrupt are: Ghana police (92%) Judicially (71%), political parties (76%),
and Civil Service (59%). Analytically, Ghana Police Service which is mandated to check,
and prevent criminal activities was ranked the first most corrupted institution in the
Ghanaian economy with 92%. Finally, the moral integrity too serves as SJ inhibitor,
when the moral fiber of officers who are supposed to check criminality, and corrupt
practices are weak, and have questionable characters. All discussions above rationalize
to conclude the stated factors breed social injustice in public sector (Appendix S).
5.4.14 Institutional Challenges
Institutional Challenges are the factors or issues that highlights on the difficulties faced
public institutions in the process of achieving effective IAP and PSFM. These factors
impair the impacts of IAP on PSFM to fight FC. The issue of PFM A, 2016, and 1992
constitution, some sections/articles are challenges to public sector of Ghana. In respect
to PFM Act, 2016, sections 83 and 88 prescribing the appointment of Audit Committee
members and chairpersons and signing of annual audit statement by PSO and PAH.
These are very dicey issues militating against IAP, and PSFM. Also, the Article of 1992
Constitution that prescribes the appointment of heads of public institutions, hinders the
heads of public institutions to have the free hands to operate (Appendix S). Most of
heads are faced with political and undue influence to toll on course of appointing
authority against the institutional objectives meant to achieve policy intent of Ghana.
The earlier stated factors also challenges facing the public sector. Therefore the prayers
of the public is to have better economy characterized with factors not limited to: socio-
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economic development, prudent PSFM, and effective IAP, palpable economic growth,
no or low level of corruption, good justice system, less social vices. However, there are
persistent rise in level of corruption, and financial loss to that state. For instance Ghana
loss over 3 billion US dollars annually as the result of FC. These form part of the
challenges confronting the public sector in fighting financial corruption. The next factor
as a challenge is inadequate resources for public sector to exploit the resource at its
disposal. The financial resources of Ghana consciously diminishes through
mismanagement, and FC. Absence of political will and political commitment is the last
public challenge to be mentioned. As stated earlier, the prayer of public of Ghana is to
have low level or no FC, but, the leadership of the nation has no political will to fight
corruption. Added to this no commitment has been exhibited to fight FC holistically,
evident by appendix 4.10 a showing persistent rise in the level of FC in Ghana. These
indirectly affect the IAP, and PSFM to achieve anti-corruption and safeguarding public
assets. Therefore, absence of political will and commitment are challenges confronting
the PSoG (Appendix S).
5.4.15 Governance Factors
Governance factor is one of the five (5) subthemes under the classification of
Institutional Dilemma Theme that has to do with factors that are not within the
jurisdiction of the public institutions. According to the research (Appendix S), these
factors have the potential to influence on the efforts of the public institutions. Also,
consequently affect the impacts of IAP on the PSFM in the fight against FC, thereby
breed FC. When the governance factors affect IAP positively, it results in improvement
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of PSFM, hence fight against the FC by provision of: resources to motivate Internal
Auditors, social justice system, legal protection for internal auditors, political will and
commitment, effective internal audit units/departments in the Public sector, and effective
anti-corruption system to avert FC in the PSoG. On the other hand, if the governance
factors negatively affect the impacts of IAP on the PSFM, the PSFM becomes
ineffective to fight FC, hence breeds FC instrumentation of corruption including financial
type. When it happens so, internal audit units face problems which are but not limited to:
lack of resources, no motivation, no political will, no political commitment, social
injustice system, no legal protection for internal auditors, intimidation of internal
auditors, ineffective internal audit unit, delay in or no promotion, and low confidence
level of internal auditors. These militate against IAP to detect, prevent, and correct
threats, and irregularities leading to FC. This is evident by current research (Appendix
S). The research pointed out that, appointment of the heads and audit committee
members of public institutions include anti-corruption bodies by the government and its
appointees negatively affects, and weakens IAP, PSFM, and Anti-corruption bids in the
Ghanaian economy.
5.4.16 Public Expectation
Public Expectation is subtheme categorized under Institutional Dilemma. It relates to
what Ghanaians society expects from public institutions to do in the fight against
financial corruption, and protection of the public purse. This raises confidents on the
integrity, and moral right of public institutions to implement financial manage public
funds in accordance with the legal: rules, regulations, procedures, processes, and
administration. This is to attain effectiveness, efficiency and value for money in order to
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avoid financial weaknesses and irregularities. When service delivery conforms and meet
public expectations are met, and FC will be history of the past. Effective anti-corruption
to protect public funds is one of the expectation of the public. In view of this, the task of
achieving effective anti-corruption is the prerogative of IAP, and PSFM, so when both
the later and the former are enhanced, the impact is that FC is minimized to ensure
effective ant-corruption system. Also, public purse of Ghana is protected to avoid
financial loss to the state. Demand for justice also form part of public expectations.
Governance tools create a platform for attainment of effective IAP, and PSFM to detect,
prevent, and correct irregularities which are recipe for FC, social injustice, and
ineffective anti-corruption and inefficient delivery system. According to the respondents
(Appendix S), when IAP is improves, PSFM also improves to enhance the positive
correlation between them, hence recondition, and reposition PSFM to fight corruption to
meet public expectation.
5.4.17 Institutional Guide
Institutional Guide refers to the category of subthemes that outlines certain criteria or
principles or professional behaviors concerning IAP and PSFM that put the public
institutions on their toes to achieve effectiveness, efficiency and economy in the public
sector. This is to ensure judicious use of the public funds and to detect and prevent
corrupt activities that may lead to FC. It is a kind of criteria or principles or professional
behaviors contained in the public financial management tools, which when comply with
will enhance the achievement of the prudent financial management devoid of FC. This
prevent financial loss to the state and escalation of national debt. The five subthemes
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fall under theme Institutional Guide. The subtheme are; Desire Outputs, Right Principle,
Wrong Principle, SJ Promoters, and Role Definitions.
5.4.18 Desire Outputs
Desire Outputs theme are classified under Institutional Guide. Desire output is public
demand for: effective IAP, and prudent PSFM, avoidance or minimization of FC,
protection of public funds, neutralization of militating factors, and improvement on ant-
corruption status in the Public Sector. The research (Appendix S) testify the discussions
of the issue or factors that results in desire outputs of the public institutions. The first to
discuss is high level of IAP, this happens when the effectiveness of IAP is improved to
impact on PSFM positively and progressively in the fight against FC. The improvement
of IAP, and PSFM backed by good governance system renders the corruption proof.
High level of effectiveness of IAP also contributes to effective anti-corruption within the
public institutions. The next contributory factor is prudency of PSFM. When
effectiveness of IAP is enhanced, the potency and prudency of PSFM is also increased
to combat FC by avoiding financial weaknesses, and irregularities. PSFM reduces or
avoids FC, and protection of public purse in the Ghanaian economy. IAP, and PSFM
ensure public funds are judiciously utilized devoid of misapplication, misappropriation,
theft of public funds, and property. Finally, public institutions provide effective, and
efficient service delivery, when the IAP, PSFM, justice system, and governance system
are not compromised by orchestrators of corruption within the public sector of Ghana.
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5.4.19 Right Principles
Right Principle Theme falls under Institutional Guide Theme. It stands for the values or
philosophies guiding people within or outside the public institutions to see as
appropriate institutional, and corporate behavior from the public servants, who are
managing the financial resources of Ghana. One of the factors that promotes the right
principles in the public institutions is the protective, and preventive means to improve on
anti-corruption ventures, IAP, PSFM, SJ, and governance tools. The compliance of
public institutions with required right rules, and regulations, and the constitution of
Ghana to achieve effectiveness, efficiency, and economy is a type of right principle.
Nevertheless, to ensure effective IAP, prudent PSFM, and GG are also include the
means to achieve the rightful principle in the public sector of Ghana. Improvement on
justice system to ensure equity, and equality in allocation of national resources is the
recommended principle in the public sector. PSFM indirectly or directly is motivated by
the justice system in the public service. This principle helps to prevent FC, and financial
loss to the state. Moral integrity, and being self-disciplined are also very important
factors that promote right principle to achieve the required output of the Ghanaian
community (Appendix S). What is contrary to the right principle is discussed below;
5.4.20 Wrong Principles
Wrong Principles is subtheme under the Institutional Guide. Wrong Principles are
factors that induce people within and outside the public institutions to see as
inappropriate conduct from the public servants. These factors serves people to
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mismanage the financial resources of the nation to result in FC and financial loss. FC is
a recipe for financial loss, economic mismanagement, no development, and lack of
capital, so, rules or regulations/principles that encourage FC is a wrong principle. The
weakening of system of controls is the way of facilitating FC to take place in Ghana,
These are proven by the research (Appendix S). The principles encouraging the bad
activities are wrong and need to be condemn and discouraged, because, it does not
help in the nation building, and progress of any venture in the Ghanaian economy.
As the result of these, wrong principles can motivate public servants to steal public
assets, misappropriation, and misapplication of public funds. Because of diabolic ideas,
and non-patriotism of some people with weak moral fiber, these people are proud of
subverting of IAP, and PSFM for personal or group gains to the detriment of the larger
society. The principle behind these are very wrong to follow and obey, because it is
illegal and unethical. Collusion, and forming of clique to steal, misapply public funds,
and embezzle public funds are very wicked, and destructive to the national development
and human progress. All these are based on the wrong principle which should not be
allowed to perpetuate within the public institutions, and their working environment. The
breaching of financial management instruments, weakening of internal control
mechanism, and sideling of internal auditors also constitute wrong principle in Ghana.
5.4.21 SJ Promoters
SJ Promoter is subtheme of Institutional Guide Theme. It has to do with issues that is
within, and outside the control of the public institutions, but has the potential to influence
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good governance, IAP, PSFM, and anti-corruption efforts. Consequently it promotes
equity, and rationality in the mode of allocation of public funds within the public sector
institutions with their directorates/units. Code of conduct is one of the promoters of
social justice system in the public sector. The code of conducts contain rules and
regulations defining the stipulated behavior and performance expected of public
servants of Ghana to do the right thing at right time. The public servants include Internal
Auditors, and Accounting and Finance staff who manage the public funds to ensure
resources are judiciously utilized, and value money attained accordingly.
The rest of SJ promoters are: IAP, effective PSFM, good governance, organization
manual, organogram, good leadership, and provision resources, and are discussed
below. IAP is the second subtheme of SJ Promoters, which ensures that PSFM is well
and prudently managed to ensure that, financial weaknesses, and irregularities are
detected, prevented, and corrupt to frustrate execution of FC. When IAP is well
managed to be effective, high level of IAP is achieved to enhance PFM. And thereby
combating FC in the public sector of Ghana. As the result, justice system is promoted to
ensure fairness and legality. However, when the IAP is lowered, the level of
effectiveness of PSFM is reduced, and its ability to fight FC is weaken, thereby militate
against Justice System. GG is the cardinal and reference point for social justice to
emerge and grow. It ensures that effectiveness of IAP, PSFM, and Anti-corruption are
achieved for the sake of social justice. Logistics as a promoter of SJ is provided for
public institutions be divided among directorates and units basing on the principle of SJ
for them to perform effectively. All factors discussed above are affirmed by the research
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(Appendix S). Analytically, SJ promoters can be achieved, when there is good
governance in place, providing resources to public institution with free hand to operate,
and fighting corruption by showing political will and political commitment.
5.4.22 Role Definitions
Role Definitions subtheme is the last item under the Institutional Guide. The sources of
information for discussion are obtained from current research (Appendix S). The Role
Definitions subtheme highlights on challenges faced in characterization of tasks to be
performed by the staff of PSFM, and internal auditors. Likewise, how to contain the
challenges of tasks/ job descriptions, and performance. These issues of challenges are
on the integrity, code and conducts, working laws, regulations, and moral right of public
institutions to implement financial management. The rules, regulations, procedures,
processes, and financial management tools are required to attain effectiveness,
efficiency, and value for money to avoid financial weaknesses and irregularities.
Notably, the purpose of IAP, and PSFM define staff roles needed to be executed in
order to avoid FC, Financial loss, and persistent rise in the public debts. Also, financial
management tools as the instrumentation of what, where, when and how to do the right
thing, at right time, in right place, and when to do it.
In order to attain the achievements of effectiveness, efficiency, and economy. These are
some of the definitions of roles of staff of internal audit, accounts, and finance in the
public sector for prudent PSFM. Moreover, Internal Audit Agency Act, 2003, and Internal
Audit Manual are crucial in the definition of internal auditors in the public institutions.
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This is because, internal auditors are made to know which roles to perform, and how to
executive that to achieve the desire outputs. Added to this, condition of service of
service of the public institutions also spell out what is to be done, and who supposed to
do it, hence, noted for role definition of public servants. Furthermore, organogram, and
organization manual also define roles, organogram indicate the position, and the level of
every public servant, hence, determine the role of public servants. Organization manual
of every public entity clearly defines what to be done by everyone. The roles are
obviously defined for execution to achieve the objectives of PSFM, and IAP in the
PSoG. Finally, the establishment of Internal Audit Unit with the formation of Audit
Committee constitutes the role definitions of: PAH, PSO, Director General of IAA, Head,
and staff of Internal Audit Unit, and Audit Committee members. This is to boost
undertaking of anti-corruption within the public institutions. Per section 83 (1) of the
PFM Act, 2016, state that, a covered entity shall have an Internal Audit Unit. Section 86
(1-2) of the same PFM Act, also states that, there is established by the Act, an Audit
Committee shall serve one particular covered entity in a sector.
5.5 Description of the Existing Model

5.5.1 The Existing Model
The purpose of the research was to depend on respondents’ experiences and acumen
to develop IAP model that will be effective enough to impact positively on PSFM in the
fight against FC. It is important to note that, a new model can be developed from in-
depth understanding of the characteristics of IAP that can better explain the
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effectiveness of IAF to avert FC. From respondent’s explanation of IAP and its impacts
on PSFM in fighting FC, the model of the moment is shown in Figure 5.5.1 below.
It begins with the Government appointment of Ministers, heads of all public intuitions,
including; Auditor General, Director General of IAA, and Commissioner of CHRAJ and
Chief Directors. They set the parameters of governance and formulate policies for
implementation by agencies and departments to achieve effective socio-economic
developments, financial managements, and management of the various entities. The
common parameters include outlining the designated infrastructural, and socio-
economic issues that Ghana as a nation to support. Economic development and
needed ventures; how much funds to make available annually to finance the execution
of national plan and national budget, and whether or not, the budgeted funds should be
exhausted during the period for value for money and national development.
Figure 5.5.1
Existing PSFM Model
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M&E
Investment,
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Strategic
Manageme
Planning
nt and
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Accountin Budget
g and Preparatio
Reporting PSFM n
Records Budget
management Execution
Revenue
Expenditure
Mobilizatio
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The PSFM process includes: Data collection, financial planning, Budgeting, Revenue
management, Expenditure management, procurement, Investment, Debt management,
Assets management, Accounting and Reporting, Auditing, monitoring and Evaluation.
Thereafter, Sector Minister as the Principal Account Holder (PAH) and Chief Director as
Principal Spending Officer (PSO) sign parts of the Annual Audit Reports alongside with
chairperson of Audit Committee (AC)
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In case of Internal Audit, the Principal Spending Officer signs the transmittal letters of
internal audit quarterly reports of public institutions for submission to the stakeholders.
However, the Auditor General’s reports of which focuses on post-events of PSFM and
yearly audit, is submitted to Public Accounts Committee (PAC) of parliament to ensure
final implementation of recommendations contained in audit report.
5.5.2 Factors Militating Against Existing Model of Anti-Corruption
The factors militating against the existing anti-corruption model are but not limited to:
 Appointment of All Heads (PAH) of Public Institutions including the Anti-
Corruption Bodies by the President prescribes by1992 Constitution of Ghana,
Article 195 (1), Audit Service Act, 2000 (Act 584), and Internal Agency Act,
2003, (Act,658),
 Appointments of Board/Commission/Councils chairpersons, and members by
the President prescribes by 1992 constitution,
 Appointments of all Chiefs Executive of MMDAs by the president,
 Issuance of guidelines for audit committee by Minister of Finance,
 IA not fully featured in the Budget of Chart of Account and Appropriation Bill
 Head of Internal Audit Unit reporting administratively to Principal Spending
Officer who is answerable and accountable for financial commitments and
also, custodian of assets in the Public Sector,
 Head of Internal Audit Unit reports functionally to Audit Committee to satisfy
Section 87 of the PFM Act,2016 (Act 921),
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 Audit Committee members and chairperson appointed by the PAH after being
nominated by ICAG, IAA, and IIA (Section 88 of PFM Act, 2016 (Act 921),
 Internal Audit Reports to the stakeholders is to be signed by the Principal
Spending officer,
 Audit Committee Annual Implementation Report is signed by Chairperson of
AC, PAH, and PSO. Section 87 of PFM Act, 2016 (ACT 921),
 Lack of effective deterrent punitive system
 Audit Committee submitting Internal Audit Statements to President, and
Ministry of Finance, Internal Audit Agency but no effective action taken, and
 Exclusion of the head of internal audit unit on the GIFMIS platform, resulting in
no audit review for detection, prevention and correction of threats, errors,
irregularities, and infractions by internal audit on the GIFMIS platform.
5.5.3 Negative Effects of Existing Model of Anti-Corruption
The existing model deals with financial management, and anti-corruption in which IAP is
very crucial for detection, prevention, and correction of financial weaknesses, and
irregularities, threats, errors, and infractions (Appendix S&T). Notably, the negative
effects of militating factors against the existing model are but not limited to the following:
 Impairment of independence, and objectivity of Auditors,
 High level of inability of anti-corruption institutions to fight FC,
 Recipe of financial loss, misapplication, and misallocation of public funds,
 Cover-up of orchestration of corrupt activities by the governance authorities,
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 Challenges faced by internal auditors including: intimidation, humiliation,
delayed in promotion, transfer to remote areas, and sideling (Appendix S),
 Very little or no attention paid to internal audit reports as compared to AGR,
 Low level of transparency, and accountability,
 Very low level of resource autonomy,
 Weak Anti-Corruption Institutions,
 Ineffective IAP, and ineffective PSFM,
 Persistent increases in national debt, and financial loss to the state,
 Exclusion of Head of Internal Audit on the GIFMIS platform
 Low level of socio-economic development, and discontinuity of projects
 High level of poverty, and
 Recipe of social vices including financial corruption.
These can improve on the effectiveness of the independent variables in order to detect,
prevent and avoid all militating factors, infractions, and threats to fight SVIFC.
5.6 Development of a New Model.

5.6.1 Factors to Make the New Model of Anti-Corruption Effective
With respect to the new model of anti-corruption, the research found out the militating
factors (Research, Table 4.4.3, and Table 4.7.12), render the level of effectiveness of
IAP is’ ‘Low or Below Standard ‘’ (Research, Tables 4.7.16 & 4.4.7B). The finding of this
research with militating factors are to be resolved to form basis for the new model to
enhance the level of effectiveness of IAP. Hopefully, IAP will be capable to detect,
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prevent and correct threats, infractions, irregularities, and errors that lead to SVIFC, if
the independent variables (GG, SJ, Anti-C, IAF, FM, GIFMIS, and IAP) are improved
and maintained. The financial environment in the economy as supportive elements
should include the following, All Heads of public institutions including the Anti-Corruption
Institutions should be appointed by Public Service Commission (PSC)
 Chef Executives of MMDAs should be elected through ballot box
 Board members should be nominated by parliament and appointed by PSC
 Internal Audit Units should be reconnected and placed under IAA, following
the changes of the Agency to Authority or Service status,
 Internal audit directorate/unit should be fully and holistically featured in the
COA and BOA under Program Base Budge Estimates for well resources,
 Heads of IAUs should report functionally, and administratively to Audit
committee, IAA, and Parliament,
 Inclusion of heads of Internal Audit on GIFMIS platform to carry out
detective, preventive, and corrective roles on the GIFMIS platform,
 Members of the AC to be nominated, and appointed by Internal Audit
Agency entities and the chairperson elected among themselves
 Director General of Internal Audit Agency should be nominated and
appointed by the PSC to co-ordinate and facilitate internal audit activates,
 Internal Agency should facilitate the work of internal auditors and ensure the
wellbeing of Internal Auditors including: professional training, legal backing,
and promotion.
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 Quarterly Internal Audit Reports should be signed by the head of internal
audit directorate, and submitted to the stakeholders
 Annual Audit Statement should be signed by Chairperson of AC, and the
Head of IAU to avoid manipulation and delay of submission,
 Audit Committee Annual report should submit to PAC through IAA, and
 Issuance of AC guidelines should be sole responsibility of IAA, and IIA
5.6.2 Mac Charles Tamakloe Model of Ant-Corruption.
Analysis of all the research findings from surveys, content analysis, interviews, and
literature review necessitated the need for the birth of new knowledge; a development of
model to improve on the level of effectiveness of IAP to boost PSFM in fighting SVIFC.
MacCharles Tamakloe Model (MTM) can be called IAP-PSFM Anti-Corruption Model
focusing on having in place: GG, SJ, Anti-C, IAF, PSFM, and GIFMIS. These will
enhance IAP to impact on all components of public sector financial management to fight
SVIFC. The model in essence, describes what public sector organizations should do to
achieve effective anti-corruption using IAP as an operative, check vehicle, and a
catalyst for anti-corruption. The new Model is in a circular form for internal audit to
execute its mandatory and permissible roles. This is to ensure that, all of IAFs are
effectively and efficiently performed by impacting on all the components of PSFM to
avoid the mitigating factors at every stage of operations in the public sector. This model
is to be adopted, and used to make orchestrating of corruption very difficult, risky, and
disincentive. The Anti-Corruption Equation, ACE=GCWSMF +EIA +GG +DPS proposed
by the research in the chapter-two is to be employed to buttress the model.
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The process begins with selection, and appointment of institutional heads by PSC, to
avoid: discontinuity, partisan politics, and non-political commitment, non-political will,
and so on in the economy. To prevent threats, irregularities, and infractions, the new
model aims IAP impacting on financial management processes including: Data
collection, Planning, Budgeting, Revenue mobilization, Expenditure management,
Investment, Debt management, Assets management, Accounting, and Reporting,
Auditing, Monitoring & Evaluation and others. These are steps of Public Sector
Financial Management, and also, the components of New Model of Anti-Corruption. The
generalized, and new model resulted from an in-depth analysis of literature review,
content analysis, and responses from the interviews, and questionnaires on the Public
Sector Financial Management focusing on IAP. The model can be applied in similar
countries within the globe, and it is shown in figure 5.6.2 below. The objective of this
model is to ensure that the level of Internal Audit Performance is enhance to impact
effectively on all the executing stages of the Public Sector Financial Management as
indicated by the arrows in order to achieve efficiency, effectiveness, and economy in the
financial management and operations. This will help the heads of public institutions
including that of anti-corruption to have freehand to operate objectively to fight financial
corruption in Ghana, without any political influence. The in its sense will also remove the
slippery slope of corruption to eliminate or not at all lesson the SVIFC,
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Figure 5.6.2
MacCharles Tamakloe Model of Anti-Corruption
5.7 Significant of Research Findings

Theories, and academic writings on the field of IAP, PSFM, and their significance in ant-
corruption have been inconsistent, and inconclusive within the Public Sector of Ghana.
The inconsistencies, and inconclusiveness have led to difficulty in the achievement of
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effective Internal Audit Performance and effective Public Sector Financial Management
in the fight against Financial Corruption in the Ghanaian economy. Whereas, some
public institutions see internal audit as an interference, and fault finding with no
economic and social values to organizations, others identified that: Internal Audit
quality, management support, organizational setting; and nudities' attributes could have
a significant impact on the internal audit effectiveness (Kang et al., 2010; Mihret, 2007).
Nevertheless, Scholars including: Bambacas, Patrickson, Golen, and Schneider (2008),
recall the importance of the Internal Audit Performance and Internal Audit Function, the
need to prevent Financial Corruption, and financial loss to the state. Additionally,
studies on the impacts of IAP on PSFM have resulted in divergent results. However,
some respondents of the research asserted, Internal Audit Performance has positive
impact on the Public Sector Financial Management (Research, Appendix S). On the
other hand, others are of the view that current level of Internal Audit Performance does
not bring in value for money, and does not prevent Financial Corruption and financial
loss to the state (Appendix S).
The controversy re-emphasized the importance of further investigations for a more
assertive position in the anti-corruption drive in the Ghanaian economy. Research into
Internal Audit Performance impacts on Public Sector Financial Management is
significant as the findings have provided confidence, and credibility in support, and the
need for enhancement of Internal Audit Performance. This can avert escalation of:
national debt, poverty level, lack of socio-economic development, and financial loss to
the state. The research brought to light, the correlation between the Internal Audit
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Performance, and Public Sector Financial Management in the context of fighting
corruption. A proposed conceptual model has been developed to reconcile the
differences, and bridge the gap of effectiveness between IAP, and PSFM. This model
will help fight against FC very effectively and efficiently, because, corruption is the main
bane of socio-economic development in Ghana. Affirming this, Lomumba (2017) stated
that, corruption is the bane of Africa. The outcome of the research can help fight the
corruption in Ghana, Africa, and beyond. Moreover, IAF, and IAP in public sector
institutions are important to ensure efficient use of public resources. Public sector
organizations are helped to evaluate, and improve on the effectiveness of: risk
management, internal controls, financial management, and corporate governance
processes in order to achieve effectiveness, efficiency and economy (Appendix S).
5.8 Contribution to Knowledge

Integration of the outcomes of the present research from questionnaires, and interviews
from the fieldwork, content analysis, and literature review of academic domains in
theories on: governance, social justice, and corruption, quasi academic materials as
well as review of practical approaches of Internal Audit used in other parts of the world
informed the praxis gap. These led to the development of the Mac Charles Tamakloe
Model of Anti-Corruption for enhancement of Internal Audit Performance shown in figure
5.6.2 above. The incipient standard of Internal Audit Performance directed the need to
concentrate on the enhancement of effectiveness of anti-corruption to improve on
effectiveness of Internal Audit Performance in the fight against financial corruption.
Qualitative research methodology as the appropriate method underscores, and inspires
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the direction and views of staff of the public sector financial management. The research
provides the following contribution to knowledge to benefit the academia, governance,
professional arena, and others. This is based on the analysis of the responses from the
interview, follow-up interview, questionnaire, and the gaps identified in the literature
review scholarship domains and content analysis.
The MTM is to improve on Internal Audit Performance as the best Anti-Corruption tool. It
is a new idea introduced with regards to practical approach of internal audit
performance in the fight against financial corruption. The research explored the
literature and methodological gaps highlighted in the literature review in chapter two. In
arriving at the model, the present research looked at all aspects of the Internal Audit
Performance, used practical approaches of internal audit to fight financial corruption in
16 countries in the world, qualitative research method, and solicited primary data for
value addition in fighting financial corruption by using Internal Audit approaches as the
gold standard.
MacCharles Tamakloe Model of Anti-Corruption is to fight financial corruption in Ghana
and beyond. This model can enhance the effectiveness of internal audit performance
and internal audit function to be capable of fighting threats, errors, and infractions that
lead to financial corruption. The researcher opines that, Internal audit needs to develop
and maintain quality assurance and continuous improvement program, hence, this
model in circular and tangential form. This is to covers all aspects of internal audit
performance impacts on: Data collection, Planning, Budgeting, Revenue mobilization,
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Expenditure management, Investment, Debt management, Assets management,
Accounting, and Reporting, Auditing, Monitoring & Evaluation, and others to improve its
effectiveness to prevent financial corruption.
In addition, the research is the first study of its kind conducted in the republic of Ghana
to help in the fight against Financial Corruption by application of effective internal audit
performance. This could only be done by devising the best way to improve on the
effectiveness of internal audit performance to help fight corruption vigorously. So this
research is the path finder for effective anti-corruption in Ghana. There is an undeniable
increasing demand for effective anti-corruption in Ghana and Africa. This requires well
resourced, legally protected, technically supported, and professional competent internal
auditors to serve as catalyst and backbone of anti-corruption in Ghana, and globally.
Moreover, the research provides of Anti-Corruption Equation (ACE) in the chapter two,
which is, ACE=GCWSMF + EIA + GG +DPS, to reverse Financial Corruption Equation
(FCE)= Monopoly (M) + Discretion(D) + Weak Moral Fiber (WMF)- Political Will and
Political Commitment (PWPC)-Accountability (A) - Transparency (T) - Effective Internal
Audit Performance (EIAP) - Deterrent Punitive System (DPS). That is: FCEF=M+ D+
WMF-PCPW-A-T-E1AP-DPS, also provided by the research in the same literature
review. These equations are to help better understand the components of financial
corruption, and anti-corruption as well as fight social vices including financial corruption
effectively in the public sector.
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Furthermore, the research is a guide for anti-corruption institutions, policy formulators
and implementers, as well as financial managers of public institutions in Ghana, and
beyond. Effectiveness of internal audit performance could be enhanced to impact
effectively on public sector to fight financial corruption in order to promote economic
growth, poverty alleviation, socio-economic development, and reduction of external
debt, and so on. The research provides wake-up call to protect, equip, and resource
Internal Auditors holistically to make them assets of the state in the fight against social
vices including financial corruption. The research call for the review of the Ghanaian
Public Financial Management Act, 2016 (Research, Appendix Q), to strengthen the
internal control mechanisms, ensure judicious use of the state resources, and avoid
political influences in the financial management and operations in Ghana.
Following the findings of stated in section 5.7, the research agrees with the scholars
and their contributions in governance, social, corruption theories in the fight against
financial corruption in the public sector. This bases on their call for effective ant-
corruption to combat social vices including financial corruption, but builds up by adding
to scholarship in the enhancement of Internal Audit Performance. In the same vein, the
research disagrees with the scholars for not admitting the fact that internal audit
performance is a catalyst and backbone to fight financial corruption. And needs to be
backed by deterrent punitive system, political will, and political commitment and so on to
be effective enough to fight menace of corruption, and other social vices. The findings of
this research shows that, the main detective, preventive, and corrective tool to combat
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financial corruption is internal audit performance, and it can help solve the global
challenges of social vices.
5.8.1 The Characteristics of MacCharles Tamakloe Model
The characteristics of the MTM are informed by data from the literature review, content
analysis, and responses from interviews and questionnaires. Also, enhance the
effectiveness of Internal Audit Function, and execution of Anti-Corruption. The
characteristics of the new conceptual model are the abilities of it to: detect, prevent, and
correct threats, irregularities, errors, and infractions that lead to social vices including
financial corruption. Moreover, ensure effectiveness, efficiency, and economy in the
public sector in terms of financial management and operations. Internal Audit Function
becomes effective, when all core principles are present and operate effectively to
detect, prevent, and correct threats, errors, financial weaknesses, and irregularities
(Research, Appendix M, and Gleim, 2019), these characteristics better explain the
effectiveness of IAF. The characteristics includes demonstration of: integrity, quality,
objectivity and freedom, competence, professional care, continuous improvement, align
plans with strategies, positioning and well resourcing, effective communication,
provision of risk-based assurance, being insightful, proactive, and future-focused. These
lead to enhancement of internal audit performance to fight corruption (Research,
Appendix M, and Gleim, 2019).
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5.8.2 How MacCharles Tamakloe Model can be Executed
The research findings demonstrates that, for the model to succeed, it actually requires
political commitment, and political will of government and its appointees heading the
Ministries, Departments, Agencies, and District Assemblies to provide resources and
logistics, legal and technical supports to Internal Auditors, and Audit Committee. As well
as enhance the confidence level of internal auditors (Appendix H1). Moreover, the
government should put in place deterrent punitive system, effective anti-corruption
institutions without any form of interference (Appendix H1). This will give the heads of
anti-corruption entities the freehand, and courage them to operate objectively and
independently with patriotism (Appendix H1). Additionally, the supports of heads of
religious bodies, public institutions, and communities are crucial for success of the
model’s implementation. Principal Spending officers or heads of covered entities,
ministerial advisory boards, and management bodies are also to provide their supports
for, recognize internal auditors, and ensure inclusion of head of internal audit on the
GIFMIS platform to execute their mandatory responsibilities of detection, and prevention
of threats, errors, infractions, and irregularities on GIFMIS. Also, encourage internal
auditor to work effectively and efficiently for successful implementation of this model.
Government can show it’s infringe support by well resourcing, and protecting internal
auditors, as well as promoting the impartiality of institutions, community, citizen, and
private sector participation for the success of the model to combat social vice including
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5.8.3 Where MacCharles Tamakloe Model can be executed
The present research was conducted in Ghana within Western part of African Continent.
The Continent, and any country in the world that faces problems of social vices
including financial corruption can adequately benefit from this Model. MTM of Anti-
Corruption can be useful in Ghana, any part of the world suffering from the bane of
corruption to achieve intended purposes of effective Internal Audit Performance to
promote the Anti-Corruption. Ghana has been thriving to ensure the overcoming the
challenges of poverty, lack of socio-economic development, escalation of national debt,
less economic growth, and so on, as the repercussion of corruption. The research
highlights the state of implementation of key aspects of the Model of Anti-Corruption.
Furthermore, all countries in the world using internal audit approaches to fight financial
corruption, and other social vices can replicate Ghana and employ the MTM as a
guideline to avoid or minimize the issues of social vices including financial corruption.
According to Appendix M, the findings of the research suggest that, in Ghana, internal
audit approach is used as one of the assurance, consulting, governance, detective,
preventive, and corrective tool for risk mitigation to fight corruption, but it performance is
lessen by issues include; lacks of: political commitment and political will from
government, effective anti-corruption institutions, legal and technical support for Internal
Audit Departments / units, effective punitive system, resources and logistics. Hence,
Ghana loses over 3 billion US dollars annually through orchestration of corruption
(Franklin, 2019). In view of these the MTM is to be implemented in Ghana, and any
country facing similar problem as Ghana.
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5.9 Congruency of Praxis Gap
Triangulation of the data from the literature reviews, interviews, and questionnaire, and
content analysis were considered and analyzed. From the findings of the research, it is
concluded that academic knowledge is congruent with real-world application in Public
Sector Financial Management using IAP approaches in the fight against financial
corruption. The congruency is shown from a Public Sector Financial Management, and
IAP standpoint. The research concentrates on the understudied emerging interaction
paradigm that focuses using of Internal Audit Performance to fight Financial Corruption
in the public sector. Inputs of scholars have contributed extensively on PSFM, IAP, and
Anti-Corruption have been discussed in Chapter two. The research agrees with the
governance, social, and ant-corruption scholars and their contributions, but builds up by
adding to scholarship in the enhancement of IAP, and PSFM to fight corruption.
The theoretical domains discussed in Chapter two outline the significance of the
research. Governance Theory demonstrates the need for the effectiveness of Internal
Audit Performance and Public Sector Financial Management to improve on efforts and
objectives to fight Corruption. Moreover, Corruption Theory indicates how effects of
corruption imped socio-economic development, and serve as a menace to humanity by
rendering society, nations and individual poor, so needed to be combated. Furthermore,
Social Justice Theory depicts how justice system can help fight social vice including
financial corruption and anything that affects humanity. The shared opinion among
respondents was that, the independent variables: IAP, PSFM, SJ, GG, IAF and GIFMIS
with political will and political commitment can help improve Internal Audit Performance
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to eliminate corruption, if not at all can minimize it to protect public purse and lift
Ghanaians from the clutches of poverty. The research proved integral in adding to the
larger quantum of knowledge on Internal Audit and PSFM interrogation with special
focus on Internal Audit approaches for effective anti-corruption. Congruence was
established in the present research as a result of the qualitative methodology used, and
the knowledge of inputs from scholarship applied. The next paragraph provides the
summary of chapter five of the research.
5.10 Summary of Chapter Five

This chapter analyzed the research findings, and reveals that Internal Audit activities of
within the public sector organizations should have impacted effectively on the PSFM in
fighting FC, however, IAP is militated by the factors not limited to: No legal and technical
protection for Internal Auditors, promotional challenges confronting Internal Auditors,
Lack of logistics and resources, Non-recognition of Internal Auditors, and their reports
not taken seriously by management. Also, exclusion of HIA onto the GIFMIS platform to
detect, prevent and correct of payment irregularities, and IA not fully featured into Chart
of Accounts, and Bill of Appropriation. The militating actors contributed to the Low Level
of IAP in the fight against social vices including FC in the public sector of Ghana.
Triangulation of data from the various sources was covered in the chapter. The exiting
model of anti-corruption, and the new model were also discussed to bring out the
weaknesses of the exiting model and way forward. Moreover, new conceptual model
developed by the research was not left out. Remedies for the militating factor were
introduced to improve on IAP.
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CHAPTER SIX
CONCLUSION AND
RECOMMENDATIONS
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CHAPTER SIX- CONCLUSION AND RECOMMENDATIONS
6.0 Review and Summary of the Research
The research question was recalled to figure-out the relevant aspects of the findings of
the research for conclusions, and recommendations coupled with future research to be
conducted without any difficulty. The main aim of the research was to answer the under-
stated research question:
What are the characteristics of a new conceptual model that, better
explains the effectiveness of the internal audit function in the public sector
of Ghana?
Exploring the query of this research, the researcher was guided by mixed methods
research approaches. It started as a pre-study based on quantitative analysis informing
the qualitative questioning based on phenomenology. The research further aimed to
identify the achievements, challenges, and solutions to the using of IAP to fight FC. The
research concludes that the PSFM in the Ghanaian economy has chalked substantial
progress. Notwithstanding the progress made many challenges were faced in the fight
against FC very difficult. Hence, current research suggests solutions to offer direction
on the how to use IAP to fight FC through the PSFM. Per the research findings, a new
model with ACE for IAP to improve on PSFM in the fight against FC is presented.
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The literature review in the current research specified that PSFM in the Ghanaian
economy requires conclusiveness, consistency, completeness, and decisiveness as the
view scholars demonstrating the need for research into the fight against FC. Ghana,
and Africa lack research on usage of IAP to fight corruption recommended by the
academia. However, scholars and professionals are currently interested in researches
on the performance level of IAP to impacts on PSFM to protect the purse, where the
current research compatible.
6.1 Limitation and Solution to Data Collection.

One of the major challenges encountered during the field work was constraint of
resources, which included time, and was aggravated by Covid-19 Pandemic. Getting to
the field for data collection was risky for fear to contract the Covid-19 Pandemic, and
loss of human live. However, these were resolved by judicious use of resources, and
effective time management. Taking much care, and adhering to health protocols made
researcher and participant safe. Sanitizers, and nose masks were used for protection of
life of the researcher, and participants. Added to this, social distance was observed to
protect self, and the participants to meet condition of the health protocol. There was a
problem of dealing with questionnaires from the participated institutions.
The answered questionnaires collected from the participants were sanitized using a
sanitizer spray to spray them just after collection to avoid the contraction of Covid-19
Pandemic. Thereafter, the questionnaires were safe to work on for processing, and
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analysis. In case of transportation, the researcher hired taxi instead of boarding
passenger’s car which take more passengers on board. This hire vehicle was used to,
and flow the participants’ offices to conduct the interviews and administration of the
research questionnaire. Fear of participants to disclose information on the subject
matter, though, their authorities were aware, and permission was sought. This did not
discourage the researcher because their institutions, and names were made
anonymous during the processes of interview and questionnaire respectively. However,
the participants were assured that, all responses will be kept confidential, and only be
listen to by supervisor of this research. Also, these responses will duly be destroyed just
after completion of the research. Moreover, face to face with some interviewees was
difficult and unmanageable due to lockdown of some institutions, and no permission for
the visitors to enter working premises. In view of this, the researcher resorted to
telephone interview. Both researcher, and participants were okay with it. However, it
was quick, safe, simple, and less expensive.
6.2 Contribution to Theories on Governance, Social Justice and Corruption

The research provides fresh understandings into theories on corruption, governance,
and social justice. And it provides a guideline towards improvement on the effectiveness
of internal audit performance in the fight against social vices including corruption. This is
one of the incomplete areas with the majority of scholars concentrating on the theories
aim to fight social vices. The present research looks at how to combat corruption in
order to avoid: poverty, less social economic development, less economic growth,
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escalation of national debt, and so on. The scholarship domain of this research aimed to
enhance the effectiveness of internal audit performance.
Furthermore, the literature review recognizes that studies conducted in Ghana are
concentrated in anti-corruption without considering internal audit approach as the gold
standard to fight corruption resulting in understudied area. The research filled this gap
by contributing to anti-corruption in Ghana by providing equation formulae of corruption
and anti-corruption. Consequently, the literature acknowledges that many studies
conducted on governance, social justice, and corruption theories concentrated on
judicious use of resources. The researcher worked with a sample from Ghana but was
able to get respondents to provide the accurate, relevant, and adequate data required
for the research completion.
Additionally, the research transverses the paradigms of anti-corruption inquiry and
emphasizes the initial interaction paradigms which looks at the interactions between
communities, public institutions, and governments with respect to promotion of theories
on: governance, social justice, and corruption to improve on the effectiveness of internal
audit performance. The scholars in these areas note that there the need for an
expansive view on the fight against financial corruption, and other social vices using
internal audit performance approaches, being the contemporary focus in anti-corruption
inquiry. The literature review notes that scholars conducting research on the IAP and
Anti-Corruption mostly used secondary data. This supported by internal audit scholars
who note that internal audit lacks rigor and borrows from other fields for value addition.
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Results of the thoroughly investigation deems to be the best knowledge of the
researcher that this research is the first to use explanatory phenomenology to achieve
the objective of the research.
Moreover, the researcher has been able to interrogate governance, social justice, and
corruption theories and provide better understanding from the findings to develop MTM
of ant-corruption aims at enhancing the effectiveness of internal audit performance to
fight financial corruption. The model developed by the research can be used in Ghana
and beyond to enhance the effectiveness of Internal Audit approaches in the fight
against financial corruption. From a Ghana in the Western Africa, could benefit from
having the earlier scholars whose efforts drop down to the wish to achieve: socio-
economic development, poverty alleviation, national debt minimization, and avoidance
of financial corruption
6.3 Research Reliability and Validity

Validity is the degree to which an instrument measures that which it is supposed to
measure and accomplishes its designed purpose (Cooper & Schindler, 2013; Zikmund
et al., 2010). Reliability is the degree to which the measurement of a test remains
dependable over repetitive tests of the same subject under matching conditions (Crano
et al., 2014; Zikmund et al., 2010). The researcher checked for any threats that will
negatively affect: validity and reliability of the questionnaire and interview questions for
mitigation. In conducting interviews there is likelihood of threats to validity and reliability,
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which include: selection of participants, interviewer bias, and objectivity of the
researcher.
Pretesting the interview guide, and survey questionnaire for the necessary correction for
clarity. Also, the researcher requested respondents to allow the recording of interviews
and those who were not convenient with the recoding, hand writing notes were taken.
Thereafter, the researcher sent the transcribed file in verbatim to the respondents to
confirm for the true reflection of their contributions. This permitted the researcher to use
the data for final analysis accordingly. Moreover, interviewees were carefully selected to
ensure that none of them is less than 15 years in experience in PSFM, except one
participant who had 7 years’ experience but was nominated by his intuition. The years
of experience was useful in ensuring the reliability of the results from interpretative
phenomenology. The interviewees were given freedom to air their views without
interference. Lastly, while conducting the interviews, the researcher exercise
professional care for self-introduction and the research, the interview duration, and
channel of communication with respondents. The researcher then ensured that the
findings are believable, transferable, dependable, objective, and consistent.
Threats and errors to validity and reliability to the questionnaire included participants’
selection and how test items designed to measure internal consistency of the
questionnaire. In view of these the researcher wrote to the selected organizations
concerned with PSFM in the fight against FC and requested for nomination of
participation. The researcher seeks 10 experts to check for the validity and reliability of
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the questionnaire before administering it. Lawshe’s validity testing confirmed that the
questionnaire tested for what intended to measure. Finally, the researcher fine-tune the
questionnaire before the administering it. Validity, and reliability of a research determine
how credible, accurate, consistent, and dependable the information solicited, and
utilized (Simon & Goes, 2011). The outcomes of this current research merit credibility,
validity, and reliability for the fact that, the data collected, analyzed, drew conclusions,
and used to provide recommendations were obtained from participates who are deeply
involved in the PSFM processes, and have professional experiences, and competences
6.4 Recommendations for Future Research

The research has uncovered areas for possible further research, and crucial. First, the
aligning of ant-corruption initiatives with IAP to be difficult to access the full benefits of
IA approaches to fight SVIFC. Future research should focus on how to measure the
impacts of IA in the Private Sector Financial Management alongside with that of the
Public Sector. Although, most researchers use secondary data and concentrate on
other research methodologies, the present research records that, previous research in
ant-corruption did not engage the method of phenomenology.
This limits the growth of the inquiry into IAP to fight SVIFC, thereby causing researchers
to depend on other fields in the choice of methodological tool. Phenomenology
demonstrates usefulness of the current research and provides critical issues from
practical experiences of the seminal authors who contributed significantly in theories of
governance, corruption, and social justice aim to build-up-on the effectiveness of IAP.
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Thus, future researches in anti-corruption can fill the gap by adding to the studies on
anti-corruption and internal audit inquiry using phenomenology. The research proposes
the need to undertake similar research work in countries facing same challenges of
SVIFC to exploit possibility of global differences and thoughts. This could underline the
achievements and challenges to the policies and procedures to provide solutions.
This research records that legislations specific to the anti-corruption approaches needs
to be established. Actually, anti-corruption need legal and technical protection for
stakeholders, the present research suggests that future research be conducted to
highlight the specific policies, procedures, and legislations that, stakeholders need to
work with to ease, monitor, and reinforce the approaches of IAP. The policies,
procedures, and regulations would deter corrupt officials from orchestration of SVIFC.
Filling this gap could make it very difficult, risky, and de-motivational to partake in
corruption, and other social vices in Ghana, and beyond.
Analytically, the present research demonstrates, the vulnerability of internal auditors.
Buttressing this, some scholars, institutional bodies, and professionals including; Global
Anti-Corruption Blog (2022), Ejiogu (2021); IMANAI Africa, Akpan, and Demolovo,
(2020), records that, fighting corruption, corruption shall fight back in any form. Hence,
there is extend future inquiry into vulnerability of internal auditors, and the needs for
remedy. When vulnerability is interrogated, the result could highlights on understanding
and provision of legal protection, and technical support for internal auditors, and internal
audit bodies. These could empower internal audit staff withstand among others;
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intimidation, fear of being transferred if not compromise, manipulation of internal audit
reports, and orchestration of corruption. Additionally, the needed competence, skills,
proficiency, professionalism, and confidence level could be achieved. This would help
the public sector attain effectiveness and efficiency of internal audit performance to
prevent social vices including financial corruption.
Another area considered for future research is, how to enhance the capabilities of
Internal Audit Department/Units in to carry out its mandatory responsibilities effectively
and efficiently. The result of interrogation, could result in fully featuring of internal audit
in the Chart of Account, and Bill of Appropriation under the Programmed Based Budget
Estimates of public institutions. The core principles of Internal Audit present could be
operated effectively to prevent financial loss to the state. Internal auditors could be
empowered, resourced, and have the required capacity building to achieve high level of
proficiency. Finally, Information system audit for detection, prevention, and correction of
threats, errors, and infractions is also an issue of concern. So inquiry into capabilities of
internal audit to protect public purse, would result in heads of internal audit department
being hooked onto the platform of Ghana Integrated Financial Management Information
System (GIFMIS). This is not only for heads of internal auditors to view but also to
review transactions on the GIFMIS platform for detection, prevention, and correction of
threats, errors, and infractions. This calls for logistics and capacity building of internal
auditors on the GIFMIS to enhance the effectiveness of IAP to fight financial corruption
rigorously, and vigorously.
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6.4.1 Policy and Procedures to enhance IAP in the Fight against SVIFC
Policy and procedure are crucial for reliable and effective action. Hence, the promoting
factors demonstrated in Figure 4.11E in section 4.11 should be in place to enhance
effectiveness of IAP. This will help detect, and prevent threats, errors, and infraction on
each components of PSFM and operations to resolve the challenges of SVIFC, being a
worry to Ghana. Procedures including: Planning, Field Work, Reporting, and Follow up,
as a processes flow should be applied and be backed by all authoritative stakeholders
in Ghana. All MFs depicted in Figure 4.11E should be declared unproductive and be
avoided at all courses in the public institutions. Completeness, conclusiveness,
consistency, and accuracy of: policies, procedures and processes can be achieved to
enhance IAP effectiveness to fight SVIFC.
6.5 Conclusion of the Research.

There is an undeniable increasing demand of Internal Audit Performance effectiveness,
and enhancement of anti-corruption in Ghana, and Africa. So, the effectiveness of
internal audit performance should be enhanced to impact effectively on public sector
financial management to fight financial corruption in order to ease among others:
economic growth, poverty alleviation, socio-economic development, and reduction of
external debt All the independent variables and financial corruption are negatively
correlated but with internal audit performance are positively correlated to improve on the
effectiveness of internal audit function in fighting social vices including financial
corruption. Well resourced, legally protected, technically supported and professional
competent internal auditors are catalyst and backbone of anti-corruption. Therefore all
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the independent variables (SJ, GG, IAF, GIFMIS, Anti-C, and IAP,) need to be
improved upon to help them fight social vices to ease socio-economic development,
economic growth, poverty alleviation, minimization of national debt, and so on.
MacCharles Tamakloe Model of Anti-Corruption, Corruption Equation, and Anti-
Corruption Equation would add value to ant-corruption approach for dependability,
usage, and success.
The research serves as a guide for anti-corruption institutions, policy formulators, and
implementers, as well as financial managers of public institutions in Ghana.
Effectiveness of internal audit performance should be enhanced to impact on public
sector to fight financial corruption in order to promote economic growth, poverty
alleviation, socio-economic development, and reduction of external debt. And the
research provides a wake-up call to protect, equip and resource Internal Auditors
holistically to make internal auditors assets of the state to fight against financial
corruption, and call to review the Public Financial Management Act, 2016 to strengthen
the internal control mechanisms.
6.6 Summary of Chapter Six

This chapter concludes the research work that aimed to develop a practicable, model of
anti-corruption that, has the will power to impact qualitatively, and positively on the
PSFM in the fight against FC in the Ghanaian economy. The key findings of the
research were provided with solutions. Areas in the PSFM, and IAP as the catalyst of
anti-corruption are also outlined. It is anticipated that the field of anti-corruption, and its
role for national development in the less developed countries will continue to attract the
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interest of researchers. The research will ensure continuous enhancement of
knowledge needed for effective, efficient, holistic, and resilient ant-corruption venture in
Ghana, and beyond. Research validity, and reliability, and future research areas were
also discussed intensively to indicate satisfaction of global standard.
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APPENDICES
Page | 383
LIST OF APPENDICES
APPRNDIX A: AFRICAN MAP SHOWING GHANA……………………………………..
APPENDIX B: DATA COLLECTION STAGES…………………………………………...
APPENDIX C: DISSERTATION FIELD LETTER………………………………………
APPENDIX D: HUMAN SUBJECT APPRAISAL FORM…………………………………
APPENDIX E: CONSENT TO PARTICIPATE IN RESEARCH………………………....
APPENDIX E1: CORRESPONDENCE WITH RESPONDENTS……………………….
APPENDIX F: SEMI-STRUCTURED INTERVIEW QUESTION………………………..
APPENDIX G: FOLLOW-UP INTERVIEW QUESTION………………………………….
APPENDIX H: SURVEY QUESTIONNAIRE……………………………………………...
APPENDIX HH: COMPARISM OF COUNTRIES USING IA APPROACHES ON
ACHIEVEMENT: CHALLENGES, AND SOLUTIONS……………………………………
APPENDIX H1: FACTORS TO IMPROVE ON EFFECTIVENESS OF IAP…………...
APPENDIX H2: FACTORS PROMOTING EFFECTIVENESS OF IAP………………...
APPENDIX H3: ROLES OF ANTI-CORRUPTION INSTITUTIONS……………………
APPENDIX H4: IMPACTS OF IAP ON FC THROUGH PSFM………………………….
APPENDIX H5: QUESTIONNAIRE VALIDITY TESTING RESULT…………………….
APPENDIX I: INITIAL INTERVIEW PROBABILITY TREE………………………………
APPENDIX J: FOLLOW-UP INTERVIEW PROBABILITY THREE……………………..
APPENDIX J1: IMPACTS OF IAP ON PSFM…………………………………………….
APPENDIX J2: SIGNING OF ANNUAL AUDIT REPORT AND IAP……………………
APPENDIX K: CORRELATION BETWEEN IAP AND PSFM…………………………...
APPENDIX L: SIGNING OF INTERNAL AUDIT QUARTERLY REPORT……………..
APPENDIX M: CHARACTERISTICS OF IAP AND IAF………………………………….
APPENDIX N: HIA AND GIFMIS…………………………………………………………...
APPENDIX O: IAP WITH BOA AND COA………………………………………………...
APPENDIX P: CORRELATION BETWEEN PSFM AND SJ…………………………….
APPENDIX Q: NEEDS TO REVIEW PFM ACT, 2016 (ACT 921)……………………...
APPENDIX R: INTEPRETATION OF ADOPTED CODES………………………………
APPENDIX S: WORDS, PHRASES AND SENTENCES CODES……………………...
Page | 384
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APPRNDIX A: AFRICAN MAP SHOWING GHANA
African Map Showing Ghana in White Color
Source: World Atlas (2019)
Page | 386
APPENDIX B: DATA COLLECTION STAGES
Data Collection Stages Considering Only Qualitative Approach
Qualitative Data Collection Phase in the Process of Research
 Convenience Sampling
Strategies
Sampling
 Small number of
participant and sites
 From individuals
providing access to
sites
 Institutional review Permissions
boards
 Individuals
 Open-ended interviews
 Open-ended
observations
 Documents Data Sources
 Audio-visual materials
 Interview protocol
 Observation Protocols
Recording the data
 Attending to fields
issues
Administering data collection
 Attending to ethical
issues
Source Adapted: Creswell (2003)
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APPENDIX C: DISSERTATION FIELD LETTER
Page | 388
APPENDIX D: HUMAN SUBJECT APPRAISAL FORM
Page | 389
APPENDIX E: CONSENT TO PARTICIPATE IN RESEARCH
Page | 390
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APPENDIX E1: CORRESPONDENCE WITH RESPONDENTS
Page | 392
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Page | 394
Page | 395
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APPENDIX F: SEMI-STRUCTURED INTERVIEW QUESTION
As discussed earlier and per my introduction letter from UGSM-Business School-
Switzerland, this interview is purposely for an academic work and all information
provided will remain confidential. All responses will only be consolidated and analyzed
to propose a conceptual model to enhance Internal Audit Performance (IAP) and Public
Sector Financial Management (PSFM) to avert financial corruption (FC). To ensure
word-by-word of the interview and understanding in the various stages, I seek your
permission to use audio recording device. All records will be destroyed after successful
completion of my research. Please may I know, if you will be comfortable with the audio
recordings, and if not, then I take hand-written note of your responses? If at any point
during the interview, you feel uncomfortable with any of the questions, please feel free
not to answer. Can we start with the interview now?
PART A: PARTICIPANT PROFILE
[1].What is your name?
[2].What is your gender?
[3].How old are you?
[4].What is your nationality?
[5].What is your last qualification?
[6].What is your grade?
Page | 397
[7].What is your position?
[8].What is your institution/organization?
[9]. How many years of experience do have in the Public Service?
[10].What is grade of your Principal Spending Officer?
[11].What is your email address?
[12].What is your Telephone number?
Date:
Time:
PART B: PUBLIC SERVANTS INTERVIEW
[1] What are?
a. Internal Audit Performance,
b. Public Sector Financial Management, and
c. Financial Corruption.
[2] What is the relationship between Internal Audit Performance and Public Sector
Financial Management in the fight against Financial Corruption?
[3] What factors reduce the level of Internal Audit Performance?
[4] What factors promote the effectiveness of Public Sector Financial Management?
[5] What are the objective of Internal Audit Performance in the Public Sector Financial
Management?
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[6] What are the roles of anti-corruption institutions in Ghana?
[7] What are the main impacts of Internal Audit Performance on the Public Sector
Financial Management?
[8] How effective are the anti-corruption institutions in Ghana?
[9] How does the governance system features Internal Audit in terms of Annual
Appropriation Bill and Chart of Account?
[10] How does Internal Audit Performance influence Financial Corruption?
[11] How does corporate governance promote:
c. Ant-Corruption?
[12] How does Social Justice influence:
c. Anti-Corruption?
[13] Do you have Audit Committee in place, and is it effective to enhance Internal Audit
Performance?
Page | 399
[14] Do the signing of Annual Audit Report by the Principal Account Holder and Principal
Spending Officer promote the Internal Audit Performance and Public Sector Financial
Management, and what do you suggest?
[15] How does the submission of Annual Audit Report to the Presidency and Minister of
Finance impact on Internal Audit Performance, and do you agree with Section 83 (2) of
Public Financial Management (PFM) Act, 2016 (Act, 921) that prescribes so ?
[16] What are the effects of a demand of principal spending officers of public entities to
sign quarterly and annual internal reports of their entities?
[17] Who signs and submits your quarterly and annual internal audit reports?
[18] Do have any promotional challenge and how does it affect your performance?
[19] In your candid opinion, what are the effect of Head of Internal Audit with grade
lower than the Spending Officer?
[20] You and your Spending Officer, who is superior in grade?
Thanks for your precious time and kind gesture. God bless and protect you. I highly
appreciate your contribution, and I will get back to you for validation of your responses.
Page | 400
APPENDIX G: FOLLOW-UP INTERVIEW QUESTION
PART A: OPENING DIALOGUE
Today’s interview will also take approximately 30 minutes, and will be conducted
according to the research professional standard. Please be assured that all information
solicited will remain confidential. To ensure a complete word-by-word record of the
interview and to avoid the risk of miss-meanings in the various stages, I hereby and
again seek your permission to use the audio recording device. All records would be
destroyed after successful completion of this research. May I know, if you are
comfortable with audio recording? If at any point during the interview, you feel
uncomfortable with any of the questions, please feel free not to answer. Can we start
please?
PART A: PARTICIPANT PROFILE (To be completed if there are changes from the
previous interview)
Name:
Gender:
Age:
Nationality:
Last Qualification; 1. SHS 2. Undergraduate 3. Masters 4. Doctoral
Grade:
Position:
Institution/Organization:
Page | 401
Years of experience In the Public Service:
Grade of Principal Spending Officer/:
Post/ email address:
Telephone:
Date:
Time:
PART B: FOLLOW-UP INTERVIEW QUESTIONS
[1] What are the factors that can improve on Internal Audit Performance?
[2] What can be done to make the relationship between Public Sector Financial
management and Internal Audit Performance positive and what will be the result?
[3] How can Internal Audit Performance and Public Sector Financial Management be
used to fight Financial Corruption in the Ghanaian economy?
[4] Can the effectiveness of Public Sector Financial Management reduce Financial
Corruption?
[5] When the objectives of Internal Audit Performance are achieved, can that result in
minimization of Financial Corruption and how?
[6] Do you agree that, the characteristics between Internal Audit Function and Internal
Audit Performance are?
 Detection, prevention and correction of threats and errors,
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 Provision of assurance and consulting services,
 Assist in risk mitigation, corporate governance processes, and control
Mechanisms, and.
 Carry out oversight responsibility,
[7] Do you agree that impacts of Internal Audit Performance on Public Sector Financial
Management can help in the fight against FC and how can that be?
[8] Which institution executes all or almost all the roles expected of anti- corruption
institutions in Ghana, and how can it be made more effective?
[9] If Internal Audit is fully featured in the Bill of Appropriation and Chart of Account can
it enhance its performance to fight Financial Corruption and how can that be done?
[10] State the factors that can promote effectiveness of Ant-Corruption institutions in
Ghanaian economy?
[11] In your candid opinion is the Head of Internal Audit Unit/Department hooked onto
the Ghana Integrated Financial Management System (GIFMIS) platform in the PSFM for
checks, can it help to minimize payment irregularities and other threats?
[12] In your opinion the correlation between Public Sector Financial Management and
Social Justice should it be Positive or Negative and why?
[13].What should be done to strengthen Audit Committees in the Public Sector Entities?
[14] Who should sign the annual audit statement for submission to stakeholders to
improve on internal audit performance in the fight financial corruption?
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[15]. Do you agree that portions of the Public Financial Management Act, 2016 (Act,
921) needs to be reviewed, and can you name any of those portions?
[16]. How can the promotional challenges of internal auditor be resolved to motivate
them?
[17] The heads of anti-corruption institutions should be appointed by the Public Service
Commission, do you agree and why?
[18] Do you agree that Internal audit is an anti-corruption tool, and why?
[19] Can the confidence level and protection of Internal Auditors be enhanced and by
what means?
[20] What is needed to enhance the progress of Internal Auditors and other PSFM staff?
Thanks for your devoted time, inputs and kind gesture.
Page | 404
APPENDIX H: SURVEY QUESTIONNAIRE
SURVEY QUESTIONNAIRE
PART A: INTRODUCTION
This questionnaire is purposely for an academic work and all information provided will
remain confidential and anonymous. This is to consolidate and analyze the feedback of
the questionnaire, in order to propose a conceptual framework of Internal Audit
Performance (IAP) and Internal Audit Function to impact positively on Public Sector
Financial Management (PSFM) in the fight against financial corruption (FC) to benefit
the government of Ghana, public and private institutions, academia and all Ghanaians. I
humbly and hereby appeal to you to answer this questionnaire. I solemnly testify that
your response will only be used for analysis to complete my academic work. Thanks
and God bless you.
PART B: BACKGROUND OF RESPONDENT
Please tick your response where applicable.
I. Gender of respondent [Male] or [Female]
II. Level of education [Secondary] or [Tertiary]
III. Age Range [Below 20], [20-29], [30-39], [40-49], [50-59], [60-69], [70 and above]
IV. How long have you worked in the public sector? [Less 10 years], [11-20], [21-30],
[31-40], [41 years and above]
V. Name of your organization: …………………………………………………
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PART C-PUBLIC SECTOR STAFF SURVEY QUESTIONNAIRE
[1].There are established Anti-Corruption Institutions in Ghana. [True] or [False]
[2].What is public expectation of Internal Audit Performance (IAP) in Anti-Corruption
program? [Low], [High] and [Average]
[3].Are the Anti-Corruption institutions in Ghana effective enough to achieve the
intended purpose? [Yes], [No], [Yes on condition], [No on condition]
[4].What is the level of IAP in the fight against FC in the public sector? [Standard],
[Below Standard] and [Above Standard]
[5].Anti-Corruption organizations in Ghana are incapacitated to be effective. [Yes] or
[No]
[6].State the Weaknesses of Anti-Corruption Institutions. [Unable to fight FC], [Not fully
independent], [Can’t withstand the interference from the powerful authorities], [Lack of
resources] and [Others]
[7].Can Public Sector Financial Management help in the fight against FC to prevent
financial loss? [Yes] or [No]
[8].How does IAP impact on the PSFM in the fight against FC? [Positive] or [Negative]
[9].Do you agree that when IAP is enhanced PSFM becomes more effective and the
level of FC decreases? [Yes] or [No]
[10].Governance and Social Justice promote IAP to minimize FC. [True] or [False]
Page | 406
[11].What factors militate against the effectiveness of IAP? Please mark as many as
applicable [Bad governance], [Corrupt leadership], [Intimidation], [Inadequate of
resource], [No motivation], [Promotional challenges], [Low level of recognition], [No
protection], [Social injustice] and [Others]
[12].IAP and PSFM are positively correlated. [True] or [False]
[13].What is the correlation between IAP and FC? [Positive] or [Negative]
[14].In your opinion and assessment what is the level of IAP is [Standard], [Below
Standard], and [Above Standard]
[15]. Effectiveness of IAF promotes IAP if all things are equal [Agree] or [Disagree]
[16].Please, tick all the characteristics of IAP in the table below that better explain the
effectiveness of IAF in terms of avoidance of threats and errors.
ROLE Detective Preventive Corrective Assurance Consulting Fault Directive Oversight
Role Role Role Role Role Finding Role Role
TICK
[17].Internal Audit Agency (IAA) is mandated by law to provide technical support to
enhance IAP in the MMDAs and MDAs [Yes] or [No]
[18].How is the technical support by IAA to Internal Auditors in the public sector in terms
of promotion, capacity building of, and protection in the MMDAs and MDAs? [Good],
[Satisfactory] and [Poor]
Page | 407
[19].If Internal Auditors are provided with all the needed support, IAP will be more
effective to enhance prudency of PSFM and thereby fight FC. [True] or [False]
[20].Do you have Audit Committee (AC) functioning in the public sector? [Yes] or [No]
[21].How many times does the AC meet annually? [More than 4times], [4 times], [less
than 4] and [Not less 4 times]
[22].Is the AC effective enough to enhance IAP in the public sector? [Yes] or [No]
[23].Do you have the Head of Internal Audit Unit (IAU) of your organization hooked into
the Ghana Integrated Financial Management Information System (GIFMIS) platform to
carry out the mandatory control role for: detection, prevention and correction of threats
and errors? [Yes] or [No]
[24] Who evaluates and helps to strengthen the control mechanisms in your
organization? [Finance officers], [Internal Auditors], [Administrators]
[25] Internal Auditing is recognized and much attention paid to its reports as compared
to that of External Auditor from the Audit Service [Agree] or [Disagree]
Thank you for your precious time and meaningful effort which is highly esteemed and
appreciated.
Page | 408
APPENDIX HH: COMPARISM OF COUNTRIES USING IA APPROACHES
ON ACHIEVEMENT, CHALLENGES, AND SOLUTIONS
Comparism of Countries Using IA Approaches on Achievement, Challenges, and Solutions
COUNTRY ACHIEVEMENTS CHALLENGES SOLUTIONS
Guatemala -Social audit complement and -Lack of transparency -Uncover irregularities and
strengthen IA to fight FC -Needs for effectiveness and malpractices for remedy
-Develop strategies and review wholeness of IA -Detect and protect public funds
public documents to prevent FC -Less checks and balances -Provide legal and technical
-Preventive and corrective -Lack of legal protection. supports for internal auditors.
measures to fight social vices - Holding of officers accountable.
Peru -Social audit complement and -Lack of transparency and -Uncover irregularities for remedy.
strengthen IA to fight FC Accountability -Provide corrective measures to
-Develop strategies and review -Needs for wholeness IA protect public funds
public documents to prevent FC -Less checks and balances -Technical supports and legal
-Preventive and corrective to prevent irregularities. protection provided for auditors
measures to fight social vices. - Holding of officers accountable.
.United -Have Anti-corruption institutions -Presence of risks, and social -Authority identify and fight social
Kingdom -IA has the legal protection, and vices vices including FC
political support for public -Needs to strengthen internal -Cooperate and exchange data and
interest. controls. techniques to prevent FC
-IA in place to fight social vices -Less focus on social audit to -IA is legally protected, technically
-IFMIS in place and include IA to complement IA supported, and well-resourced IA
detect, and prevent threats.
Japan -Develops and train IA -Presence of social vices - - -Uses Computer Assisted Audit
personnel for efficiency and Tendency of risk Technology to promote IAP
effectiveness -Challenge of getting every -Political commitment and political
-FMIS in place and IA hooked take part in CAAT will available
on to detect, prevent, and -Training of IA staff
correct threats.
.China -IA in place for risk mitigation, -IA work only meet -Establish framework of IA standard
governance, and control compliance requirements for IA practitioners
processes -Less IA independence -Consulting and assurance services
-Political will and Commitment -Availability of social vices by IA drive to combat FC
-IFMIS and inclusion of IA to -Political will and commitment exist
detect and prevent FC
Canada -Promotes effectiveness of IA, -Needs of legal and technical -A work expanded from detection to
transparency and accountability supports for IA electronic risk assessment.
-Ensures value for money -Risks available -Ensure compliance of regulations
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-Legal protection for auditors -Presence of social vices and procedures
-Supports performance and including corruption -Measures to support the UNCAC.
obligation of IA -Less political will and -Government support for IA to fight
-IFMIS and inclusion of HIA Unit political commitment social vices including corruption
.United State -Internal auditors cooperate with -Non-compliance with -Assesses of public expenditure
of America
external auditors to fight EC approved budgets -IA provides checks and balances
-IFMIS inclusion IA on the -Threats, errors and -Ensures judicious use of public
platform variations available funds and mitigate risks
-Provision of good condition to -Availability of social vices -Provision of effective IA and legal
motivate Internal auditors -Inadequate controls system. and technical supports
-Positive impacts on -Proven political will and
professional standards and commitment
credibility of IA
Malawi -IA in the public institutions to -Needs effectiveness of IA -Review public finance, operations,
add value to the operations -Presence of risks, and social risk, control, and processes
-Internal Audit Service and vices including corruption -Mechanism in place to detect and
Internal Auditors backed legally -Lack of legal protection, prevent to social vices.
-Political will and political resource for IA - Political, and technical support for
commitment available -Less political will. IA to combat corruption effectively
South Africa -IA activities backed by -Lack of technical and -Legally required to report on any
legislation, and authority for management supports suspicious activity
enforcement -Non-compliance, lack of -IA in place for value for money
-Bureaucrats and public resource, and effective IA -Provide assurance and consulting
servants prepared for -Available risks and FC services
accountability
-Presence of IFMIS platform
South Arabia -IA bodies allow to evaluate of -Presence of risks and social -Empower IA to fight irregularities
processes, and competence of vices including FC -IA improves on governance, risk
IA -Lacks resources management and control systems.
- Establish IA bodies -Less legal protection, --IA supports in risks mitigation
-Created conducive working technical supports. - Political will and political
environment for IA -Political interference, and commitment to fight financial
- Demonstration of political less capacity building corruption
supports for internal audit.
.Kenya -IA available to provide -Presence of social vices -Improved IA provides assurance
assurance and effective risks -Lack of political will and and consulting services
mitigation political commitment -IA provides board of directors,
-Enhanced Governance Les legal protection, audit committee, and stakeholders
processes and internal controls technical and supports for with findings and recommendations
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-The IA included in IFMIS to internal auditors - Plans to provide, legal protection
detect and prevent threats and technical supports for IA bodies
- Internal audit in place working
India -Put in place board, ad audit -Presence of corruption and -Transformed IA from value
committee to strengthen controls risks protection to value enhancement.
-Employ and equip IA personnel -Needs to combination of -Embark on improvement of IA
preventive and detective
-Have IFMIS and included IA techniques -IA adopted international standards
-Outsource audit quality to -Less political will and - Legal, technical and government
commitment to back for IA
ensure value for money supports for IA.
Brazil -Established IA unites to -Non-compliance, -Randomized audit orders

address corruption randomly -Presence of corruption and -Federal Court of Auditors, review
-Internal and External audits risks accounts of public entities
detect and prevent of FC -Lack of legal and technical -Provision of political commitment,
-Internal auditors are protected, supports for IA and political will
well-resourced and recognized. -Less political will. And - Provision of resources, and
-IFMIS included HIA Units commitment motivation of IA staff.
France -Improve on governance, risk -Political influence and -Apply and uphold principles of: IA
management and controls conflict of interest -Sanction Committee imposes
-Audit terms of deferred -Presence of social vices sanctions on corruption.
prosecution, and after AFA - Check and balances to -Disseminates tools to fight FC
action strengthen the controls - IA works of IFMIS platform
- Effective IGMIS in include HIA
Spain -Established of IA units -Risk of corruption -Carry out IA at three levels
-Internal audit is fragmented into -Needs for effective control -Provides verification and support
3. system policies, procedures and controls
-Develop, improve, monitor and -Need for value addition -Ensure compliance with laws
evaluate internal audit functions -Presence of interference - plan for legal protection, technical
-Have IFMIS in place and -Presence of social vices supports, and political will
included Head of IA unit of the
platform
Germany -Outsource IA controls, -Non-compliance -Monitor compliance with the rules
and quality -IAs being vulnerable and statutory requirements.
-Set up IA directorates -Risks and influence as -Identify operational and managerial
-Manage risks, governance and potential whistleblowers. gaps for mitigation
control
Ghana -GIFMIS in place -Excluding HIA GIFMIS -Inclusion of HIA in the GIFMIS
-IAA and units available to work- -No legal protection, and -Legal and technical supports for IA
-IA Units are required legally to technical supports for IAs -Political commitment and will
Page | 411
provide quarterly reports -No political commitment and -Needs to feature IA fully in COA &
-Internal audit is trying to ensure political will BOA under the yearly PBBE
effectiveness, efficiency, and -Lack of resources, and -Practice of social audit to pair and
economy management support strengthen IA
APPENDIX H1: FACTORS TO IMPROVE ON EFFECTIVENESS OF IAP

Factors to improve on IAP
What are the factors that can improve on the IAP?
Page | 412
Fully resourcing of IAUs and IAA 24 100%
Change of status of IAA to absorb internal auditors 24 100%
Legal protection for internal auditors 24 100%
Provision of professional and skill trainings 24 100%
Resolving promotional challenges facing internal auditors 24 100%
Motivation of internal auditor 24 100%
Revoke the signing of Annual Audit report by PAH 20 83.33%
Effective Audit Committee 23 95.83%
Stop intimidation of internal auditors 21 87.50%
Integrity and commitments of internal auditors 20 83.33%
Review sections 86, 87 and 88 of PFM Act, 2016 23 95.83%
Provision of technical support for internal auditor 24 100%
Recognition of Internal audit work 24 100%
Submission of Internal audit reports to the PAC 21 87.50%
Revoking signing of quarterly internal audit report by PSO 24 100%
Audit Committee members appointed by their institutions 24 100%
Enhancement of confident level of internal auditors 22 91.67%
Protection of internal auditors from victimization 22 91.67%
Internal auditors’ independence should be enhanced 24 100%
Good corporate governance 20 83.00
Sensitizing all public institutions on internal audit work 20 83.33%
Heads of public institutions should be appointed by PSC 23 95.83%
Incorruptible governance 24 100%
Effective justice system 24 100%
Hooking of HIA on the GIFMIS platform for audit review 24 100%
Featuring of internal audit fully in BOA and COA 24 100%
Management support 24 100%
APPENDIX H2: FACTORS PROMOTING EFFECTIVENESS OF IAP
Page | 413
Table 4.3.6
Roles of Anti-Corruption Institutions
Target Group: Selected Public Servants
What are the roles of anti-corruption institutions in Ghana
Participant CHRAJ EOCO AGD AS CAGD SFO IAU PPA JS PAC
PS1 8,10 6,10 8,4 2,4,8 2 ,3,8 8,2,10 1-9 2 2,8 2,8
PS2 8,10 6 8,4 2,4,8 2 ,8 8,2,10 1-9 2 2,8 2,8
PS3 8,10 6,10 8,4 4,8 2 ,3,8 8,2,10 1-9 2 2,8 2,8
PS4 8,10 6,10 8,4 2,4,8 2 ,8 8,2 1-9 2 2,8 2,8
PS5 8,10 6,10 8,4 2,4,8 2 ,3,8 8,2,10 1-9 2 2,8 2,8
PS6 8,10 6 8,4 2,4,8 2 ,3,8 8,2 1-9 2 2,8 2,8
PS7 8,10 6,10 8,4 4,8 2 ,3,8 8,2,10 1-9 2 2,8 2,8
PS8 8,10 6 8,4 2,4,8 2 ,3,8 8,2,10 1-9 2 2,8 2,8
PS9 8,10 6,10 8,4 2,4,8 2 ,3,8 8,2,10 1-9 2 2,8 2,8
PS10 8,10 6,10 8,4 2,4,8 2 ,3,8 8,2,10 1-9 2 2,8 2,8
PS11 8,10 6,10 8,4 4,8 3,,8 8,2,10 1-9 2 2,8 2,8
PS12 8,10 6,10 8,4 2,4,8 2 ,8 8,2 1-9 2 2,8 2,8
PS13 8,10 6,10 8,4 2,4,8 3,8 8,2,10 1-9 2 2,8 2,8
PS14 8,10 6,10 8,4 2,4,8 2 ,8 8,2,10 1-9 2 2,8 2,8
PS15 8,10 6,10 8,4 2,4,8 2 ,8 8,2,10 1-9 2 2,8 2,8
PS16 8,10 6,10 8,4 2,4,8 2 ,8 8,2,10 1-9 2 2,8 2,8
PS17 8,10 6,10 8,4 2,4,8 2,3 ,8 8,2,10 1-9 2 2,8 2,8
PS18 8,10 6,10 8,4 2,4,8 2,3 ,8 8,2,10 1-9 2 2,8 2,8
PS19 8,10 6,10 8,4 2,4,8 2,3,8 8,2,10 1-9 2 2,8 2,8
PS20 8,10 6,10 8,4 2,4,8 2,3 ,8 8,2,10 1-9 2 2,8 2,8
PS21 8,10 6,10 8,4 2,4,8 2,3,8 8,2,10 1-9 2 2,8 2,8
PS22 8,10 6,10 8,4 2,4,8 2,3,8 8,2 1-9 2 2,8 2,8
PS23 8,10 6,10 8,4 2,4,8 2,3,8 8,21,0 1-9 2 2,8 2,8
PS24 8,10 6,10 8,4 2,4,8 2 ,8 8,2,10 1-9 2 2,8 2,8
LEGEND
1-Detective Role 4-Directive Role 7-Oversight Role 10.Prosecution Role
2-Preventive Role 5-Assurance Role 8-Post Event Role
3-Corrective Role 6-Consulting Role 9-Regulatory Role
1.CHRAJ-Commission for human Right and Administrative Justice 4.JS-Judicial Service
EOCO-Economic Organized Crime Office. AS-Audit Service, PAC-Public Accounts Committee,
IAA- Internal Audit Units, CAGD-Controller and Accountant General Dept. AGD-Attorney
General Department, PPA-Public Procurement Auth, SFO-Serious Fraud Office
Factors Promoting Effectiveness of PSFM

Factors that promote effectiveness of PSFM in the fight against FC?
Participant GG MS EIAU SC R&R M&S
Page | 414
PSI X X X X X X
PS2 X X X X X X
PS3 X X X
PS4 X X X X X X
PS5 X X X X X X
PS6 X X X X X X
PS7 X X X X X
PS8 X X X X X
PS9 X X X X X
PS10 X X X X X X
PS11 X X X X X X
PS12 X X X X X
PS13 X X X X X X
PS14 X X X X X X
PS15 X X X X
PS16 X X X X X
PS17 X X X X X X
PS18 X X X X X X
PS19 X X X X
PS20 X X X X X
PS21 X X X X X X
PS22 X X X X X X
PS23 X X X X X X
PS24 X X X X X
TOTAL 23 21 23 20 22 22
LEGENG
1.GG-Good Governance 3.SC-Staff Commitment 5. EIAU-Effective Internal Audit Unit
2. MS-Management 4.R&R-Rules & Regulations 6.M&S-Motivations and Sanctions
support
APPENDIX H3: ROLES OF ANTI-CORRUPTION INSTITUTIONS
APPENDIX H4: IMPACTS OF IAP ON FC THROUGH PSFM

Table 4.3.9
The Impacts of IAP on FC Through PSFM
What are the impacts of IAP on FC, when its level improves?
Page | 415
Participan IAP Level PSFM Level FC Level IAP Level PSFM Level FC Level
t
PS1 Increases Improves Reduces Decreases Decreases Increases
APPENDIX H5: QUESTIONNAIRE VALIDITY TESTING RESULT

QUESTIONNAIRE VALIDITY TESTING RESULT
Page | 416
Item Total No of No of Experts indicate Lawshe Content Interpretation
Experts Essential Validity Result
1 10 10 1 Appropriate
3 10 9 0.8 Appropriate
7 10 9 0,8 Appropriate
Page | 417
APPENDI X I: INITIAL INTERVIEW PROBABILITY TREE
Figure 4.3.1A
Initial Interview Probability Tree
16 Face to Face
20 Recorded Interviews (80%)
Interview
Responses (83%)
4 Telephones
Interviews (20%)
24 Preliminary
Interviews
4 Hand written
4 Face to Face
Interview
Interviews (100%)
Responses (17%)
APPENDIX J: FOLLOW-UP INTERVIEW PROBABILITY THREE

Figure 4.3.1A
Initial Interview Probability Tree
Page | 418
4 Face to Face
7 Recorded Interviews (57%)
Interview
Responses
(77.8%)
3 Telephones
Interviews (43%)
9 Follow-Up
Interviews
2 Hand written
Interview
Responses 2 Face to Face
(22.2%) Interviews (100%)
APPENDIX J1: IMPACTS OF IAP ON PSFM

Table 4.3.21A
Impacts of IAP on PSFM
Page | 419
Target Audience: Public Servants
What is the impact of IAP on the PSFM
PS1 Oh! The main impact is to prevent corruption
PS2 Prevent threats, errors, and fraud.
PS3 Now they have a positive impact positively in part by part in politics by doing
work by reducing threats and errors to prevent corruption and then enhancing
public sector financial management by drawing attention on corrupt activities for
mitigation
PS4 Positively to me positively by reducing threats and errors to prevent corruption.
By enhancing PSFM by drawing attention on corrupt activities for mitigation in
other words it strengthens the control system save money for the state by
preventing corruption
PS5 The impact is positive. That’s by reducing the level of threats and errors,
enhances public sector financial management, internal advanced serves as
control in the powers that financial management possesses and provide many
more of level of assurances
PS6 NO RESPONSE
PS7 The main impact of PSFM is to reduce threats and furthermore prevents errors,
also draw management attention on corrupt practices which can mitigate
PS8 The impact is that it enhances PSFM by drawing attention on corrupt activities
for mitigation and then reducing threats and errors to prevent corruption
PS9 Detection and prevention of FC .Also increase the economic and value for
money
PS10 The impacts of IAP on the PSFM are: drawing attention of the public on the
corrupt activities, reduce threats and errors and to prevent corruption.
PS11 The impact of IAP on PSFM is positive by reducing threats and errors,
enhancing PSFM IAP serve as a control in the PSFM processes, provide
management with level of assurance
Page | 420
PS12 The impact on it is to reduce threats and errors and then to prevent corruption.
Also the IA drawing attention of whoever is in charge to clauses and sanctions
and requirements in the PSFM. It also helps strengthen the control system and
in nut shell save money for the state.
PS13 Positive impact by reducing threats and errors to prevent corruption, enhance
PSFM by drawing the attention on corrupt activities for mitigation, strengthen the
control system, save money for the state by preventing corruption
PS14 One, it prevent waste of resources because when you have the IA vetting your
documents making sure that the right prices are quoted for specific products or
services you are going to procure, it also make money available for other
activities in the sense that if there is proper audit, something that is supposed to
be spent 2 Cedis on and somebody try to be spent 3 Cedis on, IA can bring
about savings that can be used for other equally activities that is needed by the
organization.
PS15 Impacts of IAP on PSFM is to reduce threats and errors and enhance PSFM to
reduce risk.
PS16 The Impact will be that those responsible for financial management are
compelled to sit up. Because they know that they will be questioned, there is
somebody there who have the authority to demand answers so there will be
accountability, transparency and social justice.
PS17 IA are part of management, they are part of operations, everything. They do
about 80% or 90% of the auditing. What external auditors do is just a tip of the
iceberg. So far as corruption is concerned, IA is doing a great job and are
enhancing the PSFM even though the PSFM cannot assist us. IA makes the
work of external auditors very minimal that’s why sometimes you see the IA
reports being repeated in the external audit observations
PS18 NO RESPONSE
PS19 The main impacts is that IAP was the complement of standards laid down for
them to follow.
PS20 The impacts of IAP on the PSFM is accountability which also leads to
enforcement of financial discipline, prevention of fraud which are abusive
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The impact of Internal Audit Performance (IAP) on Public Sector Financial
Management (PSFM) is positive or negative in the sense that when the impacts
of IAP on PSFM results in effectiveness and prudency of the PSFM then its
positive and vice versa. Also the issue of detection, prevention and correction of
PS21 irregularities to strengthen the financial management is the prerogative of IAP
per the PSFM Act 2016 (Act 921).
PS22 Comparatively, Internal Audit Performance is part of Public Sector Financial
Management hence effectiveness of it promote the prudency of Public Sector
Financial Management to minimize irregularities and other threats. Internal Audit
performance strengthens the control mechanism and ensure effective PSFM to
prevent financial loss to the state.
PS23 Internal Auditors in addition audit financial transactions to ensure that value for
money are obtained before payment.
PS24 Impacts of Internal Audit Performance on the PSFM; a. compliance with
regulations, b. review of controls to access their adequacy, efficiency and
effectiveness, and c, ensures checks and balance
Source : Tamakloe MacCharles (2021)
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APPENDIX J2: SIGNING OF ANNUAL AUDIT REPORT AND IAP
Signing of Annual Audit Report and IAP
Do the signing of Annual Audit Report by PAH and PSO promote IAP and PSFM, and Do you suggest?
PS1 Not at all. My suggestion is that this needs to be sign by the head of the internal audits the
one who is discharging his duty. When he comes out with the report, he should be the one
sending the report and not the PAH, neither should it be the PSO.
PS2 No, the audit report is to be signed by the HIA not the chief director thus the PSO. To
reemphasize, the head of internal audit should sign the audit report
PS3 No, Internal Auditor, who prepares the audit report
PS4 The internal Auditors report should be signed by the HIA and chairman of the AC in order to
avoid delay in submission and manipulation of audit report
PS5 It does not promote internal audit performance because it delays submission of reports and
subject to its manipulation. So, I recommend the head of Internal audit Unit and Chairman of
implementers to sign the stated report
PS6 It does not, because the work is done by internal auditor and it should be signed by internal
auditor, but if the principal spending officer signs the report it might be conflict of interest. The
head of internal audit unit should be signing the internal audit report.
PS7 No, if they have not pass through the system and do sign, it is not the right order, or the
auditors will check before they sign, thereafter when they is any irregularity then they correct
it.
PS8 No it do not. Sometimes implicate them, because they are the corporate and then they will not
sign a report that indict them so they will rather lure to cancel that portion so that they sign or
they will not sign.
I suggest it should be signed by the HIA and the Chairman of the AC
PS9 That is yes, for the implementer to sign IA report, he can decide to sign or not to sign. I think
somebody other the principal spending officer to sign because it is not good for him not sign
due to conflict of interest
PS10 Actually, I will also have challenges if the audit report goes to the big man, which can be
manipulated and I disagree with the signing of the PAH and PSO. The HIA who prepares the
audit report should sign it with the audit committee chairperson
PS11 The signing of annual audit implementation report by the principal account holder and the
PSO do not promote IAP because it delays submission of report and subject to manipulation. I
recommend the HIA and the Chairman of the AC to sign the stated report
PS12 It does not. My suggestion is that this signing should rather be done by the HIA and the
chairman of the AC in order to avoid the delay and manipulation of audit reports, rather than
the principal spending officer and the PSO
PS13 The IA report should be signed by the HIA and chairman of the audit committee in order to
avoid delay in submission and manipulation of reports
PS14 I am not an expert in IA, but I will provide my candid opinion, so just like you said, the PAH
signs the job that has been done by the IA. So when you look at in the context of the Ministry,
we have the PAH which is the Minister, before we have the PSO that is the Chief Director. In
the case of the IA, your report is signed by both of them. If you look at the setup of the usage
of public funds, the PSO plays a role in the utilization of the funds, the PAH plays a role in the
utilization of the funds. So to the best of my knowledge, this signing of the report is a
conformation that what the IA has come out with, they agree with the report. So I think it
should promote it.
Page | 423
PS15 I will say not well because of their roles. Let’s say if the PAH is an MP, he might have other
responsibilities that might keep him/her away from the Ministry for some time, so when reports
are sent to him to sign will cause delay in the submission of reports. I suggest that PSO
should sign the report, and the Internal Auditor too is supposed to sign the report.
PS16 I believe it promotes, if they signing these documents, whatever contained in it they are
admitting that whatever has been said is right and they support it and they stand by it, if it is
against them too they are admitting and prepared to take the necessary action. So I think too
will help.
PS17 The PAH signing the report delays and it may look as if the IA is not doing his work well. The
reason why IAA don’t want the IA to sign is that some PSO will say that we are not aware.
That would have been the best so that the Auditor prepares and the AC Chairman sign and
copy the PSO and forward to IAA, that would have been the best.
I think that the signing actually at the end of the day some PSO are reluctant to sign just
PS18 because there may be issues that relate to them in those report which they might not have
resolved, and so if they were signing, my understanding is that they are reluctant today simply
because some of the issues are unattended to. I will suggest that once you have the AC the
IA of the can actually sign or approve that. Because it poses a lot of challenge currently where
sometimes looking at the time frame that you have to submit the report, you have to be
forcing your PSO and the PAH to be able to sign, but once you have the chairman of the AC
there, most of the issues will be in the known of the PSO because, he has to know the totality
of the work that has gone on throughout the years. HIA and the AC chairman should sign the
document
PS19 Yes, it promotes, since the suggestion in the PSO is one way or other involved attested to
preparation is a good step declaring the accounts in order
PS20 Yes it does because the annual audit performance supposed to capture the entire internal
audit activities that was executed to, and that becomes the actuals compared it with the
annual audit work plan, so through that you are able to access the performance of the internal
audit unit whether they were able execute what audit activities that are itemized that they
were going to do, also able to see if budgeted allocations were made to them. So through that
they are able to use them as indicators to evaluate the work not internal audit unit, so also
have positive impacts on PSFM. In my candid opinion, I will recommend that those reports
should be signed by the internal auditor and the chairman of AC.
PS21 I will say no because the PAH and SO only deemed to have copies of the said reports and
ensure implementation of the recommendation in. The process will delay submission and
manipulation of the report. I suggest the head of Internal Audit Unit and chairperson of AC
signs the reports whereas the PSO signs
PS22 It do not promote IAP, because report submission will be delayed and manipulated. Auditor
and chairman of AC should sign the reports
PS23 Audit status of implementation report is the work of AC and PSO.
PS24 Yes, the PAH and PSO support the AC in having meetings
Source; MacCharles Tamakloe (2021)
Page | 424
APPENDIX K: CORRELATION BETWEEN IAP AND PSFM
The Relationship Between IAP and PSFM
What is the relationship between IAP and PSFM in the Fight Against FC?
PS1 Very positive
PS2 Public Sector Financial Management to improve Internal Audit Performance and other
relationship, threats and errors are prevented in the public sector. The relationship between
Public Sector Financial Management and Internal Audit Performance is positive
PS3 I can say that it is positive relations because when the internal audit performance improves
public sector financial management also improve. So this positive the name the factors is that
reduces that reduce the level of internal performance
PS4 Normally it should be positive. It improves public sector financial management. To me it is
positive when internal audit performance improves public sector financial management.
That's all I need to say. Then okay. So that's why you said they are positive. They are there
positive
PS5 I think the two are there just to make the financial management more effective to combat
financial corruption. And if the level is one of them increases the other also decreases to
make anti-corruption ineffective. So, you mean that the level of internal audit performance
increases that … the public sector also decreases to minimize financial corruption and in vice
versa.
PS6 The relationship between Internal Audit Performance and Public Sector Financial
Management is positive, because when Internal Audit Performance increases, Public Sector
Financial Management also increases and vice versa
PS7 IAP creates room for improvement on the PSFM. Is positive.
PS8 It should be positive, when IAP and PSFM, if these two things are met and done correctly, it
should be positive but if they are not done well, that is where the problem is
PS9 Because of the nature of their (IAs) work, they are to review any financial document for
payment and no fiction can survive to cause FC, so the relationship is very positive.
PS10 IAP and PSFM, I will say is the relationship to guide IAP. Internal audit use the PSFM as a
tool for execution. The accounts go strictly to what demand by PSFM prescription
PS11 The relationship between IAP is positive because when the level of IAP increases, the level of
PSFM also increases to make PSFM more effective to combat FC, and if the level of one
decrease that other also increases to make anti-corruption ineffective.
PS12 If we look at the activities of IAP, or the way the IA do to check errors and threats and
corruption and those things, them the relation between IAP and PSFM is a positive one, and
that can help to fight corruption
PS13 When IAP improves, PSFM improves and when one decrease in improvement, the other
declines in performance
PS14 I think IAP is part of PSFM system which includes budgeting the allocation of resources, if
you at the budget cycle we have the budget, the budget is prepared, executed then there is
monitoring and evaluation. So in the process, there is IA to check the projects that monies
have spent on. So the IAP is more or less the sub-system of the PSFM
PS15 It’s a means of increasing, it increases and makes financial management more effective
combat corruption. The relationship is positive.
PS16 IA is to make sure that proper procedures are in place and that they are being followed
properly and that if there should be any error or misappropriation, something that is not right,
it can be easily detected and exposed. So, the IA is to make sure that people internally are
following the rules that are set down for financial management to minimize or completely
uproot corruption. They are directly related, if IA is doing their work well, there is a probability
of managing the public sector funds very well, there is a possibility of blocking holes that can
be abused. So, the more they do their work, the more public funds will be preserved or
managed. As far as FC is concerned, they are inversely related. The more IA is doing their
work, there should be less corruption
Page | 425
PS17 Both are in the same sector. The only difference is that PSFM entails all the various
enactments that will ensure that there is discipline in the PSFM sector. The IA side is to make
sure those that various enactments and those having responsible positions in the PSFM, IA is
to make sure that those enactments are been followed to the latter and those in responsible
positions follow the financial rules.
PS18 IAP actually provide the framework where management of an organization or public
institutions are actually kind of monitored to ensure the efficient and effective use of public
funds. IAP and PSFM are positively related.
3. Factors that reduce the level of IAP
PS19 The relationship between them is positive. I think Internal Audit is a process whereby the
books of accounts are reviewed, the performance is financial account to be find if the
ownership of public sector financial management is being dealt with in accordance with the
laid down procedures. From this, they should be positive correlation them
PS20 The roles or the function of the internal audit unit has viewed at to the check against financial
corruption in the sense that if you go through the roles and functions of Internal Audit Unit is
to make sure that there is efficient and effective use of public resources, how to check against
wastage of resources, how to safeguard assets, how to make sure we have accurate and
reliable financial, managerial and operational information. All these have value impacts to
reduce corruption if it cannot completely eliminate them.
PS21 To me, the relationship between Internal Audit Performance and Public Sector Financial
Management is progressive in that, when the level of internal audit performance enhances,
the public financial management also improves to prevent irregularities to occur. It is
importance to note that Internal Audit is incorporated in the Public Sector Financial
Management. That is why anything affecting Internal Audit Performance affect Public Sector
Financial Management also proportionally.
PS22 The correlation between Internal Audit Performance and Public Financial Management is
positive. Internal Audit Performance is part PSFM performance.
PS23 Internal Audit is part of controls in public sector to ensure that an agency achieve its
objectives. As a control, Internal Audit ensures that target set by the organization are met.
PS24 My own estimation, I think from two of them on the level is the empowerment and strengthen
them in terms of logistics and capacity building
Page | 426
APPENDIX L: SIGNING OF INTERNAL AUDIT QUARTERLY REPORT
Signing of Internal Audit Quarterly Report
Target Audience: Public Servants:
What are the effects of the PSO to sign Internal Audit Quarterly Report?
PS1 I think the auditor’s assignment is to audit the agency in which he or she is assigned so
the report should not be signed by the principal spending officer. So, when that is done
then I think that the few issues I have with that is that it will delay the submission of the
audit report and then the report will equally be manipulated because here is the situation
where your auditor is supposed to act independently. So after having acted
independently he submitting his report to the principal spending officer to sign the report
will definitely be manipulated.
PS2 I believe it should be change. He should have a copy but not original copy according to
the PFM Act, 2016.
PS3 I think the process serves corruptive actors of corruption and undermined the internal
audit performance
PS4 To me to me. Sorry. It delayed submission of internal audit report, which can be
manipulated. It will make internal auditors cover-up.
PS5 The late submission of report which subject to manipulation.
PS6 The effect is that, it delays submission of reports. These reports subject to manipulation.
PS7 Sometimes it brings delay, because you send the quarterly reports and then the
spending officer is indicted, he will say let’s take time and see how best we can fix it. The
auditor should sign the report.
PS8 It will delay submission of IA report which can be manipulated. Because when you delay,
you are denying the flow of the information and then who must take the information to
work on it is also denying and is a recipe for changing the meaning
PS9 Principal Spending officer signing internal audit report as the chief auditee I do not
agree.
PS10 This will delay submission of audit report because PSO is too busy to do that. To me I
disagree because the report can be manipulated to make the report cover-up
PS11 Delay in the submission of audit report which is subject to manipulation of the various
report. The HIA is likely to compromise and it weakens performance.
PS12 It leads to delay of submission of reports, because the spending officer to sign such
report and they are loaded with work they can just relax especially if its indicting their
activities, they can also manipulate. So that effect of it is that, it serves a delay in
submission of the report, which can be manipulated sand make the IA just a cover up
tool.
PS13 It delays the submission of IA report which can be manipulated. It will make IA cover up
tool. When is delayed anything can happen, those people that the findings are against
may come back and manipulate, financially, bringing relatives in, we beg you do this do
that and all this thing happens when it delays
PS14 IA doesn’t exist in a vacuum, it’s part of the setup of the organization, and like I said IAP
is to check the operations of the organizations to check that the organizations are
abiding its own rules and regulations. So if the PSO signs, he is the spending officer so
there is no problem as he spend the money
PS15 The Internal Auditor should sign the quarterly reports and the Principal Spending Officer
signs the covering letter of the report.
Page | 427
PS16 I think both should sign, so that both can be held accountable, once I said already once
the head signs, he is admitting to everything that is in the report. If the IA also signs, he
also saying that yes this is what is in the report, when the chief or head signs too is
acceptable so both of them if they sign, to me is ok. Because the IA is the one
championing the whole document will be part of the whole document so when the
Principal Spending Officer endorses it, they are working together
PS17 Principal Spending Officer plays supervisory role, they are not directly involved in the
day to day operations of the entity. He plays suspensory role so if there is any infraction,
he is supposed to be held responsible. So, making them sign the report is very risky.
PS18 I think that, that particular provision in letting head of entities sign quarterly reports, is
kind of problematic because if you are not a very strong internal auditor, there may be
issues that you have raised that the head of entity will like to be resolved, very crucial
issues to be resolved, the head of the entity can decide that until it is taken out from the
report, he is not going to sign for the agency. But if the power was given to the HIA to
write directly to the agency regarding report or submission of reports, I think that will be
helpful, because there will be always the audit committee so if there are issues the audit
committee will sit up with those issues, but when it comes to finalization of reports to the
IAA, it should be done by the HIA.
PS19 To let the principal spending officers be aware of the issues or findings sent to agency
and other places and will not deny that they were not involved in the submission of the
reports.
PS20 In my candid opinion, I will recommend that those reports should be signed by the
internal auditor and the chairman of the audit committee.
PS21 The effect is that, submission of reports will be delayed, failure of submission or Internal
Auditor compromise of deleting a portion of reports.
PS22 This can undermine the IAP because the process will delay submission of audit reports.
Head of Internal Audit could be threatened if a portion of the report is not changed or
deleted no signing IS be done. I disagree with the Act
PS23 It makes most of the issues raised by the internal audit report to be acknowledged and
this makes them demand response from HODs who have not responded to audit
observations
PS24 My candid opinion, it should be the responsible authorities of the overall body. For
instance, Local Government and Rural Development knowing that Internal Audit Agency
is no more the appointing authority to the opportunity to appoint unqualified Internal
Auditors to feel the vacancies therein
Page | 428
APPENDIX M: CHARACTERISTICS OF IAP AND IAF
Characteristics of IAP and IAF
Do you agree that the characteristic of IAP and IAF are: detection, prevention,
correction of threats, Assurance and consulting services, Risk mitigation, improving
on governance processes and control mechanisms , Carry out oversight responsibility
PSF1 Yes I agree to that
PSF2 Yes, funds should be used judiciously and government assets should also be
protected
PSF3 Exactly, these are the characteristics of between IAP and IAF. These are the
ingredient of the definition of Internal Auditing.
PSF4 Yes, I agree to some extent, because, IA is a consulting service by itself, but
that is not enough to give quality assurance. We can only detect but cannot
prevent corruption and can only make recommendations
PSF5 Yes, I do agree, I believe that, the two are related. IAP and IA are mitigation
of risk, assurance to management, when you do this, it means you are
performing AIF
PSF6 Well, Yes, when you look at the main objectives of IA, these are some of or
the major functions they need to perform, for example, if look at point three:
assist in risk mitigation, corporate governance processes and control
mechanisms, I think, if it is done effectively, it will really reduce corruption, or
FC in the institutions
PSF7 I do agree, those words or sentences are well coded. The characteristics are
the standard characteristics that have been researched into, so, when put into
practice can fight against financial corruption
PSF8 I 100% agree, this is because the IAP is the result of the execution of IAF
which include, a. detection of threats and errors, b, prevention of threats and
errors, c. correction of threats and errors, d. Provision of assurance services,
e. Provision of consulting services, f. carrying out oversight roles, g. assist in
risk mitigation, government process and Internal Controls.
PSF9 Yes, IA, three cardinal points control, risk management, governance
processes
HIA and GIFMIS Platform

Page | 429
If the HIA Is Fully Hooked Onto GIFMIS Platform In the PSFM For Checks, Can It Minimize Or Prevent
Payment Irregularities And Other Threats
PS1 I don’t know if it is there, I suspect that it is not there, because if it is there I
will have, but I don’t think is there. But we are gradually moving all our work
online using this GIFMIS system and all those things so internal Audit must be
inside it.
PS2 Initially, they were hooked but now they are not factored, so that they can
assess and check payments to detect and prevent irregularities
PS3 If hooked will, surely help minimize irregularities. Overpayment and wrong
grating of loans could detected for correction, if HIA is hooked onto GIFMIS
platform for checks.
PS4 As I am speaking now, if the GIFMIS platform reviewer and approval stages,
Internal Auditors are only to view but not review. If Internal Auditors are
hooked and given preventive role to fight corruption, it will really help the
Public Sector
PS5 Currently, no, but it should be, Yes, it can minimize corruption, I think that, if
opportunity given to IA to ensure that payment is made to the correct person
like the supplier, and mitigation of payment irregularities in the system will be
minimized
PS6 Well, maybe I may not know other institutions but my institution no, is d of IA
is not hooked, Yes if it is hooked, I think my little idea of GIFMIS system. The
approval system If HIA is part of the process, he can check the approval
documents that pass through it for approval. But my experience my IA is not
part of the GIFMIS system so to me if they are part it will improve on the anti-
corruption. Well to me, like the approval system I mentioned earlier, the hard
copy given to them to approve, their role will be secondary activities, too me if
they are hooked they Identify irregularities before the final approval will be
given.
PS7 I cannot tell but ideally, the head of internal audit should be hooked onto the
GIFMIS platform. To my opinion, it is better they are hooked and can help
fight financial corruption, because GIFMIS platform is receptor of information,
where irregularities could checked and prevented.
PS8 Yes, it can help minimize payment irregularities by detection and prevention
of corrupt activities or errors.
PS9 Yes, only viewing not for checking irregularities, nothing can be changed.
Lack of training in the GIFMIS
APPENDIX N: HIA AND GIFMIS
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APPENDIX O: IAP WITH BOA AND COA
HIA With Appropriation Bill and Chart of Accounts

If Internal Audit Is Featured Fully In Appropriation Bill And Chart Of Account, Can It
Enhance IAP To Fight Fc And How That Be Done?
PS1 When the Internal Audit is featured fully in the BOA and COA I think it will help
because there is a level of independence and involvement, he knows
everything is starting so he has background knowledge. So if is featured I
think is good.
PS2 Yes, now the IA is not factored in the bill of appropriation hence, cannot work
effectively. So IA should be featured for it to work effectively to combat
corruption in the Public Sector of Ghana.
PS3 Yes, it can on the fight against financial corruption. Chart of Account, some of
them are controls mechanisms during the third party transactions. In the chart
of account, internal audit is there to ensure that the controls are working
effectively.
PS4 Sure, it will, because, if look at PFM Act, we have Planning, Accounting,
Reporting and Internal Audit. If IA is on the platform to in charge of Account
with the comfort of their zone, it will help to atomize the system
PS5 Yes, it does, I think it if featured in the bill of appropriation, the major projects,
IAU budget is factor in the entire budget of the organization that is what is
currently done. It will make IA be resourced to perform effectively.
PS6 Yes, it can enhance fight fc, if when we look at Bill of Appropriation and Chart
of Account, the roles IAs play in the institutions and they are given the free
hands to operate they can advise on how some of these can be done, but all
is left in the hands of accountants. For instance, everything will done before
bringing it to the IA, is not much aware of content or real information. I think
they should fully feature in the Bill of Appropriation and Chart of Account so
that FC could minimized
PS7 One of the factors is logistics, they unfortunately denied of logistics, do being
weak. Basically, the Anti-corruption institution should be provided with
logistics. Then follow is honesty and professionalism of the staff of the anti-
corruption institutions. They should be trained professionally and have
occasionally briefing on anti-corruption
PS8 Yes, because it will be result in availability of funds and dependence of the
Internal Audit Unit will reduce to minimal.
PS9 Yes, IAP would be improved
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APPENDIX P: CORRELATION BETWEEN PSFM AND SJ
Correlation between PSFM and Social Justice
Correction between PSFM and SJ should be Positive or Negative and why?
PS1 The correlation between PSFM and social justice I think should be positive.
When PSFM increases it should lead to social justice also increasing
PS2 The correlation between PSFM and Social Justice should be positive,
because, everything for government should redistributed fairly. IA is to
minimize threats, errors and fraud, Equity will IA to achieve their aim, which is
to prevent threats, errors and fraud.
PS3 I think, they should be positive correlation, when come to the fight against
financial corruption is about resource availability, the more the correlation the
better improvement of public sector financial management.
PS4 There is positive correlation, for now it is negative correlation, we need to fight
financial corruption, because, we run and run and finally come to the same
point.
PS5 Yes, correlation between the PSFM and Social Justice should be positive,
When it positive PSFM will ensure equitable distribution of resource, under
privileged or under resourced should have equal share of the national cake
PS6 Yes, it should be positive, definitely, because if it is not positive, for instance,
we talk about equity, you talk about fairness, if correlation is not positive,
definitely, people may take advantage of the system and they can abuse the
system, but for instance you find guilty of embezzlement, you should be
punished, Yes justice must be same, if like some people may embezzle and
will be escort free and some will be punished, there no fairness that can affect
the system, and will encourage others to still indulge in FC, if the punish is
stringent, it will deter people from causing financial corruption. To me, public
officers should be audited. When we talk about parliamentarians, some of
them will four year looking at their weight is not fair and it will encourage
others
PS7 Not answered
PS8 The correlation between PSFM and Social Justice should be positive, so that
the improvement each can enhance the improvement of the other. Hence I
expect that the correlation between PSF and Social Justice should be positive
PS9 Yes, No side-lining and no intimidation
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APPENDIX Q: NEEDS TO REVIEW PFM ACT, 2016 (ACT 921)
Review of PFM Act, 2016
Do you agree that some portions or sections of PFM Act, 2016 (ACT921) need to be
reviewed and can you name any of the sections?
PSF1 I believe it should be reviewed but I cannot tell you the area
PSF2 Looking to the Act, it should be reviewed because some the things in the PFM
Act, 2016 are not detailed. Sections 87 (6) and section 88 (2) recommending
Principal Account Holder and Principal Spending Officer should be reviewed
to help minimize financial corruption. Effectively. The audit committee
chairperson and head of internal audit unit should rather sign the said report.
PSF3 Not right now and after sometime be reviewed. One area is concerning the
principal spending officer making him/her more responsible. The Chief
Executive Officer should also be responsible for financial commitments of the
entity.
PSF4 Yes, I agree for the review of the PFM Act, 2016. Sections 2 and 3
contravene the section 96. There should be a review, if the principal spending
officer and principal account holder appointing audit committee members is
not correct and should be revisited
PSF5 Yes, that is true, the PFM Act should be reviewed.
PSF6 Yes, I will say section 88(2) and 86 (6), as the ac secretory, this what I am
interested, I think the Principal Account H is not the right person to sign.
PSF7 Yes, because as we are in a system which are dynamic. As speaking,
following the PFM Act, 2016, the policy and where we are now, the review will
help achieve the objectives thus effective anti-corruption
PSF8 Yes, I agree
PSF9 Yes, reporting to the authority
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APPENDIX R: INTEPRETATION OF ADOPTED CODES
Interpretation of Codes to Analyze Interview Data
CODE INTEPRETATION OF CODE
IAP Respondents’ words, phrases, and sentences that relate to the factors
Inhibitors that militate against internal audit performance in the fight against
financial corruption in the public sector of Ghana.
IAP Respondents’ words, phrases, and sentences that relate to the factors
Determiners that promote the effectiveness and characteristics of Internal Audit
Function and Internal Audit Performance, and the correlation between
them in the public sector financial management in the fight against
Public Respondents’ words, phrases and sentences that related to what the
Expectations public expects the public servants to do in the fight against FC, financial
loss in order to protect the public purse.
Desired Respondents’ words, phrases and sentences that related to
Outputs enhancement of IAP, PSFM, Governance system, Justice system and
Ant-corruption ventures to prevent FC and Financial loss to the state.
FC Drivers Respondents’ words, phrases, and sentences that had to do with factors
that lie within or outside the control of the public institutions and have
the potential to impede efforts of IAP, PSFM and Anti-corruption
consequently promote occurrence of FC in the PSoG
FC Inhibitors Respondents’ words, phrases and sentences that had to do with
issues/factors that lie within or outside the control of the public
institutions and have the potential to detect and prevent corrupt
activities
Impact Respondents’ words, phrases, and sentences that have to do with
Inhibitors issues/factors that lie within or outside the control of the IAP and PSFM
and have the potential to impede the efforts of IAP and PSFM which
consequently militate against their impacts on fighting FC
PSFM Respondents’ words, phrases, and sentences that relate to the factors
Determiners that promote the effectiveness of the Public Sector Financial
Management in the fight against FC.
PSFM Respondents’ words, phrases and sentences that have to do with
Inhibitors issues/factors that lie within or outside the control of the PSFM but have
the potential to impede the efforts of Public Sector Institutions and
consequently affect the performance of PSFM in fighting FC
Right Respondents’ words, phrases and sentences that people within or
Principles outside the public institutions sees as appropriate behavior of public
servants managing the national resources to avoid financial loss, FC
and rise in the national debt
SJ Inhibitors Respondents’ words, phrases and sentences that had to do with
issues/factors that lie outside the control of the public institutions but
have the potential to militate against: good governance, IAP, PSFM,
Page | 434
Justice system, and anti-corruption efforts and consequently reduce
level of: equity and fairness in allocation and managing public funds
SJ Respondents’ words, phrases and sentences that had to do with
Promoters issues/factors that lie outside the control of the public institutions and
have the potential to improve on effectiveness of: good governance,
IAP, PSFM, and Anti-corruption efforts and consequently promote
equity, fairness, accountability and transparency, and rationality in
allocation of national resources.
Wrong Respondents’ words, phrases and sentences that relate to people’s held
principles beliefs within and outside the public institutions and what they perceive
as inappropriate behavior of public servants in mismanaging the national
resources that results in financial loss and FC.
Respondents’ words, phrases and sentences that highlights challenges
Public faced institutionally and individually in achieving effectiveness of: IAP,
Challenges Justice system, Anti-corruption, and PSFM impairing efforts to fight FC.
Role Respondents’ words, phrases and sentences that highlights what are
Definitions expected of all public servants handling PSFM the right to do to attain
effectiveness, efficiency and economy to avoid FC.
FC Cost- Respondents’ words, phrases and sentences that related to factors that
Neutralizers can facilitate the public institutions to enhance IAP, justice system,
governance system and PSFM to avoid financial loss due to the
occurrence of FC.
Governance Respondents’ words, phrases, and sentences that had to do with factors
Factors that lie outside the jurisdiction of the public institutions but have the
potential to influence their efforts and consequently affect the impact of
the IAP and PSFM in fighting or breeding FC.
Source : MacChrles Tamakloe (2021)
Page | 435
APPENDIX S: WORDS, PHRASES AND SENTENCES CODES
Thematic Codes
Code Quotations
IAP  Let me talk about intimidation.  Not at all. My suggestion is
Inhibitors  We could also talk about lack of that this needs to be signed
resources to the internal audit by the head of the internal
staffs to enable them discharge audits the one who is
their duties to the best of their discharging his duty.
knowledge.  No, not at all.
 There is this lack of recognition.  It doesn’t help. Yeah.
 One of the issues that I have  Not at all.
with my internal auditor has to  I think the auditor’s
do with delay promotion. assignment is to audit the
 agency in which he or she
 is assigned so the report
 The man has been performing. should not be signed by the
 He has been on a grade for principal spending officer.
about number of years without  So, when that is done then
any promotion I think that the few issues I
 And so it demotivates in the have with that is that it will
discharge of the duty that he delay the submission of the
has been called to do. audit report
 I think that the internal auditor  The report will equally be
will find himself intimidated manipulated because here
which will reduce his moral and is the situation where your
self-confidence auditor is supposed to act
 Non-recognition, low moral independently.
integrity,  So after having acted
 No transparency and independently he
accountability and submitting his report to the
 No allocation of resources to the principal spending officer to
internal auditors sign the report will
 Lack of resources. definitely be manipulated.
 Okay, Non-revolution of  Yeah, one can be the low
promotional challenges, sideling or poor relationship with
and less self-confidence between IAs and
management.
 Independence of Internal
Auditor
 Management here I mean
schedule officer and accountant,
 Every work need resources
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IAP  Internal Auditors should be  The factors that improve
Determiner given the free hand to perform IAP, to talk about, as IA
s of their duties. which is in place as a
 They shouldn’t be restricted by watchman,
top management, for the  So he should be
example they should be given independent person.
the necessary documents to Independence but should
verify and recommend, provide not leave in isolation, one
accurate information. of the factors is
 Yes, it can enhance fight FC independence,
 But all is left in the hands of  Collaboration between
accountants. Internal Auditor and
 I think they should fully feature Principal Spending Officer
in the Bill of Appropriation and and legal competence,
Chart of Account so that FC  Internal Auditor should
could minimized. have the degree to work
 The IA must be adequately effectively.
resourced to perform duties  We are talking about
 Yes, automation, GIFMIS to PSFM, I think that, there is
eliminate human interface need of IAP
 Availability of resources to the  Good governance
Internal Audit Unit  Social justice
 Strong Audit Committee with  Moral integrity
effective Chairperson  Effective Internal Audit Unit
 The level of professionalism of  Accountability and
audit staff Transparency
 Compliance of management  Management support for
controls the Auditors
 Professional training of internal  Commitment of Audit staff
auditors  Independence and
objectivity of Internal Audit
staff
 Implementation of Audit
Recommendations
Page | 437
Public  To prevent threat, errors and  To minimize maybe threats and
Expectations attain value for money errors
 The main objective IAP is to  Also maybe to provide effective
reduce or prevent threats and internal controls mechanisms
errors that may course financial within the Ministries
loss to the state  If there is social justice, there is
 -Provide internal controls to fairness, it promotes IAP,
detect, prevent and correct FC in  It also makes the PSFM play its
the public sector. role effectively because the IAP is
 -Also, to ensure that, public a byproduct of the PSFM, its part
assets are safeguarded, of it.
 Engagement in almost every  So once you are implementing
sphere of the organization. the PSFM, definitely it will
 Do you have signatories to the promote IAP.
accounts?  When there is punishment, if you
 Do the signatories approve look at the PFM Act, there was no
expenditures before they are punishment, now we have the
spent? PFM regulation which has come
 Yes, because as we are in a out with punishment to people
system which are dynamic. As who misuse public funds
speaking, following the PFM Act,  funds, you are liable to go to
2016, the policy and where we court or pay some penalties
are now, the review will help
achieve the objectives thus
effective anti-corruption
Desired  And also to fight and prevent  Good governance system features in
Outputs corruption activities. internal audit in terms of annual
 And also to detect and prevent Appropriation Bill and Chart of
corruption Account
 The Anti-corruption Institutions  IAP has minimized FC to lower level
are to go the ground find out in the PSFM.
information on corrupt activities  Of course, the final point is
which have potential for corrupt accountant the tendency for some to
activities syphon money from public funds,
 And brought to light for mitigation  The third person is there, so it has
in order to protect the public actually reduced FC to appreciable
funds level.
 Yes, the reason being that  IAP is doing well.
 The heads to work free without  I recommend appointment by Public
manipulation and political Service commission and also to
influence ensure continuity and effective
service delivery
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FC Drivers  Ineffective anti-corruption institutions  To me, I will say it is not effective
due to manipulation by authorities, looking at the rate at which corruption
interferences and lower their is occurring in the economy
performances.  I will say they are not much effective
 Lack of resources because their duty because corruption is alarming.
is to fish out those culprits  I will say, to my institution, IA is not
 There are the top guys who are also featured. If they are hooked it will also
engaging in these activities help in the control system.
 And who dares you to talk you’ll be  Social injustice weakens anti-
intimidated the resource that will help corruption program.
you do the work will not be provided.
FC Inhibitors  Social justice also promote good  The name suggests anti-corruption to
governance me is to prevent corruption and
 For effective corporate protect public purse.
governance, equality and then to  Detect and prevent corrupt activities
enhance IAP, PSFM, and Anti- and provide internal control
corruption programs to protect  and then it ensures that system of
the public purse and minimize financial management are not
corruption. manipulated for individual gains to the
 Yes, we have Audit Committee determinant of the nation or the
and it has been effective, we society
have several meetings.  The money belongs to the nation and
 Also, social justice helps in therefore no one should divert it to his
fairness and equity or her personal gains.
 It will be used for the benefit of
the society in which the money
belongs
Impact  For instance, everything will be  If the IA do not have the

Inhibitors done before bringing it to the IA, necessary documentations to
is not much aware of content or have an independent audit it can
real information lead to the auditor not doing his
 If the IA do not have work properly.
independence to do his own  No legal protection for internal
work that is if he is influenced by audit unit.
any person  Appointment of Audit Committee
 Then it means that he is going to chairperson and members by
be undermined. PAH
 If the IA present himself as a  limit the impacts of IAP, PSFM
policeman or a spy and that kind and Justice system
of thing, it will not help.  Logistics wise, Internal Auditors
are not considered
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PSFM  Okay, if talking about the  Accountability and
Determiners factors let me say there is transparency in all spheres
internal audit of public expenditure.
 There should be Internal  Okay. Now we have feeling
Audit Unit that should be in belongings and then
place. compliance to the financial
 We also have a good management tools
governance.  To ensure that resources
 Let me also take you back are judiciously used on
to social justice. public assets are safe
 Let’s talk about the integrity guided.
of the staffs performing the  So far, I have seen IAP as
role of the public sector remarkable and helpful to
and then, the nation, that one I can
 probably, say.
 let’s talk about morale  This boils down to the
authority PSFM.
 Factors that promote  It make the control system
PSFM are; effective great to help in doing the
internal audit unit, effective right thing.
audit committee, social  So the IAP is more or less
justice, good governance, the sub-system of the
leadership style, PSFM
accountability, moral  Factors that can promote
integrity, and availability of the effectiveness of PSFM,
PSFM tools which itself provides some
 What promote controls in the utilization of
effectiveness of PSFM, resources that is
yeah, when talk of generated.
promotion of PSFM is a  For example when you look
tool which is needed to at the PSFM system, we
facilitate to avoid financial have the GIFMIS which is a
loss software that we use to
 Looking at where we were record all expenditures
and where we are now we incurred by the government
started with PUFMA, entities and revenues that
followed by GIFMIS which have been collected by
is in new and PFM Act, government entities.
2016 and PFM Act, 2019  So it is a control measure
are helping improving on that we put in place to
the effectiveness of PSFM. ensure that we account
 Those are the factors. effectively for government
 One, it prevent waste of resources.
resources because when  To make the PSFM
you have the IA vetting effective;
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your documents making  The GIFMIS that I talked
sure that the right prices about needs logistics, you
are quoted for specific have to make sure that you
products or services you provide every user with the
are going to procure necessary logistics and
 It also make money infrastructure for the people
available for other activities who will use it.
in the sense that if there is  For example, if internet
proper audit, something services are not working it
that is supposed to spend 2 will affect the performance
Cedis on and somebody try or is not going to help
to spend 3 Cedis on effective implementation or
 IA can bring about savings effective rolling out of the
that can be used for other PSFM system because you
equally activities that is cannot record, you cannot
needed by the organization spend.
 Those in charge of PSFM  They must know their job
must have integrity and should be qualified
 Have self-confidence
 Positive human relations,
 He should present himself
as someone who is there to
support the system to
stand well.
PSFM  Less confidence level of  Actually, I will also have
Inhibitors internal auditors. challenges if the audit
 Ineffective internal audit report goes to the big man,
unit, which can be manipulated
 Ineffective Audit  I disagree with the signing
Committee, of the PAH and PSO. The
 Social injustice, HIA who prepares the audit
 Bad governance, report should sign it with
 Bad leadership style the audit committee
 Absence of accountability chairperson.
and transparency  Well, I will say the process
 No moral integrity is cover-up
 Yes, only viewing not for  And it undermines the IAP.
checking irregularities, It does not promote IAP.
nothing can be changed.  Some sections of PFM to
 Lack of training on the be reviewed
GIFMIS  Lack of professional
 Lack of management training
support and commitment of  Collusion of account staff
both internal audit staff and  Lack of effective sanction
account staff. for corruptors.
Page | 441
Right  It reduces threats and errors  The roles of anti-corruption
Principles to attain value for money institutions are to prevent
 Protect public purse, detect, corrupt activities.
prevent, and correct  Protect the purse of the
corruption in the public public, punish corrupt
sector. officers.
 After the meeting we have  Organize the anti-
been implementing audit corruption programs for
recommendations. public institutions.
 They pursue management  prevent financial loss
to recognize the  Investigate potential
recommendations contained corrupt activities for
in the internal audit report mitigation
 Yes, IAP would be improved  Ensure that financial
 Continuous professional management system is not
training, value professional manipulated to the
development, sensitize the detriment of the larger
conscience of the public society
service, monitoring activities  Yes, securing
of Audit Committee by independence of Internal
Internal Audit Agency. Audit, Promotion, Legal
 Availability of financial protection
resources, human capital,  To my opinion annual audit
and the heads of such statement should be signed
institution to be appointed by Head of Internal Audit
by Public Service Unit and Chairperson of the
Commission, Audit Committee to avoid
delay and manipulation of
reports
 Professional training for the
staff, Management
Commitment and support
Page | 442
SJ Inhibitors  Yes, the promotions are  That is yes, for the
delayed and the delay is a implementer to sign IA
demotivation to IA staff. report, he can decide to
 IA staff should be promoted sign or not to sign.
so if their promotion is  I think somebody other the
impaired, it doesn’t flow principal spending officer to
just as other departments sign because it is not good
having their promotions for him not sign due to
going, conflict of interest
 You will realize that the  Principal Spending officer
progression of the IA signing internal audit report
department is stagnant and as the chief auditee I do
is not motivating the staffs not agree.
to bring out their best  If not promoted regularly,
 As for that, where I found you will be doing higher
myself, I know I should be grade job for same salary
promoted in every 4 years  But I stayed in my current
position for 9 years before
promotion.
SJ  To me through provision of  It controls good governance
Promoters revenue allocation to the for effective financial
internal audit unit, PSFM management, and good
and then anti-corruption leadership, equity and
motivates internal justice system that
organization that promotes enhances IAP and PSFM.
the level of IAP and Anti-  And anti-corruption program
corruption activities to protect public purse and
 That leads to equity and minimize FC.
fairness of human treatment  In other words as I have
 Here I will say good already said it promotes
corporate governance fairness equal opportunities
promotes social justice and to motivate staff due to the
social justice also promote social justice system
equity and equality leading  Yes, No side-lining and no
to the fight against FC intimidation.
 Promotion makes you  Constant promotion to be
efficient, it makes you feel recommended by the entity
that per the scheme of heads and making
service you are progressing promotions for all civil
by the timelines that has service classes the same.
been set in the scheme of  Thus not demanding A from
service some classes and
 Yes, ensuring regular demanding A+B from
progress of Internal Auditors Internal Auditors
in form of promotion to  The Internal Audit Agency
motivate them feel superior, Act and PSFM Act, need to
 Legal protection of Internal Page | 443
be synchronized to spell out
Mr. MacCharles
Auditors against Tamakloe, MBA
clearly the roles of each.
Doctor of Business
intimidation, Administration Thesis
fear of been  Enhancement of Internal
UGSM-Monarch
transferred Business
or fired without School Switzerland
Auditors independence and
any cause. objectivity
Wrong  Intimidation of internal  So we said you are sitting in
principles auditors an office idle and no PC no
 Non-recognition, lack of network and How will you
resources to impair work to check me
performance.  Inadequate management
 Partially featuring of Internal support
Audit in the Bill of  Poor working conditions of
Appropriation and Chart of internal auditors
Accounts.  This is a fertile ground for
 Not been effective due to corruption in our country
lack of credible information because we don’t have
to prosecute offenders. credible data to monitor
 Influencing someone with  Manipulation of the financial
monetary reward/resources management system for
to act in a way he will not do financial gains.
but for the monetary or  Using of one’s position or
resources as bribery. authority or office to benefit
 For sure, the factors that financially to the
militate against the disadvantage of the state
enhancement of IAP and  Promotional challenges
PSFM in the fight against facing Internal Auditors
anti-corruption include;  Lack of protection for
 Political interferences from Internal Auditors and Public
those in authority Sector Financial
 Lack of resources for the Management staff.
Internal Audit Unit to  Lack of professional training
executes it annual Internal for Internal Auditors and
Audit plan for the year. Accountants
 Professional skills and  Less or no motivation for
qualification of the Internal those who are responsible
Auditor not being standard for effectiveness and
 Intimidation of the Internal efficiency of financial
Auditors to create fear and management
panic
 Commitment of the Internal
Auditors
 This process serves as a  Some peoples think, IAs
Public cover up to the actors of are policemen looking for
Challenges corruption and undermines fault and witch hunting and
the IAP. were there to make their
 I do not Agree with the Act, work difficult, without
it should be reviewed knowing that, they are for
 It will delay submission of facilitation of accurate work
Page | 444
IA report which can be  And they are there for risk
manipulated. sharing so I welcome good
 Because, when you delay, heartily because I know
you are denying the flow of their use.
the information and then  Social justice, sometimes if
who must take the look at social issues in our
information to work on society and justice
 It is also denying and is a  IAA managing IAP, some
recipe for changing the people still have the
meaning. perception that IAP can
 There are some string that affect their social standing,
dismantle the effectiveness hence limit IAP to fight FC.
due to political dynamism.
Role  The roles of anti-corruption  Detection and prevention of

definitions institutions are to prevent FC .Also increase the
corrupt activities, protect economic and value for
the purse of the public money
 Punish corrupt officers,  Influencing can be positive,
 Organize the anti- I can see IA influencing FC,
corruption programs for  They are in the system to
public institutions, reduce FC.
 Prevent financial loss and  I think IAP is an
investigate potential corrupt independence assessment
activities for mitigation. of public organizations
 IAP and PSFM influence  Operations to check to see
financial corruption by whether the internal
providing platform for controls are working within
detection and prevention of that particular organization
threats and errors that may or whether there is a need
lead to FC. for any change to be
 IAP is to check errors, effected
correct errors and make  Anti-corruption institutions
changes when the need are to make sure that
be. It also prevent fraud. people do not embezzled
 I am not a member of the public funds are punished
committee but I know that it to serve as deterrence to
should play its role to the others.
best of the rules and  They are also there to
regulations guiding the make sure that public funds
usage of public funds. are put to good use are
 So, when it comes to used judiciously
financial management,  The roles IAs play in the
what are the roles institutions and they are
Page | 445
concerning expenditure, given the free hands to
what are the roles operate they can advise on
concerning safe keeping of how some of these can be
funds. done
 I do agree, those words or  Yes, IA, three cardinal
sentences are well coded. points control, risk
 The characteristics are the management, governance
standard that, have been processes
researched into, so, when  The Internal Audit Agency
put into practice can fight should provide the Internal
FC. Auditors and their units
with all necessary elements
FC Cost-  The impact is that it  Through the provision of or
Neutralizers enhances PSFM by by the provision of revenue
drawing attention on allocation to the IAU,
corrupt activities for PSFM and then Anti-
mitigation corruption.
 And then reducing threats  Motivate Internal Auditors
and errors to prevent that promote the level of
corruption IAP and Anti-corruption
 Serve as deterrent of third  If you put the structures in
party and management to place and the people who
check anything going are managing the
against the law by structures are motivated
providing control system enough to perform their
 Yes, management tool for duty
advising, detection,  If they can achieve and
prevention and correction they cannot be bribed.
of fraudulent activities  Sensitization of the public,
 I think that, Accountant, ethical values, moral
and Principal Spending authority, and code of
Officer should follow the conducts
law.
Governance  To me, the internal audit  In the governance
Factors units are not considered structure, if you take any
fully in appropriation bill organization with its
and chart of accounts. organogram, you will see
 Hence Lowers is potential Internal Auditor is hanging
to perform because the between the Chief Director
bottom line is that, I will not and line directors on the
give your arms to check organogram meaning they
me. are to be independent.
 Rather, I will just do things  In the governance system,
that will prevent traces of they are the people to
evil deeds reckon with
Page | 446
 And therefore lowering the  Corporate governance, you
activities of the internal see, any institution that
audit one more thing. manage well as a tool for
 Social justice promotes anti-corruption.
good governance or  How the corporate
enhance IAP by quality and governance is performing,
justice system. IA should be able to
 Internal Audit- all roles are manage and minimize FC
executed by IAA,  and governance system
will be boosted
Page | 447

MacCharles Tamakloe Dissertation UGSM

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MacCharles Tamakloe Dissertation UGSM

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Monarch Business School Switzerland

Financial Management in the Ghanaian Economy:

PROGRAM: Doctor of Business Administration

The Ghanaian economy is characterized by persistent increases of external debt due to

This actually encouraged and motivated me to fight academically, intellectually and

This document is prepared as a Dissertation submission to UGSM-Monarch Business

School Switzerland in fulfilment of the degree of:

Doctor of Business Administration

document constitutes the entire submission of the dissertation component.

Dissertation Committee Members:

© 2024 MacCharlesTamakloe, All Rights Reserved to Author

LIST OF FIGURES AND TABLES

Internal Audit is an independent, objective assurance and consulting activity designed to

helps an organization accomplish its objectives by bringing a systematic, disciplined

Jeppesen,(2019); IIA, (2020); Perterson et al., (2019); Neratzidis et al.,(2020); Brenk et

approaches by which public organizations can solve administrative and financial

issue of concern in Ghana is the corrosive impacts of financial corruption on the

control mechanisms to improve and strengthen governance (Kotb et al., 2020 ;

For internal auditing to be a value-added activity, it is important for internal auditors to

However, the various governments in Ghana made an attempt to improve on the

The effects of financial corruption retard socio-economic development and persistently

stood at GhC381.96 billion equivalent to $ 58.64 billion US dollars (Bank of Ghana,

Performance (IIAP) and Infective Public Sector Financial Management (IPSFM)

contribute to factors of financial corruption. Despite Ghana’s democratic governance

(PSoG) is corruption because of its negative impacts on people. It prevents the

most destructive impediments to socio-economic development in Ghana; it takes away

Deffor, 2017). This calls for the way out.

process of managing performance and using performance as a means of accountability

in a systematic manner to avoid financial corruption (Shah, n.d). According to Internal

corrupt activities in order to enhance Public Sector Financial Management.

Performance-based accountability systems measure both performance of policy

instrumentation of social vices including FC in the Public Sector of Ghana. FC fosters

sustains inefficient service delivery, perpetuates poverty and ultimately entrenches

underdevelopment (Hanna, Bishop, Nadel, Scheffler & Durlacher, 2021).

directorates of the Ministry, Department and Agencies (MDAs), as well as Metropolitan,

2019). The core principles asserts by Gleim (2019) include:

 Demonstration core competence and professional care,

 Objectivity and freedom from undue influence,

 Aligns plans with strategies, objectives, and risks,

 Appropriately positioned and well resourced,

 Demonstration of continuous improvement,

 Provision of risk-based assurance

 Being insightful, proactive, and future-focused and

 Promotion of organizational improvement (Gleim, 2019).

the organization’s operations through a systematic and disciplined approach, which

includes evaluating and improving on the effectiveness of risk management, control

largest time is spent on pre-auditing transactions, which are ex-ante, check of

independence (Hellman, 2022).

legacy, poor leadership, manipulation of financial documents, selfishness, favoritism,

nepotism, non-adherence to procedures, weak anti-corruption institutions, lack of

judicial system, insecurity and conflicts of interest (Lumumba , 2015). Highlighting on

the menace of financial corruption, Africa Development Bank (2018) re-emphasizes

in multifarious domains in the social environment, which includes: administration,

administration of the programs and operations of a covered entity.

technically in nature and from professional arena. Additionally, review of IA approaches

developed a conceptual model to be backed by policy, and procedures to enhance

effectiveness of IAP to fight SVIFC in Ghana.

Ghanaian academics and professionals, the weakening of institutions were to have

active media coverage and government anti-corruption initiatives to counter it (Freedom

weakened the legitimacy of democratic institutions among the broader population.

an insidious plague that has a wide range of corrosive effects on societies. It

financial management (EPSFM) and ineffective public sector financial management

on the research question, a qualitative research approach was utilized as a suitable